Why global resources growth still matters to Melbourne – 16 November 2016

Home / Views / Why global resources growth still matters to Melbourne – 16 November 2016

The IMARC conference in Melbourne this month has been a potent reminder of how important mining still is to Melbourne. And, as a parallel, how important Melbourne remains to the global mining industry, notwithstanding the paucity of new resource projects in Victoria.

Take these statistics, quoted below from a news release issued during IMARC by Trade and Investment Victoria:

More than 100 mining and resources companies reside in Melbourne’s CBD, including the big hitters like Rio Tinto and BHP.

Real growth has come because of the rise of mining equipment, technology and services (METS), where Victoria is the largest exporter in Australia.

It is an industry that reaped in $17 billion in 2012 alone and multi billions each year..

This hive of activity has attracted the likes of private equity manager firm EMR Capital, which taps into Melbourne’s rich talent resources to service this rising hub of Australian – and global – mining.

Why did EMR Capital choose to set up its mining private equity group in Melbourne?

Melbourne was the natural fit for EMR Capital, with many of its executives having lived and worked in the city their entire lives. Chief executive officer Jason Chang said being where the history and expertise was located made the decision a no-brainer.

“A lot of the people behind EMR are people who have worked in mining and therefore have been based in Melbourne all their lives. We’ve got a good team here, mainly from a mining operational background, certainly executives who have exposure and focus on the mining sector for the last 30-40 years.”

A growing number of large-scale Chinese mining companies are making Melbourne an offshore home base, providing another attraction for companies like EMR to operate out of the city.

“We’ve got MMG here which is really one of the most successful Chinese overseas investment platforms. China Minerals is one of the China’s most respected and most successful Chinese companies,” Mr Chang says.

What advantages exist for managing a globally focused investment group centered in Melbourne?

Forecasts predict China will need to build the equivalent of all the housing in Singapore 15 times over in the next decade. This requires a prolific amount of material.

“We see a lot of buyer traffic. China is buying half of the world’s metal in mining projects available for sale, that traffic is very key. Standing here in the centre of this traffic is where you really want to be as an investor,” says Mr Chang.

So, great to see both EMR and our home city getting recognition for the contributions they are making. Resources remain at the forefront of Australia’s bid to benefit from Asia’s spectacular economic advances. Other industries are certainly getting in there too, but those figures – particularly the $17 billion from METS – are currently the standout numbers.

To read the full article from Trade and Investment Victoria go to:
http://www.investinaustralia.com/news/melbourne-global-hub-mining-business-and-services .

On the same site you will find another article titled “Melbourne’s Mining Giants Stride The Globe” which covers similar territory. Worth a look.