— A report from the 2016 China Prospector Annual Conference
Under the new normal, how to effectively transform and upgrade geological work and how to promote steady growth of the geology and mining economy have always been enduring topics within the geological exploration industry.

At the 2016 China Prospector Annual Conference held from May 28 to 29, the organizers specially convened a symposium on the transformation and upgrading of geological work to ensure steady growth. Representatives from 10 organizations—including the Anhui Provincial Bureau of Geology and Mineral Resources, the Hubei Provincial Bureau of Geology, and the East China Metallurgical Geological Exploration Bureau—each delivered keynote speeches on this topic, based on their respective situations and plans.

“Last year, we engaged in lively discussions here on the reform and development of geological exploration teams, and after a year of concerted efforts, we’ve achieved certain results. Today, as we gather once again in Anhui, we’ll analyze the structural adjustments and development trends in the mining economy, explore ways to promote the transformation and upgrading of geological work for steady growth, and jointly deliberate on the grand blueprint for the development of China’s geological sector. This is a mission of great responsibility and honor. I warmly invite everyone to open your hearts, speak freely, and offer your insightful suggestions and valuable advice,” said Lu Jin, Executive President of the Geological Exploration Association of the China Mining Association, who was chairing the meeting. He noted that the Fifth Plenary Session of the 18th CPC Central Committee proposed the development philosophy of “innovation, coordination, green development, openness, and shared benefits,” signaling that collaborative operations and green development will be the key themes for the mining economy in the period ahead. The geological exploration industry must thoroughly grasp the essence of the “grand geological perspective, grand resource perspective, and grand ecological perspective,” step beyond the confines of the mining sector itself, and fully integrate geological services into all aspects of economic and social development. Guided by market demand, focusing on optimizing the core business structure, and orienting efforts toward adjusting industrial layouts, we must forge new engines of economic growth.

Due to space limitations, this article has been abridged based on the remarks made at the conference.

Anhui Provincial Bureau of Geology and Mineral Resources:

Adhere to "one main line" and achieve "two shifts."

Currently, as the economy enters a “new normal,” especially with the supply-side structural reform underway, geological work will be profoundly affected.

Through extensive research and multi-party discussions, the Anhui Provincial Bureau of Geology and Mineral Resources has further unified thinking and built consensus, remaining committed to deepening reform and promoting transformation and upgrading. This effort is primarily summarized as “1235”—one main line, two shifts, three major frameworks, and five key safeguards.

Adhere to the “single red line.” The overall guiding principle is: accurately define roles, streamline relationships, deepen reform, and standardize management. Accurately defining roles means dynamically managing the classification of geological exploration units based on their operational performance and in line with the ongoing advancement of national and provincial institutional classification reforms. Streamlining relationships involves clarifying the connections among public institutions and enterprises, between the bureau and the local mining and geological group companies, and between the group company and the geological exploration enterprises themselves. Deepening reform means establishing three new frameworks: one for public-service provision, one for geological exploration and mineral prospecting, and one for industrial development. Standardizing management means that public-service institutions of Category One and Category Two, as well as geological exploration enterprises, will be managed according to their respective systems in terms of assets, personnel, and finance—without overstepping boundaries or exceeding established limits, while ensuring separation of administrative and business functions and implementing categorized performance assessments.

Achieve “two shifts”: First, a strategic shift in geological work—firmly upholding the principle of prioritizing geological work without wavering, transitioning from an emphasis on resource exploration to a balanced approach that equally considers environmental and resource exploration; and shifting from a focus on commercially driven geological work to a balanced emphasis on both public-interest and commercially driven geological activities. Second, a shift from integrated operation of government agencies and enterprises to separation of government agencies and enterprises: Geological survey units and their affiliated enterprises, after conducting comprehensive asset inventories and clarifying property rights, will achieve financial and asset separation. Geological survey units will establish property relationships with their wholly-owned, controlling, and equity-participated enterprises based on capital ties, and implement standardized management practices.

Establish “Three Major Frameworks.” First, establish a new framework for public-interest services. Shift from prioritizing economic benefits to prioritizing social benefits; move from simply undertaking routine water conservancy, environmental, and exploration projects to engaging in regular work oriented toward dynamic monitoring, big data analysis, and forecasting. Strive to secure ongoing government funding for public-interest services and intensify the provision of such services. Second, establish a new framework for geological exploration and mineral prospecting. Under the unified leadership of the Bureau, leverage the corporate group as a platform, rely on geological exploration units for support, and adhere to market-oriented principles to transform the mechanisms governing mineral exploration—from planned approaches to market-driven ones; shift the investment model for mineral exploration from dependence on government-funded exploration to attracting diverse sources of capital through multiple channels; and reorient exploration efforts from conventional mineral types that are already saturated or nearing saturation toward minerals urgently needed and scarce at the national level, high-quality and efficient non-metallic minerals, and new energy-related mineral resources. Third, establish a new framework for industrial development. Specifically, harness the platform role of the corporate group to integrate resources across the board, concentrate high-quality assets, accelerate the pace of development, and enhance operational quality. Optimize industrial and investment layouts by adopting methods such as equity transfers and attracting private capital, thereby creating an industrial structure that highlights competitive advantages and fosters faster development.

Implement the “Five Guarantees,” namely, fully carry out all tasks related to the Party’s ideological, organizational, work-style, anti-corruption and integrity-building, and institutional development efforts. This will open up a new chapter in Party building and provide strong guarantees for the steady and healthy development of the geological and mining economy.

Hubei Provincial Bureau of Geology:

Deeply implement the “One Transformation and Five Modernizations” development strategy.

Under the new normal, Hubei’s geological development faces a complex international and domestic environment and is currently at a “four-phase” juncture—phase of breakthroughs in mineral exploration, phase of economic transformation, phase of international cooperation, and phase of tough reform. The opportunities and challenges are unprecedented.

