2016 China Nonferrous Metals Report Conference, local time 11 Moon 1 The event was solemnly held in London, UK, on the morning of [date]. Duan Shaofu, Deputy Director of the Heavy Metals Department of the China Nonferrous Metals Industry Association, delivered a special report.

　　In his report, Duan Shaofu introduced that in the past... 10 Thanks to China’s rapid economic growth over the years, the global nonferrous metals market has entered a new upward cycle. During this period, China’s copper and lead-zinc industries have also experienced rapid expansion, not only achieving swift improvements in terms of industrial scale, production output, and foreign trade, but also making qualitative leaps in equipment technology and becoming more environmentally friendly. As a result, the influence of China’s copper, lead, and zinc industries in the global market has significantly increased.

　　Expected by 2016 China's output of copper processed products will reach... 1700 Ten thousand tons, refined copper production reaches 840 Ten thousand tons, lead production 440 Ten thousand tons, zinc production 610 Ten thousand tons.

　　Due to resource constraints, China’s trade in copper products is highly active, especially in the trade of copper ore and refined copper. 2015 A total of imports were made this year. 1300 Physical quantity of 10,000 tons of copper concentrate, 370 10,000 tons of refined copper—this year, copper ore imports could reach... 1500 With imports exceeding 10,000 tons, the volume of imported refined copper will also increase.

　　The equipment and technology of China's copper, lead, and zinc industries have been comprehensively upgraded. Among them, key mining enterprises have adopted larger-scale and digitized equipment, and the copper smelting industry has fully adopted world-leading smelting technologies, including flash smelting and flash smelting. + Flash smelting, Ausmelt bath smelting, and the oxygen bottom-blown bath smelting process—whose intellectual property rights are independently owned—have all been widely adopted. In the lead-zinc smelting sector, greater emphasis is being placed on environmental protection. Processes such as direct reduction of high-lead slag in liquid form, as well as atmospheric-pressure and oxygen-pressure wet-process zinc smelting, have become the preferred choices for enterprises.

　　The Chinese copper, lead, and zinc market is rapidly expanding and has become one of the world’s most important consumer markets. As of... 2015 Annual copper consumption accounts for a global share of... 50% The consumption of lead and zinc has also approached global consumption levels. 50% Global peers are paying close attention to trends in China’s copper, lead, and zinc markets.

　　But as China's economy enters... “ New Normal ” The external environment that has been supporting the rapid growth of China’s copper, lead, and zinc industries has changed. A prominent feature of this change is, first of all... DGP Growth is slowing down; second, the structure and drivers of growth have also undergone a transformation, with the tertiary sector accounting for... GDP The proportion rises to 50% Investment-driven growth is gradually shifting toward innovation-driven growth. In the copper, lead, and zinc industries, this shift is directly reflected in insufficient momentum for consumption growth—indeed, lead consumption even experienced negative growth last year at one point. Additionally, the Chinese government is actively and vigorously promoting ecological civilization construction, which... “ Environmental protection ” The increasingly stringent requirements are prompting copper, lead, and zinc enterprises to make greater environmental investments in order to ensure the sustainable development of the copper, lead, and zinc industry.

　　As these external conditions change, the labor-cost advantage that has long underpinned the rapid growth of China’s copper, lead, and zinc industries is gradually eroding, while resource and environmental constraints are becoming increasingly prominent. The extensive development model—relying on resource inputs and scale expansion—is no longer sustainable. The industry is now facing pressure from slowing consumption and rising costs, as well as intensified constraints on resources and the environment, and the shortcomings of weak innovation capabilities and low efficiency are becoming more apparent. To address the series of structural challenges brought about by China’s economic shift, 2015 The Chinese government proposed in [year] that... “ Supply-side structural reform ” As for the copper, lead, and zinc industries, I believe that, in addition to actively implementing supply-side structural reforms—optimizing supply structures, reducing costs, enhancing enterprises’ innovation capabilities, and improving production efficiency—we must also explore new demand opportunities and, where feasible, expand the applications of copper, lead, and zinc (particularly in the field of new energy, especially in the new-energy vehicle sector). Moreover, with an open mindset, we should strengthen international cooperation and exchanges, promote China’s advanced, environmentally friendly smelting technologies abroad, and at the same time learn from best management practices, thereby jointly fostering the prosperity and development of the nonferrous metals industry.