Energy & Resources
Mining companies remains optimistic despite slowing market
Last Updated:2013-03-04 15:08 | Xinhua
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Delegates are "cautiously optimistic" as they gather for one of the world's biggest mining industry conferences.

With stagnant metal prices and a slowing market, the scene is markedly different compared to the rapid growth mining had seen in previous years.

But those in the industry remain optimistic as they attend the annual Prospectors & Developers Association of Canada (PDAC) conference.

Rod Thomas, the PDAC's first vice president, said the overall sentiment of mining companies was relatively positive as "China is still growing and the United States is slowly getting better."

"From the risk perspective, perhaps people are a little bit more apprehensive," Thomas said.

In order to sustain sound growth, cost cutting in the immediate term is a must for many mining companies to "weather the storm," Thomas said.

With nearly 30,000 delegates and investors from 125 countries, the annual four-day event that opened Sunday offers platforms for companies to find financing and exchange the latest industry information.

Thomas also said that delegations from China have visibly grown and are become increasingly prominent, in a bid to build networks, update their business expertise and look for cooperation.

Among the delegations is the Gold International Resources Corp. Ltd, an overseas subsidiary of one of the largest gold producers in China. Elena Kazimrova, an analyst at the company, said they've never missed a chance to build connections and partnership during these meetings.

With two operations in China, Kazimrova said the company's main goal is, rather than soley finding investors for existing mines, but to look for opportunities for mergers and acquisitions.

"The market is really bad right now, we realize that," she said.acknowledging that investors are taking less risks and being more conservative.

"We think PDAC is a great opportunity to meet potential investors, talk to analysts, and share our stories," she said. "We want to get more people on board."

Many others like Weiliang Wang, vice president of Jien Nunavik Mining Exploration Limited, a Chinese-owned company with operations in Canada, are also optimistic. Wang believed the industry slowdown was just part of the natural cycle, and that what goes down will eventually come up.

"Our company has lots of funds," said Wang. "I think the mining industry is always up and down, so (the crisis) is ok for us."

This is the first year that Wang's company has had a booth at the convention. Besides networking and finding business opportunities, he said the ultimate goal is to get the company's name widely known and talk with possible partners.

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