News

Keynote session of CHINA MINING 2015 launched

---Looking for new track of mining development under new normal

Right after the opening ceremony of CHINA MINING Congress and Expo 2015 on October 21, 2015, Mr. Peng Qiming, chief engineer of Ministry of Land and Resources, presided the keynote session of 2015 CHINA MINING with industry leaders and economists giving their speeches on “New Normal, New Opportunities, New Development”. They shared and discussed their ideas on the current situations and trend of global economy and mining development.

Mr. Si Xinbo, Deputy General Manager of Silk Road Fund and former deputy president of National Development Bank Qinghai Branch, indicated that against the gloom period of mining development, mining fields was facing many challenges and difficulties for the global economy undergoing deep adjustment. History shows that there is a close link between global economic situation on the one hand and the distribution areas and utilization of mineral resources on the other. Conversely, the development of global economy also exerted significant impact on the up-and-down of mining industry. He figured that global mining industry has boasted several protruding features. First of all, there is an continual gloom in mining industry without any sign of re-rising. Next, the global mining industry and prospecting industry have enlarged from the conventional mining giants to some resource-abundant developing countries. Then, the higher level of environment protection standards and social responsibility has increased the cost and technological pressure for mining investment and cooperation. Finally, along with the gloom of mining industry, the supervising of mining industry has appeared loosing, which has encouraged more and more international emerges and acquisitions.

Mr. Li Shanquan, Vice President & Senior Manager of Oppenheimer Funds, expressed his opinions on Chinese enterprises going globally from the perspectives of the special features of mining industry and investment, challenges and opportunities of Chinese enterprises going globally and relevant suggestions for Chinese enterprises going global. He remarked that mining industry boasted the long-term features, typical of the long-term project, the long period of investment and the long-term of the industry itself, which was attributed to the restricted feature of resources. What’s more, there were no special characteristics of mining enterprises.

Therefore, it was hard for mining enterprises to compete in terms of innovation except for resources quality and management levels. Lots of enterprises were emerged for rich resources without scale-benefit. In addition, the special feature of mining industry also could be found at the pricing procedure. The prices was not set by a single producer or user in that they must accept the price set by the global market.

Mr. Chen Jinghe, chairman of Zijin Mining Group Co., Ltd, argued that, currently, mining industry was lingering with the gloom period with no one knowing how long will this period last. In his opinions, China’s development was growing at a low speed while the industrialization has basically entered the ending phrase and the tertiary industry was to play a major role in China’s development, all of which were not so well for the mining industry. China’s mining industry boasted congenital disadvantages with small mining scale, low mineral grade, tougher prospecting difficulties, and less commercialized. Even some big enterprises were not as powerful as they seemed. Therefore, under new normal, China’s mining industry must keep alive firstly and then seek for development. It also should control the cost, reform and adjust the industry system. (Liu Xiaohui)

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Important to boast more reason

---Upon the opening of CHINA MINING 2015

The annual CHINA MINING Congress and Expo dawned upon Tianjin. Nearly three years of waiting accelerated the eagerness for the re-prospering of global mining with mixed anticipation pouring on. It was intriguing that China’ mining industry was about to soar, while it was also worrying that the gloom period of global mining would linger for a while.

Based on the latest Global Mining Review and Prospect, researched by experts of information center of Ministry of Land and Resources, China mining market expressed a signal of re-blooming in that, firstly, China remained world biggest mining market, secondly, production of various minerals experienced slight increase except for cement and sheet glass, and thirdly, small improvements were made in mineral trade. This research signified that, with mineral commodity supplying still more than demand, mining market boasted a new feature for new energy materials represented by Lithium were in growing demand.

But, experts at Development and Research of China Geological Survey warned that “the current situation of global mining will last for another 2 or 3 years until a real recovery occurs.”

The current gloom season of China’s mining might not be so suffering on condition that the current season kept the industry, the government and the society more sober and reasonable, which would facilitate the transforming of China’s mining from a big industry to a powerful industry.

China’s mining industry has experienced two times of up-and-down period. Great support as the mining industry offered to national economy during the two rising period, the unreasonable soaring in these two period still required deep thought.

