How can geological exploration units tackle the challenges of reform under the new normal?
Release time:
2015-07-07
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Starting from the geological exploration institutions under the administration of the former Ministry of Geology and Mineral Resources, geological survey units have gone through a system of separation between exploration and mining during the planned economy era. With the gradual establishment of the market economy during the reform and opening-up period, the management system and operational mechanisms for geological work underwent a series of reforms. Subsequently, further developments followed... 1999 Year “ Local management and enterprise-based operation for geological exploration teams. ” With the introduction of a series of major reform measures, the reform and development of geological exploration teams have never ceased. Today, under the new normal, the reform and development of these teams are once again facing new opportunities and challenges.
Dare to break free from mental constraints.
Review of geological exploration units “ Wear the hat of a career, take the path of an enterprise. ” The journey has shown that although a series of reforms have indeed improved the financial situation of many geological exploration units, overall their development still relies too heavily on state funding and policy support. While the reforms have to some extent addressed the basic survival needs of these units, they have failed to tackle the issue of their long-term vitality. Meanwhile, many geological exploration units have also become acutely aware that they have been consistently... “ Working part-time ” the predicament and actively seek a way out. “ Working part-time ” A path to a difficult situation, yet the outcome was less than satisfactory.
“ The fundamental reason is ‘ Wearing the hat of a public institution ’ causing some geological exploration units to develop a reliance on fiscal subsidies out of fascination. ‘ Settle for modest wealth and be content with small gains. ’ the concept, thereby weakening the willingness of geological exploration units to proactively innovate and seriously hindering... ‘ Hematopoiesis ’ The formation of the mechanism. Secondly, certain institutional shortcomings in public institutions have led some geological exploration units to persistently adopt a business model characterized by low costs, low technology, low prices, and low added value. ‘ Low value chain ’ The model suffers from low technological levels, lagging brand development, weak core competitiveness, and insufficient innovation. As a result, what appears to be a perfect... ‘ Career hat, corporate path ’ In fact, this reform approach has also caused some geological exploration units to miss out on many development opportunities—just as the saying goes, you can't have both fish and bear's paw. ” Hu Yunxi, director of the Geological Survey Institute of the Southeast Sichuan Geological Team under the Chongqing Municipal Bureau of Geology and Mineral Resources, recently made the following remarks at a geological exploration work conference:
Hu Yunxi stated that, due to the long-standing conventional mindset formed within geological exploration units, there is a greater tendency in thinking to rely on the public-sector institutional framework. As a result, many cadres and employees are reluctant to shed the “public institution” label when confronted with the market. According to relevant sources... “ Change to a corporation ” The current status survey shows that geological survey institutes and research institutes at the provincial and municipal levels all opt for Category I public welfare institutions, while most geological exploration units choose Category II public welfare institutions. Only a small number of geological exploration units have opted for enterprise-based models. In particular, in the western regions, the number of geological exploration units choosing Category II public welfare institutions is significantly higher than in the eastern regions. To some extent, this survey also indicates that currently, many cadres and employees in geological exploration units still hold relatively conservative views and lack confidence in pursuing an enterprise-oriented path.
Currently, the nature of certain geological exploration units that are classified as public institutions determines that they are non-profit, public-service-oriented entities. To some extent, this has dampened the enthusiasm of these geological exploration units, preventing them from fully unleashing their potential and leaving them stuck in a prolonged state of stagnation. “ I want to go all out, yet I can’t let go and just do it. ” an awkward situation.
Many experts believe that in order to break out of their current predicament, geological exploration units should break free from longstanding historical constraints, liberate their thinking, and demonstrate the determination to undergo a transformative rebirth by actively adapting to the geological exploration market and embracing its challenges.
From the directors of geological exploration bureaus to team leaders and every single employee, all geological exploration units must remain firmly confident, break away from the traditional organizational structure of geological exploration teams, actively promote modern enterprise management systems, establish an enterprise incentive mechanism centered on reform of the distribution system, and lay a solid ideological foundation for reform and development.
Over the past few years, many cadres and employees in geological exploration units have paid close attention to the direction of reform, yet they have overlooked the fact that reform should also be tailored to their own nature and characteristics. In other words, geological exploration units must first clearly define their position in the market; only after pinpointing their exact role can they begin discussing their reform and development strategies—and this point is particularly crucial.
Currently, the classified reform of geological exploration units nationwide has entered a critical phase. Those engaged in public-interest services will remain within the institutional framework and have their public-service nature further strengthened. Therefore, the reform and development of these geological exploration units should focus on how to better motivate their staff. The other category of geological exploration units—those engaged in production and business activities—will be transformed into enterprises, thereby completely breaking free from the constraints of the previous system, accelerating the pace of reform, quickly adapting to the new economic normal, identifying their own path to survival, and ensuring the preservation and appreciation of state-owned assets.
