Serve the national resource strategy and promote the breakthrough of prospecting
Source: www.mlr.gov.cn Citation: www.chinamining.com.cn Date: Dec. 31, 2013
Since the establishment of geological exploration fund seven years ago, especially since two years ago the issue of The Guideline of the Treasury Department in Ministry of Land and Resources on the Joint Coordination Mechanism of Geological Exploration Funds both National and Provincial Level, the national funds are working together and playing their positive role in solving the problem in prospecting, guiding and driving social investment, serving the national resource strategy and promote the breakthrough of prospecting, thus making the major force of financial funded financial fund venture exploration.
The third plenary session of 18 national congresses has approved The Decision on some Significant Problem to Comprehensively Deepen the Reform. Therefore, faced with new circumstances and task, how can the national geological exploration fund management organization play a positive role in a better way? Recently, the geological exploration fund management organizations hold a meeting to study the spirit of the third plenary session. On the spot, our reporter interviewed Cheng Weili, the director of the Central Geological Exploration Fund Management Center.
Reporter: This is the second year after the issue of The Guideline of the Treasury Department in Ministry of Land and Resources on the Joint Coordination Mechanism of Geological Exploration Funds both National and Provincial Level. Within the two years, how did the geological exploration fund management organizations of national and provincial level further develop the joint coordination mechanism, what significant achievements you have made and what are the existing prominent problems?
Cheng Liwei: In the past two years, the geological exploration fund management organizations of national and provincial level thoroughly practiced The Guideline and continually deepened the joint coordination mechanism by intensified communications and contacts. Since the scheming of The Guideline, we have summoned three geological exploration fund joint working meetings, published two annul Geological Exploration Fund Briefings in a row, and adapted various ways to enhance coordination and cooperation. According to the information statistics, the nation’s geological exploration funds are growing, the operating mechanism is being improving and the prospecting achievements are becoming prominent, all of which has played an important role in the break through prospecting.
First, the overall scale and input intensity is further expanded and increased. Till the end of 2012, 26 provinces (regions, cities) have established the provincial geological exploration fund. Combined the in national and provincial level, the total scale reached 39.9 billion Yuan, and the real investment reached 35.039 billion Yuan, relatively increased 20.9% and 30.53% compared with the previous year. In 2102, a 41.41 billion Yuan was put into the non-gas-and-oil mineral exploration all over the country, among which 13.271 billon from central and local finance. The national geological exploration fund has invested 7.27 billion Yuan, making 17.56% of the overall investment and 54.78% of the financial investment. The fund has become a main force of the financial investment to mineral resources venture exploration.
Second, the significant achievement of venture exploration. Till the end of 2012, the geological exploration fund totally invested 5884 mineral exploration programmed and discovered 741 ore fields, 386 large-scaled and 219 middle-sized. In Daying of Inner Mongolia, a historical breakthrough was made in the prospecting of the uranium mine, and the quantity of resource is increased, the scale of mineral deposit reaches the type of ulltra-large, making the largest uranium ore deposit in China. In Baotou Hadamengou of Inner Mongolia, the gold ore periphery general survey program prospects a quantity of68 tons. In Suzhou Langan-Chulan district of Anhui province, a significant progress shows three rock formations containing diamonds, a preliminary estimation of 200, 000 karat. In Huaheng county, Yanjiazhai mine lot of Hunan province, about 4.7 million tons of 333+334 lead and zinc can be found, a breakthrough of searching for lead and zinc north of Huayuan-Zhangjiajie fault zone. All in all, the national geological exploration fund has made a significant contribution to realize the three-year plan of prospecting strategy.
Third, the guiding and promoting functions are more and more apparent. The projects and finance continually incline to the earlier stage prospecting of high-risk minerals to exert its function of reducing the prospecting risks and explore effective ways to guide the joint investment with social funds, with the percentage of joint funds further increased. In 2012, the new cooperative projects of central geological exploration fund take 84.2% of all the new projects; the joint investments take 86.67% of the new investment; the percentage of provincial geological exploration fund investing cooperative projects increases to 21.72% from 13.38% of the previous years. As for the projects with achievement, the social funds have a strong will to participate.
