News

International Mining Industry in Post Financial Crisis Period
- Sidelights on CHINA MINING 2011 Summit Forum
Source: China Land and Resources News Citation: China Land and Resources News Date: Nov. 9, 2011

As time goes by, global financial crisis fades away, but Europe’s debt crisis is increasingly intensified. Mining industry recovered quickly after a heavy toll from financial crisis. Like a supernova with extraordinarily strong light, the industry is showing new changes and trends to the world.   Information disclosed by senior mining officials of participating countries is different from a year ago at CHINA MINING 2011 Summit Forum. The trend in international mining industry is changing gradually. Chinese Mining brings promise to the world For many countries which just got over financial crisis, the struggle is really hard in the past year. However, those countries owing abundant mineral resources and taking mining industry as pillar industry bore much less economic recovery stress. Mining industry sent a dose of confidence to their economic recovery. And the strong demand from China in the recent years largely benefited every country that cooperated with China in mining. Just as Angolan Minister of Industry, Geology and Mines Joaquim Duarte Da Costa David said, “Chinese mining brings promise to the world.”
As a matter of fact, not only in financial crisis period, Chinese mining always persisted in harmonious co-existence and common development with every partner from its first step into international arena. Especially for those developing countries with rich mineral resources, inflow of Chinese capitals helped them go out of the dilemma that they do not have enough financial power to develop these mineral resources. China’s strong capital strength, advanced technologies, responsible attitude and profound humane care brought them not only leapfrog development in mining industry and substantial GDP growth, but also improvement of infrastructure, community environment and educational quality as well as other major changes. Senior mining officials from developing countries all expressed their gratitude to Chinese mining enterprises at the forum this year. Azim Ibrohim, head of Geology Administration under the Government of Tajikistan made a speech entitled Contribution of Chinese Mining Enterprises and Other Concerned Foreign Enterprises to Mining Industry of Tajikistan. He commented that, Chinese mining enterprises made a great contribution to the mining industry of Tajikistan. “In last four or five years, I always actively participated in CHINA MINING and took advantage of the conference to make extensive communication with our peers. Chinese enterprises know well what we need and what we want to do. Many Chinese enterprises entered Tajikistan market and the number is increasing year by year from a dozen to several dozens, and now we have hundreds of them back in my country.” Laos is a mining country which is quickly rising. In the past five years, Laos maintained an annual GDP growth of 13.87%, to which, mining industry made a great contribution. In 2009, mining industry exports accounted for 60% of total exports of Laos. Chinese companies also made undeniable contribution to the development of Laos’ mining industry. Deputy Minister of Energy and Mines of Laos Somboun Rasasombath said, there are more than 60 Chinese companies that have invested about 110 projects in Laos, 18 in exploration stage, 50 more in detailed exploration stage and 42 are under mining now. The Minister of Mineral Resources of South Africa Susan Shabangu confessed straightforwardly that, rapid GDP growth of South Africa in recent years has undeniable connection with China. Enthusiastically Introduce and Recommend Resources and Welcome Foreign Investment Inflow of foreign capitals offered many mining countries, especially developing mining countries, a chance to enjoy a prosperous economy. At the summit forum this year, ministers of mineral from each participating country also welcomed mining investment and enthusiastically introduced and recommended abundant mineral resources they behold. Abundance of mineral resources is a core factor in attracting mining investment. In their addresses, senior mining officials intensively introduced resources endowment of their own country and the solid foundation laid for the mining industry. Joaquim Duarte Da Costa David said, Angola has rich natural resources and the government is carrying out a nationwide geological survey and geophysical exploration, so probably more natural resources reserves will be explored in the future. Besides, Angola has examined and approved many iron ore prospecting right. It is believed that, in the coming three or four years, many prospecting projects will turn to mining projects and more mines will be constructed. He also promised that Angola will further improve mining environment, complete legal system and optimize national political institutions so as to accommodate foreign countries’ mineral resources development.   The Tajikistan government recently formulated and unveiled a series of policies, stating explicitly that they are going to further develop mining industry and increase input on geological prospecting and mineral exploration. Azim Ibrohim introduced that, well endowed with various resources, Tajikistan presently has more than 1,000 mineral deposits under development and production and has issued over 50 mineral rights related licenses to foreign mining enterprises. B. Ariunsan, Deputy Minister of Mineral Resources and Energy of Mongolia, said that Mongolia’s economic growth and development are derived from open economical cooperation, so they hope a continuous cooperation with China and they always see China as the biggest partner for Mongolian mining. India showed a good faith in foreign mining investment at this forum. Shri S. Vijay Kumar, State Secretary of the Ministry of Mines said, this is their second participation in CHINA MINING and the delegation is much expanded compared with last year. Many Indian companies take part in it and many cooperation agreements are concluded. He also elaborated abundant natural resources in India and stressed that India unveiled a series of favorable policies for mining industry development in recent years. For example, the natural resources policy introduced in 2008 encouraged investments of private companies in mining industry. Geological Survey of India is now making a nationwide geological survey and a 1:50000 geological mapping has been completed. Many spatial data, gravimetric data and geochemical data were released on public website so that mining companies may apply for prospecting right accordingly. Even Australia, which has implemented “super” mining tax, also welcomes Chinese investors. Minister of Resources, Energy and Tourism Martin Ferguson AMMP stated that, Australia offers national treatment for all companies from participating countries. Meanwhile, it amended unnecessary contents in mining investment policies last year and foreign investors can make better mining investment. Higher mining investment threshold Although many countries explicitly promise to be open to foreign mining enterprises, they seem less urgent than last year when they still suffer from financial crisis. Indeed, after undergoing resources-relied development, every mining country is bound to actively protect domestic resources and increase value added of mineral products as possible as they can. From another perspective, scarcity of mineral resources make national protectionism in mining industry a sensitive and subtle factor for parties involved in international mining industry to balance. According to the information from the summit forum, a common appeal is to carry out mineral product intensive processing in the home country. B. Ariunsan said that, the government would implement a new plan to further cooperate with foreign investors in preliminary and intensive processing of mineral products. They plan to further carry out preliminary processing of iron ores and intensive processing of coal in the coming three years. Steel making and copper smelting are also listed in the plan. Azim Ibrohim early stated his desire to conduct intensive processing of mineral products in Tajikistan at CHINA MINING of last year. He emphasized again that, Tajikistan expects mineral resources to be intensively processed as end products in the country and it would like to intensify cooperation with foreign companies in this field. Continuous unveiling of new mining industry policies is another feature at CHINA MINING this year, which brings more uncertainties to foreign investment in mining industry. For instance, Australia recently threw out a mineral resource rent tax (MRRT), which will be implemented from July 2012. This taxation ensures that Australia obtain returns via tax levy. Martin Ferguson said that, this taxation policy will also make for foreign investors, because if the project guarantees a long-term and stable return, they need not pay the tax. However, for foreign investors, there are numbers of factors out of control in the process of maintaining long-term and stable return. Moreover, in order to better protect and develop mining industry, many countries are amending mining laws and acts. In August, Indian parliament reviewed and adopted Mineral Resources Amendments Act. Shri S. Vijay Kumar said the Act will manifest its impact on mining industry in the future years. The Ministry of Energy and Mines of Laos even set up a new department, which sufficiently proves its stress on mining industry administration. For Chinese mining enterprises, some depressing information was conveyed at this forum. Although Martin Ferguson said Australia would offer national treatment to all companies from participating countries, merely 7 out of over 3,000 Chinese investment proposals were eligible in the past several years. By this token, there are a lot to be done for Chinese mining enterprises in the process of foreign mining investment.

