The practice of most mining companies in the world is to register for exploration first, then absorb funds after finding the ore source, raise funds through issuing stocks, or jointly develop. Although this method is risky, it is desirable. It is a new strategy for China to start with some key countries and then gradually spread to neighboring countries.
The ore can be sold back and the rest can be re-exported to a third country. Due to the shortage of funds in China, we can invest in machinery, equipment, technology and services, and cooperate with African countries through compensation trade.
In the oil field, China and Africa can also adopt the way of cooperative exploration and exploitation, and share the corresponding share of crude oil through cooperation, which is also a common way of cooperation in the world. At present, China has the ability and technology to participate in foreign oil exploration and development.
The following successful experiences can be used for reference by African mining industry:
First of all, we should adhere to four principles in project selection. That is, African countries with low political risk, relatively stable political environment and friendly relations with China are selected; The operation risk is low, and the development projects are the main ones in the initial stage, and some exploration projects are gradually developed after accumulating certain funds and experience; The economic return is high, the profitability of the project must be greater than the expected profitability, and all the investment can be recovered within 5 years; This project has high joint benefits and must be able to drive the export of materials, equipment, technology and services in China.
Secondly, in project management, it is necessary to ensure the input and output of funds, and the headquarters of domestic companies can implement effective control. First, sign a project contract or agreement with the host government, so that the project return has certain legal protection; Second, the domestic company headquarters implements the branch system for the management of overseas companies, and implements the management mode of "two lines of revenue and expenditure", that is, the income or products of overseas companies are paid to the domestic company headquarters in full, and the expenses of overseas companies are provided by the domestic company headquarters in full, so as not to form a profit center overseas; Third, the project financial management is carried out in strict accordance with international practice, and the fund-raising system is implemented to ensure the effective financial control of overseas projects by the headquarters of domestic companies; The fourth is a strict monitoring mechanism for the whole process of project operation.
Third, the investment in the form of international joint groups can not only spread risks, but also make full use of the respective advantages of partners and naturally form a strong supervision mechanism.