Fourth, the operating mechanism and managing system are improving. The central geological exploration fund sticks to the running mode of “finance budgets and market operates ”, continually improving the management system of project assessment, organization and implementation, quality supervision, contract management, funds management and rights and interests disposal, which are based on the requirement of the marketing operation.
Fifth, the Joint Coordination Mechanism is coordinated and runs smoothly. Based on the experiment of 2011, in 2012, the central geological exploration fund management organizations continues to make joint projects and hold joint conference and carry out information exchange system together with the provincial territorial resources competent departments and geological exploration fund management organizations. There are 691 suggestions of joint projects and 226 pass the primary election. The joint working platform is further consolidated to enhance information exchange and communication. The overall function the national and provincial geological exploration fund is constantly fulfilled and reaches an obvious effect.
In addition, according to material provided by each province, the main part of the projects in 2013 is to continue the old ones. The new projects are less than before, the fund investment level drops slight, too. However, the provincial geological exploration funds also make some significant achievements in prospecting the periphery of Fuliang copper and tungsten ore in Jiangxi province, the periphery of Jiurui Wushan copper mine, Zixing Zhangjialong tungsten orein Hunan province, Jinchuan lithium ores in Sixhuan and Zhungeer oil shale in Xinjiang province etc.
In general, the geological exploration funds enjoy a good developing tendency and operate well. They have played a good role in national finance guiding the prospecting. However, there are still some problems to solve. Firstly, there is no unified understanding of the target of the geological exploration fund, thus hard to coordinate the developing requirement of the geological exploration fund and its function to regulate and control the policy. Secondly, the mining right registration of the fund’s projects requires a large workload and it takes a long to summit and get approved. Thirdly, restricted by the factor such as prospecting work period, industrial policy and mining right transfer plan, it takes a long tie to realize the achievements of geological exploration fund project.
Reporter: How is the operation and management of the central geological exploration fund and what achievements does it acquire in 2013? What is the direction of next step?
Cheng Liwei: In 2013, with the general plan of the prospecting breakthrough strategy as the center of our work, the central geological exploration fund adjusts its thinking of work, intensifies institutional improvement, improves administration, intensifies the origination, implement and management of the projects, and puts the responsibility and task in place, thus all the work has an significant progress and result.
First, the purpose and target of the projects deployment are further enhanced. By taking provincial joint project, the investment direction and key point get clear. 97 new or continued projects are arranged within the year, and together with the remaining budget of last year’s projects, a budget fund of 629 million is arranged. From the aspect of exploring new methods of prospecting, industry-university-research interaction, the close integration of project approval and implement, a corresponding mode of execution should be taken based on the special minerals, key regions and particular miner genetic conditions. For the two ore-concentrated area of the Zhuxi copper and tungsten ore and Xiangshan uranium ore, a focal is settled. Together with the Office of Land Resources, Geology &Mineral Bureau and nuke industry Bureau of Geology of Jiangxi province, as well as East China Institute of Technology, we set up the organizing and implementing organization, practice the specific project, match research subject, deploy from the whole and coordinate the growth. For minerals that are hard to break through such as diamond and chromites, we organize the experts to further prospect and strategically choose the region, optimize the pilot projects, combine the production, teaching and research together to tackle key problems and explore experience by spot operation. For the challenge of prospecting buried ore, we launch the eastern buried ore prospecting plan and put forward our work idea: firstly organize the experts to discuss for feasible prospecting though and technique; then choose some typical projects according to different regions and types; after the experts argue the prospecting plan, start to test the plan; if there is good result, enlarge the experimental region. Embracing the prospecting method of finding the coal and uranium at the same time, together with Tianjin Land Adjustment Center, on the basis of northern uranium ore prospecting in sand stone area, we cooperate closely with Ningxia Office of Land Resources, Geology &Mineral Bureau, and Shenhua Ningxia Coal Group to prospect the uranium in coal in Ningdong district; the verification work is carried out by further clearing out relevant rights and interests and promoting fund project. In a word, by various ways, we improve the project approval method; when highlighting the target of project deployment, it more important to play geological exploration fund’s leading and demonstrating effect in the prospecting thoughts and methods.