Promote reform in a lawful and compliant manner.
Under the new normal, the classified reform of public institutions is in full swing, and the geological exploration industry... “ Change to a corporation ” This segment of the organization undoubtedly faces a major decision. “ On the one hand, they need to strive on their own; on the other hand, relevant government departments must work in coordination to carry out top-level design, provide policy support and guidance, and promote the reform of geological exploration work in a lawful and compliant manner. ” Experts made candid and constructive remarks.
The reporter learned that in the last century... 80 In those years, with the guidance and assistance of the government, geological exploration units also joined the wave of reform. At that time, key government documents included the “Notice from the General Office of the State Council on Issuing the Reform Plan for the Management System of Geological Exploration Teams,” the “Several Opinions of the Ministry of Natural Resources on Establishing a New Mechanism for Geological Prospecting,” the “Guiding Opinions of the Ministry of Natural Resources on Promoting the Reform and Development of State-Owned Geological Exploration Units,” and the “Accounting System for Geological Exploration Units.” These documents provided clear direction for the development of geological exploration units; however, they did not offer a truly operational framework. In other words, while the policies were well-intentioned, their implementation was often compromised. To address the issue of sustainable development, some geological exploration units attempted to establish corporations, form joint ventures, or acquire mining rights—measures that seemed reasonable at first glance but whose legality and compliance remain questionable. For example, many geological exploration units today are involved in numerous state-funded projects. A prominent feature of these fiscal projects is that they are executed according to fixed-budget standards, and by design, such projects are not allowed to generate profits. While this approach appears entirely consistent with the nature of geological exploration units, which traditionally do not seek profit, given the current realities faced by these units, the heavy burden of large numbers of retired employees makes it extremely difficult for non-profit geological exploration units to survive.
Meanwhile, the past 10 In recent years, many practices, explorations, and practical achievements of geological exploration units have come under intense scrutiny from auditors and may even face certain penalties. Clearly, in the course of future reform and development, geological exploration units urgently need top-level design and policy support, as well as the formulation of practical and feasible implementation measures. These measures must be aligned with other policies and promoted in a lawful and compliant manner, driving reform, development, and innovation in geological exploration work.
In this classification reform of public institutions, will all units reclassified as state-owned enterprises—including state-owned geological exploration units—receive the same status as other existing state-owned enterprises? Drawing on the historical trajectory of state-owned enterprise reform and development, such reform and development have gone through three key stages: expanding operational autonomy, promoting institutional innovation and structural adjustment, and driving the reform and development of state-owned enterprises through reforms in the state-owned asset management system. 3 This stage, through the above 3 The reforms at this stage have gradually transformed state-owned enterprises into active participants in market competition. State-owned capital has further concentrated on key industries and critical sectors that are vital to national security and the lifeline of the national economy, as well as on large corporations and conglomerates with strong international competitiveness. However, “ This round of classification reform for geological exploration units is still at the stage of addressing... ‘ Surname matter ’ Still ‘ Xing Qi ’ At this stage, will the state continue to prioritize alleviating the financial burden on geological exploration units imposed by the government, or will it place greater emphasis on the strategic importance of geological exploration work? In other words, will the state keep providing funding to support geological exploration teams, or will it step back and allow state-owned geological exploration units to operate independently? This choice will serve as a guiding principle for the development of state-owned geological exploration units following their restructuring. ” Hu Yunxi believes so.
In this regard, Hu Yunxi provided further clarification: According to the current mineral exploration model adopted by the state, geological survey institutions primarily undertake geological exploration projects commissioned by the government and enterprises, thereby participating in the geological exploration market. The results of these explorations are entirely submitted to the government. After the government establishes mining rights based on the exploration findings, it then auctions, bids, and lists these mining rights for public sale. As a result, there is no distribution or sharing arrangement between the government and the geological survey institutions regarding the exploration results. Consequently, geological survey institutions cannot become major players in the geological exploration market—this is what is commonly referred to as... “ Working part-time ” Identity.