In the practice of reform and development, the Geological Bureau of Hubei Province has deeply realized that to integrate geological work into the broader context of economic and social development—planning strategically, fulfilling its functions, and achieving remarkable accomplishments—it must adhere to “five principles.” Only then will the path of development become ever wider. Specifically, we must uphold innovative development to foster new driving forces for transformative growth; pursue coordinated development to create a new paradigm for transformation; embrace green development to shift toward new approaches for transformation; promote open development to expand new horizons for transformation; and champion shared development to open up new frontiers for growth.

The Geological Bureau of Hubei Province firmly upholds the vision of “large-scale geology, large-scale resources, large-scale environment, and big data,” adheres to the “six-pronged approach” of building the bureau on geology, enriching it through mining, revitalizing it with diversified industries, boosting it with science and technology, strengthening it with talent, and opening it up for mutual benefit, and is deeply implementing the “one transformation and five modernizations” development strategy.

“Transformation” refers to transformative development. We must integrate transformative development throughout the entire 13th Five-Year Plan period, guiding the overall development trajectory of the 13th Five-Year Plan and achieving a shift in development drivers—from government-led to market-driven, from purely factor-driven to comprehensive innovation-driven, and from passive adaptation to proactive transformation. The development approach should also shift from extensive growth and outward expansion to green development and intrinsic growth, and from career-oriented development to industry-oriented development. Furthermore, the development platform must undergo a transformation—from closed-loop development within the province to open-ended development extending beyond provincial borders, overseas, and into industries outside the province. Finally, the outcomes of development should transition from shared development to inclusive development.

The “Five Transformations” aim to strive for a new model of geological exploration and mineral discovery, industrialization of the geological economy, mainstreaming of geological services, modernization of geological prospecting capabilities, and enterprise-based management of geological exploration activities—continuously enhancing the quality and efficiency of transformation and development.

— The new approach to geological mineral exploration involves both advancing and retreating, knowing what to pursue and what to let go of, and focusing on the innovation of exploration concepts, targets, equipment, and technical methods.

— Industrialization of geological economics. This involves promoting the industrialization of both the operational processes and outcomes of projects, building “Geology+” industrial chains, fostering geological industry clusters, and establishing long-term, stable revenues.

— Mainstreaming geological services means integrating them into the mainstream and orienting them toward society, the market, and people’s livelihoods, thereby expanding and extending the scope of geological technical services. Such services must benefit both the nation and the people, as well as enterprises and individuals alike.

— Modernizing geological exploration capabilities means adapting to the information society, embracing advanced technologies and methods, and leveraging modern information technology to drive the modernization of personnel, equipment, and techniques. At its core, this involves informatization.

— Enterprise-based management of geological exploration. This means adhering to the laws of the market economy, deepening reforms in geological exploration institutions, and establishing sound enterprise-based management mechanisms and models.

Guided by these guiding principles, the Hubei Provincial Bureau of Geology will adhere to the overarching tone of “seeking progress while maintaining stability” and the general requirements of “striving for quality improvement, upgrading efficiency, prioritizing quality, and achieving both speed and effectiveness.” It will focus on advancing six key initiatives: geological exploration and mineral resource discovery, development of the geological industry, geology for people’s livelihoods, overseas Silk Road projects, capacity-building, and the scientific advancement of Party building.

East China Metallurgical Geological Exploration Bureau:

Adjust the industrial structure and develop the “geological big data” market.

China’s economy has entered a “new normal,” and downward economic pressure is considerable. The mineral exploration market has contracted sharply, and competition within the geological exploration industry is intensifying. At the same time, under the new normal, China’s fundamental national condition of insufficient mineral resources remains unchanged over the long term. Demand for clean energy and new-material minerals continues to grow, placing ever-higher demands on geological work to support socio-economic development.

For geological exploration units, while fraught with risks and challenges, it also holds abundant opportunities and potential. We must remain firmly confident, seize these opportunities, and strive to achieve development that is higher in level, better in quality, and more sustainable over the long term.

Think ahead and plan carefully to ensure a strong start to the 13th Five-Year Plan. The East China Metallurgical Geological Exploration Bureau emphasizes that the 13th Five-Year Plan is, in essence, a “13th Five-Year Action Plan”—meaning that the plan’s success hinges on implementation, action, and concrete execution in specific tasks. The Bureau has conducted a wide range of research activities, closely monitoring the new trends in the development of geological exploration units as well as the emerging opportunities and challenges they face, thereby laying a solid foundation for formulating and implementing the new plan. In accordance with the guiding principle of “laying a solid foundation in two years, reaching a higher level in three years, and achieving significant development in five years,” each unit within the Bureau has set forth phased targets for two, three, and five-year periods respectively. The Bureau has established a dedicated supervision and inspection team to guide, coordinate, and oversee the implementation efforts of all units, rigorously examining and urging improvements in institutional efficiency and work style. Units that perform exceptionally well will be commended and rewarded accordingly, with merit-based recognition and incentives. For teams whose progress falls short, timely adjustments will be made.

Based on our core geological exploration business, we are striving to achieve new breakthroughs in mineral exploration. Geological exploration is the very essence of our competitive edge and serves as the cornerstone of our organization. Especially during the current downturn in the mining industry, it’s even more crucial for us to safeguard our core business, continuously strengthen our mineral exploration capabilities, and actively seek out more minerals—large-scale deposits and high-quality ones—to provide resource support for the country’s economic and social development.