Second, a batch of project implementation achievements has been acquired. We fully enhance the track management of the project’s quality and result. In 2013, we carry out field work in a total of 82 projects and complete a drilling workload of 142 kilometers. A batch of important projects constantly expands their achievement. The general survey of Daying uranium ore in Inner Mongolia, reviewed by the (radioactivity) Reserve Estimation Center in Ministry of Land and Resources, shows that it is the biggest in China and one of the few in the world ultra-large type of uranium ore deposit. The three general survey results Panzhihua iron mine monoblock exploration area shows a substantial increase in the quantity of resource, and under the estimation of experts, a new 333 iron ore reaches 66.47 million tons, reaching the ultra-large type; 240 million tons of accompanying titanium and 6.84 million tons of vanadium both reaches the ultra-large type. New progress in the monoblock exploration of Wuzhengdao monohydrallite, of Dongshan and Mazongling are estimated as 66.47 million tons, both surpassing the large-scale; the mine lot of Huanxi mine lot is estimated as 30 million tons, with a prospect of continue expanding. The general survey work of Xinjiang Niebei nickel minerals shows a quantity of resource as 13.8 million tons, reaching the ultra-large type. In the Zhiduo County Duocai district of Qinghai province, the general survey of copper polymetallic deposit shows a deposit of 145,000 tons of cooper, 130,000 tons of plumbum and 220 tons of zinc, all reaching medium-scale. In Jinduo County Duogang Mountain gold polymetallic of Heilongjiang province, the results of general survey shows 50,000 tons of 333 molybdenum, with a perspective to reach the large-scale.
Third, the operations management of fund is further improved. Central Geological Exploration Fund Management Center has further improved the supporting institution on the fund projects’ organization and implementation. In the year, we make the project assessment method, design inspection method to comprehensively ferine the project assessment, authorized strength design, as well as the examining method, procedure and relevant format requirements. At the beginning of the year, together with the China Land Adjustment Bureau, we publish the notification on strengthening and improving the supervision work of fund projects to further improve the supervision mechanism. We have also drafted a notification for accelerating the deposition of fund project achievement for the Ministry of Land and Resources and the Ministry of Finance, to further clear and definite relevant requirement of achievement disposal. Against the clear and definite problems in the operation and management of the fund, we systematically carry out schematic studies to improve the fund operating mechanism, in which suggestions are provided for the decision reference of the Ministry of Land and Resources and the Ministry of Finance.
In the next period, the Central Geological Exploration Fund’s management will further implement the spirit of the third plenary session of the 18th NPC, analysis situation with scientific attitude, plan in advance, and take actions effectively. More attention will be put on the following aspects: one is to further improve the operation mechanism of the Central Geological Exploration Fund. According to the overall requirements of deepening reform, we will research the operation management of geological exploration fund under the new situation, make efforts to crack the problems existing in the management, and make full use of the policy. The second is to strengthen the management for the implementation of the funding project. Our management should closely around the national macroscopic layout. The key of the projects should be adjusted in time. Technical and economic demonstration on project stage, regulation during the implementation should be improved in order to raise the quality of work and prospecting effect effectively. The third is enhanced the application of the project results. Exploration results should be carded comprehensively. The related departments need to offer policies as soon as possible, and accelerate the pace of application so as to promote the fund run into a virtuous cycle.
Reporter: How should the institutions of Geological Exploration Fund understand the spirit of the third plenary session of the 18th NPC, and get the orientation for their management?
Cheng Liwei: The third plenary session of the 18th NPC is an important session during the decisive period of building an all-around well-off society. This session has passed the resolution for some important problems on comprehensively further reform. The resolution gives a comprehensive plan for the further reform of the development of the economic, political, social, cultural, ecological civilization construction, as well as the development for the Chinese Communist Party. It is a programmatic document for the Chinese Communist Party to lead the mass people fighting for the great dream of building an all-around well-off society. It is also an indicator for the management of the Geological Exploration Fund in the long run. Thus, learning and implementing the spirit of the third plenary session of the 18th NPC is and will be an important work for us. What we should do is figuring out the essence and the requests of the resolution, and working them out in our daily life.
