CHINA MINING News

Madam Anita Marangoly Geogre delivered a speech on the keynote session of CHINA MINING 2015

(Photo:Zhao Xinhao, Edit: Xu Xiaojing)

On the morning of October 21, 2015, the keynote session of CHINA MINING Congress and Expo 2015 was held at Meijiang Convention and Exhibition Centre of Tianjin. Leaders of the industry and economists gave speeches centering on New Normal, New Opportunities, New Development. This is a scene that Madam Anita Marangoly Geogre, Senior Director of Energy and Extractives of the World Bank Group, delivered a speech with the topic “Global trends in mining and contribution of sustainable mining practices to international development”.

The Hon. Ministers, H.E. Ambassadors, Leaders of Tianjin Municipal Government,

Distinguished Guests, Ladies and Gentlemen,

Good morning!

I am grateful for being invited to the CHINA MINING 2015. This is my first CHINA MINING, so I feel very happy.

Concerning New Normal, New Opportunities, New Development, we, the World Bank, mainly focuses on New Development, because new development could release the potential of mining industry and realize sustainable development. In the coming days, we will have chances to exchange our views, compare experience and reach consensus on regional mining development. There are several billion people in the world who only had less than 2 dollars every day for life. As we all know that good mining management would release huge development potential. If the management is poor, it will hinder economic development. Therefore, our goal is that we should ensure mining industry as a promoting power which will increase development speed instead of lagging it behind.

There are over 6,000 mining enterprises, including several Fortune 500 enterprises. As a global industry, it hires 2.5 million people. According to the survey of International Council on Mining and Metals, if low and middle income countries have rich natural resources, mining will cover 60% to 90% of their FDI. 30% to 60% of exports are mining products, and sometimes 20% of national income come from mining industry and even 30% of the GDP come from mining in some countries. More importantly, about 1% to 2% of people are employed by mining industry. So, mining industry should not be neglected when concerning sustainable development.

Nowadays, facing climate change, we regard sustainable development as the most important topic. Seeing the low price of goods, we will ask a question that what is mining industry? Mining industry is a booster of sustainable development as well as an obstruction. I am pleased to participate in this discussion in which people shares best and practical measures. It is especially important for 1.5 billion people who only had less than 2 dollars every day for life. We discuss here about how to give better education and employment, how to start small and micro businesses. Mining industry also provide employment, health and sustainable environment for women. I am glad that if we make mutual effort, we will eliminate poverty. Eliminating poverty is the mutual goal of the World Bank Group, meanwhile, for developing countries we are an unique partner.

The World Bank Group contains five organizations, 189 members as directors, including China. Established in 1944. The head-quarter of the World Bank is located in Washington, DC, USA, with more than 10,000 staffs and 120 offices. As a bank who provides loan services, we give loans with low interests, even without interests. We offer international development aid loan or grants for developing countries in order to support investment in public education, administration, infrastructure, agricultural and environmental management and management about natural resources. Some projects are co-invested by local governments or other multilateral organizations, banks, export organizations, and private investors. In the morning, Mr. Minister mentioned this kind of partnership. The World Bank believes that the realization of New Development and sustainable development should rely on this partnership. This is the second function that the World Bank offered consulting service for our member countries. Research, cooperative and technical support and guidance are offered to developing countries. We provide investment chances, support development priorities of developing countries, and assist them in improving construction ability. We also host relevant conferences, so we ae a supporter of CHINA MINING 2015 as well.

In order to ensure countries with the best measures and the newest technologies, the World Bank Group is searching for different methods and changing ways of sharing technologies from the perspective of countries and peoples. The World Bank was told by many countries that although they were in demand of capital, they starved for support and successful experiences. Therefore consulting opinions given by the World Bank are of value. We are making effort to improve our service, for example how to design project, how to give information and support, and how to meet the requirement of member countries. We have a focal project, an open development, which offer free and easy-to-get instruments for people to search and solve development challenges. For instance, there is an open data website which contains related successful experiences of different countries. Countries can download those experiences from the Internet. Outcomes of annual conferences of countries and monetary funds are conveyed on time to every part of the globe through the World Bank Online. This is what we can do better. It meant that if we offer more information we will gain better partnership and share more important and practical experiences so as to give better service.

