Nonferrous metal mineral resources are crucial basic raw materials for the development of the national economy. In recent years, China has already experienced a shortage of raw materials in the nonferrous metals industry—a problem that cannot be ignored. As China’s economy continues to grow rapidly, the country’s consumption of nonferrous metal products has also been steadily increasing. However, in recent years, the shortage of nonferrous metal mineral resources has led to insufficient domestic supply, necessitating large-scale imports from abroad. Therefore, promoting the comprehensive utilization of nonferrous metal mineral resources is of great significance for achieving the sustainable development of the nonferrous metals industry.

I. Basic Characteristics and Current Status of Nonferrous Metal Mineral Resources

Nonferrous metal mineral resources are minerals from which certain metallic elements or compounds can be extracted for industrial use. Based on the properties and applications of these metallic elements, they are classified into several categories: ferrous metal minerals, such as iron ore and manganese ore; nonferrous metal minerals, such as copper ore and zinc ore; light metal minerals, such as aluminum and magnesium ores; precious metal minerals, such as gold ore and silver ore; radioactive metal minerals, such as uranium ore and thorium ore; rare metal minerals, such as lithium ore and beryllium ore; rare-earth metal minerals; and dispersed metal minerals, among others. Currently, China has identified reserves of 54 different types of minerals.

(1) Basic Characteristics

1. China boasts vast total resource reserves, yet its per capita resource endowment is relatively low. The country’s proven mineral resource reserves account for approximately 12% of the world’s total, placing its potential value third globally. Among these resources, copper reserves stand at 67.08 million tons, ranking tenth worldwide; bauxite reserves amount to 2.55 billion tons, ranking ninth globally; lead reserves reach 37.57 million tons, ranking third globally; zinc reserves total 92.67 million tons, also ranking third globally; nickel reserves come in at 8.13 million tons, placing China ninth worldwide; tungsten reserves of 5.69 million tons and antimony reserves of 2.07 million tons, along with rare-earth reserves of 89.09 million tons, all rank first globally; molybdenum reserves of 9.99 million tons and tin reserves of 810,000 tons each rank second globally. Although China’s total reserves of non-ferrous mineral resources are substantial, due to its large population, its per capita resource endowment remains quite low—just 52% of the global average. Thus, China can be described as a country relatively poor in terms of per capita resource availability.

2. China boasts relatively abundant reserves of “minor metals” but comparatively insufficient reserves of bulk minerals. As shown in the data above, China ranks among the world’s top producers of explored reserves for “minor metals” such as tungsten, molybdenum, tin, antimony, and rare earth elements, and these resources are of high quality, giving China a strong competitive edge on the global market. In contrast, reserves of bulk minerals—such as copper, aluminum, lead, zinc, and nickel—whose demand is substantial in the global economy, account for very low shares of the world’s total reserves: 3.9%, 2.3%, 12.6%, 11.8%, and 4%, respectively. These minerals are either scarce, critically short, or insufficiently available in China.

3. There are relatively more low-grade ore deposits and fewer high-grade ones, making their exploration and development particularly challenging. China boasts a large number of non-ferrous mineral deposits, yet overall, low-grade ores far outnumber high-grade ones. For instance, the average geological grade of copper deposits is only 0.87%, significantly lower than that of major global copper-producing countries such as Chile and Zambia. Among these deposits, those with a grade exceeding 2% account for just 6.4% of total reserves, while those with a grade above 1% make up only 35.9% of total reserves. Moreover, the grades of large-scale copper deposits—those with reserves exceeding 2 million tons—are predominantly below 1%; among large copper deposits with grades above 1%, the reserves represent only 13.2% of the total reserves. Although bauxite exhibits characteristics such as high alumina content, high silica content, and low iron content, nearly all of it consists of difficult-to-process gibbsite-type bauxites. Currently, ores with an alumina-to-silica ratio greater than 7%, which can be economically mined, account for only one-third of the total bauxite reserves. These characteristics inevitably lead to higher investment costs for mine construction as well as increased operational and production expenses.

