Right time for mining firms to spread wings

The next 12-18 months will be the opportune time for Chinese mining and metals firms to pursue overseas acquisitions, as the market value of their overseas counterparts have dropped to attractive levels, global consultancy firm Ernst & Young said in a report.

Prices of mining products touched a six-year low in 2008 due to the global economic crisis. The market value of the world's mining and metals companies dropped about 40-60 percent, while the top 30 mining and metals companies in the world saw their market value drop to $808 billion from $2 trillion, according to the report.

"We anticipate Chinese companies with cash on hand to be active shoppers in this current environment, where there are once-in-a-lifetime acquisition opportunities, such as in low-risk markets like Australia and Canada," said Raymond Ng, partner, Ernst & Young.