We endeavor to realize two goals of the World Bank. First, we will eliminate poverty and enhance mutual prosperity. The World Bank quests for development in many aspects. Currently, 39 countries have this kind of projects which strengthen management in terms of mining industry. How can we do? In principle, we supply consulting service to governments. First of all, their payment should be transparent and the right of mining given to them should be fair and just. We will help them to manage their income, so the income can share with local residents and the poor. Mining industry should respect the need of local community and the surroundings. As an assistant of the World Bank, International Financing Company offers loans or participated in investment as participation unit to re-develop the potential. International Financing Company has 500 million dollars, located in many countries. Together with the United States, the World Bank forms a group which mainly consider how to share resources when serving member countries. We give suggestions in communications to many governments, at the same time, we learn experiences from them and take advantage of chances.

Ladies and gentlemen,

China spend 34 billion dollars, a shocking number, to support mining industry. After listening to the speech of Ambassador of Peru to China, we find that 54% of Peruvian products are mining products and Chinese enterprises take 37% of their mining right. China’s investment which is closely related to the life of Peruvian people in macro scale or in single field is very important to this country. It is also important for many other developing countries. Chinese investments are dynamic in those countries. Many Chinese mining companies are taking steps which will be beneficial to the improvement of people’s life and better management. As least 90 Chinese companies will pay related governments.

They joined in EITI, a payment transparency project. We would like to take this opportunity to praise new policies of Chinese government. I believe that these policies will encourage investors and companies to operate in foreign countries so as to decrease their environmental pressure, including green-credit policy and environmental protection guideline. The green-credit policy requires Chinese banks not to invest in heavy pollution and high energy consumption industries but support companies with low emissions and high efficiency. We believe that this policy will guide Chinese companies to sustainable investment so as to generate sharable benefits, including domestic benefit and benefit from emerging economies.

Dear guests, considering your operation, you will see that sharing interest will help to general development and poverty elimination. Over the years, we cooperated with Chinese banks and international banks. The World Bank Group raise awareness and understand global standard, including the principle of fair. The World Bank makes efforts to help banks evaluate environmental effect of their investment projects. Industrial and Commercial Bank of China became the first participant in 2008, and we hope that other Chinese banks will join this project. Internationally, banks from 80 countries and regions joined this project.

Talking about the situation of global mining industry, New Normal means that mining products are decreasing in price, which brought difficulties to developing countries with rich resources. Many projects which are going to start are cancelled or postponed. Projects that are going to be expanded are stopped. Many projects in Malawi and Peru are suspended. It brings great influence to the economy and to people’s life. They relies on this income, but many jobs are cancelled. Relevant infrastructure construction is stopped too. It deserves our careful survey. We will analyze the future, conduct reform, manage efficiently, benefit local communities under the circumstances of low income. It is high time that we focus on innovation, cost decrease, and recycling. We will adhere to long-term goals, and stick to good public management which would boost better investment from private sectors.

With low returns, the capital target expectation is low too. Presently, companies and countries awere the same. Stable investment is beneficial to them. Clear mining right is advantageous, and transparent management is important. With weak, imperfect, unstable management and without honesty, the risk will be high. The World Bank is in favor of this kind of effort, and we hope that there will be sound managerial arrangement. We will make reasonable and transparent rules as well as accountability system. Working as a bridge, the World Bank gives suggestion to governments, provides private sectors with stable and predictable background. It will enhance the prospect of all shareholders. We work together with countries to promote transparent principle and constant policy. Good taxation and national financing policies are constant and transparent measures that will attract the society.

This morning, Mr. Minister and Mr. Ambassador both mentioned that citizens should participate in the fair share of interest, which is beneficial to strengthen the relationship between communities and companies. Transparency will decrease the risk of private sectors so that a more stable environment can be built. For example, in Myanmar we developed an effective and transparent framework with local government to manage mining right. EITI holds open talks in many aspects and offers a platform for discussing mining. The other example is that in order to ensure civilian participation in mining industry, local suppliers should invest in local people for joining mining. It not only gives job opportunities to local citizens but also decreases the cost. Investing in the skills of local people help to find better workers in the future and at the same time brings benefit to communities. The World Bank is pleased to make it come true together with mining companies.

