Adapting to structural differentiations of mining industry and strengthening differentiation competitiveness
Source: www.gtzyb.com Citation: www.gtzyb.com Date: Oct.23, 2014
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| （Photo by Li Zhentao） |
| Delegates attended the exhibition of CHINA MINING Congress and Expo 2014 on Oct.22nd. |
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| （Photo by Li Zhenta） |
| Delegates attended the exhibition of CHINA MINING Congress and Expo 2014 on Oct.22nd. |
In the morning of Oct. 22nd, the Mining Development High-level Forum of CHINA MINING 2014 was held. More than 10 executives from domestic and international large-scaled mining companies and related companies including China Minmetals Corp., China Metallurgical Geology Bureau, China National Gold Group Corp., Aluminum Corp. of China and Datong Coal Mine Group Co., Ltd gathered together and discussed the development opportunities of global mining industry. Mr. Zhong Ziran, Director of China Geological Survey institution, chaired the forum.
From 2013, global mining industry displays declining trends after the overexpansion of bull market. The pressure of global mining economic decline is aggravating and mining industry is experiencing profound adjustment. The present executives all had same feeling for that. The budget of global solid mineral exploitation was 14.4 billion US dollars in 2013 whose drop range reached 30%. The investment for geological exploitation of China was 45.979 billion RMB. Compared to the same period of the previous year, it declines 8.4% and it’s the first time of declining of Chinese geological exploitation in a dozen of years. Mr. Xu Zhixun, deputy director of China Metallurgical Geology Bureau, pointed out that Chinese mining economy is wandering in depression. However, the cost is high. Geological exploitation is going into the downturn. The adjustment of central finance is slowing down and combination of local finance is weak. The commercial capital should still be waited and examined.
Mr. Li Fuli, vice president of China Minmetals Corp., summarized that currently there are three structural differentiations in ecological circle of mining industry. The first is differentiation in market trends of nonferrous metals and ferrous metals. It seems that nonferrous metals will have a rally while ferrous metals will keep declining. The second is differentiation in competitive situation of mining enterprises. In mineral resources, mining magnates are constantly enlarging their production while the small-scaled mines stop producing and wait for work. In trade flow, financial investment institutions withdraw while foreign traders appear and strive for upper position. From the whole world, there is regional differentiation in location structure of mining enterprises. He suggested that mining enterprises should locate in different places. Mining enterprises should locate in those countries with outstanding resources advantage and preferential mining policy and they should pay more attention to the metal production of high technology. The industrial chain should be arranged according to the industrialization.
How to cope with the variation of adjustment period? Executives reached a consensus in the heated discussion. During the process, enterprises should adapt to the structural differentiations of mining industry and strengthen enterprises’ differentiation competitiveness. They should change the extensive, blind and chaotic situation and gradually make mining industry develop for fine sorted and specialized new structure. The caution of international investor generates the opportunity of purchasing resources in low cost. For handling risks, the central finance insists that resource and environment are equally important. They should do more for fundamental geology and make significant adjustment in major type of investment direction which will make prospecting people and investors reconsider the layout of national geological work so as to find new opportunities. Domestic risk exploitation market is forming gradually and capitalization of mineral rights properties is speeding up. Mining enterprises should develop driven by innovation and promote transformation and upgrade when they are confronting to the opportunities. (Edited 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.