4. There are many coexisting and associated ore deposits, while single-mineral deposits are relatively few. Approximately 80% of China’s non-ferrous mineral deposits contain coexisting or associated elements, with aluminum, copper, lead, and zinc being particularly abundant. For example, among copper ore resources, only 27.1% are single-type copper deposits, whereas integrated, coexisting copper deposits account for as much as 72.8%. The reserves of mercury, antimony, and molybdenum—produced in the form of coexisting or associated ores—account for 20% to 33% of their respective total resource reserves. Although China’s non-ferrous mineral resources are characterized by a high abundance of coexisting elements, proper comprehensive recovery can enhance the overall economic benefits of mining operations. However, given the complex composition of these ores, the difficulty of beneficiation and smelting is inevitably increased, leading to higher capital investment and operational costs.

5. Wide distribution range. China’s nonferrous mineral resources are widely distributed across the country, with production occurring in all provinces, municipalities, and autonomous regions; however, the distribution is uneven among different regions. Copper deposits are mainly concentrated in the middle and lower reaches of the Yangtze River, northeastern Jiangxi, and western regions; bauxite deposits are primarily found in Shanxi, Henan, Guangxi, and Guizhou provinces; lead-zinc deposits are mainly located in southern and western China; tungsten deposits are concentrated in Hunan and Jiangxi provinces; molybdenum deposits are concentrated in Shaanxi, Henan, and Jilin provinces; tin and antimony are mainly distributed in Hunan, Yunnan, and Guangxi provinces; and rare earth elements are concentrated in Inner Mongolia, Jiangxi, and Sichuan provinces.

(2) Current Status of Nonferrous Mineral Resources

Looking at China's import trends over the past few years, we can see that imports of key nonferrous metal industrial raw materials have continued to rise. Take alumina as an example: in 2003, imports reached 5.61 million tons, representing a 23% increase over 2002 and a 67% increase over 2001. Moreover, other raw materials such as copper concentrate and nickel ore also face varying degrees of resource scarcity. The primary reasons for the shortage of nonferrous metal industrial raw materials are as follows: On the one hand, since 2000, due to low prices for nonferrous metals in both international and domestic markets, many mining companies have cut production, and investment in mineral exploration and development has significantly declined. At the same time, the recent efforts to restructure small-scale mining enterprises in China have led to a reduction in the supply of certain nonferrous metal concentrates. Consequently, against the backdrop of the global economic recovery and strong growth of China’s economy since last year, the rising demand for nonferrous metals has put domestic supplies of these raw materials under considerable strain. On the other hand—and this is the most important factor—is the inherent scarcity of mineral resources in China’s nonferrous metal industry. The available mineral resources suitable for extraction are now extremely limited. According to statistics, in 2001, China’s copper reserves were around 19.4 million tons, bauxite reserves were approximately 500 million tons, and lead reserves stood at about 37 million tons. These limited reserves simply cannot meet the substantial development demands expected in the future. Even if some resources could still be developed, their high extraction costs compared to similar resources abroad make them uncompetitive and lacking in comparative advantage.

From the current perspective, China’s newly discovered reserves of nonferrous metal minerals are extremely limited. Therefore, actively implementing a “going global” strategy—seeking out and developing overseas resources—is an essential path for the development of China’s nonferrous metals industry. At present, China’s proven copper reserves stand at just over 7 million tons, with an extraction rate exceeding 50%, leaving very little room for new reserve growth. According to statistics from the China Nonferrous Metals Industry Association, last year only one-third of the 1.58 million tons of copper produced in China came from domestic resources. Moreover, on a global scale, basic nonferrous metal raw materials are expected to face tight supply conditions in the coming years. Forecasts indicate that within the next three years, supplies of copper, nickel ore, and other such materials will become severely scarce. Thus, it is crucial to secure access to nonferrous metal raw material resources as early as possible and strive to gain a first-mover advantage. Looking at specific commodities, countries such as Chile, Mongolia, Kazakhstan, and Russia have large outputs of copper concentrate; Australia, Guinea, Brazil, Russia, Venezuela, India, and Vietnam rank among the world’s top producers of bauxite; and Russia, Australia, and Indonesia boast significant nickel ore production. These countries offer promising investment opportunities. The Chinese government should foster strong domestic enterprises, take equity stakes in, or even gain controlling interests over, foreign mining operations, and strive to quickly establish control over a portion of globally competitive nonferrous metal mineral resources. Furthermore, it should accelerate the pace at which domestic companies venture overseas to develop mines, thereby ensuring a long-term, stable, and diversified supply of raw materials for China’s nonferrous metals industry.

