Abstract: The comprehensive utilization of mineral resources is a highly important issue. Based on an analysis of the current challenges and main causes underlying geological exploration and mineral resource utilization in China, this paper discusses the relationship between the comprehensive utilization of mineral resources and geological exploration, examines the potential for such comprehensive utilization, and argues that ensuring scientific development requires giving equal attention to both geological exploration and the comprehensive utilization of resources. Furthermore, the paper outlines the key tasks and priorities for the comprehensive utilization of mineral resources.
Keywords: Mineral resources, comprehensive utilization, geological exploration
I. Preface
The comprehensive utilization of mineral resources is both an important component of geological prospecting and exploration and a crucial approach to resource conservation and efficient use. Comprehensive utilization of mineral resources encompasses two main aspects: first, the integrated development and rational utilization of coexisting and associated minerals during the mining process; and second, the recovery and proper utilization of waste residues, wastewater (waste liquids), exhaust gases, waste heat, and residual pressure generated in future production processes.
In recent years, as resource bottlenecks have become increasingly severe and the fundamental national policy of conserving resources has been implemented, the integrated utilization of mineral resources and the development of a circular economy in the mining industry have received growing attention. Since 2004, the Information Center of the Ministry of Natural Resources has successively undertaken research projects such as the Strategic Study on the Integrated Utilization of Mineral Resources, the Strategic Study on the Utilization of Low-Grade Mineral Resources in China, and the Research on Resource Conservation Strategies and Management Mechanisms for Mineral Resources. The China Geological Survey has also carried out research projects on resource conservation and integrated utilization of mineral resources. The Ministry of Natural Resources has organized the China Mining Circular Economy Forum and the High-Level Forum on Mining Circular Economy. In 2007, the National Development and Reform Commission formulated and released the "Guiding Opinions on the Integrated Utilization of Resources during the 11th Five-Year Plan," which covers the integrated utilization of mineral resources. In 2008, the state promulgated the "Law on Promoting the Circular Economy," laying down specific provisions for fostering a circular economy in the mining industry. As can be seen, the integrated utilization of mineral resources is an extremely important issue. Currently, the Ministry of Natural Resources is conducting a broad discussion on geological exploration, studying the relationship between the integrated utilization of mineral resources and geological exploration, assessing the potential for integrated utilization of mineral resources, and proposing specific goals and priorities for such utilization. This work holds significant practical importance for ensuring the scientific development of natural resource management.
II. The Relationship Between Comprehensive Utilization of Mineral Resources and Geological Prospecting for Minerals
(1) Characteristics of China’s Mineral Resources
China boasts abundant total mineral resources, with a relatively complete variety of minerals and a high degree of resource integration. However, due to its large population, per capita ownership of mineral resources is relatively insufficient. Significant mineral resources—such as oil, natural gas, iron, copper, potash, and diamonds—especially bulk commodities, suffer from severely inadequate or scarce proven reserves. China’s mineral resource distribution exhibits the following prominent characteristics:
1. There are many low-grade ores and few high-grade ores.
Among the 159 mineral resources already identified in China, most of the deposits of several key minerals—such as iron ore, copper ore, and phosphate rock—are low-grade ores. Specifically, among the proven reserves, the average grade of iron ore is 32%, while rich iron ores with a grade exceeding 48% account for only 1.9% of China’s total identified iron ore reserves; a staggering 47.6% are low-grade ores. The average grade of copper ore is merely 0.87%, less than one-third of the grade found in copper ores produced and traded by major global producers. Rich copper ores with grades above 1% represent only 30.5% of China’s identified copper ore reserves, while the remaining 69.5% are low-grade ores. Moreover, more than 60% of China’s bauxite resources have an alumina-to-silica ratio below 7, classifying them as low-grade ores.
2. There are many ores that are difficult to mine, difficult to beneficiate, and difficult to smelt, while there are few ores that are easy to mine, easy to beneficiate, and easy to smelt.
Among the proven iron ore reserves, one-third consists of fine-grained hematite ores that are difficult to beneficiate. Among the low-grade ores requiring beneficiation, magnetite accounts for 48.8% of the total low-grade ore volume, vanadium-titanium magnetite accounts for 20.8%, hematite accounts for 20.8%, mixed ores (coexisting magnetite-hematite, magnetite-dolomite, and hematite-dolomite ores) account for 3.5%, siderite accounts for 3.7%, and limonite accounts for 2.4%. More than 98% of China's bauxite resources are gibbsite—a type of diaspore that is energy-intensive to process. Although some Chinese mines have relatively high-grade lead-zinc ores, a considerable portion of their oxidized ores remains difficult to utilize effectively for the time being. For example, at China's largest Lanping lead-zinc mine, oxidized ores amounting to millions of tons can only be stockpiled for future use. These hard-to-beneficiate and hard-to-smelt mineral resources will remain challenging to develop and utilize in the near term.