The time of 1980s witnessed the prosperity of China’s mining industry with state owned enterprises, collective owned enterprises and private enterprises flooding into the industry, resulting in more three hundred thousand of mines. The environment was devastatingly damaged. The turmoil condition severely hindered the development of China’s mining industry.

At the mid of first 10 years of 21^st century after the gloom period of mining industry, China’s mining industry entered its second peak season with the promotion of industrialization and urbanization. Capital of various resources poured on the running for mines through different channels and platform, which increased the mining industry speculation. Within the territorial land of the Government of Xinjiang Uygur Autonomous Region of China, some merchants even carried lots of cash to find new mineral mountains. Generally, capital investment would do good to the mining industry, yet those capital were for mining speculation. Some investors gained the rights of mining at extremely low prices while resold the rights at much higher prices, usually 10 to 100 times of the original prices.

Taking lessons from the two times of up-and-down of China’s mining industry, we could conclude that recent three years of gloom season seemed to be an reduce of these years’ mining industry speculation. If we can draw lessons from the past and be more reasonable, we would boast a bright prospect for China’s mining industry.

It was of great urgency for the government to lead the mining industry onto a right track. For example, even though several reserves to protect the environment were set by the government, these reserves also need overall plan and arrangements by the government.

The general public shall boast a new prospective to treat the mining developing. In terms of the relationship between mining developing and environment protection, most of people still regard this as an zero-sum game, considering that protecting environment goes against mining development. Actually, with the recent years’ green mining construction by Ministry of National Land and Resources, there were cropping up many win-win casts of environment-protecting and mine-developing, some of which even became into tourist sites.

For mining industry, reason seems more important. Besides realizing the periodic fluctuation of mining industry, we shall put our industry at the overall atmosphere of the society and conduct reasonable consideration. The journalist estimated that the last round of bloom in China’s mining industry was all gone. Even if there are up-and-downs in mining industry, it is impossible to return to the low level of the past. So, if we want to be prosperous in mining industry, we shall strengthen ourselves in terms of management and technologies so as to improve our capacity. Facing global market, we shall follow the heel of economic globalization, actively readjust the developing strategies and courageously take part in global mining cooperation. In society term, we shall should the responsibility of society and devote to protecting environment and building communities.

Reason ensures the harmony of society.

Reason enables the mining industry to be blessed with a better future. (Yu Fude)

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Adapting to new normal, grasping new opportunities, achieving new development

---Congratulation to the opening of CHINA MINING 2015

October 21^st, 2015 witnessed the grand opening ceremony of CHINA MING Congress and Expo 2015, one of the most prominent mining events, at Tianjin, a beautiful coastal city in north China. This session of CHINA MINING called for all from mining industry globally to adapt to the trend, to collectively discuss, construct and share with each other, and to build global mining community of identical destiny, which was also the message that China wanted to send to the world. The theme of “New Normal, New Opportunities, New Development” expressed the general realization of current mining condition from China’s point of view, embodying China’s strong confidence in the recovering of mining industry.

Currently, mining industry faced severe developing conditions with growing market fluctuation, weak demand and increasing down-ward pressure. What’s more, just as the analysis given by experts of this CHINA MINING Congress and Expo, with the periodic adjustment of world economy, global mining was also entering the new-round of periodic fluctuation, in which this condition would linger for some spell. It ought to be seen that the support of economic foundation for mining development was still existing and stable demand for mineral resources remained a must for re-industrialization and upgrading of manufacturing of developed economies and industrialization and urbanization for emerging economies. China, as the world’s second largest economy with a stable growth rate, still functioned as the power house to speed up the world economy. 

Opportunities always follow upon the heel of threat. A new-round of industrial revolution is upon dawning, high-tech industries and strategic sections develop at a fast speed, and the new economic growth peaks are coming into being fast, all of which increases the demand for mineral resources and blazes new space for mining development; The repaid progress in global cooperation on productivity capacity widened the fields of infrastructure, equipment manufacturing, and major projects, offering new opportunities for mining cooperation manner and building global mining industrial chain; technological innovations being accelerated, new technologies were introduced into mining industry, such as big data, automation, the Internet and remote sensor and inspection, injecting new impetus in mining advance; to deal with global climate change serves as a common goal for the global and to build resource-saving and environment-friendly society requires for updated geological information, which explores new area for geological works.