In Guinea, private industrial sectors and financing companies are conducting a local supplier development project which will bring better management and cultivate working skills of workers. In the future small companies will become suppliers for big companies. Because infrastructure in community level can bring huge benefits, such as water or education, if they are improved, local economy will be improved too. As we can see that many Chinese investors cooperate with local governments in developing infrastructure. Infrastructure is of great importance to local people and is beneficial to the development of mining companies. We have experience in this aspect. According to recent research conducted by the World Bank, some documents that contain experience in terms of investing in infrastructure can be shared with you.

In Sub-Saharan Africa, we pay special attention to infrastructure built by mining companies. Mining industry in Africa requires electricity, and in the process of electricity supply, local communities and people gain access to electricity too. In this way, these companies become important power suppliers for national economic development and obtained great trust from citizens and governments. It is beneficial to overall development, and this kind of partnership can be copied. With interest, both mining companies and governments would like to improve local electricity supply when establishing grid.

A practice which I think it is advisable is that mining projects will give consideration to women. With low income from mining industry, women usually can not enjoy this industry. In some countries, women can not get 90% of the profit. If women in mining areas are helped with awareness, children are educated and provided with good healthcare, it will bring huge benefit. Furthermore, if the employment is balanced in gender, the company will gain profit. The World Bank, mining companies, private sectors, and governments have several projects in many countries, including Papua New Guinea and Congo. Women will have equal saying in community’s decision making and sharing mining achievement.

Interestingly, if you pay attention to 17 sustainable development goals which are newly approved in the global community you will find that the mining industry will exert positive influence on these goals. Reducing water deficiency and carbon footprint will be more efficient in energy utilization. By 2030, the realization of sustainable development will require close cooperation between public and private sectors. I think it is a challenge for countries and the mining industry. Please regard it as an opportunity which will be a promoter and booster for sustainable development and sharing outcomes with mankind.  

At last, I would like to reclaim important information to this majestic conference. Establishing just and good managerial structure will guarantee sustainable achievement of investment and production of private sectors. I notice that several African ministers participate in CHINA MINING. In building up public management, we can cooperate with each other. It not only contributes to their resources development, but also produces healthy and prosperous communities. In my opinion, doing business is good because it generates profit and bring wellbeing. It is a future prospect. We are looking forward to cooperation and eliminating poverty from the most vulnerable group of people.

Thank you!

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Mr. Si Xinbo delivered a speech on the keynote session of CHINA MINING 2015

(photo from Zhao Xinhao, edited by Xu Xiaojing)

On the morning of October 21, 2015, the keynote session of CHINA MINING Congress and Expo 2015 was held at Meijiang Convention and Exhibition Centre of Tianjin. Leaders of the industry and renowned economists gave speeches centering on New Normal, New Opportunities, New Development. This was a scene that Mr. Si Xinbo, Deputy General Manager of Silk Road Fund, delivered a speech with the topic “Play role of Silk Road, promote international mining investment cooperation on the premise of mutual benefit and shared profit”.

Respected Guests, Friends,

Ladies and Gentlemen,

Good morning!

I was very honored to attend the 17^th CHINA MINING and gathered together with officials from different countries, experts, scholars, and colleagues in Tianjin, discussing cooperation and development of international mining industry. To take this opportunity, I believed that we could share penetrating opinions and found high-quality partnership and development chances.

Today, my topic was “Play role of Silk Road, promote international mining investment cooperation on the premise of mutual benefit and shared profit”. There were four parts of my speech.

First, it was about current situations of mining industry.

