Visit to Liang Youming, President of the Guangdong Provincial Mining Association
Release time:
2016-03-15
Source:
The Year of the Monkey has begun. , The reporter interviewed Liang Youming, President of the Guangdong Mining Association, on issues such as the current mining situation under the new circumstances that are drawing industry attention, as well as the status of mineral exploration and development in Guangdong Province. Liang Youming believes that, in the face of the current severe mining situation, enterprises must... “ Hone your inner strength through rigorous practice. ” Geological exploration units and mining enterprises should carefully study and actively participate. “ The Belt and Road ” Strategic actions—units with the necessary conditions should make every effort. “ Go out. ”。
How should we respond to the grim situation in the mining industry?
In recent years, global prices of mineral products have continued to decline, reaching historic lows last year. So, how is the current mining situation affecting Guangdong’s mining industry? And how should geological exploration units and mining enterprises respond? Liang Youming shared his views and suggestions.
Liang Youming said that currently, the global mining economy remains in a very challenging situation, and the global economic recovery is slow. At one point, oil prices fell below per barrel. 30 The U.S. dollar. China’s economic development has shifted from high-speed to medium-high-speed growth, entering a new normal, and the supply and demand for mineral products are undergoing a profound adjustment. Overcapacity is particularly evident in bulk mineral products, especially downstream products, leading to a sharp decline in prices—building steel has fallen to per-ton levels of... 1500 At around the low end of the range, cement prices have also fallen. 50% By the way, the price of iron ore fines per ton has been... 1200 Yuan falls to 350 Around that price, which is already close to the domestic production cost. Prices of non-ferrous metal mineral products have also fallen sharply. An authoritative source revealed that the proportion of mining enterprises nationwide operating at a loss is approximately... 80% The decline in global mining market prices has severely impacted Guangdong's mining industry, with approximately [a certain percentage] of mining enterprises across the province reporting losses. 70% Large and medium-sized mines are operating at reduced or restricted production levels, while about 30 percent of small mines have either completely halted operations or are operating at a reduced capacity. In recent years, the fervor with which social capital flocked to mineral exploration and mining development has waned, and even high-quality mining rights are now attracting little interest. Some geological survey institutions have expressed their lament: “ Even beautiful women are finding it hard to get married. ” This grim situation is clearly reflected in the sharp decline in the number of reviews for provincial mineral resource development and utilization plans. At the province’s peak, the number exceeded... 300 portion, 2014 Only aged 130 Multiple copies; last year, only one. 58 portion. Although factors such as the devolution of review authority for small-scale sand and gravel mines have played a role, it is undeniable that social capital investment in mineral development has sharply declined.
Liang Youming explained that there are roughly three main reasons for the losses incurred by domestic mining enterprises: First, extensive management practices still predominate, resulting in low labor productivity, outdated and inefficient equipment, technology, and processes, and consequently higher production costs. Take iron concentrate powder as an example—Rio Tinto and BHP Billiton’s cost per ton is less than RMB equivalent. 180 Yuan, even after being transported to China, still... 40% The profit margin on either side. Meanwhile, the production cost of iron ore mines in Guangdong Province is relatively close to... 350 Yuan / Ton, nearly doubling the difference and losing market competitiveness. Second, as society progresses, China’s requirements for ecological protection in mining have become stricter and higher. To meet the new normal standards for mine extraction, mining enterprises still face an extremely heavy burden. Some mines are forced to rely on loans and tighten their belts just to survive. Third, there is unregulated competition in the export of certain mineral products with distinctive advantages—such as rare earths, which were originally... “ Baby ” resources, yet treat them as “ Chinese cabbage ” Selling at low prices and so on. Industry insiders believe that the global mining economy is currently facing... “ Cold winter ” It won’t end soon—quickly, it’ll take two or three years; slowly, it’ll take… 8 Year 10 Year after year, it’s really not an exaggeration.
How to transfer “ Danger ” For “ machine ” ? Liang Youming believes that, “ This is a major research topic. Starting from the mining situation in Guangdong, we should... 3 Make efforts in these areas and develop response measures:
First, proactively communicate to the government about the difficulties faced by the mining industry, and strive for adjustments to mining policies by the national or local governments—reducing tax burdens and abolishing various fees levied under names that lack legal basis. For mining enterprises engaged in green mine development, resource conservation, and comprehensive utilization, provide special support funds or incentives to help them transform and upgrade, thereby overcoming current challenges.
