Mining and Metals Industry to Enhance Global Trade

e competition for raw materials, the global mining and				diversification of destinations in Africa and Central
metals industry turnover and trading volume is bound				Asia will be increased trading activity.
to rise, "Ernst Young global mining and metals				Equity financing as the main channel
industry, Managing Partner Mike Elliott, said on the				As the shortage of available bank loans, equity
6th. The first half of 2010 to complete the				financing is still the preferred source of funds in the
transaction volume growth over last year 20%, up to				industry. 2009 of the larger global diversified mining
544, while turnover increased 46%, reaching 40.6				companies to become the leading force in raising
billion U.S. dollars, China, Japan, India, Singapore, South				funds in 2010, middle market companies raise funds
Korea became the largest buyers.				from the more active.
Diversification of trading destinations				Initial public offering (IPO) activities have begun to
In addition to the resources of the demand, other				return, but rather cautious first half of 2010 listed a
factors also are driving trade growth, including cash				total of 53 completed transactions, financing
flow there has been Gaishan will receive a capital has				amounted to 6.1 billion U.S. dollars, compared with the
increased, industry streamline the work will be Geng				same period last year, 19 cases increased the number
Wei Ge Enterprise Xi Wang's Chuizhizhengge so				of transactions, financing, increase the amount of 1.8
strong. Since the end of 2009, trading activity started				billion.
to improve, and continue to maintain the growth				Although the Australian Stock Exchange (ASX) and
momentum.				the Toronto Stock Exchange (TSX) trading volume in
Australia is the most popular 2009, investment				the lead, but the Hong Kong Stock Exchange is still
destination, and the first half of this year, Canada has				the choice of the industry, the world's largest single
become the most popular investment destination, at				market transactions (UC Rusal Rusal listing financing
the same time, substantial growth in trading activity				amounted to 2.2 billion U.S. dollars) is the Hong Kong
in Latin America.				Stock Exchange.
"Trading activities will continue to accelerate the pace				Bond issuance in the first half of 2010 compared with
of the closing on June 30 pending transactions are				first half of 2009 fell more than 30% compared to
transactions completed during the first half of this				because of the large diversified mining companies
year 4 times, and no signs of slowing down." Elliott				decline in circulation. China, the highest amount of
said, will continue to see global diversified mining				bond financing, the total amount of 26.4 billion U.S.
company seeking acquisition opportunities				dollars global financing accounted for 34%.
reinforcement. Expected in the first half of 2010, a				Bank loans continued to decline in loans during the
larger amount of transactions dominated the great				first half of this year compared with last year has
merger of the North American market in the next 6				decreased. Nearly two-thirds of the amount of
to 12 months continued. This is due to the ongoing				money raised for the restructuring or extension of
consolidation in North America is being driven by				existing loans.
economic recovery environment for those who				Elliott said, "Globally, the industry in bank loans in the
receive cash and hopes of gaining synergies through				doldrums, but BHP Billiton (BHP Billiton) potassium
the acquisition of companies that provide acquisition				carbonate to obtain bank loans for acquisitions, which
opportunities.				may indicate the occurrence to the long-awaited
Elliott said the next 6 to 12 months, trading continued				change.