Voices from China's mining industry: open new pattern | new cooperation model | new development

From October 18 to October 20, the 2018 China International Mining Conference was held in Tianjin. The theme of the conference was 'Opening a new pattern, a new mode of cooperation', and taking the “One Belt, One Road” mining international capacity cooperation as an entry point to promote the world. Dialogue, exchanges and cooperation in the mining industry. There are 60 summit forums. The speakers shared wonderful and unique insights on the current status, situation and trends of the global economy and mining development. They are profound for the international mining industry, especially the Chinese mining industry. Grasping the development trend of the mining industry, strengthening the confidence of future development, and promoting the promotion of global economic and mining investment cooperation have important implications. As of October 20, the conference closed, the conference registered 5,0 representatives, including 906 foreign representatives; another professional audience 6079 People, the total number of participants in the exhibition reached 11,167.

Zijing Mining Group Co., Ltd. Party Secretary, Chairman Chen Jinghe: Global competitiveness is the real success

Chen Jinghe

Chen Jinghe believes that reform and opening up has made China's mining enterprises. Before the reform and opening up, China's basic metal consumption accounted for less than 5% of the world's total, but now it has reached about 50%. 'Reviewing Zijin Mining's development over the past 25 years, Zijin Mining used to The success is mainly to build a fast-growing development of China's reform and opening up economy. Internationalization is a major test in the future. Whether Zijin Mining can stand out in the international mining market and have global competitiveness is the real success. Point out.

Regarding the current mining market and trends, Chen Jinghe analyzed: 'The mining market trend has fluctuated with the financial ups and downs. In recent years, the mineral prices have rebounded. I think it is a rebound in the past. Most mining companies have got a breathing space, especially the supply side. Structural reforms have caused a large number of small and medium-sized mines to close, market supply has experienced a short-term decline, and the price of mineral products has risen. Although China's current economic growth rate is slowing, China's economic resilience and sustainability remain predictable. At present, the market price is in a relatively reasonable period. The fluctuation of up and down around 15% is a high probability event. It does not have the conditions for a large increase, but the lower part has cost support.

In the new development period, new requirements and challenges have been raised for mining enterprises. Chen Jinghe pointed out that mining development must achieve harmony with the environment and attach great importance to safety, environmental protection and occupational health. This is the red line for the survival and development of mining enterprises; The investment cost is rising, and large-scale mechanized production is the basic requirement. However, there are not many qualified mines in China; the mining policy has undergone major changes, and China's mining policy has further tightened; geological exploration and mining investment risks Further improvement, after the introduction of the equity system, enterprises must not only bear the investment risk of risk exploration, but even pay a huge amount of equity before the mining license is approved.

In the face of a new round of development and challenges, what should Chinese mining companies do?

Chen Jinghe said: 'China's mining enterprises generally have two choices, one is based on the present, and strive to improve business operations; the second is to take an aggressive strategy, actively participate in the domestic and international mining market, and strive for sustainable development.

Chen Jinghe believes that 'going out' is an important decision for some Chinese mining companies. China is a global super-large mineral consumption consumer, but there is no right to talk about the price of mineral products, mainly because Chinese companies control the import and export of mineral resources with relatively small capacity, mine output. Relatively low, the mining cost is relatively high, most of the mineral products are less than 30% self-sufficient, highly dependent on overseas markets, economic globalization is the irreversible trend of the general trend, China's further reform and opening up to enhance the endogenous driving force of self-development. In the new During the development period, with a large number of large-scale multinational mining enterprises with global competitiveness, it is a requirement of the new era, and it is the active decision of surrounding mining enterprises.

Chen Jinghe talked about how Chinese mining companies can better 'go global'. He pointed out that a considerable number of Chinese mining companies have basically acquired the strength to participate in international competition, lacking overseas operating experience and international talents. Experience and talent can only be obtained and cultivated by practice. Second, mining is a tough industry, and each mine must be independently designed. The Chinese people's hard work and professionalism are recognized globally, and mining is the most suitable industry for Chinese people. Third, mineral resources are the necessary conditions for the survival and development of mining enterprises. It is possible to realize value investment in areas with rich mineral resources and low development level. Fourth, mineral products are essential raw materials for industry, and China needs one. Approved excellent large-scale super-large multinational mining companies to provide guarantees for China's economic growth.

