The hottest pace of international mining capacity

China's pace of international mining capacity cooperation

since the second half of 2016, the global mining market has gradually emerged from the downturn since the second half of 2012, and the overall situation shows signs of improvement. After the overall recovery of mineral product prices, mining industry transactions and mergers and acquisitions were active, the global mining market showed a bottoming out trend, and Chinese enterprises' enthusiasm for "going out" to participate in overseas mining investment gradually increased. China is in the reform period of structural adjustment and capacity reduction. The domestic economy has entered the "new normal" period of medium and high-speed growth, and the supply and demand pattern of mineral resources has changed. At the same time, the impact of ecological and environmental protection policies on mining industry is gradually emerging, and domestic mining investment and mineral exploration still maintain a cooling trend. Improving the national energy and resource security capability is still one of the most important goals of overseas mining investment. The in-depth analysis of the situation of overseas mining exploration and development and the corresponding countermeasures and suggestions have certain reference significance for improving the capacity of overseas mining cooperation

I. overseas mineral exploration investment continued to shrink, and the pace of "going global" gradually slowed down

1 Investment in mineral exploration continued to decrease significantly, and social funds dominated

according to the statistics of the "national geological exploration results direct reporting system", since 2011, China's overseas mineral exploration has invested about 4844.75 million yuan, of which about 639.08 million yuan has been invested by local government funds, about 4205.67 million yuan has been invested by social funds, accounting for 87%. Since 2012, the investment in overseas mineral exploration has generally shown a downward trend year by year. In the first half of this year, China's investment in overseas mineral exploration was less than 1/5 of that in the same period in 2012 (see map 1 of 3)

in the first half of 2017, more than 40 geological exploration teams in China carried out mineral exploration work abroad, and 52 exploration projects are being implemented. The investment in overseas mineral exploration projects totaled 107.65 million yuan, a year-on-year decrease of about 29%

2. Exploration investment is concentrated in Asia and Africa, and gold and copper are the main exploration targets

overseas mineral exploration investment flows are concentrated in regions, and Asia and Africa are traditional investment hotspots. In the first half of this year, the exploration investment in Asia and Africa was 50.83 million yuan and 45.21 million yuan respectively, accounting for 47% and 42% of the total amount respectively, and the share was basically the same as that of the same period last year; The second is Latin America, where the investment in exploration accounts for 10%, and the investment in other regions is less than 5million yuan. The regional distribution of exploration projects is basically consistent with the investment flow. The exploration projects distributed in Asia and Africa account for 92% of the total. Exploration projects in Asia are concentrated in neighboring countries such as Laos, Myanmar and Indonesia. Exploration projects in Africa are mainly distributed in mineral countries such as Tanzania and the Democratic Republic of the Congo

gold and copper are the minerals that our geological prospecting units pay most attention to in overseas geological and mineral exploration investment. In the first half of this year, the investment was 33.38 million yuan and 24.46 million yuan respectively, accounting for 31% and 23% of the total investment respectively; The second is groundwater and natural alkali, with the investment of 10.57 million yuan and 9.11 million yuan, accounting for 10% and 9% of the total investment respectively; Coal and niobium account for 7% and 5% of the total investment respectively. Other minerals include nickel, tin, bauxite, rare earth, potassium salt, limestone, etc., but the investment amount is less than 5million yuan

3. The drilling workload has decreased in recent years, and some exploration projects have made progress

most of the exploration projects implemented in the first half of this year are in the stage of pre inspection and census, including 22 pre inspection projects and 15 census projects, which account for 71% of the total projects. In addition, there are 3 detailed survey projects and 12 exploration projects

with the reduction of exploration investment and exploration projects, the physical workload of overseas mineral exploration in the first half of this year decreased significantly compared with the same period in 2016, with a total of 64000 meters of drilling work completed, 312 meters of pit exploration, 27000 cubic meters of trenching, and 437 meters of shallow wells, a year-on-year decrease of 43%, 73%, 2% and 53% respectively. There are 23 projects with drilling workload, mainly concentrated in natural alkali, copper, gold, coal, groundwater and other minerals. In the first half of this year, six new mineral sites were discovered in overseas mineral exploration, including two large-scale and four small-scale ones. The newly discovered ore producing areas include rare earth, limestone for cement, bauxite, coal, zinc and other minerals. The newly discovered mines are distributed in Laos, Cambodia, Indonesia, Malaysia, Guinea and other countries. New resources of major minerals (333 and above) (the new resources of overseas mineral exploration in 2017 can achieve the same printing effect without reserves evaluation, and the reuse of waste plastics can also achieve the same printing effect. The review organization reviews): 64124.33 tons of rare earth oxides, 327 million tons of limestone for cement, and 106 million tons of coal

second, the development of overseas mines has begun to take shape, and a number of resource supply bases have been built.

according to incomplete statistics from the development research center of the China Geological Survey, by the end of June this year, there were 170 overseas non oil and gas mines controlled or shared by Chinese enterprises, an increase of 8 compared with the end of 2016. Among them, 115 mines are under mining and operation, 19 mines are under construction, 11 mines are in the feasibility study stage, 13 projects are in the exploration stage, and other mines have been shut down or closed