Strengthening its supporting role and actively expanding into the broader geological market, for many years, the geological service institutions of the East China Metallurgical Geological Exploration Bureau have been fragmented and small in scale, with most being affiliated with the geological exploration institutes. Lacking a centralized and unified leadership body, they have found it difficult to form a cohesive force capable of competing effectively in the market. In April, the Bureau established the Institute of Geological and Environmental Engineering specifically to coordinate and integrate the Bureau’s qualifications, personnel, information, and projects related to social geological services, thereby accelerating its integration into the construction of a Beautiful Anhui and an Ecological Anhui. The Bureau is making concerted efforts to expand into specialized fields such as hydrogeological, environmental, agricultural, disaster-related, and urban geology. The Bureau has also set up a dedicated coordination body for production safety services, responsible for overall industrial development planning and coordinating the qualification application and management processes across various units. To break through developmental bottlenecks and create a new growth pole for the East China Metallurgical Geological Exploration Bureau during the 13th Five-Year Plan period, the Bureau is undertaking top-level design aimed at achieving “three unifications”—unified qualification branding, unified market operations, and unified resource allocation—for the entire bureau’s geoinformation industry, thus scaling up and strengthening this sector. The East China Metallurgical Geological Exploration Bureau has completed the equity acquisition of Hefei Diyuan Information Technology Co., Ltd. and established Huaye Diyuan Information Technology Co., Ltd. This marks a significant breakthrough for the Bureau in seeking new development opportunities in the field of land and resources. At the same time, the East China Metallurgical Geological Exploration Bureau will continue to pursue a “going global” strategy, actively integrating itself into the Belt and Road Initiative and the Yangtze River Economic Belt development. It will also proactively prepare for joint mineral development, explore the development of mining finance, and participate in the construction of the risk exploration market.

We will emphasize quality and efficiency, and continue to adjust our industrial structure. For us, measuring development quality and efficiency means ensuring that investments yield returns, products find markets, enterprises generate profits, and employees earn incomes. We will remain committed to prioritizing efficiency. We will leverage the market’s role in allocating mineral resources, carefully selecting high-quality minerals such as non-ferrous metals, precious metals, and rare elements. We will strive to achieve breakthroughs in mineral exploration, accelerate the commercialization of exploration results, and boost the development of the East China Metallurgical Geological Exploration Bureau.

We will adhere to integrated development. After local geological exploration units have precisely defined their roles and positions, we will actively coordinate various tasks—including geological prospecting, economic development, and team building—striving to strike a balance among development and stability, efficiency and revenue, and the primary role of public institutions versus an enterprise-oriented approach. At the same time, we will adopt a mindset of “living frugally,” optimizing our assessment methods in a lawful, compliant, and reasonable manner to achieve coordinated and sustainable development.

Adhere to the principle of knowing what to do and what not to do. Vigorously promote the optimization and integration of enterprises at both the bureau and team levels, taking technological innovation as the driving force to vigorously develop industries such as powder metallurgy and glass-reinforced plastics products. Taking coordinated development as the key, deeply expand industries like engineering surveying, experimentation, and testing. And taking green development as the guiding principle, comprehensively strengthen industries related to geological hazard control and the utilization of new energy sources. We will smoothly and orderly withdraw from the commercial real estate sector, shut down less competitive industries such as mechanical processing, safeguard state-owned assets, and ensure proper employment for our employees.

Hebei Province Coalfield Geological Bureau

The focus of our work is gradually shifting toward people's livelihoods and geological studies.

Like its brother geological exploration units, the Hebei Provincial Coalfield Geological Bureau faces the same external environment, as well as similar development challenges and opportunities. Specifically in Hebei, the province is at a critical juncture marked by a shift in growth speed, structural adjustment, and transformation of growth drivers. The tasks ahead—maintaining steady growth, adjusting the economic structure, promoting reform, tackling pollution, managing risks, and improving people’s livelihoods—are extremely daunting.

From the perspective of the Hebei Provincial Coalfield Geological Bureau, we are currently in a period of painful adjustment and transformation of our structural setup and institutional mechanisms. Many challenges remain, including insufficient momentum for deepening reform, inflexible institutional frameworks, weak capabilities in scientific and technological innovation, a lack of platforms for transformation and upgrading, and a shortage of both talented personnel and advanced technologies. However, initiatives such as the coordinated development of Beijing-Tianjin-Hebei, the “smog economy,” targeted poverty alleviation, the hosting of the 2022 Beijing-Zhangjiakou Winter Olympics, and the construction of a “Beautiful Hebei” initiative are presenting us with rare development opportunities.

The new normal of economic development not only presents geological exploration units with new challenges and tasks but also brings new opportunities for the Hebei Provincial Coalfield Geological Bureau to transform and upgrade its operations. Faced with both difficulties and opportunities, we must emphasize our public welfare orientation, vigorously enhance our capacity to serve economic and social development, actively seek policy support, and proactively integrate into the local economy around themes such as ecological civilization, “a Beautiful China,” and urbanization. In doing so, we can provide richer resource guarantees and broader, higher-quality geological services to support economic and social development.

As a coalfield geological exploration entity, at present, the room for further development in coalfield geological exploration has become extremely limited. Therefore, leveraging our professional strengths, seizing opportunities presented by national policies, and steadfastly pursuing a path of transformation and upgrading have become inevitable choices.

The guiding principle for the transformation and upgrading of the Hebei Provincial Coalfield Geological Bureau is to embrace a broad geological perspective, a comprehensive resource outlook, and an integrated ecological vision. The focus of its work is shifting from traditional coalfield geological exploration toward non-coal geology, clean energy minerals, and geology serving people’s livelihoods. Specific measures include:

First, we are strengthening research into the clean utilization of coal. In 2015, the Hebei Provincial Coalfield Geological Bureau and China University of Mining and Technology collaborated under a major provincial fiscal project to carry out the “Feasibility Study on Coal Underground Gasification in the Dacheng Exploration Area of Dacheng County, Hebei Province.” This year, another project has been allocated for this area—the “Study on the Enrichment and Migration Patterns of Pollutants During Coal Underground Gasification and Demonstration Countermeasures.” Furthermore, technical parameter modeling tests and feasibility studies—both technical and economic—are currently underway for coal underground gasification in this area.