II. Current Characteristics of the Comprehensive Utilization of Nonferrous Metal Mineral Resources

(1) Promote the utilization of “three wastes” from non-ferrous metals, fostering a synergistic interaction between resource recycling and industrial development.

1. Comprehensive utilization of waste residues. As awareness of resource conservation and requirements for intensifying resource utilization continue to rise, the comprehensive utilization of waste residues by nonferrous metal enterprises has been gradually promoted. For example, nonferrous metal enterprises in Hechi City have actively engaged in the comprehensive utilization of waste residues. In 2006, they comprehensively utilized 234,400 tons of waste residues, and the comprehensive recovery rates of nonferrous metals such as zinc, tin, lead, and antimony have entered the leading ranks nationwide. HuaXi Group has leveraged the characteristics of the Dachang mining field—the “tin-bearing polymetallic sulfide ore”—which is associated with a variety of nonferrous metals and precious rare metals. The company has successively built zinc-inium projects with an annual capacity of 60,000 tons of zinc and 80 tons of indium, and has also carried out technological upgrades to its smelting processes, enabling the recovery and utilization of rare, scattered, and precious rare metals.

2. Comprehensive utilization of waste gases. The primary waste gas generated from nonferrous metal smelting is sulfur dioxide. The main approach for the comprehensive utilization of these waste gases is to use sulfur dioxide to produce sulfuric acid. For example, Hechi City has already built facilities with an annual sulfuric acid production capacity of 700,000 tons from smelting waste gases. In 2006, the actual sulfuric acid production reached 430,000 tons, equivalent to recovering 280,000 tons of sulfur dioxide from the waste gases. Huaxi Group has launched a project aimed at maximizing the utilization rate of total sulfur in its emitted waste gases, achieving a total sulfur utilization rate of 91%.

3. Comprehensive utilization of wastewater. Increasing the rate of wastewater reuse is one of the key tasks in environmental protection and pollution control for non-ferrous metal enterprises. For example, Guangxi Huaxi Group has implemented a closed-loop recycling system for both mining & beneficiation and smelting wastewater. The company produces 56.4 million tons of industrial wastewater annually, of which 45.86 million tons are reused after treatment, with only 10 million tons being supplemented by fresh water, achieving a wastewater reuse rate of over 80%. In Nandan County, Hechi, ceramic filter machines have been fully adopted at ore-processing plants to treat and recycle ore-processing wastewater, resulting in zero wastewater discharge and reducing annual wastewater discharge by more than 5 million tons.

(2) Actively explore the development of nonferrous metal tailings to promote the sustainable development of the nonferrous metals industry. For example, Guangxi’s nonferrous metal mineral resources have been exploited for several decades, leaving behind substantial quantities of tailings accumulated in mining areas. The Huaxi Group has already begun recycling tailings on a small scale, having built a beneficiation plant capable of processing 400 tons of tailings per day. Over the past two years, the plant has processed more than 300,000 tons of tailings, recovering over 500 tons of tin and more than 4,500 tons of zinc. To ensure the full utilization of tailings resources, the Huaxi Group is conducting further trials and research into key technologies for the comprehensive recovery of tailings; currently, this research has achieved preliminary results.

(3) Strengthening mine reclamation and geological environment remediation has led to the initial restoration of mine ecological environments. For instance, several large- and medium-sized mining enterprises in Guangxi have actively explored approaches to restoring and rehabilitating mine ecological environments. In Baise, Hechi, and Beihai, the recovery and remediation rate for large- and medium-sized mines has reached approximately 25% to 30%. The Guangxi Branch of Chinalco has already completed the reclamation of more than 50 mined-out areas, achieving a reclamation rate of over 98%. The reclaimed area totals about 190 hectares. After reclamation, soil fertility has either reached or even surpassed pre-mining levels. Moreover, the yield of economic crops on reclaimed land has consistently exceeded local dryland yields, enabling these mines to achieve their goals of mining and reclamation within the same year.

