International accounting major Ernst & Young LLP believes the value of mergers and acquisitions in the mining industry may more than double this year as China seeks to secure supplies of raw materials.
In 2009, mergers and acquisitions in the mineral sector fell to $60 billion following a peak of $210 billion in 2007. This year, Ernst & Young LLP forecasts the value of mining M&A will reach $175 billion.
Meanwhile, China — the world’s largest metal consumer — may add to last year’s record $32 billion spending on resource acquisitions. China was the world leader in mineral acquisitions last year, accounting for 24% of all deals (compared with 18% in 2008). There may be the same amount of interest from China this year as the country looks to secure natural resources for infrastructure development.
Editor, Wealth Daily