Chen Jinghe also made recommendations on mining regulations, the basic status of mining, the “going out” policy environment and equity of mining companies. He suggested that in addition to further strengthening of safety and environmental protection regulations, it is necessary to further reduce government approval and strengthen the market. Mechanism, especially to ensure the geological exploration investment and the legal potential of mine assets; Analyze and understand the basic status of the mining industry, the mining industry can achieve a relatively unified environmental protection, more objectively and scientifically view the impact of the mining development process on the environment; The environment for going out, opening up an international green channel for mining enterprises, providing more guidance and assistance; Mining enterprises should strengthen green development, the main theme of safety development, and implement the green water mountain is the environmental protection concept of Jinshan Yinshan.

Song Xin, Chairman of the Party Committee of China National Gold Group Co., Ltd.: Deepening cooperation and win-win, and comprehensively promoting the high-quality development of the gold industry

Song Xin

Song Xin delivered a speech at the Corporate Executive Forum on how to adhere to the open development of the gold industry and gold enterprises, deepen cooperation and win-win, and comprehensively promote high-quality development and exchanges with everyone.

Song Xin said that in recent years, China's gold industry has been adhering to the concept of openness, deepening reform and innovation, and maintaining a good development trend. Gold production has maintained its number one position in the world for 11 consecutive years. Gold consumption has remained the world's number one for five consecutive years, and the gold market has grown rapidly. Gold trading is developing rapidly, and gold resources reserves rank second in the world.

Song Xin analyzed the current global environment and the domestic economic development trend of the development of the gold industry. At the same time, it pointed out the development of the gold industry. On the one hand, the major gold groups carried out resource integration, mergers and acquisitions, transformation and upgrading, and mutual advantages. Complementary, cooperation and win-win provide a favorable opportunity. On the other hand, the new environmental tax law is officially implemented, forcing enterprises to increase investment in environmental protection facilities and process upgrades; mining rights in nature reserves have been withdrawn, and mineral resources rights and interests have been reformed. Implementation in some provinces and cities will have a huge impact on the next step of development.

Song Xin pointed out that in the face of the new situation, gold enterprises must deepen open cooperation, carry out pragmatic exchanges, and solidly promote the high-quality development of the gold industry.

First of all, we must always adhere to the concept of cooperation and win-win, and synergistic development. On the one hand, give full play to the coordination and guidance of the China Gold Association, and actively reflect the industry demands to the relevant departments of the country on the major policy issues concerning the survival of the industry, and defend the industry. On the other hand, actively implement the 'going out' strategy, especially with the complementary advantages of the 'One Belt, One Road' industry, to create a closed loop of upstream and downstream circulation of the gold industry, and achieve resource integration.

Second, we must always focus on enhancing cost competitiveness. Song Xin said that in recent years, China Gold has continued to focus on optimizing the 'five rates' and reducing the 'five fees', and the whole process cost control as a quality improvement. Important grasp, deepen the whole process cost control, cost control continues to optimize. From 2014 to organize the optimization of 'five rates' work, to 2018 to determine the overall improvement of resource quality, asset quality, safety and quality, quality of operation The core 'year of quality change', the cumulative efficiency of 1.276 billion yuan.

Third, we must comprehensively deepen enterprise reform. On the one hand, China Gold has accelerated the supply-side structural reforms, vigorously carried out the 'straight-stricken governance', reduced the management level and reduced the number of legal persons, and the separation of the 'three for one industry' and other key points. On the other hand, the implementation of mixed ownership reform was implemented steadily; at the same time, the reform of the three systems of enterprises was continuously deepened, and the reform of the group headquarters was fully implemented. The headquarters was the decision-making investment center, the sector was the profit center, and the enterprise was the control model of the cost center. .

Fourth, we must accelerate the implementation of the innovation-driven strategy. 'In recent years, China Gold has placed its scientific and technological innovation in a very prominent position, targeting the frontiers of the industry, closely following the needs of enterprises, and vigorously carrying out scientific research, and achieved remarkable results. At present, China Gold has the only national-level gold research institute and design institute and other research and development platforms, and has won 9 national scientific and technological progress awards. 16 key technologies have been selected into the catalogue of advanced and applicable technologies for mineral resources conservation and comprehensive utilization of the Ministry of Land and Resources. At the same time, through active declaration, the number of high-tech enterprises has doubled. At present, there are 23 high-tech enterprises in the whole group, and it is expected to reach 30 at the end of this year.

