International Mining Conference opens

The global mineral resources prices “continued to fall”. What is the next mining trend? At the China International Mining Conference, which opened on October 21st, experts and scholars at the conference believed that the current global mineral market has a rare value investment opportunity period, and short-term price may be It continues to be sluggish, but in the long term, there are already relatively good investment opportunities, especially overseas markets.

Minister of Land and Resources Jiang Daming said that under the support of the long-term good economic fundamentals, China and even the global mining industry still has good development potential. Now that the world's new industry industry is gestating, the mineral resources demand for new energy and new materials will continue to grow. Growth, economic transformation has brought opportunities for the development of mining.

“The rigid demand for mineral resources by mankind will continue to grow, but the recent slowdown in the global economic recovery has slowed down demand, resulting in overcapacity in the short term and low prices.” Wang Jingbin, Dean of the Beijing Institute of Mineral Geology, said in the long run Product prices will fluctuate upward, and the mining industry still has great development prospects.

At present, the price of important mineral products around the world is low, and after international oil prices experienced a big drop in 2014, they oscillated upward and showed signs of stabilization. Prices of copper, nickel and tin continued to decline, while prices of aluminum, lead and zinc remained relatively stable. The prices of major precious metals and bulk metals such as gold, copper, aluminum, and iron are close to the global average production cost line, and the mines are de-capacity-building. In addition, the resources exploration investment in recent years has been severely deficient and major discoveries have been limited. Wang Jingbin believes that under such circumstances, the future shortage of resources and price recovery will be reasonable. In recent years, the implementation of quantitative easing policies around the world may lead to higher commodity prices including mineral products in the future.

“At present, opportunities in overseas markets are greater than those in the domestic market. The value of international mines is greater than that of domestic ones. From the point of view of mergers and acquisitions, opportunities are even greater.” Liu Yuchuan, chairman of Beijing International Mining City, believes that international mining prices are now at a minimum. At this point, many international mining companies have sharply reduced their market value, broken their capital chains, and are in dire need of overseas investment. This provides a rare opportunity for Chinese companies to invest overseas.

Wang Side, deputy general manager of Chinalco Minerals Resources Co., Ltd., said that the value of mineral assets has shrunk dramatically. The average decline rate of Western mineral companies within 5 years is 60%, and the average decline rate of Chinese mining companies in overseas holdings is 80%. Most mining companies must transfer assets after entering a difficult state. Various reasons indicate that investment opportunities have already arrived. It may be the best opportunity period for mining investment in the next two to three years.

However, Wang Pingwei, president of China Resources Mineral Exploration Co., Ltd., also reminded Chinese companies that they must first position the company's development strategy well. According to the company's core competitiveness, whether to adapt to overseas development, if it is decided to go to the sea, it must formulate strategic development directions and goals. Never blindly acquire.

Participating experts and scholars also said that in the long run, under the global adjustment of the manufacturing landscape and the new round of infrastructure construction, the global mining industry may usher in new opportunities in the next 2-3 years, but it will meet or exceed the previous one. The peak is unlikely.