Second, we have strengthened research and evaluation on clean energy minerals. In 2014 and 2015, a special provincial fiscal project titled “Survey and Evaluation of Shale Gas Resources in Hebei Province” was launched, which thoroughly mapped out the prospective shale gas resources across the province, identified favorable shale gas blocks with great potential for further exploration, and formulated strategic planning recommendations for shale gas exploration. These recommendations have already received approval from the competent provincial governor. In 2015, Hebei Province took the lead in proposing and implementing two projects—“Evaluation of Enhanced Geothermal Systems” and “Survey and Evaluation of Sandstone-Type Uranium Deposits”—thus filling critical gaps in the field of “clean energy minerals” within the province. These projects have attracted high attention from leaders at the municipal and county levels, and currently, geothermal planning projects are being carried out in selected areas across the province.

Third, we have strengthened geological services aimed at improving people’s livelihoods. We have completed 56 geological and social service projects for mines, conducted environmental impact assessments of groundwater, achieved new breakthroughs in rural wastewater treatment, and undertaken surface water treatment projects for the South-to-North Water Diversion Project in Xingtai and Handan. We have also carried out environmental surveys, soil analyses, and water quality tests. Furthermore, we have conducted land tenure mapping and homestead mapping projects in 22 rural areas including Wei County, Longyao, and Qinghe in Xingtai City.

Fourth, we have conducted a province-wide study on strategic energy reserves. We have strengthened cooperation with Xingtai City and the North China Oilfield, proposing to utilize the salt caverns formed after the development of brine in the Ningjin Salt Fields region to plan and build an underground strategic oil and gas reserve facility. We have also carried out a feasibility study, providing geological technical services to help address the issue of natural gas peak-shaving for the provincial capital, Shijiazhuang, as well as the broader strategic reserve needs for oil and gas in the Beijing-Tianjin-Hebei region.

Fifth, we have strengthened cooperation among geological teams. While colleagues naturally compete with one another, it’s even more important to collaborate, share resources and expertise, and support each other to achieve win-win outcomes. For example, the Hebei Provincial Coalfield Geological Bureau has undertaken geothermal projects outside the province and is also collaborating with other geological teams on uranium exploration. We provide relevant information to our sister units. This kind of complementary cooperation, which leverages each other’s strengths, is mutually beneficial and should become a model for geological exploration units as they adapt to the new economic normal.

In addition, the Hebei Provincial Coalfield Geological Bureau is not only striving to further enhance its leading industries—such as geothermal and rock salt exploration—but also focusing on transformation and upgrading, working hard to address development shortcomings and create new competitive advantages.

Beijing Municipal Bureau of Geology and Mineral Resources:

Integrating into the development of regional integration and Beijing’s new positioning.

The Beijing Municipal Bureau of Geological Exploration, in alignment with the capital’s economic and social development and from the perspective of integrating into regional integration and Beijing’s new strategic positioning, is comprehensively promoting its transformation toward urban geology and people’s livelihood geology. It is fully engaging in all areas and stages of urban and rural planning, construction, and management across the city, and actively participating in key initiatives and major projects such as the “integration of three plans” and the governance of “big-city ailments.” As a result, the bureau has made new contributions and achieved new successes in supporting Beijing’s economic and social development.

First, taking the opportunity presented by proactive services supporting the planning and construction of Tongzhou New City and the coordinated development of the Beijing-Tianjin-Hebei region, we are promoting “one clear positioning.” In line with the needs of the capital’s development and the realities of geological work in Beijing, the Beijing Municipal Bureau of Geological Exploration is actively shifting the core focus of Beijing’s geological work from the traditional emphasis on “basic and mineral geology” toward “urban geological work” that serves the people’s livelihoods and supports ecological civilization. We have established a strategic guideline aimed at “ensuring the geological safety of the capital and providing comprehensive support for its economic development,” and have proposed strategic measures centered around “two major projects and one platform.” As a result, the scope and areas of our services have further expanded, and the fundamental and pioneering role of geological work in the city’s urban planning, construction, and socio-economic development continues to become increasingly evident.

Second, taking long-term planning, building up momentum for sustained development, and ensuring perpetual growth as our new cornerstone, we will expand into “a brand-new field.” The Beijing Municipal Bureau of Geological Exploration will systematically promote the revitalization and development of its existing internal assets; explore the establishment of a demonstration zone for the integrated development and utilization of geothermal resources in the southeastern region (Xiji); and continue to advance the construction of national key laboratories. The construction of the shallow geothermal energy laboratory will be closely integrated with efforts such as the administrative sub-center in Tongzhou and the utilization of new energy sources at the new airport, thereby increasing the number of monitoring points and stations for key projects and major undertakings. In terms of both hardware and software development, we will build a laboratory that is domestically leading and internationally first-class, broaden our business scope in the field of soil and water remediation and governance, and focus on creating new drivers of economic growth.

Third, taking the restructuring and integration of new-energy businesses as a breakthrough point, we will deepen “one reform.” The Beijing Municipal Bureau of Geology and Mineral Resources will, in conjunction with the overall revitalization of land assets, advance the restructuring and integration of its industrial operations. It will also introduce a restructuring and integration plan for new-energy businesses along with supporting reform policies. We aim to establish a distinctive brand and enhance our core competitiveness in the integration and development of new energy. By participating in major projects such as the new airport and the Tongzhou Administrative Subcenter, we will achieve deeper progress in establishing modern corporate systems and undergoing shareholding system reforms.

Fourth, we will take the comprehensive promotion of “leading-edge” and “first-class” development as our guiding principle and ensure the implementation of a batch of key projects. The Beijing Municipal Bureau of Geological Exploration will closely align its work with national strategies such as the Belt and Road Initiative and the Coordinated Development of Beijing-Tianjin-Hebei Region, as well as with the central tasks and priority projects set forth by the Beijing Municipal Party Committee and Municipal Government. In the context of major infrastructure construction, livelihood projects, and the implementation of the Clean Air Action Plan, we will adhere to the working principles of building “three leading edges” and pursue the goal of achieving “four first-class” standards. By doing so, we will advance the implementation of a number of key projects that enjoy broad consensus, deliver tangible results, are strategically significant, and demonstrate forward-looking vision, thereby further enhancing our core competitiveness and overall strength as the Beijing Municipal Bureau of Geological Exploration. We will accelerate the construction of the “Capital Geological Resources and Environmental Carrying Capacity Monitoring and Early Warning Platform,” expand our scope of work, and broaden our service capabilities.

