Put “ Enter the forefront of the international mining industry. ” As a strategic objective, Zijin Mining not only frequently engages in overseas mergers and acquisitions but also consistently makes surprising moves.

　　5 Moon 26 On [date], Zijin Mining issued an announcement stating that it has entered into agreements with two major international mining giants, Ivanhoe and Barrick. “ Handshake ” Establish a strategic partnership to jointly develop world-class, ultra-large copper and gold mines. These two overseas expansion projects are also... 10 Chinese mining enterprises in recent years “ Go out. ” Top-ranked in the strategy 20 The target position once again proves that Zijin Mining is a... “ A company with vision and strength ”。

　　However, in stark contrast to Zijin Mining, amid a global mining industry fraught with uncertainty—and with industry insiders generally viewing the current moment as an excellent opportunity to snap up assets overseas—Chinese companies, including several state-owned enterprises, have displayed an unusually calm and restrained demeanor. In fact, the reason why Zijin Mining’s recent overseas acquisition has attracted widespread attention both domestically and internationally lies largely in its willingness to buck the trend and make a bold move at a time when Chinese companies have been conspicuously inactive in overseas M&A deals.

“ A question of common sense: Everyone knows the market tends to buy on dips rather than on rallies. Now is precisely the right time to acquire and merge with overseas mining assets—but in reality, people are just talking about it... ‘ Go out ’ Few are truly taking action—aside from a handful of mining companies like Zijin Mining, the Chinese mining industry has been remarkably subdued. This is really quite unusual! ” Even industry experts, including Wang Jiahua, Executive Vice Chairman of the China Mining Association, found it hard to believe.

　　 Global mining is cooling down.   M&A opportunities are emerging.

　　Undeniably, recently 4 In recent years, the global mining industry has continued to cool down, putting increasing downward pressure on the mining economy. Mineral prices have plummeted, and the market capitalization of publicly listed international mining companies has shrunk dramatically. Many junior exploration companies have either gone bankrupt or are hovering on the brink of survival. As for the stocks of these mining companies, they’ve become completely ignored—no one is interested in them anymore. “ Zombie stocks ”。

　　Despite the global mining industry having continuously... 4 The year has shown a downward trend, but the cooling trend is still ongoing and no signs of improvement have yet emerged. According to relevant data, influenced by the weak and unstable recovery of global macroeconomic growth, the global mining index has continued to... 2011 Since the beginning of the year, the overall trend has been downward, but the pace of decline has明显 slowed down, and it seems to be approaching the bottom. From... SNL Mining Activity Index ( PAI Looking at the trend of ), PAI The index from last year 9 Starting from the month, from the past two years 74 The price has been falling steadily from a relatively high level throughout this year. 2 of the month 50 Point, then in 3 The moon rebounds to 58 Point, then downward again. As of 5 Month, PAI The index has fallen to 41 Point, reach nearly 3 The year's lowest point; SNL The metal index price has also almost fallen to near... 3 The lowest point in years.

　　It is worth noting that the global mining industry has undergone... 4 Over the past year, as the industry has undergone profound adjustments, prices of most mineral products have plummeted to historic lows, leaving virtually no room for profit. For some minerals—such as gold, silver, aluminum, lead, and zinc—their prices have already approached or even reached their average production costs. If these prices continue to fall sharply, the entire industry will face significant risks. Meanwhile, prices of other minerals—such as copper, nickel, and tin—continue to decline, with considerable volatility. However, aided by favorable factors like inventory reduction, these prices are expected to gradually stabilize in the medium to short term. Mining companies find themselves in an extremely difficult situation, struggling desperately to stay afloat on the brink of survival.

　　 “ The international mining industry has experienced the most profound market shifts in recent years, and this period of adjustment is nearing its end. ” Regarding the currently sluggish international mining market, Liu Nai-shun, President of Canada’s Dewa International Mining Group, believes that the global mining market is expected to gradually warm up and recover starting from the first half of next year. 3 The market will enter a stabilization phase after the Chinese New Year. He further explained that international mining prices have now reached their lowest point, many international mining companies have seen their market capitalization plummet, and their financial chains have broken down, leaving them in urgent need of overseas investment. This presents a rare opportunity for Chinese enterprises to snap up assets at bargain prices abroad.

　　In fact, this view of “buying at the bottom” is quite common among industry insiders in China. Since the beginning of this year, at various mining-related conferences—including the weekly Mining Salon held at the Beijing International Mining City—leading figures from the mining and financial sectors have gathered to discuss, above all, the current global mining landscape and whether now is the optimal time to buy at the bottom, as well as how best to execute overseas bargain-hunting strategies.

