China may target for Freeport and Cliffs - Citigroup
Monday, 01 Jun 2009
Bloomberg recently reported that Freeport-McMoRan Copper & Gold Inc the world’s largest publicly traded copper producer and Cliffs Natural Resources Inc may be acquisition targets for China as its seeks to secure more mineral supplies.
Citigroup Inc analysts led by Sydney based Mr Craig Sainsbury in a report said that “The Chinese purse strings are opening and there is the potential for China to become the world’s resource bank.”
Mr Sainsbury in the report said that “After years of speculation that China would start to erase some of its raw material deficit by acquiring resource assets and companies, the recent economic downturn has appeared to be the catalyst for the buying to begin.”
The report said that China as well as global mining companies may also target Australia’s Equinox Minerals Ltd owner of the biggest copper mine in Africa and Fortescue Metals Group Ltd.