Fifth, we must adhere to safe development and green development. Song Xin emphasized that in the process of developing gold resources, we must thoroughly implement the concept of green development, so as to develop Jinshan Yinshan and protect the green mountains and green hills. Safety production, the importance of green development, earnestly fulfilling the main responsibility, and forming a safety management system with its own responsibilities. He said that China National Gold Group will all meet the requirements of green mine construction in the future, and the existing production mines should be upgraded and upgraded. 2. Practically implement the construction of ecological civilization and build a beautiful China.

Jiao Jian, deputy general manager of China Minmetals Corporation Limited: The 'One Belt, One Road' initiative brings new historic opportunities for mining development

Jiao Jian

Since 2017, the mining industry has experienced a short-term recovery. However, under the guidance of global trade conflicts, the global macro-political and economic turmoil continues. The US dollar has entered a rate hike cycle, and the risks of emerging economies have intensified. The market uncertainty remains for some time. Relatively high. 'Despite this, we still have confidence in the medium and long-term development prospects of the global mining industry.' Jiao Jian pointed out.

First of all, China's demand continues to grow. At present, China is in the midst of a decisive battle to build a well-off society in an all-round way. The urbanization process will be further carried out. At the same time, China's economy is accelerating transformation and upgrading to a high-quality development stage. China will still be driving global metals. Mineral products demand growth important engine.

Second, there are huge growth potentials in other countries and regions around the world. Especially in Southeast Asia, South Asia and Latin America and other countries and regions, the level of industrialization and urbanization needs to be accelerated. The medium and long-term economic development and the improvement of people's living standards in these regions will Drive a new round of global demand growth.

In the past five years, 'One Belt, One Road' is moving from initiative to reality, bringing new historical development opportunities for mining development. On the one hand, the 'One Belt, One Road' initiative will promote local economic development and thus increase the demand for mineral resources; On the one hand, the countries along the 'Belt and Road' have unique development advantages and great development potential in the metal mining industry, and the domain will occupy a pivotal position in the global mining development.

As an important part of the 'One Belt, One Road' initiative, mining development should play a greater role. Jiao Jian suggested that countries along the 'Belt and Road' as a key area for mining development, strengthen mineral resources exploration in this area, preliminary development research, etc. Promote 'One Belt and One Road' mining development continues to mature; continue to increase mining investment in countries and regions along the 'Belt and Road'; strengthen the 'One Belt and One Road' regional mining development cooperation, strengthen horizontal cooperation within the industry and vertical cooperation in the industry chain, Deepen mutual benefit and share.

Jiao Jian said that China Minmetals Group has been engaged in metal mineral products trade with the countries along the line in the “Belt and Road” field, and has undertaken a large number of mineral resources development and metallurgical construction projects, forming a system solution and engineering construction operation for metal mining enterprises. Integrated life-cycle service capabilities will continue to adhere to the concept of standard operation and high-quality development, and continue to grow with the 'Belt and Road'.

Zhang Chengzhong, deputy general manager of Chinalco Group: Finding the right way to take the road of high quality development

Zhang Chengzhong

In the new era, how to correctly define the status of mining in economic and social development, how to look at the future of mining, and how to achieve high-quality development of mining, these issues have become a historic issue, placed in front of the mining industry.

Zhang Chengzhong believes that standing at the new historical starting point, we must re-understand the positioning of the mining industry itself.

First of all, mining is by no means an extensive industry. For a long time, the domestic mining industry has been unilaterally pursuing development speed and pursuing high returns, mining standards under the guidance of the misunderstanding of 'big mines, small mines and small open'. The entry is low, the scale is small, the process equipment is backward, the technical level is low, the ecological environment is destroyed, the safety problem is highlighted, the development is extensive, the ecology is destroyed, and the polluted environment has become synonymous with the development of mining in some areas. 'It is important to emphasize that Development is by no means an inherent feature of the mining industry, but a misconception of development, a product under the guidance of an irresponsible development philosophy. Zhang Chengzhong said that as long as the scientific development concept is adhered to and the development mode is unswervingly changed, mining development will certainly While creating wealth and benefiting one side, we will achieve harmony between man and nature and achieve high quality and sustainable development.