In the process of profound adjustment of the global economy, mining industry faced various difficulties and challenges. It was proved by historical experience that the distribution and the way of development of mining had close relationship with the global economic structure. Changes of international economic situation also affected the mining industry greatly. After the financial crisis in 2008, global economic recovery was slow than expected with obvious regional differences. In the second season of this year, the United States as a major power of economic growth enjoyed 3.7% of GDP growth rate. China also maintained 7% of high growth rate in the first half of year.The Eurozone, with the help of European Central Bank’s plan of purchasing debt and plan of investment, gained support from many sides except Germany and France. Benefited from the decrease of oil price and capital cost, Japan, India and Southeast Asian countries enjoyed positive increase signals. The increase of African’s foreign investment also remained at over 80%. But at the same time, some countries were digesting subsequent impacts of heavy debt and high unemployment. Some countries suffered from aging population and slowdown of production growth rate. The economy of Eurozone was still weak and the economic growth rate of emerging countries in Asia, Latin America and CIS was decreased. Geopolitical conflicts, natural disasters, and incidents also added uncertainties. Potential growth factors and market risks intertwined, which remained a slow growth of global economy in the process of profound adjustment. The development of mining industry, therefore, faced insufficient demand, financing obstacles, and profitability dilemma.

Let us focus on China. By the first half of this year, China enjoyed a three-month recovery in industrial added value. In April, the social electricity consumption experienced continual increase from negative to positive. Total retail sales of social consumer goods and new-type consumption grew rapidly. Sales of housing was clearly improved, employment was stable, and urban and rural residents’ income enjoyed faster increase than GDP. In the meantime, domestic infrastructure construction had little effect on steady growth. Export was subject to the global market with insufficient demand. Deflation should not be neglected. Financial increase and payoff improvement faced challenges, and the economic pressure was still great.

In the past decade, emerging market economies, including China, injected great power to the world economy through their rapid economic growth. It generated huge demand which could become a vital driving force for the prosperity of the mining industry. However, currently Chinese economy was in a crucial period of time of growth mode transformation. With constant structural optimization, the growth rate went down. Demands from emerging countries had little effect on the mining industry. Because of profound structural adjustment, traditional motive power was declined and new motive power did not emerge. Demand structure, industrial chain, trade and investment conditions encountered new changes and difficulties.

Second, it was about features of mining development.

Although the mining industry would continue depression, it still showed several features in the profound adjustment.

First of all, the depression of mining industry continued with few signs of a pick-up. The global economy experienced slow growth and oil price gradually went down to the lowest point of a five-year record. Low oil price triggered a downward turn of bulk commodity price, which led to the most austere situation of financial crisis with continual declination. SNL metal price index went down from 107 point in March to 103 point in late June. The amount of global prospecting projects decreased from 418 in April 2014 to 380 in this first season and 363 in the second respectively. PAI was 44.3 in this June, reaching the lowest point 40.2 in April. Consumption increase of global mining resources was obviously slowed down. Supply of mining materials and products became surplus, and mining products, capital, and stocks faced common price crisis. In short run, there was no favorable turn for full mining industry to overcome depression.

Secondly, mining prospecting expanded from traditional mining countries to developing countries and blank areas with rich resources. Prospecting was a process of continual search and finding. Depressed mining industry brought price and cost pressure. Traditional mining countries, such as Canada and Australia, attracted fewer investment, and the hot point of prospecting gradually transferred to some resource-abundant developing countries in Latin America and Africa. For example, Canada became the top ten choices for mining negotiation and discussion in 2014. At the same time, prospecting in deep see areas, high altitude areas and polar regions grabbed more attention and proposed higher requirement to capital, technology, equipment, and the whole chain coordination. The expansion of mining prospecting offered foundation and confidence for the recovery. With gradual improvement of global economic situation and integration of mining industry, the comprehensive performance of this industry would be improved in two or three years.

Thirdly, with increasingly strict social responsibility and environment protection standards, technical threshold and cost pressure of mining investment and cooperation were lifted. Traditional mining work method usually accompanied with environment problems, however, transformation of economic growth mode and adjustment all required changes of mining resource development and utilization. It meant that higher technical threshold and greater cost of mining industry would boost survival of the fittest according to returns and efficiency and project integration. In terms of project investment, major transnational banks and investment organizations would generate some common standards that were specialized in social responsibility and environment protection. Future mining development asked for attention on social responsibility and environment protection. Relevant investment and cooperation should attach importance to them under the framework of return and risk analysis.