Volunteer Mobilization Meeting for CHINA MINING2011 is successfully held
Source: Office of CHINA MINING Citation: Office of CHINA MINING Date: November 4, 2011

On the morning of November 4, 2011, the Volunteer Mobilization Meeting for CHINA MINING 2011 was successfully held at Meijiang Convention and Exhibition Center. The meeting was presided over by Director of CHINA MINING Tianjin Exhibition Service Center and Deputy Director-General of On-site Command Post Shen Hong. Director-General of On-site Command Post of CHINA MINING 2011 Lu Hong, Secretary of Party Committee of Tianjin Land Resources and House Vocational College Huang Kejing and Deputy Secretary of Party General Branch of Graduate Department of Tianjin Foreign Studies University Tian Hongwu were present at the meeting and gave speeches. 420 outstanding young volunteers from Tianjin Foreign Studies University and Tianjin Land Resources and House Vocational College attended the meeting. At the meeting, Director-General of CHINA MINING Lu Hong presented a flag to the congress volunteer service team. All the team members took an oath in front of the team flag and a representative made a speech on behalf of the volunteers to express their determination. Secretary Huang Kejing and Deputy Secretary Tian Hongwu respectively put forward specific requirements and slogans of action for the members of the volunteer team: “Service guarantee implies responsibilities. I must Ensure no problem arises from myself; I will spare no effort to devote myself to CHINA MINING and strive to become an outstanding volunteer!” Finally, Director-General Lu Hong gave an important speech which firstly recognized the contributions made by the volunteers of previous events, and then introduced general information on this congress and the significance of successfully organizing the congress. Meanwhile she required the volunteers, firstly to fulfill their oaths and practice the ideas; secondly to accomplish their duties and stick together; thirdly to try their best to help each other; fourthly to comply with the regulations and provide quality service; and fifthly to seize the opportunity to discover growth chances in life. Let the smiles of our volunteers become the best name cards of China Mining.  (By Wang Bojue)

Project matching signing ceremony of CHINA MINING 2011 Launched
Source: Office of CHINA MING    Citation: Office of CHINA MING Date: November 8, 2011