(4) Significant progress has been made in the research on comprehensive utilization technologies for nonferrous metals, and the level of comprehensive utilization of mineral resources continues to improve. In recent years, nonferrous metal enterprises in Guangxi have stepped up their efforts in technological breakthroughs, achieving breakthroughs in several key technologies. Huaxi Group has strengthened comprehensive geological resource studies in mining areas and their surrounding regions, completing a number of projects such as “Research on Efficient and Safe Mining Methods for Ore Body No. 92 at Tongkeng Mine.” As a result, the level of comprehensive resource utilization has greatly improved: the recovery rate of Ore Body No. 92 has risen from 65% to 90%, placing it among the leading mines of its kind in China. The Guangxi Branch of Chinalco has introduced advanced Russian technology to recover gallium—a byproduct associated with bauxite ore—reaching an annual gallium recovery capacity of 5 tons. At the same time, the company is conducting comprehensive research and pilot tests on iron extraction from red mud and the utilization of tailings mud, actively promoting the comprehensive utilization of co-occurring mineral resources.

(5) Fully leveraging both domestic and international resources and markets, the scale of comprehensive utilization of mineral resources continues to expand. Following the “7.17” mine disaster in Nandan, Hechi City implemented an open-development strategy centered on “external sourcing at both ends,” purchasing ore from both home and abroad for smelting and processing. Annual imports of mineral resources have now reached over 400,000 tons. At the same time, the city has actively utilized existing equipment to carry out comprehensive resource utilization, recovering precious metals such as bismuth, cadmium, indium, and silver from smelting slag at rates of 60 tons, 300 tons, 50 tons, and 300 tons respectively. The capacity to produce sulfuric acid from waste gases has reached 500,000 tons per year, and each year the city recovers more than 1.4 billion yuan from the “three wastes.” In 2006, the city’s annual mining output was less than half of what it had been five years earlier; yet, the nonferrous metals industry as a whole achieved an industrial gross output value of 7.907 billion yuan—a fourfold increase compared to 2001.

III. Policy Recommendations for Accelerating the Development of Comprehensive Utilization of Nonferrous Metals

(1) Strengthen investigation and evaluation, and carry out mineral resource extraction in a scientific and orderly manner.

1. Conduct in-depth surveys and evaluations of resource reserves. Establish a three-level mineral resource planning system—district, city, and county—that features unified coordination, clear hierarchical structure, and complementary functions. Carry out special planning for major mining areas or key mineral types within the nonferrous metals sector. Through comprehensive surveys and evaluations of nonferrous metal resources, rationally lay out the overall arrangement for mineral exploration and development, optimize resource allocation, and determine the number of mining rights to be allocated. Implement total volume control and intensive mining for minerals with significant domestic and international influence, such as tungsten and copper. Accelerate large-scale development of minerals with strong market demand and abundant resource endowments, such as aluminum and antimony. Step up exploration efforts for minerals that are in demand on the market and possess substantial resource potential, such as tin, lead, and zinc, thereby promoting orderly and scientific exploration and development of mineral resources.

2. Formulate policies for the protective exploitation of mineral resources. Establish mineral resource protection zones in phases. Within these protection zones, no mining rights shall be granted that are disproportionate to the scale of the ore deposits. Rigorously review the mineral resource development and utilization plans submitted by applicants for mining rights. Prohibit enterprises lacking the requisite qualifications from entering the protection zones to exploit mineral resources. Standardize the mining industry order, and rationally plan the total volume of resource utilization and the intensity of development.

(2) Intensify exploration efforts and enhance the comprehensive utilization of mineral resources.

1. Strengthen exploration efforts for key mineral types and priority mining areas. Taking Guangxi as an example, we should focus on strategically important bulk minerals that are urgently needed by the nation—such as aluminum, lead-zinc, tin, and tungsten—and prioritize key mineralization belts including the Youjiang Aluminum-Tin Polymetallic Mineralization Area, the Nanling Tin-Tungsten-Nickel-Lead-Zinc Mineralization Belt (Guangxi Section), the Cenxi-Bobai Lead-Zinc-Tungsten-Molybdenum Mineralization Belt, the Dayaoshan and Adjacent Areas Lead-Zinc Mineralization Belt, and the Central-Southern Guangxi High-Speed Rail San Shui Bauxite Mineralization Area. We should intensify exploration activities in these major mineralization belts and critical mineral resource regions, concentrate exploration efforts, make concerted breakthroughs in the exploration of key resources, and significantly increase resource reserves.