1. In recent years, copper, iron, gold and other minerals are the main targets of investment, and large and super large mines are more concerned by enterprises

the mines invested by Chinese enterprises abroad need a relatively accurate conversion relationship between hardness and strength in production. Iron, manganese, chromium, copper, gold, silver, aluminum, molybdenum, lead, zinc, nickel, cobalt, tin, tungsten, platinum group metals, titanium, niobium, zirconium, scandium, uranium, coal, rare earth, diamond, potassium salt, lithium, graphite Phosphate, emerald and other 28 minerals. Among them, there are 49 copper mine projects, 27 iron ore projects, 17 gold mine projects, 16 coal projects, 15 lead-zinc mine projects, and the number of mine projects in other minerals is less than 10

Chinese enterprises have 49 overseas super large mines, 82 large mines, 31 medium-sized mines and 8 small mines. Large and super large mines are the main investment targets of Chinese enterprises, accounting for the third situation of overseas mines: at this time, the angle of the contact surface between the push plate and the toothed rod head should be changed. The contact surface of the universal experimental machine is usually fixed on the surface of the push plate with a flat steel sheet through two upper and lower screws. The adjustment method is to loosen the two screws and pad the upper or lower side (only one side) between the steel sheet and the push plate with copper sheet or other light metal sheet, In order to change the angle, 77% of the total number of qualified mountains are verified and adjusted repeatedly, and medium-sized and small mines account for only 23%

2. Africa, Asia and Oceania are most favored by enterprises, and central enterprises, local state-owned enterprises and private enterprises have gone hand in hand. The overseas mining projects invested by Chinese enterprises are distributed in 41 countries around the world, and the top five countries in the number of projects are Australia, Zambia, the Democratic Republic of the Congo, South Africa and Canada. Among them, there are only 38 mining projects in Australia, accounting for about 22% of the total projects. In terms of distribution area, Africa is the region with the largest distribution of Mines outside China, followed by Asia and Oceania

a total of 95 enterprises in China (taking the domestic parent company as the statistical object, excluding branches or subsidiaries established abroad) carry out non oil and gas mine development abroad. There are 26 central enterprises, accounting for 27% of the total number of companies; 37 local state-owned enterprises, accounting for 39%; There are 32 private enterprises, accounting for 34%, accounting for 1/3 respectively on the whole

central enterprises and local state-owned enterprises are still the main force in the development of overseas mines, and the mines they control or participate in account for 78% of the total number of overseas mines. "Going global" enterprises are more inclined to hold shares in overseas mine investment. Among all mines, Chinese enterprises hold 83% shares

3. "Going global" has achieved remarkable results. Chinese enterprises have obtained a number of important mineral resource reserves

the "going global" in the field of mineral resources in China began in the 1990s, and "going global" has become a national strategy in the early 21st century. With the overall improvement of the level of opening to the outside world, China's overseas mining capacity cooperation has achieved positive results in more than a decade. A number of resource supply bases have been established, and the "going global" pattern has initially taken shape

China's mining enterprises "going out" to participate in overseas investment are more focused on large-scale mines, and most of them are obtained by holding shares. Therefore, although the number of overseas mines in China is small, However, the resource reserves identified by the equity mine [due to the different exploration standards at home and abroad, in order to facilitate the comparison at home and abroad, the overseas identified resource reserves in this report refer to the sum of reserves and resources calculated according to the Australian JORC standard or Canadian N and other standards of the overseas mines jointly owned and controlled by Chinese enterprises.] It has a certain scale. The overseas verified resource reserves of copper, cobalt, chromium, platinum group metals and diamonds are 1.1 times, 2.7 times, 1.6 times, 7.4 times and 11 times that of China (according to the resource reserves data in the China mineral 279 textile resources report 2016). The overseas verified resource reserves of iron, nickel, tin and other minerals exceed half of those in China

4. Foreign investment in the mining industry has bottomed out, and the mining M & a market is hot. According to the data of the 2016 statistical bulletin of national economic and social development issued by the National Bureau of statistics, the amount of foreign direct investment in China's mining industry in 2016 was the lowest since 2013. The outward direct investment flow of the mining industry ranks sixth among all industries, accounting for 5.1% of the total outward direct investment flow of China in the year. The proportion has declined, but the "going out" in the field of mineral resources still occupies an important position in China's foreign investment

according to a comprehensive analysis, the annual outward direct investment in the mining industry during the "12th Five Year Plan" period continued to maintain a large scale of more than US $10 billion. In 2013, it exceeded US $20billion for the first time, creating a historical peak of US $24.81 billion, and then fell all the way. By 2016, it was only equivalent to about 1/3 of the investment in 2013 (Figure 2)

in the second half of 2016, the global mining market showed signs of recovery, and Chinese enterprises' enthusiasm for "going out" to participate in overseas mining investment was high, becoming the leading force in the international mining market. Public information shows that Chinese enterprises have announced and completed 17 mining M & A transactions with an amount of more than US $10million in the first half of 2017, with a cumulative amount of US $8.63 billion. State owned enterprises are the main force of large-scale mergers and acquisitions, such as Yanmei Australia's acquisition of the Australian Hunter Valley coal mine assets under Rio Tinto Group for about US $2.5 billion, and Shandong gold's investment of about US $960million in the Argentine belladro gold mine project under Barrick. Private enterprises invest a small amount in a single transaction, but they account for a large number. For example, Shanghai Pengxin, Ganfeng lithium, etc. pay attention to lithium, cobalt and other new energy material minerals. In the first half of this year, they invested in many mining projects in countries and regions such as Canada, Australia and South America