China serves as an active participant and promoter of economic globalization as well as the global mining cooperation. Especially, China has put forward the Belt and Road Initiative, established the Silk Road Fund, invested the Asia Infrastructure Investment Bank and carried out investment cooperation and Connectivity construction with relevant countries, which will inject internal impetus for world economy recovery, especially for global mining industry recovery. China, currently, is trying its best to playing corresponding role in global mining development, offering opportunities for global mining.

“The reasonable changes with the time, while the wise puts up methods in accordance with facts.”Fitting in New Normal, grasping New Opportunities, and achieving New Development require that we not only make decisions on conditions, but also find the potential, opportunities and cooperation space of the mining industry in the future from the current gloom period. We shall integrate wisdom and courage to conquer difficulties. As long as we stick together, we are bound to forge ahead through gloom period and embrace the prosperity of the future. (Commentator from "China Land and Resources News")

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Mr. Wang Min met with senior director of energy & extractives of the World Bank Group

On the afternoon of October 21, 2015, Mr. Wang Min, Vice Minister of Land and Resources, PRC, met with the Hon. Madam Anita Marangoly Geogre, Senior Director, Energy & Extractives of the World Bank Group at CHINA MINING Congress and Expo 2015 in Tianjin. The two sides reached a consensus on strengthening cooperation in geology and mineral fields. Heads from relevant departments and units directly under Ministry of Land and Resources of China attended the meeting. (Photo: Hou Yijun, Edit: Xu Xiaojing)

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

A glimpse at CHINA MINING 2015

CHINA MINING 2015 was held.

Opening ceremony of CHINA MINING 2015

Keynote Session of CHINA MINING 2015

A stream of CHINA MINING 2015

A panel discussion of CHINA MINING 2015

Exhibition tour of leaders

Exhibition tour of leaders

The booth of Ministry of Land and Resources

The booth of Ministry of Land and Resources

Intensive work in the simultaneous interpretation

Volunteers

Business negotiation area for mining rights exchange

Media exhibit

Underground experience

Internet area

Exhibition display of mineral specimens

Staff is introducing the equipment

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Green mines construction in China：A long way to go

Background : Environment debt & Force of circumstances

Some mining enterprises used to attach importance only to resource extraction and economic indicators, pay little attention to local environment protection or its comprehensive benefit. This led to destruction of local ecological environment, some enterprises even can`t afford the cost of mine environmental recovery and rehabilitation. Such phenomena caused bad social influences that some backward areas with resource potential were of two minds when weighting new project in spite of a considerable economic outlook. What`s worse，some areas no longer accepted exploration or mining permit application，banned mining project completely for the sake of environmental protection. Therefore，a lot of people mistake resource development and utilization for the chief culprit of pollution. These measures blocked the transformation of resource advantage into economic advantage in above areas which cry out for getting rid of economic difficulties. Actually, we can achieve clean utilization of resource and enjoy convenience as well as comfortable environment. Only the construction of green mines can coordinate development between resource exploitation and environment protection.

On the other hand, mining had a rapid and significant development in past 10 years, while the environment were under great pressure at the same time. As Mr. Jiang Daming, the minister of Ministry of Land and Resources, said on this year`s national land and resources working conference, "In the view of environment and resource restriction, bearing capacity is close to superior limit, stringent protection and economical use of land and resources is an irresistible trend. In the past, resource and environment space is relatively large, the exploitation of land and mineral resources had a controlled impact on environment. But now, bearing capacity of resource and environment in many areas has reached or nearly reached the limit，constant large-scale intensive exploration will only cause troubles...,we should take overall consideration of land and resources exploration and ecological environment protection."

In conclusion, the construction of green mines is urgently necessary.

Development history: From tiny bud to full-grown tree

In 2007, the green mine construction which was only regarded as self-discipline behavior of enterprise at first, is still in its infancy. In this situation, Ministry of Land and Resources together with related national departments determined the strategic goal of green mines pattern and work out specific guidance. The first 37 pilot green mines were released in March 2011 by Ministry of Land and Resources while the second 183 unit in April 2012，the third and forth unit in 2014.

So far, there are 661 state-level pilot green mines in our country, 35 of them have passed the acceptance and completed construction objectives. In addition，some provinces also explore provincial pilot green mines actively, and have achieved good effects.