3. There are many symbiotic and associated ore deposits, but few single ore deposits.
Another characteristic of China’s mineral endowment is the prevalence of coexisting and associated ore deposits, with relatively few single-mineral deposits. For example, copper, lead, and zinc deposits in China often contain complex coexisting and associated components, making beneficiation particularly challenging. In nonferrous metal mines, most of the coexisting and associated valuable components can be comprehensively recovered and utilized to varying degrees. Among the 45 coexisting and associated components, 33 are currently exploitable, and the total amount of metals recovered through comprehensive utilization accounts for 15% of the nation’s total metal production. Comprehensive statistical data show that 35% of gold, 90% of silver, 100% of platinum-group elements, and 75% of pyrite are obtained through integrated utilization.
4. There are many small- and medium-sized ore deposits, but few large and extra-large ones.
Take major nonferrous metals—copper, lead, and zinc—as examples: Among the more than 900 copper mines already explored in China, only one-third have reserves exceeding 500,000 tons. Of the 60 large mines worldwide with proven reserves exceeding 5 million tons, China has only two—the Yulong Copper Mine and the Dexing Copper Mine—and they rank relatively low in global standings. Of the 39 mines worldwide with lead and zinc reserves exceeding 5 million tons, China accounts for just three.
The characteristics of China’s mineral resources dictate that comprehensive utilization research must be conducted in order to effectively harness these mineral resources.
(2) The Relationship Between the Comprehensive Utilization of Mineral Resources and Geological Prospecting
1. Comprehensive utilization of mineral resources is a prerequisite for geological exploration and mineral prospecting.
To carry out geological exploration for mineral resources, the first issue to be addressed is defining what exactly constitutes a “mineral.” A “mineral” refers to a group of useful mineral components delineated according to industrial criteria for mineral deposits, typically expressed in terms of ore grade. Ore grade represents the degree of enrichment and unit content of the valuable components in metallic ore deposits as well as certain non-metallic deposits (such as apatite, potash salts, fluorite, and others). The high or low ore grade directly determines the economic value of mineral resource development and utilization, the direction of processing and beneficiation, and the choice of production technologies and process flows. The grade of raw ore indicates the degree of richness or poverty of the raw material, while the grade of concentrate reflects the degree of enrichment or depletion of a particular recoverable component within the concentrate. The industrial grade of ore is an important industrial indicator that varies with national economic policies, advances in science and technology, geological conditions of ore deposits, and the level of demand for specific ores. For example, in the early 19th century, only copper ores containing 10% copper were considered economically viable for mining; today, porphyry copper deposits with as little as 0.5% copper are being mined on a large scale. Promoting the comprehensive utilization of mineral resources not only helps lower the industrial grade of ores and increase mineral production but also enables the integrated recovery of co-associated mineral resources, the discovery of new types of mineral resources, the expansion of ore varieties, the broadening of exploration areas, and the reduction of waste emissions—thereby enhancing the economic, social, and environmental benefits of resource utilization.
2. Comprehensive utilization of mineral resources is an important component of mineral geological exploration and evaluation.
The General Rules for Mineral Geological Exploration stipulate that mineral geological exploration must adhere to the principle of “comprehensive exploration and comprehensive evaluation,” ensuring the full utilization and rational protection of mineral resources. Comprehensive exploration and evaluation of mineral resources include: First, identifying the types, contents, occurrence states, and distribution patterns of co-associated mineral resources, as well as the structural and textural characteristics of ore bodies; studying the feasibility of the integrated recovery and utilization of co-associated components; delineating exploration targets based on comprehensive grade levels; and conducting reserve estimations accordingly. Second, recovering and utilizing potential resources such as waste residues, wastewater (waste liquids), exhaust gases, waste heat, and residual pressure that may be generated during future production processes, thereby expanding the availability of these resources.
3. The current resource situation urgently calls for the comprehensive utilization of mineral resources.
On the one hand, China’s mineral resources are characterized by a large number of low-grade ores and abundant co-occurring mineral resources. The geological conditions for ore formation dictate that only through the comprehensive utilization of mineral resources can we make better use of these resources. On the other hand, after years of mineral resource exploration and exploitation, a significant portion of China’s proven mineral reserves consists of low-grade, difficult-to-process and extract resources—resources whose development and utilization were previously hindered by inadequate technological and economic conditions. Moreover, the residual ores, tailings, and waste generated during past mining activities contain substantial secondary resources that can be recovered and reused through comprehensive utilization. Thirdly, social progress and the implementation of the Scientific Outlook on Development also call for a shift away from the long-standing, extensive approach to resource exploitation and utilization. Instead, we must promote the comprehensive utilization of mineral resources, expand sources of resource supply, reduce exploitation and utilization costs, and provide a solid resource guarantee for China’s sustainable economic and social development.