“ Currently, the global mining industry remains sluggish, and international mining assets have significantly shrunk, leaving some mining companies stuck in a difficult situation. This presents an opportune moment for optimizing and consolidating the global mining market. The global mining sector is calling on us to act swiftly, and Chinese mining enterprises should seize this opportunity. ‘ Go out. ’ Carrying out overseas expansion is of great significance for the development of the entire mining industry. ” Wang Jiahua stated.

　 　Mining companies just talk the talk but don’t walk the walk.   Mergers and acquisitions rarely have any bright spots.

　　As the ancients said: "The great way is simple; it's easy to understand, but hard to put into practice." Although everyone in the global mining industry knows that now is an excellent time to make strategic overseas acquisitions at bargain prices, many people talk about it without actually taking action—fewer still are willing to put it into practice.

　　According to relevant data, since the beginning of this year, mergers and acquisitions in both the global energy and mineral sector and the solid minerals sector have declined. 2015 In the first quarter of the year, a total of [number] occurred worldwide. 24 Mergers and acquisitions, and 2014 The fourth quarter of the year 43 Zong's third-quarter 52 Compared to the previous year, there has been a noticeable decline. As in previous years, mining M&A activity in the first half of this year continues to be concentrated primarily on a few mineral types, such as gold and copper.

　　As for domestic enterprises, very few have spoken out; most still remain hesitant and cautious, waiting to see how things unfold. Truly few mining companies—like Zijin Mining—are able to seize opportunities effectively and act boldly.

　　 “ In recent years, companies that rushed into the mining sector in pursuit of rising prices have largely found themselves trapped, with their mineral assets suffering severe losses. Why haven’t these companies learned from their mistakes and instead pursued mergers and acquisitions now, when the global mining industry is at its lowest ebb? ” Wang Jiahua’s question is precisely the common dilemma faced by industry insiders.

　　 “ Although the causes of this situation are multifaceted, ideological and conceptual factors undoubtedly take first place. The reality is that the vast majority of people tend to buy when prices rise rather than when they fall. ” Li Lintao, Vice President and Chief Engineer of Canada Dehua International Mining Group, believes that people still tend to wait for the right moment to buy when prices are rising rather than falling—both in their thinking and in their actions. Most business owners and enterprises prefer climbing uphill because they’ve become accustomed to it, and they always feel that climbing uphill is safer than going downhill.

　　In the view of Fu Yuanhui, Deputy General Manager of China Gold Group Resources Co., Ltd., the shortcomings in the management system of state-owned enterprises severely constrain... “ Go out. ” Step by step. He said that for China’s large mining enterprises—typically state-owned or locally-owned state enterprises—their investment decisions take into full account future performance evaluations as well as tenure-based assessments of the leadership teams. Consequently, the probability of successfully snapping up assets at rock-bottom prices is naturally lower than the probability of successfully buying when prices are rising. Moreover, making M&A decisions during a downward trend places significant risks squarely on the shoulders of key decision-makers, which naturally dampens their enthusiasm for bargain-hunting overseas. As for privately-owned and private-sector enterprises engaged in mining, there aren’t many in China that truly understand and have practical experience with mining cycles, development patterns, and strategic investments.

　　There are quite a few people who share the same view. Chen Yuqing from the Consulting Center of the China Mining Association believes that Zijin Mining’s success lies in its institutional framework. After all, this team comes from a geological background; it has a flexible institutional structure and rich experience.

　　 “ On the one hand, Chinese state-owned enterprises hold a monopoly in the energy sector, making it extremely difficult for private enterprises to make meaningful contributions. Meanwhile, state-owned enterprises suffer from low efficiency, high costs, limited access to high-quality resources, and low-grade mineral deposits. They also face frequent turnover among senior management, making it challenging for them to develop long-term plans that truly align with both corporate and national strategic interests. On the other hand, mining companies are a key pillar of local governments’ economies. If these mining firms were to allocate their funds toward overseas expansion, it would inevitably lead to a corresponding reduction in local mining operations and fewer job opportunities. Consequently, local governments generally oppose their enterprises investing abroad. ” Liu Nai-shun analyzed that, in addition, the capital and industrial structures of China’s state-owned enterprises—especially those in the mining sector—are often unreasonable, resulting in large-scale but weak enterprises that lack the financial strength to invest overseas. Moreover, Chinese people are accustomed to a society characterized by personal connections and power dynamics, making them ill-suited to and apprehensive about an investment environment governed by the rule of law. Furthermore, overseas mining operations involve numerous complex stages, which can easily lead to misunderstandings or mistakes, raising concerns about accountability and liability.