Firstly, on the general idea about comprehensively deepen reforming, the resolution noted that “the fact that our country will stay in the primary stage of socialism for a long time should be the foothold of our reform”. In this way, it is safe to say that there will be an increased demand for mineral resources over a long term. As a result, the work of mineral resource management and geological exploration fund should conform to this trend. The management measures should be improved through playing the role of management and regulation actively. The management also needs to offer adequate resources for sustainable development through prospecting and wise use.
Secondly, the resolution lays stress on the principle of system, integrity, and cooperative. Our reform is a system which focus on economy, while has a comprehensive plan on economy, policy, culture, society, ecological civilization and the development for the Chinese Communist Party. As a part of economic work, the structure of mineral resource management and Geological exploration fund management must be perfected according to the reform direction of socialist market economy, at the same time, it should be suitable for the reform of ecological civilization and other reforms. Thus, we are expected to put the management of funding into the big setting of comprehensively deepen reforming and overall work of mineral resource management. We should study and judge the situation well and truly, make plans in advance in order to make sure that the fund management can be suitable for the development. As far as I’m concerned, we can put it in the following three aspects.
Firstly，we must coordinate resources exploration development work from the height of the overall economic and social development. Comprehensively deepen reforming, development of each career need balance. While the balance of exploration and management of resources is also needed according to the requirement of the economic and social development and ecological civilization. For this aspect, we can further divide it into three points. The first one is planning the “two markets and two resources” in domestic nation and abroad, implementing global resource strategy, coordinating the relation between focusing on our own country and globalization, forming a stable system of supply. The second one is planning the present and long run as a whole. The relation between the recent demand and the long-term security should be settled properly. Mineral strategy reserve should be promoted according to our natural resources as well as supply and demand to make sure that the resources security can be sustainable. The third one is planning the resource development and ecological environmental protection as a whole. The measures about eco-civilization should be implemented. The distribution of resource prospection and development should be scientifically projected. The mode of production on related industries should be transformed. The environmental protection after resource development should be improved. Thus, the course of eco-civilization can be pushed forward.
The second aspect is to properly handle the relationship between government and market economic system reform, the core issue of economic reform. It gives a direction to the management system of the fund. The resolution points out that the core issue of economic system reform is to deal with the relationship between the government and the market and make sure that the market plays a decisive role in the allocation of resources and the government can play its pole better. Since the focus of the reform is to solve the problem of an incomplete market system, excessive government intervention and incapable regulation. Geological exploration fund as the government regulation and control of mineral exploration means of the market economy, management system and operation mechanism will need to be adjusted and perfected according to improve the direction and the transformation of government functions, the requirements of market-oriented reforms in macroeconomic regulation and control. Of course, the reform of the system of finance and taxation will also affect the operation and management of the fund. From the view of transforming functions of the government, we must adhere to the principle of geological prospecting funds as a policy tool positioning, research more effectively guide, pulling the management mechanism of commercial mineral prospecting. It is necessary for the government to play the role of promoting market development, regulating important mineral exploration, balancing between income distributions of resources, but also to prevent excessive invention in the competition field, and hinder the development of market. From the perspective of adapting to market reform, we should adjust and improve the operating mechanism and management model of fund according to the development of mineral exploration market. In the current transitional stage when exploration market system is not perfect, especially when the exploration venture capital market is lack, the fund can take government investment pattern which adapts with it to solve the problem of market failure due to the exploration risk capital market has not yet been established and the lack of investment. We can also take the government investment for low risk of mineral and development of national protected mineral into consideration. The government carries out preliminary exploration, and then the results sold through the market. In this way, the government can play a regulatory role. For the scarce and high risk mineral resources, the government can offer subsidies to perform the role of encouraging the commercial prospecting. However, with the full development of exploration market, funds should return to its primitive role of a policy tool, in accordance with the requirements of the market economy, and perform under the government subsidy. In addition, according to the reform requirements of speeding up the transformation of government functions, and speeding up the classification of institutions, the state-owned geological prospecting units are determined to face reform in the future. From the view of promoting the reform of geological prospecting units, and cultivating mineral exploration enterprises, it is necessary to research and support the reform of the geological prospecting units when it comes to the investment and achievement distribution policy on geological prospecting fund.