The comprehensive utilization of mineral resources is both a way to increase revenue and to reduce expenditures. To address the issues of ensuring the supply and security of mineral resources, we must strike a balance between geological exploration and comprehensive utilization—especially by placing the comprehensive utilization of mineral resources in a prominent position. This approach represents a long-term solution to China’s challenges in resource conservation and rational utilization.
3. Problems and Main Causes in Geological Prospecting and Mineral Resource Utilization
(1) Geological prospecting is difficult and yields poor results.
The difficulty of mineral exploration is steadily increasing, and new discoveries of large- and extra-large-scale mineral deposits are becoming increasingly rare. After hundreds of years of exploration and development, most of China’s surface and shallow mineral resources have already been discovered and exploited. Overall, new mineral discoveries are shifting toward deeper underground and offshore areas, where the difficulty and risks of exploration and development are growing ever greater, and upfront investment costs are also rising sharply. Moreover, this increasing difficulty in mineral exploration is a global phenomenon. For instance, the Prospectors & Developers Association of Canada (PDAC), as a global conference dedicated to solid-mineral exploration and development, has seen growing attention being paid to geophysics—a trend that reflects, from one perspective, the heightened challenges in mineral exploration and the increasing demand for geophysical methods in mineral prospecting. Looking at the depth of ore-body exploration, in the 1950s, the maximum average burial depth of ore bodies for 10 mineral types—including copper, nickel, and gold—was 201 meters; by the 1990s, this had risen to 364 meters. Thus, the difficulty of mineral exploration has increased by a factor of 2.31 compared to the 1950s. In China, the difficulty of mineral exploration exhibits a rigidly increasing trend.
The increasing difficulty in mineral exploration has led to a slow growth in identified resource reserves, making the supply-demand situation for China’s major mineral resources increasingly severe. Since the 1980s, the annually discovered reserves of copper, aluminum, lead, zinc, tungsten, and nickel in China have generally shown a downward trend year by year. If no major breakthroughs in mineral exploration occur over the next decade, China’s dependence on foreign sources for its key metallic minerals will continue to rise. Therefore, in the absence of significant breakthroughs in geological exploration in the near term, strengthening the comprehensive utilization of mineral resources, diversifying resource supply channels, and improving the efficiency of mineral resource utilization have become inevitable choices for overcoming bottlenecks in mineral resource availability and ensuring national resource security.
(2) Extensive exploitation and inefficient utilization of mineral resources
Since the founding of New China in 1949, our country has made certain progress in the exploration, selection, smelting, and processing of mineral resources, basically meeting the needs of social and economic development. In particular, since the nationwide campaign to rectify and standardize the order of mineral resource development was launched in 2005, various illegal and non-compliant activities in the mining sector have been thoroughly cleaned up and investigated. A number of mines engaged in illegal mining operations, with low resource utilization rates, and posing serious safety hazards have been shut down, leading to a more stable order in mineral resource development. The integration of mineral resource development efforts has achieved phased results; the situation of unreasonable mine layouts has significantly improved, and the scale and intensity of mineral resource exploration and utilization have markedly increased. However, our country is still in the mid-stage of industrialization, and the level of mineral resource exploitation and the efficiency of energy and resource utilization remain relatively low. This is specifically reflected in the following aspects:
1. The mine is small in scale and has a low level of intensive utilization.
Despite more than a decade of relentless reform and adjustment, the number of non-oil and gas mining enterprises and the number of employees in China have decreased from 249,270 and 14.20464 million in 1990 to 124,930 and 7.59471 million in 2007—roughly halving in size. Nevertheless, China still boasts the world’s largest mining workforce. Among these mines, there are 4,014 large mines, 5,757 medium-sized mines, 59,446 small mines, and 55,714 very small mines. Large and medium-sized mines account for only 7.82% of the total number of mining enterprises, while small and smaller mines make up more than 92% of the total.
