Mining situation this year: the growth will not change the high-profile scenery is difficult to continue

Abstract The high-profit era of mining enterprises is gradually coming to an end, but the overall trend of continuous mining growth is difficult to change. On December 12th, at the 2013 Mineral Resources Situation Analysis Symposium held by the China Institute of Land and Resources Economics, experts from relevant industry associations and institutions on the mineral resources city...
The high-profit era of mining companies is coming to an end, but the overall trend of mining growth is difficult to change. On December 12, at the 2013 Mineral Resources Situation Analysis Symposium held by the China Institute of Land and Resources Economics, experts from relevant industry associations and institutions were optimistic about the development trend of the mineral resources market.

2013 is an important year for the complex and volatile energy and other important mineral resources and market adjustment. Participants believe that in 2013, the major domestic and international mineral markets have the characteristics of “three increases and three falls”. Among them, “three increase” means that the output of mineral products continues to grow, and the output of crude oil, iron ore and 10 non-ferrous metals has increased; domestic mining investment continues to grow, from January to October nationwide mining The fixed assets investment in the industry totaled 1,129.8 billion yuan, a year-on-year increase of 23.3%; the imports of copper, iron, coal and other large mineral products continued to show growth. “Three downs” means that the prices of basic metals continue to fall, the mining stock indexes have fallen, and the investment in geological exploration at home and abroad has declined.

Affected by the macroeconomic environment, the current volatility correction of the mineral market has its inevitability. However, driven by the economic development of emerging market countries, the overall situation of mining growth is difficult to change. In particular, the decision of the Third Plenary Session of the 18th CPC Central Committee to raise the degree of marketization and accelerate the process of urbanization will help promote the development of the mineral resources market in an optimistic direction. Of course, in an optimistic outlook, based on historical issues, the mining industry is still under pressure to de-capacitize, de-stock and de-financialize in the near future and in the coming years.

On the other hand, with the rise in the prices of artificial wages, environmental remediation pressures, financing, raw materials and fuels, the operating costs of mining companies are constantly increasing, leading mining companies to gradually enter the era of high costs, and continue to squeeze the profits of mining enterprises. space. Among them, China's ferrous metal mining and mining business owners' cost increase is the most obvious. In August 2013, compared with August 2008, the cost increased by 200%. At present, the sustainable development of mining industry with social responsibility and environmental protection as the main content has become the mainstream, and the construction of ecological civilization has become an inherent requirement. The cost of resource exploration and development continues to rise. It is inevitable that the era of high-profit capital mining has gradually lost its charm. The competitive advantage of mining development will increasingly rely on two-wheel drive that combines management innovation with capital and technology.

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