Overseas Coal Layouts Urgently Avoid Political Risks

"China Sankei Shimbun": From this it can be seen that the common political risk of carefully choosing the investment place is a key factor that coal companies must seriously consider in the process of coal foreign investment. So which countries do you think overseas coal investment should focus on in the near future?

Huang Rihan: The current risk factors for overseas coal investment are Mozambique and Indonesia; Kazakhstan, Canada and Australia have lower political risk index. In particular, Australia’s political situation is stable, its laws are sound, its resources are abundant, and its conditions of occurrence are relatively good. The country’s coal resources are also relatively active in mergers and acquisitions. Therefore, overseas coal investment should focus on the development of Australian coal resources in the near future. Based on the Australian market, Kazakhstan, Russia, and other countries, as well as Southeast Asia and West Asia, should be regarded as medium and long-term target markets. Africa and South America can be used as medium and long-term target markets. .

"China Sankei Shimbun": In order to effectively avoid the risks in the process of cross-border investment, in your opinion, "going out" Chinese-funded enterprises need to do to go far?

Huang Rihan: In order to effectively avoid the political risks in the process of cross-border investment, internal and external cultivation, hard work is not only the only way for overseas coal investment, but also the necessary lesson for all “going out” Chinese-funded enterprises.

In the preparation stage for enterprises to invest overseas, first of all, it is necessary to strengthen the training and reserve of foreign investment talents. Only by having sufficient talent pools can we be able to prevent problems before they occur. Second, before investing, it is necessary to conduct a scientific and comprehensive assessment of the regional environment and the political environment of the country and carefully select the country of investment. When selecting countries for investment, comprehensive and comprehensive consideration should be given to the country’s political situation, economic and cultural environment, and related investment policies and laws. At the same time, it is necessary to conduct comprehensive investigations on the characteristics of local coal resources, geological structure, and safety factors. A detailed inspection of supporting facilities such as locational advantages, traffic conditions, and power supply at the location of the coal mine should be carried out; demand for the coal market and marketing costs should be investigated. , input-output and corporate benefits are measured and analyzed, etc.; and the industrial development status of various points in the industrial chain associated with the coal industry in the investment region and the status of “upstream and downstream” industrial products and value-added of coal are investigated to facilitate the comprehensive utilization of coal. And deep processing, expand the industrial chain. Only after a comprehensive evaluation can we lay a good start for investing overseas coal resources.