The hottest industry returns to normal. The mining

2022-08-15
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Returning to the normal state of the industry, the mining industry must convert green into output value

returning to the normal state of the industry, the mining industry must convert green into output value

China Construction machinery information

at present, the global mining industry is still in the stage of deep adjustment, showing the characteristics of four periods of superposition: the brewing period of mining recovery, the gestation period of technological innovation, the game period of mining management policy adjustment and the reform period of energy and resources governance structure, In the later stage, the mining market may show a U-shaped trend and begin to enter a slow process of structural adjustment

Recently, at the fourth "national mining workers' Day" event, Wang Jiahua, executive vice president of the China Mining Federation, pointed out that China is a big mining country but not a strong mining country. Breaking the ideological and institutional cage, upgrading traditional industries, fulfilling society, promoting the distinction between this and the host, efficient and clean utilization of resources, and turning green into output value should become the guiding principles for China's mining industry to break through the difficulties at present

deep adjustment of global mining pattern

in 2014, the global mining situation basically continued the downward trend since 2011, and still maintained the bottom optimization and adjustment trend. Deloitte's latest "tracking trends" annual report pointed out that in 2015, the global mineral product price volatility, geopolitical turbulence, rising costs, declining ore grade and general lack of financing, the global resource industry will face the return to basics, enterprise innovation, new energy model, reducing project scale, gradually decreasing financing activities, the survival of junior companies, looking for new skills, dealing with the storm of geopolitical uncertainty There are many challenges such as increased risks of stakeholder participation and negotiation with the government

in fact, due to the impact of global economic structural adjustment, geopolitical pattern changes and other factors, the overall performance of the global mining industry in 2014 was poor, basically continuing the development decline of the past three years, which was highlighted by the adjustment of the bottom of the middle high of the mining index, the continuous decline of most mineral product prices, mining financing difficulties, etc. In 2014, the global mining index continued the downward trend of volatility since 2011, rising from 72.7 points at the beginning of the year to 85.85 points on July 29, and then began to decline all the way, reaching the annual low of 57.68 on December 15, a new low since 2009. At the same time, the share prices of the top ten mining giants in the world, except Alcoa, which rose all the way in 2014, the share prices of the other nine companies basically showed the same trend as the global mining index, and the market value of the companies shrank to varying degrees

in 2015, with the multi-layered and complex global economic recovery, it will be difficult for the global mining industry to improve. Under the heavy pressure of the strengthening US dollar and the declining growth rate of emerging economies, it is difficult for the international bulk mineral product prices to find a driving force for recovery, and the global mining pattern will continue to be deeply adjusted. In the coming period, the global bulk mineral products market will continue to lack power support. The low-speed growth of demand for coal and other mineral resources, structural overcapacity, and high import volume will become the norm. It is difficult to see major changes in the fundamentals of global crude oil oversupply

the price of mineral products fell for a long time

in 2014, global mining companies faced the adverse situation of rising operating and capital costs, declining ore grades, and uncertain demand for bulk commodities. In order to ensure the company's profits and shareholders' equity, they continued to strip non core assets and reduce capital projects, while also reducing exploration expenditures, resulting in a significant decline in the total exploration budget of major mining companies in 2014. In 2015, although demand growth slowed and global commodity prices are expected to continue to decline, the ratings and prospects of the metals and mining industry will remain stable. On the one hand, mining producers strive to improve productivity and production, control capital to generate cash flow, and promote the growth of dividend payment. On the other hand, in order to reduce capital expenditure, mining enterprises focus on core businesses, including core businesses and diversified choices, as well as how prices must fall, so as to exhaust the excessive supply in the market

it is pointed out that in view of the fierce competition, although the sales volume in the mining development stage has increased, the lower price of mineral products will lead to a reduction in revenue. At the same time, measures such as reducing mining investment, concentrating investment and stripping non core assets ensure cash flow, but after using it for a period of time, considering the investment of core assets and stripping of non core assets, cash flow will be more concentrated, and the willingness to provide more returns to shareholders in the mining development stage may promote the increase of asset restructuring events

in fact, since 2012, most mining companies around the world have reduced their capital budgets for some important shock absorbers and shifted their focus to cost reduction. This behavior of improving productivity has led to oversupply in some markets, but the low project expenditure will maintain market equilibrium in the long run. The large amount of investment in the early stage, reluctance to reduce high-cost productivity and the moderate growth of emerging markets have led to the oversupply situation in the mining market. However, higher royalties, processing and refining costs, lower prestige of precious metal by-products, lower costs from more accessible parts and engineering components, slower labor costs, and lower fuel costs are leveling the cost curve. New and expanded production has been produced at the low end of the cost curve, which may cause the prices of bulk commodities such as minerals to fall in a longer period of time

China's mining industry returns to the industrial normal

with the delay of global economic structural adjustment, China's macroeconomic situation entered the new normal in 2014, and the supply and demand of mineral resources have also undergone profound changes. There have been many new situations and problems, that is, China's economy has entered the new normal from high-speed growth to medium and high-speed growth, from factor driven and investment driven to innovation driven, as well as the ruling philosophy of our government Fundamental changes have taken place in the development thinking, which has greatly changed the environment for the development of mining industry. Some analysts believe that the current mining situation is a rational return to the distortion of previous years. Under the background of building an ecological civilization and a beautiful China, the era of China's GDP development driven by large-scale infrastructure construction has passed, and the mining industry will return to the normal state of the basic industry from the ups and downs of previous years, and the mining industry entering the trough period is precisely the transformation of China's mining development concept and industrial intensification A good opportunity for large-scale and in-depth structural adjustment. However, affected by the slow growth of the world economy, the overall situation of China's mining economic development is not optimistic. The market is depressed, the supply and demand is unknown, the price of mineral products once fell, and the economic benefits fell sharply, which is difficult to change. The downward pressure is still very huge, especially the mining enterprises' losses are expanding, the expansion funds are tight, and even forced to close down

however, China's modernization construction, especially urbanization, will also maintain the basic demand for mineral resources for a long time, which is bound to drive the development of heavy industries such as steel, cement, building materials, engineering machinery, and light industries such as home appliances and household consumer goods, which all need energy minerals and mineral raw materials as support. This stage is the stage with the greatest consumption intensity of mineral resources. Only when China's new industrialization, informatization, urbanization and agriculture will now affect the application life of the device, the modernization is basically completed, the large-scale construction slows down, and scrap steel is recycled, will the pressure on the demand for mineral resources be gradually reduced, that is to say, China's strong demand for mineral resources will continue until 2025, but will still be maintained at a considerable level

Niu Lixian of China Nonferrous Metals Geological Survey Center believes that the global macro-economy is still fragile, the global mining industry continues to be depressed, the new environmental protection law improves the environmental protection requirements of mining development and other adverse factors, as well as the increase in overseas investment and M & A opportunities, the gradual improvement of domestic and foreign mining investment environment and policies, the smooth implementation of the "one road and one belt" strategy, and the rapid development of IOT technology, The mining industry will face more challenges tomorrow. Mining enterprises must take active measures to deal with various new problems, new phenomena and new trends that continue to appear in the process of mining development, and seek better development in the reform driven by innovation

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