Fourthly, depressed industry and loose administration led to dynamic merger and restructure in the field of mining. Austere market situation gave burdens to the mining industry and generated more restructure chances for mining companies. Asset acquisition and re-organization were the major measures for large international mining corporations to optimize capital structure, increase operation quality, and decrease risk. According to SNL surveys, in the first season of this year, there were 23 mergers and 35 mergers in the second season. The merger amount in the first season related to metal was 2.93 billion dollars and doubled to 6.5 billion dollars in the second season. Some mining countries, in order to stop the downward economic trend and increase their competitive power, revised their mining laws, adjusted taxation, speeded up examination and approval, improved investment environment, and presented new trends of loose administration. Changes of market environment and policy background brought new opportunities and space for resource optimal allocation and investment.

Third, it was about the Silk Road Fund.

Adjusting to the economic growth mode transformation in China and the globe community, the Silk Road Fund came into being to realize mutual development and benefit in countries participated in the One Belt and One Road initiative.

Guests and friends, the situation of global economic growth was not optimistic. Many industries, including mining industry, did not lift themselves from pressure. Countries should coordinate and cooperate in trade, investment and finance so as to overcome difficulties and obtain mutual development, without exception, China should do so. Silk Road Fund was established under the circumstances of the One Belt and One Road initiative as well as the trend of economic growth mode transformation and cooperation structure escalation. I was honored to introduce Silk Road Fund to you and I hoped that it could generate more choices for mining cooperation. 

Firstly, I would like to introduce the orientation of Silk Road Fund. On November 8, 2014, President Xi Jinping announced at Strengthening Interconnection and Partnership Dialogue of APEC that China would contribute 40 billion dollars to establishing Silk Road Fund. It was a medium and long term fund founded for supporting the initiative. According to marketization, globalization, and professionalization, it promoted investment and cooperation in terms of infrastructure construction, resource development and industrial cooperation of related countries and regions through equity investment and many other methods. It boosted mutual prosperity and development, realized reasonable returns, and achieved long-term financial operation.

Therefore, Silk Road Fund had following features.

a. Serving the construction of One Belt and One Road, it promoted balanced new-type partnership among countries, brought about mutual benefit, provided financial support and platform for extensive cooperation in relevant fields, and tamped the foundation of long-term economic growth and steady development.

b. As a medium and long term investment fund, it gave financial support to projects that had long periods and modest returns, including infrastructure construction, energy and resources, industrial and financial cooperation, instead of seeking short-term profit.

c. Taking equity investment as a major method, it supported companies to have deep involvement by acting as shareholders rather than joining EPC project contracting only. It strengthened the control of projects and improved management in order to realize international management.

d. It was flexible to provide financial support in equity which was beneficial to the best choice of financial organization according to project features and trade structures.

e. adhering to market operation, it was neither an aid fund nor a policy fund. It stuck to market principles and requirement, maintained sustainability, and carried its historical mission.

Secondly, I would like to introduce the investment idea of Silk Road Fund.

a. Investment and operation of Silk Road Fund insisted in principles of dialogue and planning with countries. The initiative of One Belt and One Road followed peaceful cooperation, inclusiveness, mutual learning and construction. It was against close and exclusive cooperation. Presently, the European Union proposed a 315-billion-euro Juncker Plan, Russia proposed that the Far East Area should be developed first, and Kazakhstan put forward the Road to Light Plan and maritime power strategy. Pakistan proposed Vision 2025 Development Plan. Many countries were searching for plans to improve international economic coordination and cooperation.

