Qatar could turn off tap on mining funding after investment review

Tue Jun 9, 2015 10:47am EDT
 
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* Mining loses appeal due to squeezed margins, long projects

* Qatar Holding is biggest shareholder in Glencore

* QKR backed by Qatar and Poland's richest man

* QKR owns Navachab gold mine, was targeting Nevsun -sources

By Silvia Antonioli and Nicole Mordant

LONDON/VANCOUVER, June 9 (Reuters) - An investment review at Qatar's wealth fund could lead to a cut in money allocated to the mining sector, potentially hitting ventures such QKR Corp, according to five sources familiar with the matter.

Such a move would be the latest in a string of rethinks by sovereign funds and investment firms that have been badly burnt by bets in the natural resources sector, largely due to the recent pullback in oil, gas and metal prices.

Late last year, Qatar named ruling family member Sheikh Abdullah bin Mohamed bin Saud al-Thani as the new head of the Qatar Investment Authority (QIA), one of the top investors globally.

Under the new management, the QIA has started to review its strategy, and the mining sector -- under pressure from weaker metals prices and shrinking margins -- is now seen as less attractive, said the sources, who declined to be identified because they are not authorised to discuss the matter publicly.   Continued...