The mining situation this year: if increasing trend didn`t change, the scene of high interest would hard to continue.
Source:www.mlr.gov.cn Citation: www.gtzyb.com Date: Dec.17, 2013
Mining enterprise profits era was drawing to an end, but the general trend of sustained growth of mining was difficult to change. On December 12, the experts from the relevant industry associations and institutions held a partial optimistic viewpoint of mineral resources market development in 2013 mining resources situation analyzing talk which was held by China`s economic research institute of land and resources.
2013 was the important year of the complicated and varying situation and market adjustments of energy and other important mineral resources. The participants thought there was a characteristics of "three increases and decreases" in 2013 domestic and international main mineral market. Among them, the "three increases" referred to the commodity production that was still the continuation of the growth, crude oil, iron ore and ten kinds of non-ferrous metal production was potential to rise; Continued growth of the domestic mining investment, national mining investment in fixed assets totaled 1.1298 trillion yuan from January to October, 23.3% up over a year earlier. Copper, iron, coal and other bulk commodities imports continued to increase. "Three decreases" referred to the basic metal prices that continued to fall, mining stocks falling, domestic and foreign geological exploration going into decline.
Influenced by macroeconomic environment, the current mineral market appearing a certain volatility callback was inevitable, but the growth of the overall mining situation was difficult to change, which was driven by the economic development of emerging market countries. Especially the third plenary session of the 18 proposed the reformation decision of promoting marketization degree, accelerating the urbanization construction process, which would be conducive to promote the development of mineral resources market towards optimism. In the optimistic prospect, of course, based on the historical problems, in the recent and future years, mining industry still faces the pressure of capacity, inventories, and financialization.
On the other hand, with the prices of labor wages, environmental restoration pressure, financing, raw materials and fuel elements increasing, mining companies operating costs in constantly improving, mining companies began to step into the era of high cost, and the profit of mining companies was constantly reduced. Among them, the main business cost growth of the ferrous metal selecting was most obvious. Compared August 2013 with August 2008, the cost increased by 200%. At present, the sustainable development of mining industry of social responsibility and environmental protection became mainstream; construction of ecological civilization had become internal requirement; resources exploration development costs continuing to rise was inevitable. Once mining profits era that made capital crazy gradually lost its charm, and competitive advantage of the mining development in the future would be more and more rely on the two-wheel driven of the combination management innovation and capital with technology and equipment. (Liang Mingzhe)（translated by TLRHVC）
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