Domestic companies investing in global mining assets may see a decline in global market share this year, due to intense competition from the other countries recovering from financial crisis, consultancy firm Ernst & Young said on Monday.

"A cheque book was the most important driver in deal matchmaking last year, but competition is more intense this year, with a return of more confident Japanese, Indian and traditional players," said Mike Elliott, leader of the company's global mining & metals sector. "Although China's investment in overseas mining sector will go up this year, its market share of global mining transactions might drop considering the strong competition."

China, which dominated the global mining and metals transactions market in 2009, has already seen a strong start in the first quarter of 2010 in global mining transactions, with outbound value and volume going up by 247 percent and 225 percent prospectively. Global investor focus might shift to new regions this year like Latin America and Africa.

"Mining asset prices in developed countries like Canada and Australia have been on the rise, which means assets in new mineral countries provide great opportunities for Chinese companies," he said.

Marcial Garcia, Ernst & Young's South American mining and metals representative, said China's Shougang Steel will invest $1 billion in Peru over the next five years to expand its iron ore projects.