Although the green mine construction still faces some problems, it speed the construction pace leading to become more and more flourishing as subsequent pilot units are launched and experiences are popularized. The conditions and criterions of green mines rise to management system step by step. Construction patterns become more mature.

Policy support: Clear framework

In 2009, National development and Reform Commission and Ministry of Land and Resources jointly issued the National Mineral Resources Planning (2008 ~ 2015), put forward clear requirements for green mine development, and determine a strategic goal that establishing basic green mine pattern in 2020.

In order to fully apply the plan，the Ministry of Land and Resources issued a specific guidance on developing and construct green mine which defined the general idea and basic principles further on August 13 2010.

The general idea is to further carry out the Scientific Outlook on Development, to take the development and construction of green mine as an important method to guarantee healthy and sustainable mining development according to the national strategic requirements, to implement the objectives and requirements in the national mineral resources planning earnestly，to insist overall planning, policy set, pilot projects before launching all-round reforms and pushing forward reform as a whole, to change the way of mining development through green mine construction, to put in a place long-term mechanism to standardize order in the exploitation of mineral resources.

There are four basic principles. The first one is insisting on government`s lead, to carry out pilot projects and green mine construction standardization system. The second one is implementing corporate responsibility, to encourage companies to perform social obligations such as building up scientific development view. The third one is strengthening industry self-discipline，to give full play to industry association as a bridge and bond between mining enterprises. The fourth one is doing policy supporting well, to enact policy measures to promote reasonable utilization of resources and environmental protection.

Strategic significance: To realize mining development transition

China is now at a key stage of industrialization and urbanization, while resource rigid demand and environment pressure increase. The development and construction of green mine is an inevitable choice for carrying out the scientific outlook on development and transforming the economic development pattern.

To realize mining development transition, we should make rational utilization of resources, energy saving and emission reduction, environmental protection and harmonious mine lot as the main target, let the concept of green mining throughout the course of mineral resources exploitation, push recycling economy development model, realize the coordination of economic benefits, ecological benefits and social benefits of resources exploitation.

The key matter of develop green mine is to fully arouse the enthusiasm of mining enterprises, to strengthen industry self-discipline. Green mine is a revolution of mining enterprises operation and management mode, is an important means to guarantee the healthy development of mining industry.

Construction objective: Form national green mine pattern in 2020

To establish a perfect green mine standards system and management system and form a complete set of incentives is the next step of plan of China’s Ministry of Land and Resources. By 2020, we will generally formed the national green mining pattern, large and medium sized mining basically achieve green standards, small mining enterprises conduct standardized management in accordance with the conditions of green mine. The level of economical and intensive use of resource improve significantly, environmental protection of mines would be in effect，mine land reclamation level increase, mining enterprises and local government get along in harmony.

Although the green mine construction passed through several years that Ministry of Land and Resources has launched four group, a total of 661 pilot green mine. But compared with the large number of mines, pilot proportion of green mine is still not enough. There will a long way to go before form a pattern of the green mining in 2020.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

An Overview of the global mining economic situation

Currently, the global economy, which is significantly below expectation, has maintained a moderate slow growth, and still remains in a slow recovery and deep transitional adjustment period, with major countries show obvious differentiation characteristics. The current situation of global mining is still in the downward trend, which gives rise to the continued-falling of mineral products price, growing excess capacity and the weak main minerals demand. As we can expect, the so-called winter period of mining industry has not passed, and a full recovery will take time.

Under the “new normal”, the economy of China has shifted from the previous high speed to a medium-to-high speed growth, and the resource demand structure is constantly upgrading, which is making a big change of supply modes and spatial structure of resource utilization.

See changes through figures

Global mining index continues to go downward

Influenced by the weak and unstable recovery of global macro-economy, global mining index has kept the downward trend since the middle of 2011, but the speed slowing down significantly.

According to the Pipeline Activity Index （PAI） analysis of SNL, the PAI index from 74 points, the relative high level in the past two years from September last, fell to 50 points in February of this year. Then, it rebounded to 58 points in March before it declined again. Up to May, the PAI index fell to 41 point, which is the lowest of nearly 3 years; Meanwhile, the SNL metal price index has almost downed to the lowest point in nearly three years. Mining market capitalization has rebounded in this half year, but it was far less than the same period last year. Thus the situation of global mining industry will still be unsatisfactory in recent years, which seems to be no plan to make improvements.