The project matching signing ceremony of CHINA MINING 2011 was held at Meijiang Convention and Exhibition Center. Minister of the Ministry of Land and Resources Xu Shaoshi, Vice Minister of the Ministry of Land and Resources Wang Min, Chief Engineer of the Ministry of Land and Resources Zhang Hongtao, Vice Chairman of Tibet Autonomous Region Dong Mingjun, Vice Mayor of Tianjin Xiong Jianping as well as many Chinese and foreign delegates to the Thirteen CHINA MINING attended the ceremony. Based on the previous sessions, the congress concentrates on organizing activities such as contract signing, negotiation and exchange on mining cooperation projects to promote substantial project cooperation carried out by Chinese and foreign mining enterprises. It is learned that there are a total of 55 projects contracted at the signing ceremony with contract value amounting to RMB 15.7 billion. Among them, there are 12 domestic projects with a total value of RMB 5.5 billion; 43 overseas projects with a total value of RMB 10.2 billion. The projects are mainly distributed in 18 countries and regions including Australia, Nigeria and Sudan and related to aspects such as cooperation on mineral exploration and development, financial market cooperation and strategic framework cooperation, mainly involving mineral types such as gold, copper, iron and lead zinc. (By Wang Bojue)

Breakout Session of CM2011 on “Commodities Demand & Supply Trends” is launched
Source: Portal Website of Ministry of Land and Resources    Citation: Portal Website of Ministry of Land and Resources    Date: November 7, 2011

On November 6, 2011, Breakout Session of CM2011 on “Commodities Demand & Supply Trends”” was launched in Tianjin. (Photo by Yu Hongqi and Text by Chen Hui)

Participants are receiving Report on China’s Mineral Resources at the sub-forum (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, Director of Information Center of the Ministry of Land and Resources Han Haiqing is presiding over the forum. (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, Magnus Ericsson, CEO of Sweden Raw Materials Group, is giving a speech titled “Situation Analysis on International Nonferrous Metal Raw Materials”. (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, Tang Weili, General Manger of China Nonferrous Metals Int’l Mining Co., Ltd. is giving a speech titled “New Prospect of Resource Development Driven by High Copper Prices”. (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, Matthew Alexander Blackett, Senior Lecturer of Coventry University is giving a speech titled “Strategic Impact of Disasters on Supply & Demand of Raw Materials”. (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, Prof. Peng Ruqing, Senior Engineer and former Chief Engineer of China Nonferrous Metals Techno-Economic Research Institute is giving a speech titled “Recent Development of China’s Molybdenum Industry”. (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, Liu Shuchen, Research Fellow of Information Center of the Ministry of Land and Resources is giving a speech titled “Current Situation of China’s Mineral Resources”. (Photo by Yu Hongqi and Text by Chen Hui)

As shown in the picture, He Xiaohui from Beijing Antaike Information Development Corporation is giving a speech titled “Situation of China’s Copper Supply and Demand in 2011 and Brief Outlook for 2012”. (Photo by Yu Hongqi and Text by Chen Hui)

To meet challenges with concerted efforts and cooperation for sustainable prosperity and steady development of mining industry
---Speech on the 13th China Mining delivered by Wang Min, vice minister of Land and Resources and director of China Geological Survey
Source: Portal Website of Ministry of Land and Resources   Citation: Portal Website of Ministry of Land and resources   Date: November 6, 2011