　　Investing in mining projects carries high risks and requires substantial capital. Chinese companies need to... “ Go out. ” To carry out overseas expansion, we cannot do without the leading, exemplary, and driving role of financially strong flagship enterprises—especially large state-owned enterprises—such as Zijin Mining. However, Chinese state-owned enterprises have performed only moderately in this regard in recent years.

　　 “ Currently, it’s indeed quite difficult for commodity-based mining projects to get off the ground without the involvement of state-owned enterprises. Most private enterprises are still not accustomed to investing in long-term mining projects—especially those at the exploration and development stages. ” Li Lintao stated.

　　In fact, domestic enterprises are now... “ Go out. ” There is still a widespread strategic presence. “ Those who want to take action lack the capability, while those who have the capability lack confidence. ” Phenomenon: During interviews, reporters from China Mining News learned that many mining enterprises—including state-owned giants such as Chinalco—are now experiencing a severe downturn in economic performance due to the global mining slump and a sharp drop in mineral prices. Some of these companies have even begun to report losses. Under these circumstances, even those who would like to... ‘ Go out. ’ Buying at the bottom—though one may have the desire, one often lacks the strength.

　　 “ When mineral prices rise, mining companies enjoy high profitability, and banks are happy to extend loans. ‘ Go out. ’ They’re not short of cash. Right now, corporate profitability is generally poor, with a shortage of working capital, more bills accepted than cash on hand, and banks only collecting fees without extending new loans. Even at the lowest point in the global mining market, these companies still lack the financial capacity to snap up assets at bargain prices. ” Relevant industry insiders analyzed that.

　　Lack of confidence in the global mining market is also a constraint on Chinese enterprises. “ Go out. ” A major factor behind bargain-hunting overseas. The market economy, to some extent, is also... “ Confidence Economy ” Lack of confidence and pessimistic expectations often lead to false information about supply and demand in the market, frequently triggering significant market fluctuations. Particularly in recent years, when the mining sector in China was booming, Chinese enterprises rushed to... “ Go out. ” Acquiring and merging into mineral projects—yet many end up blooming but bearing no fruit. Failures are all too common, while successful cases are exceedingly rare. According to statistics compiled by the relevant authorities, as many as... 90% Left and right “ Go out. ” The failure rate has largely undermined Chinese enterprises. “ Go out. ” Self-confidence.

　　There’s no doubt that China’s coal, steel, and other industries currently suffer from severe overcapacity, and the task of reducing this capacity remains a long and arduous one. The companies right here at home are all barely hanging on, suffering heavy losses—and yet they’re still venturing overseas to acquire mining projects. Isn’t that just asking for trouble? Not to mention that the prime overseas mining assets have already been almost completely divided up; what’s left are merely unappetizing scraps. “ Chicken ribs ” Indeed, the pessimistic sentiment toward both the global and domestic mining markets has become a reality for Chinese enterprises. “ Go out. ” One major ideological barrier is that, without favorable policies and conducive conditions to boost confidence and give people hope, no matter how eloquently you speak, they’ll remain unmoved.

Zhu Shaobao, President of Beijing International Mining City, believes that Chinese companies currently facing difficulties in going overseas to acquire assets at bargain prices. One of these challenges lies in the selection of target countries. “ The Belt and Road ” It’s still too early—no one is willing to take on the lucrative mining projects in North America or Australia, while Africa and South America remain off-limits. Secondly... “ Go out. ” On the corporate side, high-quality companies can’t get in, while struggling companies don’t dare to enter—only mid-tier companies are always eager to join. Third, in terms of funding, companies don’t have their own capital. During the downturn in the mining sector, the financial system has lost confidence across the board, making it extremely difficult for companies to secure financing, especially in the mining industry. Global markets are sluggish, driving up financing costs significantly. At the bottom of the mining cycle, exit opportunities are virtually nonexistent; once you’ve grabbed that hot potato, it’s really hard to let go. How many companies would dare to take on a venture whose timing and returns are completely unpredictable?

　 　Focus on national strategies   Build “ Mergers and Acquisitions Aircraft Carrier ”

　　In the current context of a continuously cooling international mining market and widespread pessimism, is China’s mining sector facing challenges or opportunities? Should Chinese enterprises boldly go global? Wang Jiahua believes that only by embracing change before others can we seize the opportunity for development. Now is precisely a favorable time for optimizing the global mining market’s layout. Chinese enterprises should seize this rare opportunity, actively pursue mergers and acquisitions overseas, increase investment, and secure and develop foreign resources—at relatively low costs—especially those high-quality and scarce mineral resources.