Fifth, taking the comprehensive launch of internal audit work as a key driver, we will strengthen “one overarching regulatory framework.” The Beijing Bureau of Geological Exploration will establish a normalized awareness and mechanism for audit work across the entire bureau, refine its institutional framework—including audit systems and oversight of corrective actions—and solidify existing practices such as involving audits in key projects and conducting post-appointment audits of leading officials. We will also expand the scope and areas covered by audits, effectively promote the application of audit findings, and drive the bureau’s move toward more refined and in-depth management. We will intensify audit efforts, focusing particularly on public-benefit projects, and carry out comprehensive audits and self-inspections with targeted groups and phased approaches to identify and rectify issues. We will pursue two parallel tracks: one centered on audit work, and the other on supervisory inspection. Through effective oversight, we will foster the healthy and orderly development of all aspects of the Beijing Bureau of Geological Exploration’s operations.

China National Chemical Geological & Mining Bureau:

Building a modern enterprise with core competitiveness.

In the face of China’s “new normal” in economic development, the General Bureau of Geology and Mining of Sinochem has remained committed to being market-oriented, deepening reform, innovating its thinking, adjusting its core business structure and industrial layout, promoting the transformation and upgrading of geological work, and proactively planning for the 13th Five-Year Development Plan. Based on the current situation, the Bureau has proposed the following measures:

First, we will optimize the mineral exploration industry, maintain our competitive edge in strategic mineral exploration, and strengthen and expand exploration for mineral resources related to the nation’s strategic emerging industries as well as unconventional energy sources. This will enable us to adapt to the new normal in the mineral exploration sector and build a stronger, higher-quality mineral exploration industry.

The Bureau focuses on chemical mineral resources—such as phosphate ores and potash salts—that are critical to national food security, as well as chemical mineral resources for strategic emerging industries, including fluorite and boron ores. It will intensify research into ore-forming patterns and exploration techniques, step up exploration efforts for strategic chemical minerals, and leverage its strengths as a leading force in chemical mineral exploration. Building on the exploration work carried out during the 12th Five-Year Plan period on strategic emerging industry minerals such as graphite, lithium (from salt lakes), and the “three rare” elements, the Bureau will continue to expand research and exploration of mineral resources for China’s strategic emerging industries, harnessing the driving role of scientific and technological innovation. It will actively participate in scientific research and tackle key geological challenges related to the utilization of mineral resources for these strategic emerging industries, thereby promoting the upgrading of its core mineral exploration business. At the same time, the Bureau will further strengthen its exploration and research efforts on unconventional energy sources such as oil sands, adapting to the new normal of national economic demand for unconventional energy and broadening the scope of its mineral exploration activities under the China National Chemical Geological Mining Administration.

Second, we will vigorously expand the geological extension industries, establish a comprehensive geological work framework, and enhance our capacity to support economic and social development. Relying on national strategies such as the Belt and Road Initiative, the Yangtze River Economic Belt, and the coordinated development of the Beijing-Tianjin-Hebei region, the China National Geological Mining Bureau is actively expanding into areas including large-scale geotechnical investigation, hydrogeological and environmental disaster geological surveys, agricultural geology, and geographic information services. This will help drive industrial development to better serve the needs of ecological civilization construction and achieve a transformative upgrade of geological work.

The bureau plans to expand its geotechnical engineering survey industry chain, moving from a single focus on engineering surveys to encompassing broader geotechnical fields such as geotechnical site investigations, geotechnical slope stabilization, excavation monitoring, groundwater management for excavations, and the construction of urban underground utility tunnels. The bureau will actively participate in geotechnical surveys for infrastructure projects supporting national strategic urbanization initiatives, urban rail transit systems, and oil-and-gas transportation corridor development projects.

The bureau will strengthen its geological exploration services for water-related, engineering, and environmental hazards, with a particular focus on the Beijing-Tianjin-Hebei region and the Yangtze River Economic Belt, where it will carry out exploration and development of hydrothermal geothermal resources. It will also actively conduct water resource surveys in areas facing water shortages, providing hydrogeological services for the construction and operation of large- and medium-sized mining enterprises, thereby better serving energy development and meeting the needs of people’s livelihoods.

To develop geographic information services and promote the expansion of traditional surveying and mapping work into the geographic information industry chain, the bureau is collaborating with information technology companies. Focusing on information technologies such as the internet and cloud computing, it is intensifying efforts to develop data-driven businesses and information services, exploring new business models under the trend of industrial integration, and realizing the application of “Internet Plus Geology” in areas including land and resources, environment, disaster reduction, and major infrastructure projects. Furthermore, in alignment with the development of modern ecological agriculture, the bureau is conducting surveys on arable land quality, researching precision fertilization techniques for agriculture, and carrying out studies on technologies for preventing and remediating agricultural soil pollution, thereby ensuring national food security.

Third, we will actively implement the “Going Global” strategy. We will carry out exploration for domestically urgently needed mineral resources in countries along the Belt and Road, expand our market presence in geotechnical engineering surveys, hydrological and environmental geological surveys, and geographic information services—services that are essential for major Belt and Road infrastructure projects and for facilitating domestic capacity exports—and proactively integrate into the construction of the Belt and Road Initiative. We will also do a good job on the ongoing exploration and development of potash deposits in Thailand, thereby enhancing our country’s security of potash resources, which are critical to ensuring national food security.

Fourth, we will strengthen efforts in scientific research innovation and talent development. We will focus on conducting research into major technological innovations related to the bureau’s transformation and upgrading, thereby providing technical support for the transformation and upgrading of geological work. We will establish mechanisms for attracting, cultivating, and incentivizing scientific and technological innovation talents, fostering a positive environment that encourages and supports innovation, and enhancing the quality of our development.