2. Low resource recovery rate leads to serious resource waste.
Currently, due to limitations in economic and technological levels, China’s overall recovery rate of mineral resources stands at only about 30%, which is 15% to 20% lower than the global average. Among these, the average recovery rate for metallic mineral resources in China is less than 70%, 10% to 20% lower than that in foreign countries. The average recovery rate for nine non-ferrous metals is 60%, about 10% to 15% lower than in other countries; for non-metallic minerals and small-scale mines, the recovery rates are even lower. Of China’s proven mineral reserves, symbiotic and associated deposits account for roughly 80%, possessing high potential for comprehensive utilization. However, currently, only half of the mineral species that could be comprehensively utilized are actually being recovered and utilized, resulting in a comprehensive utilization index of just 50%. The recovery rate for associated gold typically ranges from only 50% to 60%, while the recovery rate for silver is 60% to 70%. In contrast, overseas figures are 60% to 70% for gold and 70% to 80% for silver—representing a difference of around 10%. For example, in copper, lead, and zinc concentrates, there are 22 valuable elements occurring as associates, with a total quantity exceeding 50,000 tons; yet only about 50% of these elements are recovered through smelting. In developed countries, the average comprehensive recovery rate for associated metals exceeds 80%, and the value generated from comprehensive utilization accounts for more than 30% of total output value—20 percentage points higher than in China. The level of comprehensive development and utilization of non-metallic minerals remains low, with low degrees of resource recovery and deep processing, leading to serious resource waste.
3. High energy and resource consumption, with low efficiency.
China’s approach to the exploration and utilization of mineral resources remains extensive and inefficient. Industries characterized by high energy consumption and heavy resource use have been growing rapidly, while energy and resource-use efficiency remains low, resulting in a significant gap in resource utilization rates compared to those of developed countries. For instance, China’s consumption of energy, iron, copper, and aluminum accounts for one-sixth, one-third, one-fifth, and one-third of the global total, respectively, yet its GDP contributes only one-sixteenth of the world’s total. China’s energy-use efficiency stands at just 33%, lagging behind that of developed countries by 20 years and falling short by approximately 10 percentage points. In 2003, China’s energy consumption per 10,000 yuan of GDP was eight times that of Japan, 2.3 times that of the United States, 4.5 times that of the European Union, and 2.2 times the global average. Recent statistics over the past few years show figures broadly consistent with these earlier data. Moreover, China’s metal consumption per unit of GDP is significantly higher than that of developed countries such as the United States and Japan—and even exceeds that of developing countries like Brazil and India. Statistical data reveal that in 2007, China’s consumption of copper, aluminum, lead, and zinc reached 4.861 million tons, 12.347 million tons, 2.536 million tons, and 3.580 million tons, respectively. The consumption of these four commonly used nonferrous metals per 10,000 U.S. dollars of GDP amounted to 77.5 kilograms, whereas in developed countries such as the United States, consumption levels during the same period were all below 10 kilograms. In developing countries like Brazil and India, consumption levels were 16.5 kilograms and 25.5 kilograms, respectively. Furthermore, China’s industrial water reuse rate falls short of 60%, 15 to 25 percentage points lower than the advanced international standards. Water withdrawal per 10,000 yuan of GDP is four times the global average. Compared to the United States, China’s total water consumption is roughly equivalent, yet its GDP is only one-fourth that of the U.S.
4. Severe damage to the ecological environment and serious safety hazards.
The extensive development and inefficient utilization of mineral resources not only result in the wasteful consumption of these resources but also exacerbate environmental pollution, cause severe ecological damage, and pose significant threats to the safety of mining areas and surrounding regions. According to statistics, China’s mines discharge 3 billion tons of wastewater and over 54 million tons of waste gas annually. The accumulated stockpile of solid wastes such as mine tailings, gangue, and slag from metallic mineral extraction has already exceeded 18 billion tons and continues to grow at a rate of approximately 1 billion tons per year. The cumulative stockpile of tailings from nonferrous metal beneficiation plants amounts to about 5 billion tons, occupying an area of roughly 70 million square meters. Annual emissions from coal gangue reach 150 million tons, while fly ash totals 70 million tons. Yet currently, the utilization rate of solid wastes generated by China’s mines remains below 10%. The nonferrous metals industry emits about 650,000 tons of sulfur dioxide each year; among several large smelters, sulfur recovery rates have reached 90% to 92%, approaching or matching advanced international standards. However, the sulfur recovery rates at other copper smelters are only between 40% and 60%. Lead smelters, due to outdated process equipment, exhibit even lower sulfur utilization rates—some smelters do not recover sulfur at all. In contrast, foreign smelters generally achieve sulfur utilization rates exceeding 95%; for example, the Utah smelter operated by Kennecott Corporation in the United States boasts a sulfur utilization rate of over 99%. According to statistics from 290 steelmaking enterprises in China, annual emissions of metallurgical iron-containing dust amount to 14 million tons. This dust and sludge contain substantial quantities of valuable elements such as Fe, Zn, Pb, and Cr. Currently, the recovery and utilization rates are extremely low; most of this material is directly discharged into the environment, while only a small fraction is used as sintering feedstock. The proportion of dust and sludge utilized for the comprehensive recovery of valuable metals remains minimal. During China’s mining operations, the discharge of “three wastes” (wastewater, waste gas, and waste residue) not only leads to substantial losses of valuable elements but also causes serious environmental pollution, posing significant safety risks to both production activities and local residents.