Thirdly, accelerating the development of ecological civilization system construction put forward higher requirements for the organization and implementation of geological prospecting fund program. The "decision" that was issued by the Third Plenary Session of the Central Committee, from the “five in one” strategic height of modernization construction, puts the ecological civilization system construction in a very important position. Therefore, the development and management of resources must be in accordance with the reform requirements of ecological civilization construction system, obey and serve the construction of beautiful China. First, in accordance with the requirements of the main functional divisions, we should do a good job in planning exploration and development of resources. As for the geological prospecting fund deployment projects, we should establish the concept of commercial prospecting and reserve exploration, according to the setting of national ecological protection zone, buffer zone and experimentation area, make a reasonable layout for the exploration and exploitation of mineral resources, adjust the prospecting breakthrough point, to further increase the prospecting work of important ore concentration district and deep concealed ore in middle east region, properly develop reserve exploration in western area, strictly control the commercial exploration of ecological fragile areas of Qinghai Tibet Plateau, especially national ecological protection zone. Second, explore and establish the negative list management system of geological exploration fund deployment project, according to the space planning of all kinds of land resources, we should study and formulate areas that are not favorable to carry out mineral resources prospecting, important kinds of minerals for prospecting in different areas and minerals that are not favorable for exploration, strengthen the ecological environment condition argument of the project. Third, establish ecological protection concept of the exploration and construction, actively promote the " drilling of both coal and uranium", promote the rational development and utilization, guide and encourage the project unit to use advanced and applicable exploration technology to strengthen the natural environmental protection requirement in the process of the exploration of mineral resources, strengthen the ecological restoration of exploration field, and minimize the impact of exploration work on the ecological environment.
Reporter: Only when two stages of geological prospecting fund links together and make concerted efforts, can it play a greater role. What will the center do to deepen the two stages of geological prospecting funds coordination for the next step?
Cheng Liwei: Since 2011, two sections of “guiding opinions" were issued, under the joint effort of the central geological prospecting fund management center, the competent department of land and resources of each province (district, city) and the geological prospecting fund management institution, two stages of geological exploration fund linkage work already has a very good foundation. However, with the step by step implementation of prospecting breakthrough strategy action, it is necessary to further improve the linkage mechanism, strengthen coordination between two stages of fund, and jointly promotes prospecting breakthrough strategy action. At present, the key point is to grip more effort around improving the linkage work.
First, further expand the depth and breadth of information communication. We should build a platform for information exchange, and promote the exchange of information communication between Central authority and provincial geological prospecting fund. Next, we will preliminarily consider improving the national geological prospecting fund information exchange and joint meeting system, promoting the National Geological Exploration Fund website Unicom work, to create conditions for everyone to communicate.
Second, further deepen and consolidate project docking work. We should draw on the experience of main forms of the project docking work from the key breakthrough areas on the basis of project docking which mainly takes the form of project proposal and project examination in the last two years, further do the docking work solid from project implementation, project scheme, and project demonstration. Next, we will also promote the work of middle and areas’ prospecting and exploration of concealed deposits as well as drilling of coal and uranium in the north, to jointly play the exemplary role of prospecting idea and organization pattern of the fund project.
Third, explore the cooperation methods between two levels of geological exploration fund. According to the requirements of "guiding opinions", the prospecting cooperation between the Central and provincial geological prospecting fund mainly takes the form of horizontal connection and longitudinal connection; the former clarifies types of minerals and regions, while the latter is performed according to the working stages. Such cooperation is conducive to the coordination of two levels of fund exploration work, but seen from the angles of improving the implementation efficiency, quality and supervision level of new project, we can also explore to take the form of investment hors d’oeuvres of two stages fund project to cooperate closely, and take the cooperation mode of two stages of fund jointly engaged in pulling social capital, further promote the two levels fund to form a cohesive force, and jointly promote the prospecting breakthrough strategy. (Wang Qiongjie and Wang Jun)(translated by TLRHVC)
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