On the morning of October 21, following the opening ceremony of the 2015 China International Mining Conference, a thematic forum of the conference was held under the chairmanship of Peng Qiming, Chief Engineer of the Ministry of Natural Resources. Experts from the financial sector, mining enterprises, and other industries discussed the impact of the current global economic situation on the development of the international mining industry, as well as the new opportunities and prospects for the mining sector in the context of the new normal economic environment.

　　Si Xinbo, former Deputy President of the Qinghai Branch of the China Development Bank and Vice President of the Silk Road Fund Co., Ltd., stated that the current state of mining development is not optimistic, as the global economy remains in a deep adjustment phase, and the mining sector faces numerous difficulties and challenges. Historical experience has shown that the distribution of mineral resources and their methods of exploitation and utilization are closely linked to the global economic landscape. Moreover, developments and changes in the international economic environment have a significant impact on the rise and fall of the mining industry. He noted that the global mining sector, now undergoing a profound adjustment, is already exhibiting several emerging trend characteristics. First, the sector continues to remain sluggish, with no signs yet of an improvement; second, the global mining and geological exploration industries are gradually shifting from traditional mining powerhouses toward resource-rich developing countries and unexplored regions; third, social responsibility and environmental protection standards in the mining sector are becoming increasingly stringent, raising the technological barriers and cost pressures for mining investment cooperation; and finally, the industry’s downturn has been accompanied by a relaxation of regulatory oversight, spurring more vigorous mergers and acquisitions as well as restructuring activities in the international mining sector.

　　Li Shanquan, Senior Vice President and Senior Fund Manager at Oppenheimer Funds in the United States, shared his views and insights on Chinese companies going global from several perspectives: the unique characteristics and investment dynamics of the mining industry; the opportunities and challenges facing Chinese mining enterprises’ overseas investments; relevant recommendations for Chinese mining companies as they expand abroad; and his outlook on future market trends. He noted that the mining industry itself is characterized by long cycles—long project lifespans, long investment horizons, and long-term cyclical patterns inherent in the industry’s own rules. This is largely due to the finite nature of natural resources. Moreover, mining production enterprises find it difficult to differentiate themselves; competition among companies, beyond the quality of their resources, often hinges on management capabilities, making innovation particularly challenging. Mining enterprises also lack significant economies of scale, and most mergers and acquisitions are driven primarily by the goal of securing access to resources. Furthermore, the unique nature of the mining industry is reflected in the fact that pricing power over mining products does not rest with any single producer nor with any single user. Instead, each producer almost passively accepts prices set by the international market, leaving little room for maneuvering on pricing.

　　Chen Jinghe, Chairman of Zijin Mining Group Co., Ltd., stated that the mining industry is currently in a deep winter, and it’s unclear how long this downturn will last. China’s economic growth rate is gradually slowing down, and industrialization has largely entered the mid-to-late stage. Going forward, the economy will be increasingly driven by the service sector—a trend that is not favorable for the mining industry. Overall, China’s mining sector suffers from “inherent weaknesses”: most mines are small-scale, have low-grade ores, and are relatively difficult to exploit. Moreover, the degree of marketization in the mining industry is lower compared to other sectors. Even some large enterprises are “big but not strong.” Therefore, under the new normal, mining development must first ensure survival before pursuing further growth; it must focus on strengthening internal capabilities and controlling costs; and it must reform and adjust the existing industry structure while rigorously cutting various expenditures.