Low Price of Major Commodity

International oil prices rebounded slightly in early 2015 after a price plunge in 2014. Overall, it is reasonable that the crude oil market was stabilizing after a shock upgoing in the first half year.

The international ironstone price once peaked close to $200/ t in recent years, then it began falling since 2014. The analysts of Goldman Sachs said that the ironstone price in 2015 was expected to drop to $52 /t, which was 18% lower than the previous expect.

The price of six kinds of base metal （LME copper, aluminum, lead, zinc, tin, nickel） showed obviously different trends. The price of copper, nickel and tin has kept a downward trend since 2011, while the price of aluminum, lead and zinc has been almost stable with a smaller fluctuation.

Less merger and acquisition cases of mineral company

According to the report issued by McKinsey, the mergers and acquisitions of global oil and gas declined dramatically in the first quarter of 2015. From the perspective of mergers and acquisitions of global mining, SNL statistics showed that a total of 24 cases of mergers and acquisitions happened in the first quarter of 2015,which was less than 43 cases in the fourth quarter and 52 cases in the third quarter of 2014. However, the total amount of it amounted to $4.67 billion, which was almost flat to that in the fourth quarter of 2014. As same as previous years, mining mergers and acquisitions were still largely focused on a few minerals such as gold and copper in the first half of this year.

On the background of the downward trend and depressed merge and acquisition activities of China Mining，China mining companies speeded up the pace of "going out", to cite Zijin Mining Group Co., Ltd as an example.

The increased financing difficulty of global mining

According to the data in May, the total mining financing reached to $10.03 billion in the first quarter of 2015, which declined dramatically compared with $15.47 billion in the fourth quarter and $22.08 billion in the third quarter of 2014.

According to the data of SNL, there were 592 financing activities in the first quarter of 2015, which also shows a large drop compared to 918 in the third quarter and 903 in the fourth quarter of 2014. As usual, the large listed companies （market value greater than 100 million dollars） accounted for the vast majority （95%） of the total amount of financing. Global mining financing projects mainly concentrated in the iron and steel company.

See trends through events

America`s shale oil industry rescued from the desperate situation

There were two reasons why the price of international oil declined since 2014. One was the reduced demand, and the other was the excess supply. However, lower oil price brought challenges to the shale oil revolution, and also had a negative effect on the business activities of shale oil manufacturers in the United States.

Although the investment and the number of drilling RIGS of the shale oil in North America were declining, productions of shale oil has not really been cut. Driven by continuous improvement in technology, the efficiency of mining enhanced gradually, and the oil production costs fell by about 20%.

Overall, shale oil revolution is still on the way instead of going bankrupt due to the lower oil price. The center of the production of global oil and gas has showed a "moving westward" trend, which will undoubtedly have a profound effect on the supply pattern of global oil and gas.

China-Australia Free Trade Agreement (ChAFTA) contributes to the cut of resource utilization cost

The China-Australia Free Trade Agreement （ChAFTA）, signed on 17 June 2015, is the highest level of overall trade and investment liberalization in China. Upon full implementation of the agreement, tariffs of Australian exports will be lifted in four years, which will have a huge effect on the price of mining production, such as copper ore, nickel ore, alumina, zinc ore and coal.

Furthermore, China allowed the technical consultation and on-site service on coalbed methane （CBM） and shale gas provided by Australian servicer, as well as the consulting services on the mineral resource including oil, natural gas, iron, copper and manganese, which will make differences to the geological exploration departments and equipment manufacturing company in China, and also will bring revolution to the geological exploration units.

Overall, ChAFTA has not only lowered the costs of mining resources in China, but also stabilized the supply of it.

Zambia resources tax was first increased and then decreased to avoid outages

Zambia`s finance minister announced in October 2014 that, a new resource tax would be launched for copper production since 2015. Because of this, the royalty tax rate for open-pit mining went up to 20 percent from 6 percent, and the underground increased from 6% to 8%.