Secondly, mining is by no means a sunset industry. China has a large population and low per capita consumption; large-scale mineral products have poor endowment and high dependence on foreign countries; China's industrialization process is far from over, urbanization construction has just begun, and the consumption of major mineral products has increased. The speed will slow down, but the total consumption will still be at a high level and will continue for a period of time. China's economic development is still inseparable from the support of mineral resources. The global economy under the 'One Belt, One Road' initiative will surely bring developing countries. The economic revitalization will further release the rigid demand for mineral products. Zhang Chengzhong believes: 'The new round of industrial revolution, especially the development of wind energy, solar energy and energy storage batteries, is also inseparable from a large number of rare, scattered, The protection of emerging strategic mineral resources such as rare. Therefore, the prospects for mining development are still bright.

Third, mining is by no means a low-end industry. 'Because of the scarcity of mineral resources and non-renewability, it determines that mineral resources have a special strategic position and high economic value. It is developed with large scale, high quality and expandable production. The object of the mining project, can not be because it is at the front end of the industrial chain, it will affect its high-end value chain. 'Zhang Chengzhong said. The Chinese government has listed the green resources of resources into the high-tech fields supported by the state, mining companies can identify For high-tech enterprises, and enjoy government preferential policies in all aspects, in a sense, mining is not only a high-tech industry, but also leading technological innovation.

In Zhang Chengzhong's view, the development of the mining industry must adhere to the times, and unswervingly follow the path of high quality development.

First of all, we must firmly adhere to the road of green development. At present, China's mining industry has low concentration, small scale of mines, and poor economic returns. This extensive business model can neither achieve the goal of green mining nor make mining high. Technology, heavy capital, high standards, high-return high-end industries. Zhang Chengzhong believes that mining thresholds should be raised, especially to improve technology and environmental protection thresholds, to prevent excessive entry barriers, leading to more investment entities, malicious competition, and disorderly competition. , eventually leading to ecological damage and waste of resources.

Secondly, we must firmly adhere to the road of sustainable development. Mining development must adhere to the concept of sustainable development and continuously provide resources for social and economic progress. The development of mining should be environmentally and ecologically responsible, and minimize the geological environment. , water environment, disturbance of the ecological environment, to achieve the benefit of one party, leaving a green hill, truly realize the harmonious coexistence of man and nature.

Third, we must firmly adhere to the road of innovation and development. Mining enterprises should increase the intensity of technology research and development and technological innovation, upgrade traditional mining through advanced technology, reduce energy, resource consumption, reduce pollution, and accelerate the comprehensive utilization of mineral resources. Zhang Chengzhong said that it is necessary to adhere to problem-oriented, learning, introduction, research and advanced technology, improve mine digitalization, intelligent mining level, and provide technical basis for high-quality development of mining industry.

Fourth, we must firmly adhere to the road of cooperative development. The uneven distribution of mineral resources determines that the development of mining is inseparable from cross-regional, cross-industry and inter-disciplinary cooperation. The integration of mining into the global economy is a historical necessity. Zhang Chengzhong called for mining colleagues to consciously resist trade protectionism, resource nationalism, break down investment barriers, and promote global mining mutual benefit.

Liu Yongsheng, deputy secretary of the Party Committee of Shandong Zhaojin Group Co., Ltd.: Green development, internationalization and the Internet push the gold mining industry into a new era

Liu Yongsheng

In 2007, China's gold production reached 276 tons, becoming the world's largest gold producer. It has maintained this dominant position for 11 consecutive years. At the same time, China is also the world's largest gold consumer, the largest gold processing country. Become the leader of the world gold industry.

Liu Yongsheng believes that the rapid development of China's gold industry over the past decade has benefited from the development dividends released by the reform, mainly supported by two major drivers of capital and resources. Major domestic gold companies have stepped into the capital market and solved the development of the industry. The problem of 'coming' has formed a capital advantage, which has had a profound impact on the overall layout of the industry. It has also laid the competitive development pattern of the industry for more than a decade. At the same time of intensive listing, the domestic gold mining giants have a large number of 'staking a circle' to solve According to statistics, at present, China's four major gold groups account for more than 60% of the country's gold resources, forming a resource map of their respective national layout.

