Coping with the global mining slow-down through innovation
On the morning of October 21st, after the Opening Ceremony of CHINA MINING Congress and Expo 2014, Zhong Ziran, Director of China Geological Survey hosted a keynote session under the theme of “Sustainable Development through Innovation”. Economists both home and abroad pointed out that currently the world mining is facing difficulties such as the ongoing sluggish economic growth, excess capacity and delicate recovery of global economy. So there is a great need to enhance medium and long term infrastructure building, improve labor productivity relying on the burgeoning industries and achieve sustainable development through innovation.
It is reported that about 21% of global energies and more than 40% of major mineral resources like iron, copper and aluminum are consumed by China at present, and China’s mining situation, therefore, bears great influence on global mining development, and China mining is closely associated with China’s economy. Mr. Xiang Songzuo, Chief Economist of Agricultural Bank of China, indicated that although China’s economy growth is slowing down, it still has tremendous space for development, and China’s new normal medium and slow growth is relatively speaking rapid growth compared with western countries’. The slowing down of China’s economy is not derived from macro-policy adjustment, but the major reason is low labor productivity instead of macro-policies such as credit and loan. He pointed out that there is an urgent need for China to take the path of innovation as China’s unit consumption of resources and energies is five to six times that of Japan. China is promoting restructuring of excess capacity industries, and banking is squeezing credit of excess capacity industries. Adjustment should be conducted in mining in accordance with policies, so that resources can be flowed to emerging industries.
Mr.Tom Butler, Manager of Mining & Global Infrastructure, International Finance Corporation (IFC), offered his suggestions about mining investment from an international perspective, stating that as the stimulus package declines on a global scale, growth of various economies slows down and major mineral product market is increasingly sluggish, large-scale multinational mineral enterprises are reducing long-term investment and prospecting activities, which provides the possibility for middle and small-sized businesses to seize the opportunities to gain benefits in the future economic recovery. To obtain the goal, mineral enterprises should strengthen co-construction with local governments for their investment, share the infrastructures, improve the transparency of mutual policies and enhance mutual trust.
Gold and petroleum are not only influenced by global politics, economy and financial factors, but bear influence on the latter to a certain extent, and therefore with an impact on the global mining situation. After analyzing the relationship between precious metals, energy and international economy and politics, Mr. Bud Conrad, Chief Economist of Casey Research of America pointed out that world gold reserves are flowing from west to east, and Asia is “de-dollarizing”, and currency system based on oil-dollar is being attacked, and US dollar’s dominating position in foreign exchange reserves is declining, from which a series of changes have arisen, which should call for the high concern in global economy and mining industry.
(reported by Qiao Siwei) （translated by TLRHVC）
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.
