Mining companies have been struggling to secure enough funding to fund their ventures and find staff.
The world’s largest oil and gas company, Royal Dutch Shell, has lost more than $100 million since the end of 2015 and has yet to secure financing to pay for the construction of its new mine in the Andes, which will be operated by a subsidiary of Russian energy giant Rosneft.
And in China, the world’s second-largest gold miner, Anbang, which has invested in oil and mining companies in the past, is struggling to find qualified staff to run its own operations.
China’s central bank said on Monday that the country needs a total of $12.4 trillion in additional financing to keep up with the economic downturn and the government plans to provide that for the next two years.
“It’s not enough to just have a business and invest money,” said Li Yongqiang, chief investment officer of Anbang’s China Investment Group.
“The country also needs to get out of debt and invest in infrastructure.”
China is now the world leader in oil production and exports, but its economy is expected to contract to 7.6% in 2020 from 8.5% in 2016.
The government has vowed to reduce its debt by 30% of the GDP and to expand its social security system, which is already struggling to deal with the fallout of the global financial crisis.
Chinese officials have also said that it is in the interests of the government to keep the country’s currency stable, to ease pressure on foreign exchange rates and to invest in other sectors.