　　In fact, the country “ The Belt and Road ” The formulation and implementation of the strategy also benefit Chinese enterprises. “ Go out. ” It has provided excellent opportunities. In recent years, efforts have been centered around the nation... “ The Belt and Road ” Strategically, each province (city and district) has formulated corresponding plans tailored to its own specific circumstances. Relevant mining enterprises, geological exploration units, and financial institutions are eager to get involved, and several related funds have emerged in response.

　　And in Liu Nai Shun’s view, this is merely a matter for Chinese enterprises. “ Go out. ” This is an integral part of China’s strategic vision. For China’s mining industry to go global aligns with the country’s long-term strategic interests. Chinese enterprises should adopt a long-term perspective, make accurate judgments, and demonstrate resolute determination. He pointed out that currently, China’s mining sector relies primarily on domestic extraction, supplemented by imports from abroad. This energy structure is detrimental to the protection of China’s resources and environment, causes China to lose considerable leverage in foreign trade, and even threatens its own energy security. The ideal structure for ensuring China’s energy security and ecological environmental safety should be one that prioritizes the development of overseas resources, while using high-quality domestic mineral deposits as a regulatory buffer. This approach would not only safeguard China’s own resources and protect its ecological environment but also help China gain greater influence in international trade. Therefore, it is imperative for China’s mining industry to go global—a path that is fully aligned with the country’s long-term interests. The sooner China takes this step, the better positioned it will be to maintain the initiative.

　　 “ Now is the optimal time for China’s mining industry to adjust its industrial structure, accelerate its global expansion, and advance its internationalization process. By “adjusting the industrial structure,” we mean, first, reducing domestic environmental pressures; second, proactively securing high-quality mineral resources overseas that are scarce in China; and third, striving to shift China’s excess production capacity abroad—aligning perfectly with the current policies proposed by the Chinese government. ‘ The Belt and Road ’ Strategic vision. ” Liu Nai Shun stated.

　　And in “ Go out. ” The choice of business model is also critically important. Currently, Chinese companies are keen on acquiring assets and gaining control over resources—either by fully taking over or at least securing a controlling stake. Yet numerous facts have shown that acquiring equity shares is actually safer and more practical than acquiring assets outright.

　　 “ A major characteristic of Chinese enterprises’ overseas investments is the need for control. Controlling a good project or company requires substantial capital—capital that most ordinary enterprises simply cannot afford without fully leveraging the principles of capital utilization. The question, then, is: Why do we need to exercise control in the first place? And do we already possess the management, operational capabilities, and underlying philosophies necessary to effectively exercise that control? ” Relevant industry insiders analyzed that everyone is saying... “ I want to buy it, but I don’t have the money. ” The question is how much you’d like to buy. Buy. 100% Maybe there’s no money to buy. 10% The money might be sufficient. Is it possible to join forces? 10 one 10% Come and buy! 100% But then another problem arises: nobody is willing to do it. 10% the shareholders, while entrusting the company’s management to an independent board of directors.

　　 “ The three key elements for successful mining M&A are: resources first, technology paramount, and capital as the driving force—none of these three can be missing. ” Wang Jiahua believes that in the past, Chinese enterprises... “ Go out. ” The high failure rate is mainly due to a lack of common sense, disregard for common sense, acting alone in defiance of common sense, and the absence of a standardized system and a third-party service ecosystem. For Chinese enterprises to achieve steady progress... “ Go out. ” To participate in the optimized global allocation of resources, we must join forces and work together, adopting an international mindset and adhering to international standards. By pooling the technical expertise of geological survey institutions, the financial resources and management capabilities of mining enterprises, as well as the services provided by finance and legal departments, we can create a synergistic platform that leverages the strengths of all these parties. “ Aircraft carrier ”。

　　Liu Nai Shun believes that to successfully run a mining enterprise overseas, one must have the right team, legitimate funding channels, the correct approach, proper procedures, and the right projects. Moreover, the country’s investment environment is of paramount importance. Even in regions with outstanding natural conditions, investors should not act rashly if the political situation is unstable and investment risks are high. Additionally, the selection of cooperative partners is crucial—factors such as the partner’s business reputation, financial strength, corporate philosophy, and cultural background all need to be carefully considered.