Faced with the global mining industry’s downward adjustment, the question now on everyone’s mind is: How long will this period of adjustment last? A relatively optimistic view suggests it could last anywhere from three to five years.

　　At the 2015 China Prospector Annual Conference held recently, Wang Jiahua, Executive Vice Chairman of the China Mining Association, stated that some overseas mineral resources are currently of high quality, presenting an excellent opportunity for us to acquire and merge with foreign companies.

　　According to data from the research firm SNL Metals and Mining, in 2014 the number of mergers and acquisitions in the mining and metals industry was less than half of what it had been in 2012, with a total transaction value of only $21 billion—yet this figure doubled compared to the previous year. Recently, merger and acquisition activity in Australia’s gold mining sector has shown signs of revival, marking the first glimmer of hope for Australia’s mining industry since its peak three years ago gave way to a downturn. Chinese mining companies have also been making large-scale overseas M&A deals. All these signs suggest that certain trends may... “ Foreseeing and being ahead of the curve ” Mining companies have already begun taking action.

　　The development of the mining capital market is accelerating.

　　The underdeveloped state of the mining capital market—particularly the risk exploration capital market—has long been a bottleneck restricting the development of China’s mining industry. Although China has already become a major mining power, it has yet to establish a capital market commensurate with its status, and the risk exploration capital market remains virtually uncharted territory.

　　Wang Jiahua, Executive Vice President of the China Mining Association, told a reporter from the China Economic Times that, starting from the year before last, the national treasury has stopped providing funding to geological exploration units, forcing them to rely entirely on the market for their livelihoods. As a result, these units have an extremely urgent need for social capital.

　　 “ We’re very eager to embrace the capital market, but we’re a public institution—not like enterprises, which are independent market players. The current institutional framework is holding us back from fully realizing our potential. ” The head of a coastal geological exploration unit in eastern China told a reporter from the China Economic Times. At this year’s Prospector Annual Conference, discussions focused on the reform and development of geological exploration units, establishing and improving the exploration capital market, and implementing... “ The Belt and Road ” Strategies and the exploration of new markets for ecological civilization became the main topics discussed at the conference. “ A few years ago, any mine that was mentioned would be all the rage—now, whenever a mine is talked about, everyone is eagerly watching and waiting! ” Wang Jiahua said: As the mining industry enters a new normal, the geological exploration economy continues to decline, the market has severely contracted, and bottlenecks in investment and financing have become increasingly prominent.

　　However, it’s worth noting that China’s mining capital market development has not stalled—and is actually accelerating. At this year’s Prospector Annual Conference, the Beijing International Mining Rights Exchange (hereinafter referred to as the Beijing Mining Exchange) announced the launch of... “ Risk Exploration Capital Market ” Meanwhile, the relevant initiative led by the China Mining Association... “ Chinese Standard ” It has also come to light that the Tianjin Mineral Exchange announced the successful completion of its first-ever transaction involving mineral rights and capital.

　　In addition, Beijing International Mining City and Australia “ Mining Online ” The signing of restructuring agreements was also a major highlight of this year’s Prospector Annual Conference. To facilitate domestic mining companies’ investment and financing activities in overseas markets, Beijing International Mining City, building on its established domestic mining investment and financing service platform, began developing an overseas mining capital market in 2015.

　　Australia “ Mining Online ” With a listing-to-sale conversion rate of 44%, it ranks at the forefront of the industry. Previously, Australia... “ Mining Online ” There are two shareholders, one of which is the renowned Toronto Stock Exchange in Canada, and the other is... “ Mining Online ” The founding company, PCF Capital Group, is jointly controlled by both parties, each holding a 50% stake. Its customer base spans more than 100 countries worldwide.

　　In the eyes of industry insiders, Australia “ Mining Online ” This new model represents a significant disruption to the traditional IPO approach, offering a fresh alternative platform for mining project transactions and joint ventures. Currently, China’s mining capital market is still in its early stages of development. Due to persistent issues such as inadequate regulatory frameworks and a lack of integrity, mining companies face difficulties in securing financing, and investment channels for the mining sector remain narrow. The geological exploration economy—and indeed the entire mining industry—urgently needs the impetus provided by a robust capital engine.

　　According to Gao Xiang, President of the Beijing Mineral Exchange, “ Beijing Mineral Exchange Risk Exploration Capital Market ” The rules have been largely finalized and will soon be officially released. By adopting measures such as verifying geological reports through design, continuously disclosing progress in geological exploration, introducing international geological standards, and implementing a qualified-persons system, this market aims to enhance the credibility of projects. By connecting with multiple domestic and international capital platforms, it will provide investors with diverse exit channels, create a pathway for exploration companies to engage with the capital market, strengthen their ability to sustainably generate revenue, achieve standardized management, and improve their economic efficiency.