Respected Guests, Ladies and Gentlemen,
The world economic recovery is facing opportunities and challenges when entering the second decade of the 21st century. 2011 China Mining will focus on “strengthening international cooperation and accelerating geological exploration & mine development”, expressing to the international mining world our wishes to ensure sustainable prosperity and steady development of the mining industry based on mine exploration, and reflecting our common expectation of promoting strong and sound growth of the industry. Since the start of this year, China’s economic growth has   continued to develop as what macro control expects, maintaining good momentum for development. Particularly, mining industry provides important support for our economic and social development. Mining investment keeps growing. In the first three quarters of this year, the investment in mining industry expanded 27.9 percent from a year earlier to 2.60 trillion Yuan, outpacing the 24.9 percent growth in fixed assets. Specifically, the investment in mine exploitation rose 17.3 percent year on year to 754.2 billion Yuan. The coal mining industry investment continued to take the lead with a growth of 24.6 percent on a year-on-year basis ; the petroleum and natural gas extraction investment grew by 1.5 percent from a year earlier; and the other minerals exploitation investment increased steadily. The investment in smelting and processing of both metal and non-metal grew rapidly, especially for the non-ferrous metal. Prospecting mineral resources goes smoothly. In the first three quarters of this year, our investment in non-oil and gas exploration increased 33.3 percent from a year earlier to 36 billion Yuan. A total of 851 newly transferred mining exploration rights for non-oil and gas mainly centered on such metal mineral resources as gold, copper and iron. The registered areas for non-oil and gas exploration reached 747,000 square kilometers, generally flat with previous years. More than 9,600 minerals exploration projects will drill 10 million meters (up 16 percent year on year). Another 146 fields for coal, iron, copper, tungsten, molybdenum, gold, rare earth and rock phosphate reserves have been found in such provinces as Xinjiang, Hebei, Shandong, Shanxi, Jiangxi, Anhui and Jiangsu. The recoverable large and important mineral deposits still grew rapidly against the backdrop of increasing exploration. Mining production maintains a steady growth. In the first three quarters of this year, the total planned non-oil and gas exploration edged up 4.6 percent from a year earlier to 14.54 billion tons per year. A total of 3,949 mining rights for non-oil and gas were transferred. China produced 154 million tons of crude oil (up 2.2 percent year on year), 2.691 billion tons of crude coal (up 11.6 percent year on year), 322 million tons of coke (up 13.8 percent year on year), 946 million tons of iron ore (up 24.5 percent year on year), 25.86 million tons of 10 non-ferrous metal (up 11.2 percent year on year), 259 tons of gold (up 4.2 percent year on year), 57.25 million tons of rock phosphate (up 30.6 percent year on year) and 1.51 billion tons of cement (up 18.1 percent year on year). China’s output of large minerals continue to rally from a year earlier, and output of coal, 10 non-ferrous metal and cement taking the lead in the world. And domestic supply for minerals keeps growing. Mineral prices are stabilizing. China`s minerals prices continued to rise for the first three quarters of this year, and some of them fell back in the third quarter, showing more volatility. The spot price for crude oil in Daqing field averaged US$110.3 per barrel, up 45 percent from a year earlier. The average price for quality coal was lifted 9.9 percent year on year to 783.7 Yuan per ton. The average price for iron ore fell from 1,430 Yuan per ton to the current level of around 1,200 Yuan per ton. The cooper price fell from 70,900 Yuan per ton in early July to 55,900 Yuan per ton at the end of September, with average price of 69,000 Yuan per ton. The aluminum trades in a narrow range of 16,500 Yuan per ton to 17,200 Yuan per ton. The gold price dropped from 390 Yuan per gram in late August to 335 Yuan per gram by the end of September. The factors that push mineral prices up were tamed to some extent with tighter macro control. Import and export business of minerals is brisk. In the first three quarters of this year, China`s total import and export value of minerals expanded 34.5 percent from a year earlier to US$704.558 billion. Specifically, the import of petroleum rallied 5.2 percent year on year to 219 million tons. The import of coal edged up 1.1 percent from a prior year to 124 million tons, while the import of iron ore rose 11.1 percent year on year to 508 million tons. The import of copper concentrate dropped 6.6 percent from a year earlier to 4.63 million tons, while the import of scrap copper increased 7.6 percent year on year to 3.22 million tons. The alumina import plunged 22.4 percent from a year ago to 3.18 million tons. Mine environment improved. In 2009, The Ministry of Land and Resources of China promulgated the “Regulations on Mine Geological Environment Protection “to further improve accountability mechanisms and supervision mechanisms for protection and recovery of mine geological environment in the background of market economy. To address the long-standing mine geological environment issues, a project titled "transformation of 100 mines" was implemented for 3 consecutive years in resource-exhausted cities. During the "Eleventh Five-Year" period, the central government had invested RMB 12.9 billion in mine recovery, compared with RMB 50 billion for the corresponding investment from local governments, enterprises and private sector, which boosted the recovery rate to leap to 30%, or even 50% in some areas. Ladies and gentlemen,
China has stepped on a fast track of industrialization, urbanization and economic growth. In this context, China needs to make breakthrough in mine exploration to ensure resource supply, improve resource utilization by applying sophisticated technologies, and enhance resource efficiency by creating innovative mechanism. China has and will continue implementing a resource-conservation strategy during the 12th Five-Year Plan period. It will fully control the amount of resources to be used, regulate both demand side and supply side, and promote differentiated administration. In this way, China will lift its efficiency in using mineral resources to a new level and improve its capacity to ensure resource supply. The sustainable development of mineral resources will contribute to a sustainable socio-economic development. First of all, we will fully implement the strategy of accelerating geological exploration & mine development. We will make a balanced use of both domestic and overseas resources and markets, with a firm basis on home market, further ensuring the supply of resources. After years of survey and review, we have a general understanding of our resources and potential. The exploration has become very effective, and the supply is further ensured. Additional resources in Xinjiang, Qinghai, Yunnan and Tibet have been identified and are taking shape. We will accelerate the strategy of geological exploration & mine development, with a focus on key metallogenic regions and mineral types. Geological survey and resource exploration will be strengthened to push for a breakthrough and the building of large mineral resource bases.  