Tax increases, with the weak price and demand of the international copper mining, hit Zambian mining badly, which caused tension between mining companies and Zambian government. On April 14, Zambia`s cabinet set the royalty tax rate for open-pit and underground mining at 9 percent to avoid unemployment and off-stream in mining industry.

Countries such as Turkey and Gabon modified mining tax to promote the mineral exploration and development

Turkey, an important country along the “one belt one road”, modified its mining tax in February. Previously, if the licenses of the mining companies did not meet the requirements within the given time, it would be cancelled. However, the new tax broke the deadlock of the country`s mining right permission, which was even more friendly in terms of mining laws and policies for investors.

Gabon also passed the long-awaited modified mining tax at the beginning of the year. The new tax, which was carried out recently, showed a lot of changes in mining law system, becoming an important part of a new generation of African mining legal system construction.

Predict the future through trends

Global mining industry will meet a new development period

Global mining industry has been downward for four years, and the price of some minerals, such as gold, silver, aluminum, lead and zinc, has already been close to or reached their average cost of production. If the price continues to fall sharply, the whole industry will be at risk; other minerals, such as copper, nickel, tin prices continue going down, amplitude is still large, but the rate of decline has slowed down significantly, with the favorable factors such as destocking, it is expected to gradually stabilize in the short term.

The current development situation of mining companies is still hard. However, in the long term, with the development of Internet economy, significant adjustment of the global manufacturing pattern, and the new construction wave of infrastructure, the global economy will meet a new development opportunities eventually. Therefore，it is probably not far for global mining to get out of trouble.

From the perspective of the whole development situation of global economy, major economies are launching its own economic development plan, including the promotion of "Belt and Road" of China, the Asian Infrastructure Investment Bank and the Silk Road Fund. By 2015, almost 300 billion to 400 billion Yuan will be invested into "Belt and Road" in China, which is expected to boost GDP growth from 0.2 percent to 0.3 percent.

Thus it can be seen that, with a boom of new round global investment in infrastructure and the rapid development in emerging economies such as India and Indonesia, global mining could come across a new development opportunity, but it is unlikely to reach or exceed the previous peak.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s miners `must learn` from bungled foreign acquisitions

China`s mining firms have a mixed record on overseas acquisitions, but they can learn valuable lessons from missteps made in the past few years and adjust their strategies, say mining-sector executives at a sub-forum themed China’s Enterprises Outbound Investment on CHINA MINING Congress and Expo 2015 held on Oct.20, 2015 in Tianjin China.

"Chinese firms are still climbing the learning curve, many failures have dotted the path in the past few years," said Wang Side, vice-president of Chinalco Resources - a unit of Aluminium Corp of China, the No 2 producer of the metal.

According to Dealogic, Chinese firms made US$4.25 billion in overseas mining acquisitions in the year`s first nine months, from US$8.8 billion in the year-earlier period, when the volume was boosted by a US$7 billion acquisition by state-backed MMG in Peru. The deal volume in the first nine months of 2014 was US$4.4 billion, and US$3.3 billion in the same period of 2013.

Wang told an annual mining conference that he considered the three main reasons for Chinese outbound-investment failures to be poor timing, poor selection of investment targets and poor deal pricing.

More than 80 per cent of the mining firms had made overseas acquisitions between 2008 and 2012, with most of the companies losing some 80 per cent of their market value since the boom years, he added.

"There has [also] been a lack of proper social corporate responsibility and management of local community expectations, [although much improvement has been made in the last few years]," said a report by industry consultancy CRU on overseas investments. "Cultural issues and unfamiliarity with local regulations in the host country, as well as a lack of proper technical and financial due diligence have caused problems."

The global commodities boom ended three years ago as China`s metals demand slowed, along with a switch of focus from investment to consumption-led economic growth.

China is the world`s largest consumer of copper, aluminium and iron ore.

Some Chinese entities have invested in ore that is difficult and costly to process, such as a Citic project that suffered from major cost blow-outs and delays in Western Australia state.

It mines magnetite iron ore, which requires the construction of hugely expensive facilities for processing and transport.

"The error Citic made is an over-reliance on geologists` judgment when making investment decisions. The involvement of mine-design, construction, ore-trading, finance and legal experts is also imperative," Wang said.

"So while its project is the world`s largest magnetite project, it is very tough to turn it into cash flows."

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 2015 is held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.