Investment of the fund aimed at docking with present cooperation mechanisms and development plans of related countries and regions, giving consideration to their degree of comfort, and binging about mutual prosperity through Pareto Improvement.

b. Investment and operation of Silk Road Fund insisted in principles of realizing reasonable medium and long term returns. It was founded in light with share-holding system with shareholders including Foreign Exchange Reserve, China Investment Corporation, the Export-Import Bank of China, and China Development Bank. Seeking for reasonable returns took responsibility for investors and could have foundation for equitable cooperation and mutual benefit with market main bodies. 

c. Investment and operation of Silk Road Fund insisted in principles of having complementary advantages and win-win cooperation with financial organizations home and abroad. It observed laws and regulations of China and invested countries, general market rules and international financial orders. It focused on green and sustainable development, respected domestic and international financial organizations, attached importance to cooperating with these organizations, and offered more choices by giving diversified investment methods for enterprises and projects. In the process of advancing healthy and stable global economy, Silk Road Fund had win-win partnership with other financial organizations.

d. Investment and operation of Silk Road Fund insisted in principles of open cooperation. As an open and inclusive organization, we welcomed investors home and abroad to participate in project cooperation. After a period of operation, the fund would open to more investors or cooperate on sub-funds. It would seek for cooperation chances with open attitude with no matter bilateral organizations or various industrial investment organizations. It would make contribution to regional and global development and prosperity.

Thirdly, I would like to introduce investment orientations of Silk Road Fund.

In line with the idea of mutual discussion, mutual construction, and mutual benefit, Silk Road Fund mainly supported investment and cooperation with countries and regions along the Belt and the Road. Except for these countries, there was no strict limit geographically. If other countries and regions met the requirement of our investment, we wouldconsider giving financial support. Silk Road Fund supported powerful Chinese companies to have cooperation, paid attention to share experience of China’s industrialization and modernization and high technology as well as advantage productivity, and boosted mutual development and prosperity of related countries. In terms of industries, the fund currently emphasized public transportation infrastructure investment, public infrastructure investment, energy industry investment, productivity and technology cooperation investment, and financial industry investment. I would like to emphasize that the mining industry CHINA MINING 2015 paid attention to was the major field which Silk Road Fund though highly of.

Four, it was about functions of Silk Road Fund. It promoted international mining investment and cooperation under the premise of mutual benefit.

Guests and friends, Silk Road Fund was like a ship sailing in the ocean of One Belt and One Road, and it was like a bond engaging in promoting combination of capital and industry. The fund was a good partner, hoping to advance international mining investment and cooperation under the premise of mutual benefit.

Firstly, Silk Road Fund concentrated on exerting special functions of One Belt and One Road investment. It was a financial organization, founded for the Belt and Road construction and focusing on related projects. With short decision chain and high efficiency, it would conform to the development trend of mining industry and promote deep and diversified cooperation between Chinese enterprises and many countries.

Government officials, scholars, experts and colleagues, no matter you came from traditional mining countries or emerging mining areas, you were welcomed to know Silk Road Fund. We could explore investment projects and cooperation chances, advance the Belt and Road construction, and achieve mutual development.

Secondly, Silk Road Fund could function as investment leverage and increased credit. As a typical capital-intensive industry, mining industry required huge investment in prospecting, development, production, and processing. Trade and transaction amount of mining industry ranked in top place in international trade statistics. Silk Road Fund, as a professional investor with national background, had solid capital and high-level credit. It could provide capital support for companies and projects in mining development and merger. It increased corporate credit, advanced project maturity, achieved financial condition, and boosted project implementation. For mining companies’ restructured capital operation, it functioned as professional investors and reliable partners.

Thirdly, Silk Road Fund could stabilize periodic fluctuation and the market. International mining supply and demand mechanism and investment environment were closely related to economic situations of countries. Mining investment featured huge capital amount, long period, slow return, and hard turn. Periodic fluctuation of industrial development was the major systematic risk investors faced. Compared with general PE organizations, the fund attached more importance to medium and long term returns with longer investment term. So, it could stride over development cycle and had higher tolerance for short-term financial fluctuation. The fund could assist companies with impulse-type periodic ups and downs, achieving long-term and stable corporate development. It was a hard-won investor for mining industry.

Fourthly, Silk Road Fund could function as flexible investment tools. Production and investment of mining industry generally accompanied with complex trade structures. Plans of investment mode were of great importance to projects. The fund, taking equity investment as major measure, could offer loans, debts, sandwich investment, sub-funds and many other products.  It was very much in the minority of investment organizations which could operate all types of tools. It could coordinate the demand of mining companies and projects. It could build the most reasonable cooperation structure and realize profit maximization.