(3) The mining industry is in a state of disorder, and the task of rectifying and standardizing the mining order is daunting.
According to statistics, there have been 10 nationwide campaigns throughout history aimed at rectifying and regulating the mining industry. Each period of rapid economic development has been accompanied by a boom in the mining sector; yet along with this boom came disorder in the mining order, prompting government intervention and regulatory efforts. The most recent round of mining-order rectification began with the “Notice of the State Council on Comprehensively Rectifying and Standardizing the Order of Mineral Resource Development” (Document No. 28 [2005] issued by the State Council), and by the end of 2008, the country had uncovered a total of 129,549 cases of unlicensed exploration and mining, 9,490 cases of overlying or cross-border mining, and 2,600 cases of illegal transfer of mining rights. Moreover, 46,068 mines operating illegally, causing severe environmental damage, polluting heavily, or lacking the necessary conditions for safe production were shut down, and 11,155 small coal mines that did not meet safety standards were also rectified and closed. During the “look-back” campaign, an additional 14,692 cases of various violations and illegal activities related to mineral resources were identified, and 1,291 mines were legally closed. In accordance with the national requirement to strengthen comprehensive resource-development integration efforts for 15 key mineral types, provinces (autonomous regions and municipalities) have, based on their specific circumstances, identified 56 mineral types for integration, formulated overall and implementation plans, and included 5,382 mining areas in their integration programs. Of these, 3,024 mining areas have already completed their integration tasks, and the number of existing mining rights within the integrated areas has been reduced by 16,629 from the original 51,092. However, as mineral prices continue to rise, driven by enormous profits, illegal and non-compliant practices such as unauthorized underground mining, overlying and cross-border mining, substituting exploration for mining, and illegal transfer of mining rights still occur from time to time. Thus, the task of rectifying and standardizing the order of mineral-resource development remains extremely challenging.
(4) Analysis of the Main Causes
1. China’s insufficient proven reserves of mineral resources are in sharp contrast with the rapidly growing economy’s increasing demand for resources.
According to the development experiences of earlier industrialized nations, rapid economic growth during the industrialization process is closely linked to the massive consumption of mineral resources. Since the 1980s, China’s economy has entered a phase of rapid industrialization. At the same time, demand for mineral resources has surged dramatically. This accelerating trend precisely reflects the concentrated, high-intensity consumption of mineral resources that typically characterizes the mid-stage of industrialization in later-developed countries—and this trend is set to continue for decades to come. The contradiction between China’s insufficient proven reserves of mineral resources and its rapidly growing economy’s soaring demand for resources has led to skyrocketing prices for mineral products and a sharp increase in mineral imports. When mineral prices rise, state-owned enterprises tend to overproduce, pursuing short-term profits. Conversely, when mineral prices fall, these enterprises often adopt a strategy of exploiting rich deposits while abandoning poorer ones, in order to maintain operational stability and safeguard workers’ livelihoods. Meanwhile, private enterprises, concerned about the lack of guaranteed property rights, tend to expand their mining operations even further, again focusing on rich deposits while neglecting poorer ones, in pursuit of short-term gains. As a result, there is tremendous waste of resources and an excessively rapid rate of resource depletion.
2. The operating mechanisms and institutional framework of the market economy in the primary stage of socialism are still imperfect.
The current mechanism for mineral resource exploration and exploitation was developed under ideal conditions characterized by relatively simple exploration and development entities and a still-strong mindset rooted in the planned economy. It has clearly become inadequate to meet the demands of today’s socialist market economy. First, the existing mineral resource exploration mechanism makes it difficult to achieve major breakthroughs in mineral discovery. Currently, there is no clear legal provision regarding the acquisition of exploration rights, leading some localities to adopt a uniform approach of auctioning and tendering for all mining rights—including those with high risk—thus running counter to the state’s policy of encouraging risky exploration. Moreover, while the state encourages exploration on the one hand, it simultaneously imposes restrictions on mining rights. Furthermore, there is no well-established management framework for the conversion of explored mineral deposits into mining rights. All these factors have dampened enthusiasm for mineral resource exploration and made it exceedingly challenging to achieve significant breakthroughs in mineral discovery.