We will carry out a new exploration mechanism that gives priority to publish interests, focuses on financing support and commercialization, and emphasizes fast progress by coordinated exploration. We will establish a market-oriented working pattern that puts premium on technology, inter-departmental coordination, and systematic integration with enterprises as primary carriers. That said, we will lay emphasis on building a market-oriented exploration mechanism, expanding diversity of investors, and introducing coordinated exploration. On the part of the government, the key responsibility is to administer the basic geological survey and outlook research for key metallogenic regions, manage resources through economic and legal means, and properly leverage the geological exploration funds, resource taxes and resources compensation fees. The government should redouble its efforts to create a favorable environment for the geological exploration. Currently, the Ministry of Land and Resources has set up 47 blocks for strategic and coordinated exploration in 19 metallogenic regions across the country. The ministry has published the Notice on Improving Mining Rights Management for Coordinated Exploration.（No. 55 [2011] of the Ministry of Land and Resources） It will complete the review of mining rights proposals oriented towards coordinated exploration areas before year-end, and incrementally offer new mining rights to the market. The strategic campaign of accelerating geological exploration & mine development follows the principles of benefiting the investors and providing rewards to those who find mines. Also, the campaign will focus on preemptive planning, resource integration, and information transparency. The fruits will be shared and benefits will be well distributed. According to above-mentioned, we warmly welcome the active participation of domestic and overseas mining and exploration enterprises. Second, we should push forward the conservation and comprehensive use of mineral resources. Resource conservation constitutes a basic state policy of China. China’s Ministry of Land and Resources and Ministry of Finance have signed agreements with the People`s Governments of 21 provinces (autonomous regions and municipalities directly under the central government) to boost conservation and comprehensive use of mineral resources. By setting up "demonstration projects" and promoting "demonstration base construction", China provides incentives and guidelines for mining enterprises to better develop mineral resources. Efforts will be made to promote the comprehensive exploration of low-grade, refractory and mixed mineral resources, and advance hi-tech approaches for resource conservation and comprehensive use so as to improve overall development and utilization efficiency. China will create standards for conservation and intensive use of mineral resources, minimum standards for mining exploration, and indices including mining recovery rate, dressing recovery percentage and comprehensive utilization ratio based on mineral types. China will step up efforts to formulate and implement the Administrative Measures for Promoting Mineral Resource Conservation and Comprehensive Utilization. Third, step up efforts in mining industry restructure and green mine construction. Specific measures include strict implementation of the mineral resources planning, continuous promotion of development and integration of mineral resources, and full implementation of the mining rights planning system. Also, based on the resource situation, geological background, development conditions and market demand, a reasonable set-up and granting of mining rights is necessary to ensure rational distribution of the new mining rights and on-going improvement on existing mining rights. In this way, the root cause of ill-distributed mining rights will be eliminated, which will promote mining restructuring and development mode and enhance the scale and intensiveness of development of mineral resources. In addition, the scope of pilot projects of green mine construction should be further expanded to over 600 demonstration mines within 5 years. Models will be set in the areas of scientific mining methods, efficient use of resources, standardization of enterprise management, environment friendly processes, and ecology-oriented mine environment improvement. Other moves may include perfecting the green mine construction standards, and strictly managing mineral development. Specifically, for new mines, entry management should be conducted in strict accordance with green mine construction standards and for mines in operation, continuous improvement of development and utilization methods should be urged and a deadline for meeting relevant standards will be set. As our target, by 2020, a green mine landscape will have been well formed with large and medium-sized mines meeting green mines standards and small mining enterprises being managed in strict accordance with green mining standards. Fourth, we will further improve mineral resources management. We will accelerate the reform of mining rights review system, and delineate the rights of central and local authorities. Efforts will be made to reform the system for mining rights allocation. Regulations will be improved for the transfer of mining rights, while competition is encouraged. We will perfect physical markets for mining rights on the provincial level and municipal level. Also, we will explore the possibility of online transfer of mining rights and set up a uniform system of rules on mining rights trading. We will launch unified online identification number for mining rights, making sure the rights transfer information is published and open to the public via online inquiry. Efforts are made to encourage and guide the private investment, and fully open the mining rights market to private investors. We will improve the mining resources pricing system, and exploration interest distribution mechanism. We will overhaul the resource tax system. The State Council has amended the Provisional Regulations of the People`s Republic of China on Resource Tax, adding the “rate on value” principle to the existing fixed-sum tax rate method. The State Council has adjusted the collection methods and resource tax on crude oil and natural gas, and adjusted the standards for resource tax on coking coal and rare earth. Efforts are also stepped up in protection and development management for important mineral resources to maintain mine environment and keep development and utilization of mineral resources in order. Ladies and gentlemen,