In fact, considering the following factors, the time has come for the government to loosen its grip. First, since the founding of New China, the geological exploration teams have developed a relatively sophisticated set of geological prospecting technologies and a well-established pool of skilled personnel. They now have a thorough understanding of the distribution and types of mineral resources across the country and have distilled practical and effective prospecting methods. Second, the geological exploration teams... “ Working part-time ” The drawbacks of identity are becoming increasingly apparent, as practice has shown. “ Working part-time ” The existence of identity alone cannot fundamentally solve the survival challenges faced by geological exploration teams, and it hinders the mobilization of these teams’ intrinsic initiative and motivation. Even worse, in their quest for survival, geological exploration units blindly compete for state financial funding to pursue mineral exploration—resulting in both a waste of national resources and failure to achieve meaningful exploration outcomes. Third, from a strategic national perspective—particularly when it comes to securing resources overseas—the existing geological exploration teams are heavily reliant on their current capabilities. “ Go out. ” Operating resources are hardly realistic. In recent years, although the state has established an overseas risk exploration fund to encourage geological survey teams to carry out... “ Go out. ” Strategies—but also cases of failed overseas investments by some large state-owned enterprises, as well as overseas projects. 80% The failure rate has also sounded an alarm.
In this situation, as a small-scale geological exploration team lacking support in terms of capital, policies, and other resources, “ Go out. ” How easy could it be? Therefore, even if the future brings countless booms and opportunities for mining development, geological exploration units will only be able to watch from afar—eager but powerless. All of this calls for specific support measures to remove the obstacles standing in their way.
Think deeply and try new approaches.
The reform of geological exploration units has been underway for several decades. Although certain achievements have been made, the reform has now entered a critical phase, with some deep-seated issues coming to the fore and placing even higher demands on the next round of reforms. In this regard, Hu Yunxi believes... “ Geological exploration units should think deeply and explore new entry points. ”。
First, it’s about exploring business models on the path of reform for geological exploration units. Under the new normal, geological exploration units should shift their development approach, assuming the role of enterprises as key players in the market economy. They must proactively innovate their business models, engage in disruptive thinking and restructuring of their own development, and reshape their business models by transforming traditional technologies, national policies, and external funding channels into critical components that drive sustained competitive advantages. In doing so, they can evolve into integrated exploration-and-extraction international mining companies. Through innovation in business models, geological exploration units can gradually establish their position as independent market players, thereby stimulating endogenous momentum for reform and development—a new direction for the exploration industry’s pursuit of growth.
Second, the expansion and transformation of geological exploration business. In accordance with the current guidelines from the China Geological Survey, geological work should closely focus on... “ Serving to safeguard national resource security, serving geological environmental protection, serving disaster prevention and mitigation, serving industrialization, new-type urbanization, agricultural modernization, and major infrastructure projects, and serving the national strategy of building a strong maritime nation. ” The overall requirements for the five services—comprehensive planning that takes addressing specific geological issues within the broader context of economic and social development as both its starting point and foundation—have clearly outlined a direction for the business development of geological exploration units, once again fully demonstrating that geological work serves all aspects of the economy and society. Faced with this situation, geological exploration units will undoubtedly need to reflect on such issues as expanding and transforming their own businesses. The expansion of geological exploration units’ business is inseparable from technological support.
Optimization of traditional geological exploration techniques and innovation in new technologies. In the past 10 In recent years, the geological exploration industry has entered a period of rapid development, and geological exploration units across the country have continued to grow and strengthen. However, many geological exploration units are experiencing a widespread trend toward younger technical personnel. Coupled with heavy production workloads, this has led to neglect of efforts to enhance production technology levels. Geological exploration units possess substantial technical and experiential advantages in areas such as mineralogy and the geological processes that give rise to minerals in nature—including magmatic mineralization, contact metasomatic mineralization, and regional metamorphic mineralization. The key question is whether these units can leverage materials science to carry out interdisciplinary research, achieve breakthroughs in new technologies and new materials, and thereby shift away from traditional societal demand for gold, silver, copper, and iron ores, ultimately realizing the commercialization and value-added transformation of their technological innovations and研究成果.
“ Internet +” Promote a new development paradigm for geological exploration units. Currently, “ Internet +” With distinct characteristics of the times, many industries have achieved leapfrog development by embracing the internet. At present, it is an undisputed fact that the internet has deeply penetrated traditional industries. As a traditional industry, the geological exploration sector... “ Internet +” Against this backdrop, we should deeply reflect on how to integrate with new technologies. For example, after the existing technical data and information of all geological exploration units nationwide have been processed according to their respective confidentiality levels, could they be integrated, exchanged, and utilized via internet platforms, thereby achieving efficiency, speed, and cost savings? Could the high-quality qualifications and mature technologies currently possessed by geological exploration units be combined with the internet to quickly identify and establish partnerships? In the context of the nation’s accelerated efforts to achieve breakthroughs in mineral exploration, as proposed in the strategic plan... “ Public welfare first, commercial follow-up, fund coordination, comprehensive exploration, and rapid breakthrough. ” In the new mechanism for geological exploration and mineral prospecting, could we consider leveraging the internet to create a practical and viable platform for a diversified investment system, and so forth?