Trough global mining has come, the next round of the mining market may experience a larger adjustment. But in the long term, mining development is still better.
In May of 2014 Beijing Mining and Investment Summit, the mining sector that, in the context of the global economic slowdown, China will continue to look for overseas mineral resources to meet the world's second largest economy development demand, and will be a key element of the global mining pulling into a new round of growth cycle.
Mining into the "winter" strong future demand
In the 21st century, especially since the second half of 2002, with the world's emerging economies, the country's urbanization, industrialization accelerated mining market ushered in a new round of prosperity, the outbreak of the global growth in demand for mineral resources, a large amount of consumption, fast growth of consumption, creating a 10-year prosperity minerals market. According to reports, the global demand for major industrial products doubling about every 20 years. Over the past few years, the global mining economy grew 3%, the next 25 years, the average annual economic growth of the global mining industry is 7%. In the past 10 years, copper, iron and other minerals regional shortage of bulk raw materials will continue to be the focus of mining investment.
International CEO 彭怀生 aluminum mining in his speech that in early 2012, the global economy plunged into a complex concussion, mining experienced spring and summer, due to the further release of mining production, costs continue to increase rigidity, minerals appear tight supply and demand balance, the main bulk commodity prices decline, the total amount of financing declined, mining investment returns decline, the market value of mining companies has shrunk 20% to 60%, mining into the well-being of the unknown, "winter" season.
In this regard, China Hanking Holdings Limited CEO Steven Cheng believes that the new round of global mining market down, mainly because of the drivers with the slowdown in economic growth weakened, and mining markets overinvestment during the bull market and expansion, many products have been a staple oversupply. Currently, the global economic outlook remains uncertain, but the growth prospects of China's economy is still very good, especially the rapid growth of the middle class wealth of our country will become increasingly strong demand for minerals.
In fact, China is the world's largest consumer of mineral resources. On the one hand, China's economic growth makes nearly 1.4 billion people by the gradual release of domestic demand, pushing up China's demand for a variety of minerals. On the other hand, as a "world factory", China's imports of raw materials and energy is bound to order the production of goods and supply the world market. Meanwhile, China's mining backward production technology that is behind the waste of raw materials and technology behind a waste of energy.
Changing patterns of investment need to control risk
Assistant President of China Minmetals Wangjiong Hui said that the current global commodity structure has to change, mining development is in a difficult period. Due to the global economic slowdown, growth in emerging economies is expected to cut down demand for minerals, sustained release of new mine production, resource exploration and development costs continue to increase, resource protectionism is increasing, the market value has shrunk dramatically large mining companies, exploration and corporate finance difficulties and other factors, the overall downward trend in the global mining industry is unlikely to improve the medium-term.
Moreover, China's mining industry overcapacity, rising factor costs, conflicts, lack of motivation and other companies began to focus on innovation outbreak. At the same time, the difficulties of mining countries in the world to promote the transformation of traditional mining rare window period and strategic opportunities, especially our thirst for mining assets, making foreign investment in mining projects annually, or will make double the number of the world's mining assets transaction , where the main objective is to copper, iron and coal. Therefore, the consumption of mineral resources determines the trend of global mineral resource consumption, and thus the future of the global mining industry development trend, depending on the country's economic development, including China's industrial structure adjustment, the new urbanization process, attention to green and sustainable development .
In order to obtain greater benefits from mining, countries have been constantly updated and mining-related laws and regulations. According to analysis, the current changes in mining laws showed two trends: on the one hand governments hope to get more money from the mining company, which changed the relevant taxes, the rates; the other nations to try to alleviate the statute of limitations on, in order to attract More foreign capital investment mining country.
Penghuai Sheng introduced since 2010, a number of countries around the world mining tax policy changes, and mining the rise of populism in the world, China's overseas investment environment has changed. In the "going out" process, China's mining greenfield projects (refer to multinational investors in the host country, such as all of the companies owned by foreign investors in accordance with part or all of the legal ownership of the asset is set to host) is very difficult to succeed.
Therefore, China's mining enterprises "going out" process, we must pay attention to the stability of sovereign risk, exit right, the right to export the host mineral rights, restrictions on investment and so on. At the same time, to protect their own interests, to comply with local laws and respect local culture, and strive to achieve win-win. Moreover, to optimize resources, social responsibility, and to enhance the level of internationalization and localization, and good at identifying risk, control risk and mitigate risks.
Mining these conflicts, "Blue Sky" project can be expected
Wangjiong Hui pointed out that although it can not predict the bottom of the global economic adjustment, but it is certain that the global economic growth rate has been back less than in 2008 before the steady growth of the state. Among them, the different regions of the developing world will have more access to high consumption, high input trajectory, and urbanization will be key drivers to stimulate long-term demand for minerals. Future global prosperity minerals include, first, uranium, shale gas and other clean energy sources, and will gradually replace fossil energy sources. In terms of energy minerals, coal and other traditional energy sources will be replaced by nuclear power and other clean energy sources, and the speed at accelerated exploration and development of shale gas, uranium and other clean energy sources could be the next growth point. Second, the new technology will bring more high-tech breakthroughs minerals and emerging industries. Currently, new technologies including rare earth minerals, rare, scattered, platinum group, light metal, heavy metal and nonmetal 7 categories A total of 39 kinds of minerals. With the continuous development of new materials technology and application of new technologies mineral species will continue to increase, the demand for mineral resources, human development has been the evolution to a new historical stage. Third, and closely related to humans minerals. As an essential element of human existence, more and more attention to the world of mineral resources associated with agricultural production, such as potassium and phosphorus.
Industry experts believe that China's mining companies only constant innovation, implementation of the future mine plans to boost the sustainable development of mining. Among them, the "blue sky" mining projects is the weak link in mining, there is a great investment opportunity. According to reports, the "Blue Sky" refers to small and medium sized mining project mining projects with large resource growth potential.
At present, China's mining market prospecting project is the primary project, and large-scale mining projects are mature, only the "Blue Sky" project is a semi-mature mining projects, has a great advantage. First, the number of small and medium sized mines and more investment opportunities. Second, the low acquisition cost, operating cash flow, there are certain resources, the reserves, the investment risk is small. Third, through technological innovation and exploration systems can improve the comprehensive utilization of resources, and significantly increase the amount of resources, great value-added space. Fourth, in line with national policy, Fifth, many of the mining market, "neutral" project, fewer competitors. However, investment in "blue sky" mining project requires three key factors, namely investment cost, the second is the price trend of mineral estimates, the third is the potential for discovery of new resources. Also, the "Blue Sky" has three times the value of mining projects enlarge opportunities, one to increase reserves through exploration, the second is to enhance value through management, the third is to achieve added value through the capital, the benefits of growth.