Thanks to efforts by the global community, the world economy still keeps moderate recovery, although the process is not as accelerated as what we expect. It is full of change and uncertainties. Compared with other industries, mining presents a better development prospects. Global mining market continued to boom. The world demand for petroleum would increase 1 percent a year, and many institutions predict that the demand of the year would be higher than previous year. The output of OPEC oil edged up by months. Russia is likely to set a new record of 500 million tons of annual output for oil, and US oil output rebounded to a recent ten-year high. Some companies predicted that an annual increased production of 100 million tons of coal and iron ore in the next few years can meet the needs of the rising demand. Large multinational enterprises are massively expanding the capacity of iron ore, which may lead to a change in its supply and demand. The growth of demand for copper and aluminum may be above 5 percent and 8 percent respectively. The gold output is estimated to increase 5 percent. Developed countries set strategies revolving around new technology-based minerals. Both EU and US increased their research on availability in raw materials of such new-technology-based minerals as rare earth, cobalt, niobium, tantalum, and indium. International mineral prices fluctuate around high levels. Commodity price remains high as some countries stick to a loose monetary policy and global liquidity is abundant. The crude oil price shot up in the first four months of this year, and sharply fluctuated from May. US crude oil futures fell almost 30 percent from US$110 per barrel in late April to US$80 per barrel at the end of September. Coal prices remained high, and iron ore price picked up. Such precious metals as gold, silver, platinum, and palladium sharply increased: the prices of gold, silver and platinum were higher than that of pre-financial crisis; and the silver price even grew more than that of gold. Some metal prices, including copper, lead, zinc and nickel fell back. Global mining investment sustains rapid growth. The global mining industry has bottomed out, with total investment in the projects expanding 21 percent from a year earlier in 2010, and 14 percent from a year earlier in 2009. There were more than 100 new mining investment projects for over US$60 billion in 2010. The investment of non-solid fuel minerals exploration reached US$11.2 billion in 2010, second to that of US$13.8 billion in 2008, recovering from the decrease due to financial crisis in 2009. The investment of global non-solid fuel minerals exploration is expected to hit US$13-14 billion in 2011, which indicates that the global mining is backing on track. Mining companies accelerate merger and reorganization. In the first half of this year, the trade value for 1,379 global mining merger and acquisition surged 80 percent year on year to US$71 billion Yuan, hitting a record high. Canada, Australia and European countries still play a leading role in the M&A business for coal, iron, copper, gold and potassium. China accounts for low share in overseas mining M&A business, with the trade value falling 18 percent from year earlier to US$4.7 billion. In the second half, the process of global mining M&A slowed down. The trade value and volume declined 32 percent and 19 percent month on month respectively in July, and continued to drop 25 percent and 7 percent in August. The global mining industry continued to turn its focus to the areas located in equator, or even south of the equator. The production and market share for major minerals are dominated by a few companies in the world. Ladies and gentlemen, As the world is at a critical stage in its struggle for economic recovery, the robust growth of global mining industry requires industry-wide confidence, intensified cooperation, communication and coordination. We should speed up the pace in building a fair, rational, sound, and stable economic order for the mining industry. Governments worldwide should assume their responsibilities, so should the people from mining, financial and trade industries. We should safeguard the mining investment and the market stability. For that purpose, I’d like to put forward three proposals: First, we should adopt new philosophy for resource exploration. As is known to all, mineral resources are not only scarce and exhaustible, but also dynamic, systematic, and open. There should be an integration of quantity, quality and ecology. While implementing regulation on a quantity basis, we should improve quality management and ecological protection. We should manage exploration with a philosophy that sees quantity, quality and ecology as an integrated system. Resource conservation, as a priority, should go hand in hand with exploration, so that limited resources can be put into better use. We should stick to market openness, thus realizing optimized resource allocation on a broader basis, and bringing into play the respective regional strength. We should promote fairness, and protect the legitimate rights and interests of resource owners, investors, exploration companies, and the local people. A balance should be struck in protecting the interests of all parties concerned. Moreover, ecological protection should not be left behind. We should shoulder the responsibility of ecological restoration, making sure the mining activity would not damage the environment. We should raise the threshold for market access, selecting eligible and socially responsible companies for mining exploration. Second, we should deepen pragmatic cooperation in the global mining industry. China’s opening up to the outside world, as a basic state policy, will remain unchanged. China will steadfastly implement mutually beneficial and win-win opening strategy. We should proactively participate in economic globalization and mining cooperation, oppose protectionism, and press ahead with a fair and rational trading and investment system for the global mining industry. Efforts should be made to improve foreign-related mining laws, regulations and policies, making China’s mining investment climate more standardized, transparent, and favorable for investors. We are ready to beef up our overseas mining investment, expand mineral products trading, and guide and support strong and credible domestic mining companies to invest overseas and strengthen cooperation with their international mining counterparts. Governments worldwide should promote dialogue and consultation, policy coordination, mutual investment, and carry out bilateral and multilateral mineral resource cooperation. Third, we should intensify international technological cooperation in mining industry. Mining exploration is a technology-intensive industry. With the increasing difficulty in mineral prospecting and stricter requirements on exploitation, we should innovate our ideas, techniques, methods and facilities. Efforts should be made to improve inter-governmental technological cooperation mechanism and the cooperative R&D mechanism among mining companies. Centering on innovative R&D for the key and comprehensive use technology in exploration, metallogeny and mineral prospecting, we should further expand our technical force, promote information exchange, and intensify exploration technology collaboration. Efforts should be made to advance hi-tech application in geological exploration and mining development, and bridge the technical gap between various countries. We should also push forward a platform for international technological cooperation in mining exploration. We should draw upon and disseminate each other’s hi-tech approaches by diverse means, including developing key technological cooperation projects, launching earth science programs, holding seminars and training, conducting joint R&D, and setting up cooperation demonstration projects. Ladies and gentlemen, In the near future, mineral resources will still be critical to the economic and social development, and mining industry will make much difference to the world economy. In view of China`s socioeconomic development, we stick to the basic principle of "ensuring domestic supply capacity of resources”. We are mobilizing what is available on every front to achieve the goals of "significant progress within three years, major breakthroughs within five years and a brand new landscape for mine exploration and development within eight to ten years" for the campaign of “geological exploration & mine development”. We are convinced that China’s mining industry is sure to develop better and faster, and make new contributions to a sustainable development of the global mining world. Thank you!
 (November 6, 2011, Tianjin, China)