2. Increase investment in geological exploration. Expand fiscal investment in geological exploration, with a particular focus on conducting potential assessments of key mineral resources in major ore-forming belts, carrying out research on significant geological issues and ore-forming theories, and exploring critical minerals that are vital to economic and social development. At the same time, guide commercial mineral exploration efforts and foster new breakthroughs in the exploration of important mineral resources.

3. Attach great importance to exploration for alternative resources to replace those in crisis mines. Establish a “Special Fund for Alternative Resources to Replace Crisis Mines,” leveraging funds such as mineral resource compensation fees, fees for the use of prospecting and mining rights, and payments for prospecting and mining rights obtained by local governments. Increase efforts to upgrade and redevelop existing mines through technological innovation, focusing on tailings utilization and deep-level mineral exploration. Provide support for state-owned and state-controlled mining enterprises—particularly those located near areas with market demand and resource potential—as well as within their existing mining areas, to explore for alternative resources at greater depths, thereby extending the service life of these mines and ensuring a stable supply of mineral resources.

(3) Rely on scientific and technological innovation to provide technical support for maximizing the utilization and recycling of mineral resources.

1. Establish and improve incentive policies to support the comprehensive utilization of resources. First, refine and implement a certification system for the comprehensive utilization of resources, complementing it with relevant basic standards and technical standards aligned with international practices, thereby providing a unified platform for exchange and leveraging the guiding role of policy. Second, enterprises that make full use of co-associated minerals shall be eligible for reductions or exemptions of mineral resource compensation fees according to a specified proportion; conversely, enterprises that abandon co-associated mineral resources will be subject to mineral resource compensation fees at varying rates. The collection of resource compensation fees should be linked to recovery rates and recycling rates, and the issuance of mining rights certificates should be tied to the recovery rates of co-associated mineral resources.

2. Strengthen technological innovation in the comprehensive utilization of nonferrous metal mineral resources. Guide mining enterprises to attract expertise, investment, and strategic investors, and to collaborate with strong domestic research institutions, focusing on the development and application of advanced technologies for the comprehensive utilization of resources—such as secondary beneficiation and recovery technologies, technologies for the utilization of low-grade and refractory ores, and technologies for the comprehensive utilization of tailings and “three wastes”—to enhance their innovation capabilities.

3. Strengthen research on common and key technologies for the comprehensive utilization of resources. First, enhance long-term, stable cooperation with domestic and international research institutions to focus on tackling key and common technologies for the comprehensive utilization of mineral resources—for example, research on integrated recovery and utilization technologies for sand tin ores and tailing ores—and promote the secondary recovery and utilization of tailings from major nonferrous metals to enhance the value of resource utilization. Second, encourage enterprises to carry out comprehensive recovery and utilization of slag generated during nonferrous metal smelting, and explore and apply a new wet-process zinc extraction technology for indium and zinc ores that produces no iron-containing slag, thereby rapidly improving the technological level of indium recovery.

(4) Emphasize the protection of the mine’s ecological environment, and carry out demonstration projects for the rational utilization of resources and mine environmental protection.

1. Strengthen the protection and restoration of mine ecological environments. In accordance with green mining requirements, establish a management system for mine ecological environmental protection, focusing on pollution control and reduction, promoting clean production, ensuring that “three wastes” meet emission and disposal standards, and achieving more effective management of mined-out areas, subsidence zones, and fire-prone areas. Localities should promptly issue clear regulations on the collection of deposits for the restoration and remediation of mine geological environments, so as to ensure adequate funding for effective governance of these environments.

2. Implement demonstration projects for the rational utilization of resources and environmental protection in mining areas. Attach great importance to the protection of mine ecological environments and the reclamation of cultivated land. Based on the distinct characteristics of various resources and taking into account the actual conditions of enterprises, develop distinctive mining development models that include land leasing, mining operations, and subsequent land reclamation and restoration to farmland. Organize pilot programs for the restoration and remediation of mine ecological environments, carry out a number of demonstration projects for the comprehensive utilization of mineral resources, and promote the development of a circular economy in the field of mineral resources.

(5) Integrate mining area resources to achieve rational resource development and large-scale, intensive utilization.

