Senior business development manager at Austrade’s Beijing office Ouyang Jun said Australian operators are in good stead to capitalise on opportunities due to the excellent reputation of Australian mining equipment. Coupled with the fact that much of the mining equipment is imported into China’s mining and energy industry, this presents a huge opportunity in support or matching products.
According to Jun, China will produce 1.3 billion tons of per year by 2005 and export 100 million tons.
Opportunity also exists in associated areas of coal washing and coal bed methane. By 2005 50% of raw coal will be washed, the figure is 35% now. By 2005 coal bed methane output will reach 10 million tons.
Estimates for 2005 also cover coal slurry output which is predicted to reach 10 million tons and coal to oil output which will reach 2.5 million tons of oil.
Penetration of the Chinese market compared to other markets is quite unique. Unlike more established markets, China conducts few normal ICB’s and most projects have bidding by invitation only. This has meant it is critical to attend trade shows in China, make technical presentations, make site visits and or have a local agent or distributor.
Some trade shows include the Coal and Mining Expo held last year, the LNG Mission to Guangdong province to evaluate the market, the Gorgon project in Zhejiang. Shows for this year include the Clean Coal Mission and the Power Industry Deregulation Conference in Shanghai.
Part of successfully breaking into the Chinese market is through seeking assistance. Austrade can be instrumental in facilitating the infiltration.
Austrade can assist through lobbying key decision-makers in the Chinese bureaucracy and providing up to date industry news and regular advice on major policy, commercial, legal and structural changes. Austrade can also assist in introducing companies to useful contacts and projects, arranging meetings with Chinese companies, organisations and government authorities. They also provide intense support for product marketing and project hunting campaigns.