The China National Geological and Mining Administration stated that it will fully embrace a business philosophy centered on “market orientation and customer focus,” vigorously implement a development strategy of “industrial optimization and innovation-driven growth,” and comprehensively promote the transformation and upgrading of geological work, striving to build a modern enterprise group with core competitiveness and distinctive characteristics.

Northwest Nonferrous Geological Exploration Bureau:

Cultivate a “Grand Geology” mindset to achieve transformation and upgrading.

In recent years, China’s economic development has entered a “new normal,” with reductions in national, provincial, and social geological exploration projects. As a result, investment in geological prospecting has plummeted, posing severe challenges to the development of the geological exploration industry. The previous production and business models can no longer meet the demands of market competition.

After more than a decade of rapid development, the geological exploration industry has entered a transition period marked by a shift from rapid to slower growth. With its large-scale workforce and heavy operational burdens, the industry is undergoing vigorous reforms aimed at transforming public institutions into enterprises. Meanwhile, prices of bulk mineral commodities have declined sharply, leading to a dramatic drop in exploration expenditures. In light of these developments, we must recognize that relying solely on geological exploration as a single field of activity has become increasingly difficult for survival and growth in today’s fiercely competitive market. The transformation and upgrading of the traditional geological exploration industry represent a crucial step for geological exploration organizations to achieve leapfrog development.

As the economy continues to develop, the country is paying increasing attention to people’s livelihoods and placing greater emphasis on ecological civilization construction. Both central and provincial-level, as well as city- and county-level, governments have stepped up their financial investments in geological hazard prevention and control. Meanwhile, as China’s environmental issues become increasingly prominent, fields such as soil pollution, land remediation, high-standard farmland development, environmental monitoring, groundwater contamination, excessive groundwater extraction, and geological protection and restoration of mining areas all hold enormous potential for the livelihood-oriented geological market. In addition, livelihood-oriented geological work also encompasses urban underground pipeline detection, tourism geology, cultural relic preservation, water conservancy projects, navigation channel dredging, and coastal seawater intrusion prevention. It is estimated that during the 13th Five-Year Plan period, the livelihood-oriented geological sector will generate a market scale worth trillions of yuan, potentially giving rise to a new cluster of industries.

Geological exploration units should align their efforts with national and regional development strategies, closely monitor this vast market potential, and proactively address ecological, environmental, and livelihood issues. They should enhance both the breadth and depth of their exploration services, expand their service domains, and strive to achieve the goals of specialized exploration, differentiated operations, collaborative development, and industrial upgrading and transformation, thereby working hard to achieve a win-win situation that delivers both social and economic benefits.

While recognizing the development opportunities outlined above, we must also soberly acknowledge that, due to overall overcapacity in the geological exploration industry, homogeneous competition among geological exploration units remains prevalent—whether in traditional geological surveying or in the geology-for-people’s-livelihoods market. While we see promising prospects for the geology-for-people’s-livelihoods market, it is still necessary to further strengthen talent development and technical team building in related fields, accelerate the refinement and upgrading of relevant qualification systems, promote the establishment of industry-specific technical standards, enhance awareness of market development and innovation, and more deeply and broadly engage in geology-for-people’s-livelihoods initiatives.

The Northwest Nonferrous Geological Exploration Bureau, based on its own specific circumstances, has carried out a series of meaningful explorations in the transformation and upgrading of geological work.

First, we must align with policy guidance and shift our development approach. The key is to not only maintain and consolidate our advantage in geological exploration—a core industry—but also to break free from conventional thinking, adjust our development strategy according to market needs, and expand into areas where we have competitive strengths. By fully leveraging our own advantages, we can better serve the overall development strategy of the national economy and more effectively integrate into regional economic development.

Second, we will fully leverage the integrated advantages of geology and mining, and carry out solid work in resource assessment and development. Through independent mining development, the bureau has transformed its resource strengths into substantial economic achievements, built up a pool of professionally skilled and technically proficient personnel with strong theoretical foundations, and cultivated a team of management and operational experts rich in practical experience. Looking ahead, the bureau will continue to build on its traditional strengths and, in particular, focus on selecting efficient and high-quality resources for development in the area of resource assessment, thereby ensuring the sustained and healthy growth of the mining industry.

Third, closely integrating geological and engineering surveys will support the “Grand Geology” strategy and promote the transformation and upgrading of geological work. In the field of engineering surveys, the bureau has closely integrated geology with engineering surveys and has extensively expanded into related areas such as “Grand Geology” investigations and subsequent geological remediation efforts, achieving initial results and laying a solid foundation for further transitioning toward the “Grand Geology” approach.

Fourth, we are actively seeking to integrate geological exploration efforts with the Belt and Road Initiative. The bureau has been proactively planning and laying out its strategy in advance, fully leveraging its strengths in international operations and exploration technologies. As a result, we have launched numerous prospecting and exploration projects as well as collaborative initiatives in the fields of energy and solid mineral resources in countries including Canada, Australia, Mongolia, Kazakhstan, Tajikistan, and Iran, achieving significant progress thus far. Moving forward, we will continue to steadily advance our work and increase our investment in these regions, striving to establish overseas supply and replenishment bases for non-ferrous and precious metals in the near future, thereby demonstrating through concrete actions our commitment to supporting the nation’s Belt and Road Initiative.

Fifth, we must take technological development as the foundation to ensure the successful transformation and upgrading of geological exploration work. Under the new normal, the geological exploration market has new demands, calling for new professional structures and working methods to deliver services. In a situation where traditional geological exploration services are oversupplied, emerging fields such as agricultural geology, urban geology, and marine geology continue to exhibit strong demand for geological work. Whoever can take the lead in achieving breakthroughs in these areas will gain a competitive edge in the market. The Northwest Nonferrous Geological Exploration Bureau has undertaken several promising initiatives to promote the transformation and upgrading of the traditional geological exploration industry and has already achieved certain positive results. They are confident that they can forge a new path for the transformation and upgrading of geological exploration, injecting fresh vitality into “Northwest Geological Exploration.”