1. Rationally plan the development of mining resources. (1) Based on the distribution of resource endowments and in conjunction with enterprise restructuring, reform, and upgrading, take large-scale mines with advanced technology, management, and equipment levels as the mainstay, integrate other mines, and place emphasis on using economic measures to facilitate the integration process. (2) Adapt to local conditions, taking resources as the foundation and mining rights as the link, and comprehensively employ economic, legal, and necessary administrative measures to promote integration in accordance with the law. (3) Take into account the interests of all parties in a coordinated manner, adopt effective measures to create a fair competitive environment, and genuinely protect the legitimate rights and interests of mining right holders.

2. Strengthen the investigation, evaluation, and development and utilization of tailings from old state-owned mines.

(1) Leveraging the existing technological equipment, human resources, and other production factors from state-owned old mines that have either already undergone or are about to undergo policy-driven bankruptcy, we will introduce advanced technologies from both domestic and international sources as well as private capital to develop remaining mineral resources. We will also make full use of previously discarded resources such as tailings and waste residues through comprehensive utilization, thereby revitalizing these aging mines and giving them a new lease on life.
(2) Increase efforts to explore for mineral deposits in the deep and peripheral areas of existing mines, adopt new theories, technologies, and methods for mineral exploration, actively seek out new industrial ore bodies, expand resource reserves, and promote large-scale development of mineral resources.
(3) Conduct exploration and assessment of “secondary resources” from tailings of old state-owned mines, while simultaneously researching new beneficiation and metallurgical processes and equipment. This will enable the separation and recovery of valuable components from tailings, establishing a number of secondary beneficiation plants to increase resource reserves and reduce environmental pressure.
3. Integrate mineral resources and enhance the overall level of resource utilization.
4. Implement an alliance strategy to enhance industry concentration. Based on exploration, centered on mining, and focused on smelting, and linked by geographical proximity and financial connections, adopt various forms such as equity participation and joint ventures to implement an alliance strategy spanning the entire value chain—from exploration and mining through ore dressing and smelting to advanced product processing.
(6) Strengthen the management of mineral resources and comprehensively enhance the level of comprehensive utilization of mineral resources.

1. Establish an effective market supervision and management mechanism. Strengthen the management of mineral resource reserves, set up a system for the declaration and certification of comprehensive resource utilization, a statistical system for the comprehensive development and utilization of mineral resources, a public bulletin system on the status of comprehensive resource utilization, and a network for information on comprehensive resource utilization. This will provide unified and authoritative data and information for macroeconomic regulation as well as for enterprises and institutions engaged in comprehensive resource utilization, gradually guiding the comprehensive development and utilization of mineral resources onto a track of legalization and standardization.
2. Strengthen the supervision of the exploration and utilization of mineral resources. (1) Enhance leadership and management over the exploration and development of mineral resources, supervise the “three rates” and the treatment of “three wastes” in the exploitation and utilization of mineral resources, and guide and compel enterprises to effectively promote the comprehensive utilization of mineral resources at key stages such as mining, ore dressing, and smelting. (2) Implement stringent qualification requirements, entry standards, and regulatory oversight for the exploration, prospecting, and development of strategically important and advantageous mineral resources. Raise the threshold for entry into exploration activities to facilitate unified and concentrated exploration efforts, thereby achieving major breakthroughs in mineral discovery.

(7) Implement the Scientific Outlook on Development and vigorously promote the circular economy for nonferrous metals.

1. Establish a circular industrial park for nonferrous metal resources. Within the park, create a structurally integrated, circular system that encourages enterprises to engage in centralized collection and categorized processing, thereby enabling the reuse of materials. Scrap materials and defective products generated by processing enterprises should be collected and sorted according to their respective compositions and then returned to smelting furnaces for reuse, thus achieving closed-loop recycling at the enterprise level and enhancing both resource utilization and overall resource efficiency.
2. Vigorously develop the recycling of nonferrous metal resources. Encourage and support large-scale primary, smelting, and processing enterprises to enter the field of recycled resources, leveraging high-level technologies to make efficient use of recycled metal resources and fostering a recycling and utilization model led by major enterprises and driven primarily by private businesses. It is essential to improve recycling networks at various levels and scales, establish dismantling and pre-processing facilities for scrap metals, and build specialized industrial parks dedicated to the dismantling, pre-processing, and processing of scrap metals.