The Belt and Road Initiative creates a US$5 trillion infrastructure spending spree that spans over 68 countries across Asia, the Middle East, Europe, and Africa. Billions will be spent on ports, roads, railways, power plants, and will serve as an ongoing stimulus for commodities such as iron ore, coal, copper, crude oil and minor metals.
Citigroup Inc. reported the Belt and Road Initiative is backed by about US$900 billion worth of investments and has the potential to generate about 120 million tons of crude steel demand. This number is more optimistic to 150 million tons according to BHP published report in 2017.
Rani Jarkas, Chairman of Cedrus Investments, also commented during an interview by CNBC that the Belt and Road Initiative now is at the initial stage and has been starting to bring a huge demand boost for steel and iron ore.
This represents a great opportunity for international businesses to supply, support and partner with Chinese and other international mining companies as this massive development takes shape. For example, Australian mining businesses have experience, expertise and technology garnered from their mining industry across a very large country will prove valuable mining projects along the BRI.