Vice Minister of Land and Resources Yun Xiaosu presides over Theme Forum of CHINA MINING 2011
Source: Portal Website of Ministry of Land and Resources   Citation: Portal Website of Ministry of Land and resources   Date: November 6, 2011

Vice Minister of Ministry of Land and Resources Mr. Yun Xiaosu presides over Theme Forum of CHINA MINING 2011: Strengthen International Cooperation, Accelerate Geological Exploration & Mine Development.

South African Mining Minister Susan Shabangu addresses the CHINA MINING 2011
Source: Portal Website of Ministry of Land and Resources   Citation: Portal Website of Ministry of Land and resources   Date: November 6, 2011

Thank you, Minister Xu, all delegates, Tianjin Municipal Government, Mayor of Tianjin, Mr. Oliver, all delegates present today, ladies and gentlemen，

I feel so honored to attend this congress today. The congress is a very important mining event. CHINA MINING 2011 is a grand event. We believe it is a rare opportunity not only for South Africa, but also for many other countries. I believe it is crucial to our future cooperation in the mining industry. We may say that South Africa has a fully-fledged legal structure. We support and encourage investment in mine exploration, prospecting and mining in South Africa, and at the same time we provide everybody a favorable environment. In face of various challenges and problems for the mining industry, our government all gives active response and solutions. We also expect to facilitate the friendship and cooperation between both countries through the congress.

Meanwhile, we facilitate the mining development in South Africa and cooperation between South Africa and other countries in many aspects. I believe that our policies will encourage investment from foreign countries in South Africa in many aspects. I believe that we will have a sustained cooperation and development not only with China, but also with some other countries. Especially in terms of mineral resources, we believe that there will be promising and sustainable development between South Africa and China. Both of our countries should complement each other’s advantages in terms of mining development. I believe that both countries encourage investment from other countries. Over the past years, both countries have carried out mining development and cooperation which no doubt will generate impact on next several generations. Moreover, I believe that South Africa will give active response to needs of our own country as well as other countries regarding prospecting and mining, guarantee the investment from everybody in our country and create a favorable environment to facilitate the cooperation and development with China in all aspects and preserve efforts and projects contributed by Chinese companies and other companies to the mining development in South Africa. I am deeply convinced that our government has given active response to the fields such as renewable energy, low-carbon and green development, and taken active actions to facilitate the development in this respect. We continue the worldwide mining cooperation with China and other countries. Our aim is that all our current mining and related infrastructure will be used to support the development and investment from all other countries in South Africa. Lastly, I hope that there will be more South African companies which establish cooperation and friendly communication with Chinese companies through CHINA MINING  2011.

Thank you!

Minister Xu Shaoshi gives a speech at the Opening Ceremony of CHINA MINING 2011
Source: Portal Website of Ministry of Land and Resources    Citation: Portal Website of Ministry of Land and Resources    Date: November 6, 2011