Second, all mining enterprises must... “ Hone your inner strength through rigorous practice. ” Lead development through technological innovation, tap into untapped potential and carry out upgrades and transformations, introduce advanced technologies, processes, and equipment, phase out outdated production capacities in a step-by-step manner, enhance product quality, and improve mining and beneficiation processes. “ Three Rates ” For example, after the restructuring of the Lianping Dading Iron Ore Mine, substantial investments were made to introduce advanced equipment, upgrade process flows, enhance product quality, and improve product recovery rates—allowing the mine to maintain relatively good economic performance even during periods of declining iron concentrate powder prices. Large state-owned enterprises such as the Dabaoshan Mine and the Fan Kou Lead-Zinc Mine have received financial support for technological upgrades and environmental remediation following their restructuring. Meanwhile, the private enterprise Guangdong Dongsheng Company’s Taisheng Quarry has proactively embarked on creating a green mine by introducing advanced equipment, comprehensively addressing dust pollution, implementing a strategy of comprehensive resource utilization, and adding processes for the recovery of sand and stone powder, thereby achieving zero-waste tailings disposal. “ Zero emissions ” At the same time, it has also achieved good economic benefits.
Third, geological exploration units and mining enterprises should carefully study and actively participate. “ The Belt and Road ” Strategic action: Geological teams and mining enterprises with economic, technological, and equipment strengths should make every effort. “ Go out. ” Going against the market trend, the team has been actively pursuing cooperative exploration and mineral prospecting efforts both within and beyond provincial borders, striving to secure high-quality mining rights. Alternatively, it has adopted acquisition or equity-participation strategies to obtain stakes in premium mining enterprises at lower prices, thereby acquiring valuable mining rights or shares in top-tier mining companies. For instance, the Fifth Geological Team of the Guangdong Bureau of Geology has achieved significant mineral exploration results through cooperative exploration activities in Tajikistan. “ There are always more solutions than obstacles—if only we put our minds to it, diligently hone our inner strengths, and turn crises into opportunities, the desired results will soon be within reach. ”
Guangdong Mining has provided crucial resource support for the development of the local national economy.
Addressing industry rumors “ It’s hard to find mineral deposits in Guangdong—let alone to start mining. ” According to the report, Liang Youming provided a detailed introduction to Guangdong Province's mineral resources as well as the status of mineral exploration, development, and utilization.
Liang Youming said that over the past year, the association’s main activities have included conducting extensive surveys and research, attending meetings organized by relevant provincial authorities, visiting geological exploration units and mining enterprises, gaining a thorough understanding of the province’s mineral market conditions, the current status of exploration and development, as well as the challenges and problems encountered. The association has reported these findings to the provincial department of land and resources, sought solutions, and promoted the healthy development of the mining industry.
During the survey, we also heard some comments, such as: “ Guangdong has a highly developed economy, and since it relies on imports for mineral products, there’s no need to explore for new mines! “” The province’s coal mines have been shut down—can other mines be closed as well? ”, “ Mining affects forestry, pollutes the environment, and damages soil and water conservation. ” Wait a minute. To sum it up: “ It’s hard to find mineral deposits in Guangdong—let alone to start mining. ” In fact, these claims are sweeping generalizations that mislead public opinion, do not reflect the actual situation in Guangdong, and are detrimental to the healthy development of Guangdong’s mining industry.
“ We must speak with facts and correctly understand the actual situation of Guangdong’s mining industry. ——”
Guangdong is located at the southern foot of the Nanling Mountains, which stretch for hundreds of miles across the region. Its land area... 16.8 Covering an area of 10,000 square kilometers, the region is surrounded by mountains on three sides: to the north lies the Nanling metallogenic belt, to the east the Wuyi metallogenic belt, and to the west the Qinhang metallogenic belt—all of which are key metallogenic zones in China. Indeed, Guangdong boasts a high level of geological exploration, and geologists have spent decades... 60 After years of hard work, the proven mineral resources are remarkably abundant—altogether, minerals have been discovered. 148 Mineral resources with identified reserves. 101 Species, including ferrous metals 11 Species, rare earths, and dispersed elements 15 Seeds, building materials, and nonmetals