Shanxi Provincial Bureau of Geological Exploration:

Uphold coordinated, open, innovative, secure, substantive, and shared development.

Since localizing its operations, the Shanxi Provincial Bureau of Geological Exploration has closely aligned itself with the overall work priorities of Shanxi Province, firmly grasped the paramount task of development, and consistently pursued both its public-service missions and the development of industrial economies. It has equally emphasized undertaking government projects and bidding for market-driven projects, simultaneously serving markets within the province, outside the province, and internationally. While actively supporting local economic and social development, it has steadily advanced all its undertakings.

The Bureau’s approach to geological work during the 13th Five-Year Plan is guided by the new “Five Development” concepts and closely aligned with Shanxi Province’s “Six Major Development Areas.” It will fully leverage the pioneering and foundational roles of the geological exploration teams in resource and environmental protection as well as geological services. Adhering to development as the primary task, the Bureau will be led by the “1234” development strategy, driven by reform and innovation, and anchored in shifting development models, adjusting industrial structures, enhancing efficiency, and accelerating progress. It will proactively adapt to the new normal of economic development, coordinate both domestic and international markets, focus on consolidating its core business of geological exploration, foster the growth of related industries, effectively safeguard and improve people’s livelihoods, promote harmony and stability within the team, ensure the timely achievement of the goal of building a moderately prosperous society in all respects, and realize a new leap forward toward enriching the people and strengthening the Bureau. Specific measures include:

First, we must uphold coordinated development and comprehensively strengthen geological work. The bureau has adopted a broad perspective on geology, environment, and ecology—serving the entire society—and is promoting the comprehensive and coordinated development of the geological exploration economy by supporting local economic and social development. We will intensify public-interest and foundational geological work, carrying out large-scale regional geological surveys, regional mineral resource investigations, and regional geochemical surveys. Our exploration efforts will focus primarily on nationally critical and provincially advantageous mineral resources, such as “three rare” minerals, coalbed methane, and shale gas. We will also target major national and local infrastructure projects and public welfare initiatives, actively engaging in hydrogeological, environmental, agricultural, and tourism-related geological work, thereby gradually integrating geological services into all aspects of economic construction and social development. Guided by the principles of "selecting priority projects and accelerating development," we will advance the integrated approach to exploration and development. Furthermore, we will intensify efforts to acquire mining rights through multiple channels and ensure effective management of these rights.

Second, we will adhere to the principle of open development and vigorously promote the “Going Global” strategy. We will leverage the platform role of the Local Mining Overseas Engineering Construction Co., Ltd., foster coordinated collaboration between different levels, and strengthen and consolidate our presence in overseas markets. While consolidating our existing market for well-drilling projects, we will steadily advance geological and mineral exploration and development activities abroad, ensuring that well-drilling and mineral exploration and development progress hand in hand. We will accelerate the development of overseas mining projects, explore the establishment of overseas mineral resource bases, and actively tap into markets along the Belt and Road as well as countries such as Australia and Canada, thereby expanding our growth space. We will enhance communication and coordination with relevant industry departments within the province, seizing upon the important opportunity presented by the Shanxi Provincial Government’s “Opinions on Comprehensively Expanding Opening-Up,” which identifies geological exploration as one of the four key advantageous resources that Shanxi Province will prioritize in its “Going Global” efforts. We will innovate approaches to capacity cooperation for “Going Global,” strengthen collaboration with related enterprises within the province, and continue deepening cooperation with foreign-related companies such as China National Geological Exploration Corporation. We will actively explore and refine effective mechanisms and management models for win-win cooperation, elevate the level of our partnerships, expand our business scale, and improve economic efficiency.

Third, we must uphold innovative development and focus on enhancing growth momentum. In terms of institutional and systemic innovation: in conjunction with the reform of classified management for public institutions, we will continue to deepen the separation of public institutions from enterprises, establish regulations and systems that are compatible with and supportive of this separation, and thereby boost the dynamism and vitality of development. We will also keep deepening the reform of property rights systems for geological exploration enterprises, fostering market entities that meet the requirements of modern enterprise systems and possess strong core competitiveness. We will launch pilot reforms toward a joint-stock system for secondary-level entities, develop a mixed-ownership economy, and achieve diversification of investment stakeholders. Furthermore, we will promote innovation in industrial development by closely focusing on two key drivers—industry orientation and market trends—and steadily advance differentiated development. In terms of innovation in working mechanisms: we will establish expert advisory and science-and-technology deliberation systems, set up expert databases at both bureau and team levels, and refine decision-making mechanisms for major scientific and technological project initiation, significant scientific and technological investments, and evaluation of priority projects. We will also establish a distribution mechanism linking the contributions of scientific and technological personnel to their remuneration; create a collaborative mechanism for tackling key scientific and technological challenges, and strengthen cooperation with universities and research institutes. In terms of talent strategy innovation: we will formulate strategic plans for talent resources, coordinate and promote the building of talent teams, optimize the structure of our talent pool, and provide solid intellectual resource support.

Fourth, we must uphold safe development and build a robust safety assurance system. Prioritize accident prevention above all else, prevent major and above-level accidents, and effectively control serious injuries and fatalities resulting from work-related incidents. Focus on implementing the primary responsibility for safe production, rigorously assess and hold accountable those responsible for achieving safety production targets. Center our efforts on enhancing our capacity to ensure safe production, thereby elevating intrinsic safety levels and improving our ability to prevent accidents. Take strengthening grassroots foundational work as the fundamental approach, widely and thoroughly carry out activities to establish safety standardization, and comprehensively promote safety compliance among production and business entities as well as safety training and education for all employees. Finally, with the goal of fully advancing law-based governance of safety, we must establish and improve systems for safe production.