Fifthly, Silk Road Fund could improve efficiency and add value. In practice, some countries and international organizations would promote development and utilization of mining resources with capital investment. The fund, on the basis of adjusting to development plans, adhered to market operation. Its professional investment team had the capability to participate in mining cooperation as high-credit investors and high-level financial advisors. It helped companies to grasp development directions, find market signals effectively, improve corporative management, optimize financial plans, promote the combination of macro corporative development with micro market efficiency, and achieve long-term value increase.

Sixthly, Silk Road Fund could lead capital and industry. Mining industry as the most fundamental resource element had long industrial chain and various upstream and downstream industries. The fund could rely on its advantages, exert demonstration functions, lead and catalyze the entry of social and international capital to mining industry in the construction of Belt and Road. It could help related companies to extend along the chain, find potential and valuable investment chances, and realize addition effect. 

Ladies and gentlemen, guests, friends, the theme of CHINA MINING 2015 was New Normal, New Opportunity, New Development. In the coming period, we should continually adjust to the new normal of economic growth, overcome the pressure of downward economy, and search for new chances of industrial and financial combination. In the process of self development, it would usher new development of global mining investment and cooperation and contribute to economic development as well as social improvement.

Thank you!

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

The opening ceremony of CHINA MINING 2015

Source：KHB       Citation：KHB   Date：October 21, 2015

On the morning of October 21, 2015, the opening ceremony of CHINA MINING 2015 was convened at Tianjin Meijiang Convention and Exhibition Center. The theme was “New Normal, New Opportunities, New Development”. These are some pictures of the opening ceremony.

（photo from KHB）

（photo from www.agkyb.com）

（photo from www.zgkyb.com）

（photo from www.zgkyb.com）

（photo from www.zgkyb.com）

（photo from www.zgkyb.com）

（photo from www.zgkyb.com）

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

CHINA MINING 2015 opened under the new normal development

Source: www.mlr.gov.cn   Citation: www.enorth.com.cn/  Date: October 21, 2015

CHINA MINING 2015, jointly hosted by the Ministry of Land and Resources, Tianjin Municipal People`s Government and China Mining Association, was held at Tianjin Meijiang Convention Center on October 21, 2015. Under the theme of “New Normal，New Opportunities，New Development”, the convention discussed a series of topics, such as the sustainable development of mining industry, the global mineral exploration situation, mining and capital markets, green mining, mineral resources, and comprehensive utilization of the mineral resources. More than 8,000 people from 55 countries and regions attended the event, and most of them were government officials, experts and scholars, representatives of mining enterprises and financial institutions. The mining ministers forum, geological survey directors forum, mining development summit forum and other 34 sub-forums and country (region) mining investment projects shows were held during the same period.

Under the theme of “New Normal，New Opportunities，New Development”, the convention seized the national strategy of “One Belt and One Road” and pursued transformation and upgrading in this mining winter.

At present, demand and investment is declining in the international mining market, while market volatility and downward pressure continue to increase. Faced with complex environment, the mining enterprises should accelerate economic restructuring, adjust management, and continue to learn new technology, so as to achieve full upgrade in the adversity of the mining development.

Shandong Zhaojin Group, has participated in the CHINA MINING for 11 years, witnessing all the changes of the Chinese mining industry from the start to the development to the new normal. "Since 2013, the gold price in the entire international market was sharply reduced, and the profit margin was compressed. The gold enterprises were in the preservation of the edge during that hard period. For the enterprises, that situation was not only an opportunity but also a threat. The result of the market selection proved that “the one who persists wins”. Faced with that situation, we made a number of adjustments. On one hand, we made modest expansion in investment and compressed infrastructure investment to ensure good capital operation; on the other hand, we reduced financing costs in capital markets to ensure the overall steady development of enterprises. As to the management, we accelerated the transformation of technology, management, product and business model, increasing cost control efforts." Said Xue Dongfeng, the director of the party`s office in Shandong Zhaoyuan Group Co., Ltd..

In the case of the global downturn in gold, mining companies began to seek transformation and upgrading.

