Austrade senior mining export advisor Clyde Paton told International Longwall News that Australia was already well regarded in China as a world-class provider of mining products, services and technologies.

 

He said Australian mining firms are doing business in China across the spectrum – via agents and distributors, joint venture partners, manufacture under licence agreements, and increasingly by setting up their own manufacturing plants in China for sales in China and overseas.

 

Paton said feedback he had received from key Australian mining exporters indicated that the Chinese market was maturing, in that technology solutions were increasingly being sought to solve problems in mine safety and for productivity improvements.

 

“Australian mining equipment, service and technology providers have opportunities across the supply chain, but particularly in the areas of mine safety products and services, coal washeries, coal processing equipment, and environmental and clean coal technologies,” Paton said.

 

Paton offered some advice for Australian mining firms looking to break into the Chinese market, saying Austrade – as the Australian Government's export facilitation agency – should be the first port of call for any company weighing up its options.

 

“As well as providing financial assistance on promotional expenditures, Austrade's real niche is in identifying potential agents and partners, as well as potential opportunities and buyers; and generally in assisting them enter the market,” Paton said.

 

He said that as with doing business in Australia or any other country, Australian firms should undertake normal commercial practices (carry out due diligence on potential partners and customers, take out credit and IP insurance) when considering China.

 

China’s coal mines are the deadliest in the world and despite government attempts to improve health and safety practices, it is estimated that more than 6000 people die in the country’s coal mines each year due to outdated equipment, gas leaks, explosions and floods.

 

In an effort to better their safety record and boost the productivity and output of its coal mines, the Chinese Government is now working towards closing many of the illegal, dangerous and uneconomic mines that litter small townships and villages across the country.

 

Paton said while the current relationship between the Australian and Chinese coal industries is essentially a commercial one, last year the two countries strengthened their connection, signing a memorandum of understanding on mine safety.

 

Under the MoU, Australian Minister for Industry, Tourism and Resources Ian Macfarlane, together with Chinese Minister for the State Administration of Work Safety Li Yizhong, created the industry-led Australian Coal Mine Safety Taskforce and the China Coal Mine Safety Taskforce to work collaboratively on improvements to coal mine safety.

 

While coal companies in China work on improving infrastructure at existing mines and establishing new, more productive projects, Paton said it is obvious they are also recognising the potential of investing in advanced equipment, technologies and managerial expertise from Australia.

 

“One major Chinese group, Datong Coal Mining Group in Shanxi Province, is already sourcing around 80 percent of its mining equipment and technologies from Australian suppliers,” Paton said.

 

Meanwhile, Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO), Safety in Mines, Testing and Research Station (SIMTARS), Australian Mining Services International and Mine Site Technologies are also well established in the Chinese market, providing equipment and consulting with coal mines and organisations on mine safety.

 

Paton said for those looking to break into the Chinese coal mining market, the upcoming China Coal Expo, to be held in Beijing this November, would provide a valuable marketing platform for exhibiting Australian companies to reach key Chinese mining markets.

 

“The annual event pitches at the commercial end of the Chinese coal market, including potential customers and buyers of mining equipment, services and technologies. It also targets potential agents, distributors and partners for Australian mining firms,” he said.

 

Austrade has booked 16 booths at the expo, with the Queensland Government also reserving space on the Australian pavilion for a delegation of firms from the state.

 

For more information contact Clyde Paton on 02 9390 2788.