Fifth, we must adhere to substantive development and focus on scientific and standardized management. We should strengthen institutional development, establish and improve a comprehensive and scientifically sound management system, and promote the scientific, standardized, and procedural nature of management work. We need to enhance financial management, reinforce the central role of financial management in economic governance, gradually streamline and standardize financial management practices for public institutions and enterprises, and raise the level of informationization and modernization in financial management. We should also strengthen audit oversight, normalize mid-term audits and audits of economic responsibilities during tenure, combine routine audits with special audits, and intensify accountability. Furthermore, we must strengthen quality management, foster a “quality first” mindset, rigorously control project initiation, quality assurance, and outcome evaluation, and promote the overall enhancement of technical quality. Finally, we should strengthen the maintenance, management, and utilization of existing qualifications, expand the scope of qualifications in line with the strategic goals of industrial development and structural adjustment, and refine the qualification management system.

Sixth, we must uphold the principle of shared development and focus on safeguarding and improving people's livelihoods. We should integrate efforts to enrich the people with strengthening the organization, ensuring that all employees share in the fruits of development and jointly step into a moderately prosperous society in all respects. We will deepen reform of the income distribution system, refine distribution policies, appropriately manage income disparities, and achieve common prosperity.

Shaanxi Provincial Geological and Mineral Corporation:

Proactively integrate into the construction of “Grand Geology and Grand Territorial Development.”

Shaanxi is a province rich in mineral resources, and the mining industry is a vital pillar of its economy. In recent years, as downward economic pressures have continued to mount and both domestic and international mining economies have undergone profound adjustments, Shaanxi’s mining sector has been severely affected—impacting even the geological exploration industry. Under these circumstances, geological exploration units must broaden their service scope and proactively integrate themselves into local governments’ initiatives for “grand geology” and “grand land management” in order to achieve sustainable development.

The measures taken by Shaanxi Provincial Geological and Mineral Corporation to promote transformation and upgrading mainly include the following aspects:

First, we are making every effort to achieve breakthroughs in mineral exploration. Since the company’s restructuring, it has fully leveraged its own strengths and adopted a multi-pronged approach—drawing on national projects, provincial fund projects, and internally funded initiatives—to strive for the discovery of new mineral resources. The company actively undertakes national geological exploration projects, vigorously promotes Shaanxi Province’s new round of mineral exploration breakthrough initiative, and significantly increases its investment from self-raised funds. By implementing various incentive measures—including establishing risk exploration funds and special funds for geological science and technology, setting up an incentive mechanism for mineral exploration, and encouraging grassroots units to collaborate on exploration—our company continues to ramp up its investment in mineral exploration.

Second, we are vigorously promoting the integration of exploration and development. The company has recently invested in and constructed a number of key mining enterprises, including the Hanyin Changgou Gold Mine and the Tongguan Gold Mine, injecting new momentum into the development of the geological and mining economy. As the next step, they plan to build several more gold mines in their own mineral rights areas with promising prospects, such as Bawangou in Hanyin and Miaogou in Feng County.

Third, the company established the “Shaanxi Province Emergency Rapid Response Task Force for Sudden Geological Disasters.” Guided by the principle of “relieving the government of its worries, serving society, and enhancing enterprise efficiency,” the company set up the “Shaanxi Province Emergency Rapid Response Task Force for Sudden Geological Disasters” in December 2015, with 12 detachments under its umbrella. After completing mobilization, training, and the initial assembly, the company conducted a field emergency response drill on February 23, 2016, in Yongshou County, Xianyang City, demonstrating the task force’s real-world emergency response capabilities. Moving forward, under the unified command and coordination of the Shaanxi Provincial Department of Natural Resources and Land, the company plans to strengthen its collaboration with city and county governments, actively undertaking tasks such as emergency geological disaster surveys, rescue operations, and post-disaster recovery and remediation efforts—thus fully embodying the sense of responsibility and commitment expected of state-owned enterprises. At the same time, leveraging the “Emergency Task Force,” the company will continue to expand the scope of its geological services, integrating itself into local governments’ initiatives for “large-scale geology and large-scale land management,” and fostering the rapid growth of new business areas.

Fourth, we will vigorously develop the Hanzhong jade cultural industry. In 2015, based on a thorough analysis and study of the current mining situation, the company adopted a strategic and holistic approach, focusing on long-term development and emphasizing transformation and upgrading. As a result, it initiated and implemented the “Hanzhong Jade Large-Scale Development Project.” During the 13th Five-Year Plan period, the company plans to invest 6.8 billion yuan in the comprehensive exploration and development of Hanzhong jade mines, including the construction of a gemstone cultural industrial park in Nanzheng County that integrates processing, sales, tourism, and other related activities. Preliminary feasibility studies indicate that once the project is completed and operational, it is expected to generate annual revenues of 5 billion yuan and pay taxes and fees totaling 350 million yuan.

Fifth, actively expand overseas markets. The company has integrated itself into the nation’s “Belt and Road” initiative and is accelerating its “going global” efforts. It has already registered and established the “Central Asia West Exploration Mining Company” in Kyrgyzstan and has applied for registration of a 150-square-kilometer polymetallic mineral exploration right. Currently, the company has reached a preliminary agreement on cooperation with Kyrgyzstan regarding the country’s national central laboratory upgrade and renovation project.

The company stated that, in the face of the current severe contraction in both domestic and international mining and geological exploration markets, geological exploration units must make corresponding adjustments, extend their industrial chains, and accelerate their transformation and upgrading in order to gain the upper hand in future development. It is essential to adjust exploration priorities by avoiding mineral resource sectors suffering from overcapacity and instead stepping up exploration efforts for unconventional energy sources (such as shale gas, coalbed methane, shale oil, and combustible ice) and new types of resources (such as lithium, germanium, indium, and graphite). By expanding into the fields of “large-scale geology” and “broad-based land management,” these units should proactively adapt to the needs of economic and social development, broaden their professional service offerings, and, while continuing to excel in traditional geological exploration, steadily extend their expertise into areas such as urban geology, agricultural geology, environmental geology, tourism geology, and disaster geology. They should also play a key role in specialized technical services in fields like urban utility tunnel construction, environmental remediation, and emergency assessments for geological hazards. At the same time, vigorous efforts should be made to develop emerging...