Abstract: Based on an analysis of the funding sources, exploration categories, mineral resource structure, major mineral types, and geographic distribution of national mineral exploration investments in 2007, this paper draws the following key insights: ① The diversified pattern of mineral exploration investment has been further consolidated; ② The launch of geological exploration fund projects has led to increased government financial input; ③ Central China demonstrates a clear advantage in mineral exploration investment; ④ Overseas mineral exploration investment requires coordinated support from all sectors of the national government.
　　Keywords: 2007; mineral exploration; investment analysis; insights
　　Since the 1990s, the nation’s overall investment in mineral exploration has shown a general upward trend. In 2007, with steady and rapid socio-economic growth and strong demand in the mineral resource market, national mineral exploration continued to maintain robust momentum, with substantial increases in funding投入, reaching a new high in recent years.
　　I. Analysis of National Mineral Exploration Investment in 2007
　　From 2000 to 2006, nationwide investment in mineral exploration maintained rapid growth, with an average annual compound growth rate of approximately 24.5%. In 2007, the country carried out 12,136 mineral exploration projects, investing a total of 16.537 billion yuan—representing a 32% increase over the 2006 level.
　　1. Distribution of funding sources for mineral exploration investments
　　The national fiscal investment totaled 67,807 million yuan, accounting for 41% of the total. Of this amount, the central government contributed 23,737.6 million yuan, while local governments contributed 44,069.4 million yuan. Social funding amounted to 97,570.7 million yuan, representing 59% of the total. Specifically, state-owned geological exploration units invested 20,362.2 million yuan; domestic enterprises invested 68,763 million yuan; enterprises from Hong Kong, Macao, and Taiwan invested 7,318 million yuan; foreign-invested enterprises invested 16,403 million yuan; individuals invested 3,473.6 million yuan; and other entities invested 2,599.8 million yuan (Figure 1). Domestic enterprises accounted for over 70% of social funding, making them the dominant source of investment.
　　2. Distribution of exploration categories for mineral exploration investments
By exploration category, the prospective survey of mineral resources (including 1:50,000 regional geological and mineral surveys) accounted for 561 million yuan, representing 3% of the total; the survey and evaluation of mineral resources accounted for 243 million yuan, or 2% of the total; and mineral exploration accounted for 15.733 billion yuan, or 95% of the total—clearly leading by a substantial margin (Figure 2).
　　3. Distribution of mineral types in mineral exploration investment
　　By mineral type, energy minerals (including coal, uranium, oil shale, etc.) accounted for 7.404 billion yuan, representing 46% of the total mineral output; ferrous metals totaled 1.544 billion yuan, or 10% of the total; nonferrous metals amounted to 4.228 billion yuan, or 26% of the total; precious metals reached 1.933 billion yuan, accounting for 12% of the total; chemical, building materials, and other nonmetallic minerals totaled 745 million yuan, or 5% of the total; and water and gas resources accounted for 124 million yuan, or 1% of the total (Figure 3). Energy minerals received the largest exploration investment, nearly half of the total; nonferrous metals ranked second, accounting for over a quarter of the total; precious metals and ferrous metals tied for third place; and nonmetallic minerals and water and gas resources received relatively smaller investments.
　　4. Distribution of Major Mineral Types Invested in Mineral Exploration
　　Coal ranks first in terms of exploration investment among major mineral resources, with approximately 6.819 billion yuan, accounting for 41.23% of the total. Other minerals follow in descending order: gold at 1.711 billion yuan, lead and zinc at 1.509 billion yuan, iron at 1.347 billion yuan, and copper at 1.172 billion yuan (Table 1, Figure 4). The distribution of exploration investments across these key minerals fully reflects the mineral exploration strategy of “placing energy minerals prominently at the forefront of geological exploration, strengthening exploration of non-energy but important minerals, focusing primarily on domestically scarce critical mineral resources while also taking into account certain advantageous mineral resources.”
　　5. Geographical Distribution of Mineral Exploration Investment
　　(l) Domestic and overseas distribution
　　In 2007, overseas mineral exploration investment totaled 101,951 million yuan, of which 48.93 million yuan came from the central government finance, 28.47 million yuan from provincial-level finance, and 94.434 million yuan from social capital. These funds were primarily used for exploring coal, iron, manganese, copper, lead-zinc, aluminum, nickel, and precious metals. Large state-owned resource enterprises remain the mainstay of “going global,” while private enterprises have become an important force in overseas mineral resource exploration and development. Geological survey institutions are also increasingly active in “going global.” Domestic and overseas mineral exploration investments accounted for 94% and 6% of the total, respectively, indicating that overseas investment remains relatively limited.
　　(2) Regional distribution in central, eastern, and western areas
　　Investment in mineral exploration in the central region reached 84,759.1 million yuan, exceeding the combined investment in the eastern and western regions. In the eastern region, mineral exploration investment totaled 28,933.5 million yuan—only one-third of that in the central region, making it the region with the lowest investment. In the western region, mineral exploration investment amounted to 51,685.1 million yuan, with central government funding slightly higher than in the central and eastern regions, at 91,085 million yuan. Local government funding and social capital contributions were 67,262 million yuan and 358,504 million yuan, respectively (Table 2, Figure 5).