　　Industry insiders interviewed by reporters believe that mining service institutions—including the Beijing Mineral Exchange, the Tianjin Mineral Exchange, and the Beijing International Mining City—are all committed to facilitating smooth connections between mining enterprises and both domestic and foreign capital, and are striving to improve the mining capital market. This effort holds profound significance for boosting Chinese mining companies’ overseas expansion.

　　The mining market could recover within three to five years.

　　Currently, due to factors such as the slowdown in global economic growth, declining demand for mineral products, and rising costs of resource exploration and development, the global mining industry is undergoing a period of profound adjustment. This year’s China Prospectors Annual Conference is being held under the “new normal”—a situation that... “ A historical period full of challenges and full of hope. ”。

　　Data show that last year, China’s total investment in mineral exploration reached 112.05 billion yuan, of which non-oil and gas exploration accounted for 40.27 billion yuan—a decrease of 12.4% year-on-year. Although the achievements of the Strategic Action for Breakthroughs in Mineral Exploration have continued to expand, the national geological exploration industry currently faces several prominent challenges. Due to the sharp contraction of the mineral exploration market, financing for mineral exploration has become severely difficult, thereby impacting, to varying degrees, the second phase of the Mineral Exploration Breakthrough Initiative. Moreover, the real economy’s transformation and upgrading in the geological exploration sector have lagged behind, underscoring the need to unlock new sources of momentum. (600405, Stock forum )。

　　Some say that winter is coming again for geological exploration work. How should we view the current situation?

　　Looking at the global situation, according to forecasts by the China Mining Association, the mining industry’s recovery still has some way to go. This depends both on the extent of the global economic recovery and on whether certain emerging economies can successfully break through their current challenges. As for when the mining market will begin to recover, some say it will take three years, others five years, and still others ten years. However, Wang Jiahua, Executive Vice Chairman of the China Mining Association, believes that a forecast of three to five years is relatively more objective.

　　 “ At a time when the global mining industry is undergoing a deep and prolonged downturn, there are overseas peers facing even greater difficulties than we are. In the global mining capital market, the market capitalization of junior exploration companies has shrunk by 80% to 90%. Some of these mineral assets are of high quality—precisely the kind of opportunities that present excellent prospects for our acquisitions and mergers. ‘ The Belt and Road ’ The country’s national strategy has also created new opportunities for us to go global. ” Wang Jiahua said.

　　The basis for Wang Jiahua’s optimistic forecast includes the vast new market for ecological civilization. To promote the construction of ecological civilization, the State Council has successively issued: “ Ten Measures for Air Quality ”、 “ The Ten Measures for Water ” We'll also issue it before the end of the year. “ Ten Measures for Soil Pollution Prevention and Control ” Some geological exploration units have already taken the lead in developing soil remediation technologies for heavy-metal contamination.

　　Wang Jiahua said that, according to estimates by relevant institutions, “ Ten Measures for Air Quality ” It can attract investment totaling 1.6 trillion RMB; “ The Ten Measures for Water ” Mobilize 2 trillion RMB in investment; “ Ten Measures for Soil Pollution Prevention and Control ” This will stimulate investment totaling 10 trillion RMB. In such a massive market, it all comes down to who has the strongest core competitiveness. In his view, these factors are crucial for driving China’s economic recovery, and geological exploration agencies and mining enterprises should adopt a forward-looking perspective.

　　It is understood that the China Mining Association is in the process of setting up. “ The Belt and Road ” Mining funds are helping Chinese mining companies go global. Gao Xiang, President of the Beijing Mineral Exchange, also believes that now is an excellent opportunity for mining companies to expand overseas and reevaluate merger and acquisition deals. “ Mineral prices have been declining steadily in recent years, and the mining sector index on the capital markets has suffered a severe blow. Whether we’re at the industry’s bottom right now is unclear, but one thing is certain: we’re definitely at a low point. ” Gao Xiang told our reporter.

　　In fact, some possibilities exist in the mining market. “ Foreseeing and being ahead of the curve ” Mining companies have already begun taking action. In our investigation, this newspaper’s reporter found that certain advantageous mineral resources continue to attract strong interest from capital. Take Zijin Mining as an example... (601899, Stock forum ) For example, recently Zijin Mining disclosed a multi-billion-yuan overseas expansion project that still hit the daily limit-up on May 28, the very day when the A-share market experienced a sharp plunge. A responsible official from Shandong Zhaojin Group Resource Investment Co., Ltd. also revealed to reporters that the company hopes to acquire advantageous mineral resources such as gold mines. At around the same time, Baosteel Group may also be preparing to make a move. According to media reports, Baosteel and CITIC Bank... (601998, Stock forum ) An application has been submitted to the Australian Foreign Investment Review Board, seeking its approval for FMG to carry out a capital restructuring.

　　Various signs indicate that a handful of forward-thinking and financially strong companies are taking advantage of the sluggish market conditions to make strategic overseas acquisitions at bargain prices. However, some analysts caution that while it is indeed necessary—strategically speaking—to acquire mines overseas to secure resource supplies, the timing of such moves requires careful long-term consideration.