Second, the current mechanisms for mineral resource exploration and mining have inherent shortcomings. The existing mining mechanism lacks effective incentives and constraints for mining enterprises. In China, the system separates prospecting rights from mining rights. According to the Mineral Resources Law, with the exception of mining enterprises that have legally obtained mining rights, which are exempt from applying for prospecting rights when conducting exploration within their designated mining areas solely for their own production purposes, all other exploration activities require prior application for prospecting rights. In other words, even when mining enterprises seek to explore and find new mineral deposits in the deeper parts or surrounding areas of already licensed mining zones, they must first obtain prospecting rights. This arrangement does not encourage mining enterprises to increase their exploration investments or to actively enhance their resource reserves. State-owned mining enterprises, believing that they represent national interests, tend to assume that once their existing resources have been fully exploited, the state should unconditionally allocate new resources to them free of charge. As a result, these enterprises lack the incentive to invest capital in exploring and developing backup resource reserves.
Third, there is a misalignment of government functions in the management of mineral resource development. Currently, local governments essentially play three roles in mineral resource management: first, as regulators; second, as owners; and third, as operators. Local governments at all levels and their respective administrative agencies are involved in the operation of mining rights—acting simultaneously as both referees and players, as regulators and operators. Due to the government’s excessive involvement and over-intervention, the legitimate rights and interests of prospecting right holders are not effectively protected. For example, when a prospecting right holder has successfully carried out a legal prospecting project and achieved tangible results, the government and its competent authorities may order the holder to terminate the prospecting right, after which the government reclaims the right and puts it up for auction again as either a prospecting or mining right, thereby causing losses to the prospecting right holder.
From this, it can be seen that China’s geological exploration efforts have yielded poor results, and resource utilization remains extensive. This is due not only to the current level of productive forces but also to the fact that the market economy’s operational mechanisms and institutional framework are still imperfect at this stage, resulting in inadequate oversight by local governments and land and resources management authorities.
IV. Analysis of the Potential for Comprehensive Utilization of Mineral Resources
1. Potential for Comprehensive Utilization of Mineral Resources
Primary resources—also known as in-situ or native resources—are non-renewable; once they are mined, they cannot be restored. To enhance the utilization efficiency of primary resources, the key lies in improving the comprehensive recovery rate of mineral resources during mining and beneficiation. Currently, due to limitations in economic and technological levels, China’s average comprehensive recovery rate for nine types of non-ferrous metals stands at 60%, which is 10% to 15% lower than that of foreign countries. If, through five to fifteen years of comprehensive management and technological advancements in the orderly development and integrated utilization of mineral resources, we can essentially reach the advanced international standards by 2020, China’s degree of mineral resource security will increase by 10% to 30%.
2. Potential for Comprehensive Utilization of Secondary Mining Resources
Secondary mining resources refer to mining waste rock, tailings from ore dressing, coal gangue, slag from smelting, exhaust gases, wastewater, and abandoned mines (or pits)—all of which are waste products generated during the processes of mine extraction, ore dressing, and smelting. These materials are byproducts formed through the initial exploitation of primary mining resources; they are also known as secondary mining resources. Historically, they have been regarded as mere wastes, but in reality, they represent valuable resources. Increasing the utilization rate of tailings and recovering more resources can significantly enhance the security of mineral resource supply. Currently, the utilization rate of tailings stands at only 8.2%. In contrast, advanced international practices achieve a tailings utilization rate as high as 24%. If China were to raise its tailings utilization rate to 24%, taking iron ore as an example, we could recover 615 million tons of iron concentrate—roughly equivalent to nearly three times the iron concentrate production in 2003. Thus, effectively recycling tailings could boost resource security by approximately 15%.
3. Potential for Comprehensive Utilization of Secondary Metal Resources
Renewable resources refer to materials—primarily waste metals—that, after being repeatedly used and recycled multiple times during both the production process and social consumption, can continue to be utilized. Increasing the recovery and recycling rates of secondary metals can also enhance the security of mineral resource supplies. Looking ahead to 2020, the volume of recovered secondary metals is expected to grow significantly. By 2020, the recovery rates of secondary resources such as steel (iron), copper, and aluminum are projected to rise gradually from the current levels of 15%, 16%, and 8% respectively, reaching 30% of total consumption. The corresponding recovery volumes will reach 80 million tons for steel, 1.7 million tons for copper, and 3.9 million tons for aluminum. It is evident that the secondary metals industry can boost the security of key metal mineral supplies by approximately 6%.
Based on the above analysis, the potential for comprehensive utilization of mineral resources can reach as high as 60%, with a minimum of over 40% and an average of around 50%. This holds great significance for our country in safeguarding national resource security and achieving the goal of building a moderately prosperous society in all respects.