'After more than ten years of rapid development, the two major driving forces that have promoted the development of China's gold mining industry have been fatigued. From 2008 to 2017, China's gold production has a compound annual growth rate of 4.2%, compared with 2003 to 2012. The annual growth rate fell by 3 percentage points, and the national gold output fell by 6% in 2017. In the first half of this year, the national gold output fell by 7.87% year-on-year, indicating that these two dynamics are declining year by year. 'Liu Yongsheng pointed out.

The gold industry is facing tremendous pressure from industrial transformation and upgrading. Thinking about the new driving force for the future development of China's gold mining industry is a new topic for the entire industry. 'The future development of China's gold mining industry should rely on three new powers of green development, internationalization and the Internet. To achieve the phoenix nirvana of China's gold mining industry. 'Liu Yongsheng believes.

First of all, green development is the only way to promote the transformation and upgrading of the gold industry and achieve high-quality development. It is necessary to grasp the two key points of ecological mine construction and green technology innovation. Environmental protection, green development is the driving force for the future restructuring of the gold industry, and high-quality enterprises will rely on green development. Ability to acquire more resources and advantages, and win in a new round of industrial integration. Green mining technology will become the core competitiveness of future enterprises. Zhaojin Mining has achieved some research and development achievements in the field of smelting and processing, comprehensive resource recycling, Deep mining, difficult development and utilization of green resources, three wastes resource utilization, ecological reclamation and other projects for green technology research.

Second, internationalization is the only way for China's gold and mining industry to integrate into the world's mining industry. 'In terms of internationalization, China's gold mining industry faces two major opportunities. First, the national will, including the ''Belt and Road'', the internationalization of the renminbi, etc. The implementation of the strategy is a rare historical opportunity for the internationalization of China's gold mining industry. Second, the mismatch of resources. At present, the valuation of gold mining companies in the international capital market is at a relatively low level, which is a better window for domestic mining companies to invest in overseas value. Liu Yongsheng said that internationalization must first achieve 'four modernizations', namely, diversification of equity, localization of operations, ecologicalization of development and internationalization of financing.

Third, the industrial upgrading based on new Internet technologies is the third driving force for the development of China's gold mining industry. In this regard, Liu Yongsheng believes that five "Internet +" should be built. First, Internet + equipment, construction automation, digital, intelligent mines. The disappearance of China's demographic dividend, the application of the Internet of Things, robots, the gradual degree of sensing technology, automation based on Internet technology, digital, intelligent, unattended, smart mine construction, will profoundly change China's gold mining. Second, the Internet + Management, build a new platform for internal digital management and control. Through the application of big data, cloud computing technology, management tools, management process reengineering, improve data management by letting data run more. Third, the Internet + market, the construction of resource optimization configuration Operational platform; Fourth, Internet finance + mining real economy, building a low-cost financing platform; Internet finance + mining entity model will be a trend, containing enormous growth. Fifth, Internet + talent, openness, comprehensive Development Platform.

Li Chaochun, Chairman of Luoyang Luanchuan Molybdenum Group Co., Ltd.: Clear strategic guidance and principles for overseas investment

Li Chaochun

Li Chaochun pointed out that mining is a quasi-investment and quasi-financial industry with long-term and cyclical characteristics. It must be properly analyzed for its characteristics. Overseas investment is not for mergers and acquisitions, not for going out, going to have a Clear strategic guidance. Under the guidance of clear strategy, we can recognize the situation. Li Chaochun introduced that Luoyang Molybdenum adheres to the '5C' principle in its overseas investment process, namely 'variety, cost, cash flow, patience and cooperation'.

'The mining investment logic is also relatively simple, but in fact the price is difficult to control. For the mining company, it is necessary to achieve the best cost and the most competitive. Therefore, when selecting the investment target, the cost is for the new investment project. The control is very critical. ' Li Chaochun said.

Cooperation is also a very important part of overseas investment. Li Chaochun pointed out: 'This time the counterparty may be the future partner, to give each other a trust and friendship; to maintain a stable and healthy balance sheet, more and more The financial institutions are willing to cooperate with you. In addition, we must find a harmonious and common development path with the local government and the community. For business development, the company's future investment is very important.

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