Ladies and Gentlemen, Friends, CHINA MINING 2011 grandly opens today. On behalf of the Organizing Committee and the Ministry of Land and Resources of the People’s Republic of China, I convey sincere welcome to all delegates, and high respect and best wishes to all delegation leaders! The Chinese government highly values this event as it is an important platform for international mining exchange and cooperation. A leader from the State Council of China has sent a congratulatory letter to express congratulations to the congress and good wishes from the Chinese government for promotion of mining cooperation and development. Ladies and gentlemen, one year ago, we grandly convened here to jointly explore development strategies of the international mining industry with cooperation, responsibility and development as the theme. Over the past year, through joint efforts of all the colleagues under the guidance of the theme, we are glad to see that many of the cooperation projects have resulted in fruitful achievements. Besides, we have displayed higher value while assuming more responsibilities, coping with the international financial crisis and promoting the world economic recovery, which definitely will go down in history as common spiritual wealth of the international mining industry. The impact of the international financial crisis currently still continues, and the world economic recovery is slowing down. Unstable and uncertain factors have obviously increased. At this critical moment, the colleagues from the international mining circles are even more required to keep intensifying the exchange and cooperation to live through the hardships together, and actively speed up the prospecting breakthrough to light up our confidence. This congress is themed with Strengthen International Cooperation, Accelerate Geological Exploration & Mine Development, which is very target-oriented and realistic. I believe that all the delegates will surely carry out profound exchange and active cooperation during activities like forum discussion and project negotiation by firmly sticking to the congress theme, and make constant efforts to promote the international mining development and uphold the world economic recovery. Ladies and gentlemen, this year is the first year that China launches the “Twelfth Five-Year Plan” on economic and social development. The “Twelfth Five-Year” is a crucial period for China’s across-the-board construction of well-off society, and also a hard-battle period for intensification of reform and opening-up and acceleration of economic development mode transformation. China’s mining industry is confronted with not only new development opportunities, but also more severe challenges. We are clearly aware that the synchronous fast development of industrialization, urbanization and agricultural modernization definitely is bound to facilitate the rise in rigid demand for mineral resources with the restriction from resources and environment further standing out. We must actively cope with the issue by taking multiple measures and strive to enhance the guarantee capacity of mineral resources for economic and social development. 1. Sticking to the strategy of giving priority to conservation and facilitating sustainable economic and social development through sustainable utilization of resources. We should actively implement the strategy of giving priority to conservation proposed by the “12th Five-Year Plan”, carry out control over overall resource utilization, supply-demand two-way regulation and differentiated administration, and vigorously improve the efficiency of energy resource utilization. Besides, we should actively push forward conservation and comprehensive utilization of mineral resources, implement demonstration projects on conservation and comprehensive utilization of mineral resources with focus on enterprises, actively promote high technologies on conservation and comprehensive utilization and cultivate a batch of demonstration bases for comprehensive resource utilization to continuously improve comprehensive exploration, appraisal and utilization of mineral resources, and facilitate the economic development mode transformation by improving resource utilization efficiency. 2. Implementing the prospecting breakthrough strategy and enhancing resource guarantee capacity based on domestic reality. We will strive to implement the prospecting breakthrough strategy, increase efforts in basic geological survey and exploration of major minerals, achieve breakthroughs in promising prospecting areas of major oil-gas bearing basins and key mineralization zones and set up a number of important resource succession areas to provide favorable resource guarantee and industrial support for steady and relatively fast economic development. Moreover, we expect foreign mining enterprises to invest in China’s mining industry, and at the same time we encourage competent Chinese mining enterprises to actively engage in international cooperation on mineral resources. 3. Increasing efforts in system innovation and taking full advantage of fundamental role of market in allocating resources. We will accelerate the improvement of system and mechanism, properly handle beneficial relations between the central government and the local government, and the government and the market, stick to integration of market regulation and government guidance, and take full advantage of fundamental role of market in allocating resources. We will also push forward the new geological prospecting mechanism across the board, which is prioritized public interest, business follow-up, fund link-up, assembled exploration and rapid breakthrough, strive to establish a market-oriented system platform and fully mobilize the initiative of all parties to further attract social funds into commercial mineral exploration and exploitation. Furthermore, we will vigorously advance technological innovation and strengthen technological support and progress to promote geological prospecting development. 4. Keeping balance between resource development and environmental protection and promoting the green, low-carbon and sustainable development of China’s mining industry. Under the principle of integrating quantity, quality and ecology in an organic manner, we will enhance the administration and preserve the order of mineral resource exploration and exploitation. By sticking to balance between development and protection, we will upgrade the mining access level for eco-environmental fragile areas in terms of policy, funds and technology, vigorously develop green mines and strengthen mine geological environment protection and restoration management to enable mutual promotion and cooperation between mineral exploration and exploitation and environmental protection and make the mining development benefit the local people in a tangible manner. Ladies and gentlemen, the world’s population has gone beyond 7 billion. How to make the limited mineral resources on the earth support and guarantee sustainable development of human society, not only satisfying needs of the contemporary people, but also leaving behind living and development space for our offspring, it is not only a question requiring each one of us on this planet to seriously think about, but also a task requiring mining colleagues to be duty-bound to assume and work on. The imbalanced distribution of the world’s mineral resources determines that no country can possibly achieve self development by relying completely on its own resources; instead, all the countries are required to fulfill reasonable allocation of resource elements around the world. It also determines that our mining colleagues must comply with welfare of all mankind while ensuring self interest, and pursue further development in the process of promoting development and prosperity of the world’s mining industry. There is an important symbol in Chinese culture which is “HE” (meaning harmony in Chinese). “HE” leads to symbiosis, and difference, which should also be the value for mining colleagues to carry forward. Promoting the realization of win-win cooperation and harmonious development of the international mining industry, and even the global economy, is not only an eternal theme of the international mining development, but also the value of establishing and holding the China Mining. Therefore, I propose that we join hands together to expand exchange, form consensus, enhance cooperation and strive for establishing an environment-friendly, innovation-driven, inclusive and harmonious new international mining order. I deeply believe that the world’s mining development will surely usher in a better future through joint efforts of all of us. Finally, congratulations in advance to a complete success of CHINA MINING2011. Wish all the delegates smooth work and good health. Thank you all.