Absolutely vital thread on the role state credit has played in China locking down the battery materials supply chain:
https://twitter.com/PekingMike/status/1462049965040152588
To put this ~$100bn in lines if credit for China Moly, China Nonferrous and China Minmetals in context:
BHP, the world's biggest miner, has about $4bn in net debt.
Glencore, a huge miner with a vast credit-hungry commodity trading arm, has about $10bn.
BHP, the world's biggest miner, has about $4bn in net debt.
Glencore, a huge miner with a vast credit-hungry commodity trading arm, has about $10bn.
https://twitter.com/PekingMike/status/1462070184265535488?t=nB-BfvuSse7qBhqrK3cVDA&s=19
Now, lines of credit aren't the same as net debt.
Net debt will be smaller because you net out cash; and you only count drawn-down borrowings in the credit facility as debt, whereas a line of credit is the whole facility.
Still, the differences are impossibly large.
Net debt will be smaller because you net out cash; and you only count drawn-down borrowings in the credit facility as debt, whereas a line of credit is the whole facility.
Still, the differences are impossibly large.
Any one of these big Chinese SOEs has financial support pretty much equivalent to the entire western mining industry.
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