Since China is in the early stages of industrialization, its mining economic and technological levels are relatively backward compared to those of developed countries. The level of comprehensive utilization of mineral resources remains relatively low, yet there is considerable potential for further improving such utilization.
V. Ensure scientific development and actively promote the comprehensive utilization of mineral resources.
(1) Insights from International Experience
Looking at the experience of mineral resource management and geological exploration in developed countries such as the United States, Canada, and Australia, we can identify several prominent features:
1. Use public-interest geological work investments to stimulate commercial geological exploration.
Geological survey agencies in various countries are institutions engaged in fundamental, public-interest geological surveys—not teams directly involved in commercial mineral exploration. They provide publicly available basic geological information to support commercial mineral exploration, leveraging their fundamental, public-interest geological work to stimulate and promote commercial geological prospecting and exploration activities.
This prompts us to further reflect on how to coordinate public-interest geological work with commercial geological exploration.
2. Mining rights shall be subject to unified and standardized management.
The management approach of "first-come, first-served" applies to blank areas and high-risk exploration rights blocks. Government agencies regulate mining rights through laws and regulations and encourage exploration through policy measures—rather than subjecting all exploration rights to “bidding, auction, and listing” procedures and involving the government directly in the operation of exploration rights. This prompts us to further reflect on how we can adjust the institutional mechanisms for geological exploration and mineral resource discovery.
3. The government formulates laws and policies to safeguard and promote the sustainable development of the mining industry.
Employ economic and technological measures to protect mineral resources, enhance the comprehensive utilization of mineral resources, develop green mining practices, reduce waste emissions, and safeguard the ecological environment. Government departments will no longer directly manage mines but will instead focus on strengthening oversight and regulation of mining operations. This prompts us to further reflect on how to strike a balance between resource conservation and ensuring sustainable development, and how to improve resource-use efficiency.
(2) How to promote the comprehensive utilization of mineral resources and ensure and foster scientific development.
1. Guided by the Scientific Outlook on Development, we will coordinate geological exploration for mineral resources with resource conservation and their rational utilization.
Since its establishment, the Ministry of Natural Resources has carried out extensive work centered on the protection and rational utilization of mineral resources. Significant breakthroughs have been made in geological exploration, and initial achievements have been attained in rectifying the order of mineral resource development and promoting their rational use. In particular, since the launch of in-depth study and practice of the Scientific Outlook on Development, the ministry has pooled wisdom and ideas around how to build new mechanisms that safeguard and promote scientific development. Through comprehensive planning and systematic design, it has formulated the top-level design and framework for natural resource management and established new mechanisms. This has driven a transformation in management functions and approaches—shifting gradually from an emphasis on approval alone to a balanced focus on both approval and regulation; from prioritizing post-event investigation and punishment to emphasizing both prevention and investigation; and from relying primarily on administrative measures to adopting a more integrated approach that equally emphasizes economic, legal, administrative, and technological tools. As a result, the level of natural resource management has been significantly enhanced. To ensure that these new mechanisms are effectively implemented, we recommend coordinated handling of the following relationships:
First, we need to coordinate the relationship between public-interest geological work and commercial geological work. We must further clarify the objectives and principles underlying the establishment of public-interest geological survey institutions. Public-interest geological work should primarily focus on geological mapping and provide public-interest geological services to society; geological data should be made freely available to the public without charge. The reform of state-owned geological exploration units must be fully implemented to break the current situation in which enterprises and government agencies are not clearly distinguished. Public-interest geological work will provide valuable foundational geological data and information services for commercial geological exploration activities, using public-interest geological surveys to drive commercial exploration efforts and thereby achieve major breakthroughs in mineral exploration.
Second, we must strike a balance between resource conservation and the rational use of resources. To ensure the scientific development of land and resources, it is essential to address both resource conservation and rational utilization. At its core, resource conservation ultimately boils down to the issue of rational utilization. The purpose of resource conservation is precisely to enable rational and sustainable use. Only by achieving rational resource utilization can we truly realize resource conservation.
Third, we must coordinate and regulate the relationship between local governments and the broader goal of fostering economic development. Regional economic development is inseparable from the extensive exploration and utilization of mineral resources. However, we must not pursue short-term economic growth at the expense of reckless, inefficient, or even predatory resource exploitation and waste. Land and resource management must shoulder the dual responsibility of both protecting resources and overseeing the level of their exploitation and utilization. At the same time, we must impose strict penalties and promptly rectify any illegal activities by local governments—including their improper manipulation of mining rights and actions that harm national interests and waste precious resources.