　　(3) Distribution by province (autonomous region, municipality directly under the central government)
　　The provinces ranking among the top 10 nationwide in terms of mineral exploration investment are, in order: Inner Mongolia, Shanxi, Henan, Yunnan, Xinjiang, Hebei, Shandong, Shaanxi, Sichuan, and Guizhou (Table 3). The provinces ranking among the top 10 nationwide in terms of the proportion of social investment are, in order: Shanghai at 100%, Beijing at 94.3%, Ningxia at 91.5%, Yunnan at 84.1%, Guizhou at 80.6%, Tibet at 78.5%, Shaanxi at 77.1%, Shandong at 73.9%, Hubei at 68.3%, and Tianjin at 68.0%.
　　II. Several Insights from Mineral Exploration Investments
　　1. The diversified pattern of investment in mineral exploration has been further consolidated.
　　In 2007, the diversified pattern of investment in mineral exploration was further consolidated. Central government financial input accounted for 14.4% of the total, primarily coming from mineral resource compensation fees, the Central Geological Exploration Fund, central government subsidies, funds for prospecting in crisis-stricken mines, and the Comprehensive Survey of Land and Resources (Figure 6). Local government financial input accounted for 26.6% of the total, mainly from locally allocated geological exploration fees, mineral resource compensation fees, provincial geological exploration funds, and funds for prospecting in crisis-stricken mines (Figure 7); the contribution rate of provincial geological exploration funds to local finances was 54%. Social capital investment accounted for 59% of the total, primarily from state-owned geological exploration units, domestic enterprises, individuals, enterprises from Hong Kong, Macao, and Taiwan, and foreign-invested enterprises. In terms of mineral type distribution, with the exception of a few minerals such as tungsten and bauxite, investment in exploration of other major minerals continued to be overwhelmingly dominated by social capital—particularly in the exploration of nickel, tin, aluminum, lead-zinc, and manganese ores, where social capital accounted for over 70% of total investment.
　　2. Geological exploration fund projects have been launched, and the intensity of national fiscal investment has increased.
　　In 2007, the Geological Exploration Fund project was launched and implemented, with an investment of 2.851 billion yuan. Of this amount, the central Geological Exploration Fund contributed 453 million yuan, accounting for less than one-fifth of the total; the local Geological Exploration Funds totaled 2.398 billion yuan, forming an important component of local fiscal revenues and significantly exceeding the central Geological Exploration Fund. Thanks to the investment from the Geological Exploration Fund, in 2007 compared to 2006, the expenditures on mineral exploration by the central government, local governments, and social capital increased by 79%, 20%, and 30%, respectively (Figure 8). On the one hand, this reversal marked a departure from the sustained downward trend in central government financial input since 2000–2006; on the other hand, it provided strong evidence that the central government has stepped up its efforts to increase investment in mineral exploration, while also encouraging and guiding social capital to participate, thus gradually steering mineral exploration investment toward a virtuous cycle.
　　3. The central region has clear advantages in mineral exploration investment.
　　In 2007, mineral exploration investments in the central, eastern, and western regions accounted for 52%, 17%, and 31% of the total, respectively, with the central region having the highest share (Figure 5). Among the central region’s mineral exploration investments, local government funding and social capital were twice and one time, respectively, the combined amount of those from the eastern and western regions—except that central government funding was slightly lower than that in the western region. Inner Mongolia, Shanxi, and Henan ranked among the top three provinces nationwide in terms of mineral exploration investment, all of which are located in the central region. Of the top 10 provinces in national investments for energy, ferrous metals, nonferrous metals, and precious metal exploration, four were from the central region. In addition to ranking third nationwide in precious metal exploration, the Inner Mongolia Autonomous Region also topped the list in energy, ferrous metals, and nonferrous metals exploration. The central region clearly enjoys a significant advantage in mineral exploration investment, fully demonstrating that the deployment of mineral exploration efforts is aligned with the nation’s strategic approach of promoting the rise of the central region. The previously awkward situation of “central region collapse” or being “neither east nor west, not truly belonging to either” no longer exists.
　　4. Exploration investments in overseas mineral resources require the joint support of all sectors of the state.
　　With the deepening of global economic integration and the increasingly severe challenges facing China’s mineral resource supply, accelerating the implementation of the “Going Global” strategy for mineral resources—leveraging both domestic and international resources, tapping into two distinct markets, and engaging in overseas mineral exploration, development, and cooperation—has become a top priority for China’s mineral resource exploration and development efforts. Although the momentum behind China’s “Going Global” initiative has recently gained considerable strength, due to factors such as a late start and the industry’s unique characteristics, investment in overseas mineral exploration remains relatively low, accounting for only 6% of the total in 2007. Therefore, it is essential that all sectors of the country provide joint support—for instance, by gradually increasing support for preliminary geological surveys overseas, encouraging non-state-owned and even foreign capital to flow into overseas geological surveys and mineral exploration activities, and enhancing the financial security and stability of implementing our global mineral resource strategy.
 
References
[1] National Report on Geological Exploration Results and Analysis (2007), Ministry of Land and Resources, Development Research Center of the China Geological Survey, March 2008.
[2] National Report on Geological Exploration Achievements, 2006, Ministry of Land and Resources, November 2007
[3] Geological Exploration Results for 2007 from Each Province (City, District)
[4] Wang Wen. Analysis of Geological Exploration Investment: A Study on Several Economic and Management Issues Facing Public-Interest Geological Survey Teams. Beijing: China Earth Publishing House, 2008