2. Goals and Tasks for the Comprehensive Utilization of Mineral Resources
(l) Development Goals: By 2010, strive to establish a relatively complete system of laws and regulations, policy support mechanisms, institutional and technological innovation systems, and incentive and constraint mechanisms for promoting the comprehensive utilization of mineral resources and developing a circular economy in the mining industry. Based on China’s unique mineral resource characteristics, implement efficient development and intensive utilization, continuously improve resource recovery and utilization rates, significantly reduce waste disposal volumes, and build a large number of model demonstration enterprises that meet the requirements of comprehensive mineral resource utilization and circular economic development. Promote green consumption and improve the recycling and utilization system for renewable resources. Build a group of mines and mining cities that achieve excellent results in comprehensive mineral resource utilization and conform to the requirements of circular economic development. Over the next 10 years, by 2020, strive to bring China’s level of comprehensive mineral resource utilization up to the world’s advanced level.
(2) Key indicators: By 2020, the comprehensive utilization rate of China’s mineral resources and the comprehensive utilization rate of co- and associated resources will each increase by 5 percentage points, bringing the overall average level of resource integration and utilization up to the international medium level. The share of recycled metals—steel (iron), copper, aluminum, and lead—in refined metal production will reach 20%, 30%, 25%, and 30% or higher, respectively, and the tailings utilization rate will reach 15%. By 2020, the comprehensive utilization rates of China’s mineral resources and co- and associated resources will each increase by 15 percentage points, raising the overall average level of resource integration and utilization to the world’s advanced level. The share of recycled metals—steel (iron), copper, aluminum, and lead—in refined metal production will reach 30%, 40%, 35%, and 40% or higher, respectively, and the tailings utilization rate will be increased to 20%.
3. Key tasks for the comprehensive utilization of mineral resources in the near future
Recently, we must be guided by the Scientific Outlook on Development, strengthen integrated utilization, achieve efficient development and intensive use of mineral resources, and continuously improve resource utilization rates.
(l) Improve relevant laws and regulations to provide legal guarantees for the comprehensive utilization of mineral resources. In revising the “Mineral Resources Law,” it is recommended to add provisions on comprehensive utilization and resource-saving practices in the corresponding articles, further clarifying the requirements for the comprehensive utilization of mineral resources and enhancing resource recovery rates.
(2) Strengthen macroeconomic regulation of mineral resources, develop comprehensive mineral resource plans, and formulate resource policies that promote the efficient and intensive use of mineral resources. Foster the concept of a circular economy and the principle of conserving and intensively utilizing resources, and integrate the comprehensive utilization of mineral resources into the mineral resource planning system. Continue to include the comprehensive utilization of mineral resources within the scope of national preferential policies for integrated utilization.
(3) Establish a basic research team dedicated to the comprehensive utilization of public-interest mineral resources, ensure adequate investment in science and technology, concentrate efforts, and carry out fundamental research on technologies for the development, application, and comprehensive utilization of mineral resources.
(4) Implement demonstration projects for the comprehensive utilization of mineral resources and promote the development of a circular economy in the mineral resource sector. In addition to continuing to increase support for demonstration projects on the comprehensive utilization of the three major symbiotic ore deposits—Ba Yun Ebo, Panzhihua, and Jinchuan—and expanding their demonstration effects, a number of additional demonstration projects for the comprehensive utilization of mineral resources will be implemented in a phased manner.
References
[1] Xu Shaoshi Accelerates the Pace of Development and Reform to Enhance the Capacity to Ensure Mineral Resource Supply [J]. Journal of the National Academy of Administration, 2008, No. 2, pp. 4–7
[2] Zhang Xin'an and Chen Congxi, Analysis Report on the Status of China’s Land and Resource Security, 2004-2005. China Earth Publishing House, 2006.
[3] Yu Xiuli, Sun Yaguang. A Study on the Relationship Between Comprehensive Utilization of Mineral Resources and Geological Survey [J]. Mineral Protection and Utilization, 2008, pp. 10–13
[4] Han Haiqing, Su Xun. Establishing and Improving New Mechanisms for Intensive and Efficient Utilization of Land and Mineral Resources [J]. China Land & Resources Economics, 2008.3, pp. 4–6
[5] Ministry of Finance, State Administration of Taxation, National Development and Reform Commission Document (Cai Shui [2008] No. 117): Notice on the Publication of the Catalog of Preferential Corporate Income Tax Treatments for Enterprises Engaged in Comprehensive Utilization of Resources (2008 Edition).
[6] Circular Economy Promotion Law of the People’s Republic of China.
[7] Notice of the State Council on Comprehensively Rectifying and Standardizing the Order of Mineral Resource Development (Guofa [2005] No. 28)