In the case of the downturn in global gold market, the Chinese gold group optimized the technology, sales, costs and other aspects to reduce the cost and increase the efficiency. “The ‘One Belt and One Road’ area boost two of the six gold mines and gold consumption accounted for 70%, in that way, the national ‘One Belt and One Road’ strategy is a golden opportunity for Chinese mining industry. We are confident in the gold market, and we will seize the opportunity to accelerate the transformation.” claimed Mr. Song Xin, the general manager and secretary of CP committee of China Gold Group.

Coal enterprises pay more attention to the green recycling economy

The construction of green mine was an important starting point for the healthy and sustainable development of mining industry, and environmental protection was not only the enterprise`s social responsibility but also the development direction of the mining enterprises. The reporter of the North network observed that various exhibitors regarded cyclic development as their bright spot. The Datong Coal Mine Group Co. has established a circular economy park, realizing the recycling of all the materials in the processes of mining, production and processing.

More than 8,000 government officials, experts and scholars, representatives of mining enterprises and financial institutions from 55 countries and regions attended the event. Exhibiting companies exceeds 600.

"The waste of the last production part can turn into the raw materials of the next part. Our circular economy park currently possess `two mines, ten plants, a road and 13 projects, forming a cycle from the point to the line and then to the surface, a comprehensive three-dimensional development of circular economy." said Zhao Lishu, the propaganda department minister from the Datong Coal Mine Group Co..

Chinese gold group focused more on the development process of the green and ecological restoration in mineral development process. Mr. Zhao said "There were 30 mines in whole industry, and 45% were green mines. So we should strive to do a good job of the plants restoration and ecological protection."

Strengthen international cooperation to achieve win-win situation

In mining conference exhibition site, governments and enterprises from 55 countries and regions found cooperation opportunities and platform. Australian government groups have participated in the mining conference for ten times, for that they want to use this platform to promote Australia`s rich mineral resources, attracting the mining industry of China and other countries to invest.

Enterprises and the governments obtain cooperation opportunities through the event.

Experts and scholars from various countries learn from each other.

"The development of the Australian economy depends heavily on the development and the sales of mines, and new resources cannot be found unless we continue to explore. Australia was a vast, sparsely populated area, rich in mineral resources, but poor in technical and human resources. Therefore, we aimed at finding partners through this platform to joint explore and discover. China and Australia enjoyed a relatively good exchange in economic, political and other aspects. The cooperation in the mining industry can strengthen economic and trade development. In addition, Australia can provide the mineral resources that were needed in China`s urbanization process, in this way such a cooperation can achieve win-win." said Dr James Johnson, the CEO of Australia`s geological survey. He also claimed that they had worked with many Chinese enterprises before, but this time they want to attract some mining enterprises with technology and ability, looking for new opportunities for cooperation.

For the international market, 40% of projects of China Minmetals Corporation were in foreign countries. "Minmetals, developed and produced in China Minmetals Corporation, involve almost all kinds of metal. Over the years, we cooperated with the other countries and businesses to fulfill the responsibility of the state-owned enterprises. We have international share of resources, provide a strong guarantee for the development of China, and expand the impact at home and abroad. During the conference, we discussed cooperation with a great many of enterprises at home and abroad, looking forward to the development of mining industry." said a stuff from China Minmetals Corp.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Mr. Wang Min presided over the opening ceremony of CHINA MINING 2015

Source: www.mlr.gov.cn/  Citation: www.mlr.gov.cn/   Date: October 21, 2015

(Photo: Zhao Xinhao, Edit: Xu Xiaojing)

On October 21, 2015, the opening ceremony of CHINA MINING 2015 was held at Meijiang Exhibition Center of Tianjin, with the theme “New Normal, New Opportunities, New Development”. This is a scene that Mr. Wang Min, deputy minister of the Ministry of Land and Resources, PRC, presided over the opening ceremony.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Peruvian ambassador addressed at the opening ceremony of CHINA MINING 2015

Source: www.mlr.gov.cn/  Citation: www.mlr.gov.cn/  Date: October 21, 2015

(Photo:Zhao Xinhao, Edit: Xu Xiaojing)

On October 21, 2015, the opening ceremony of CHINA MINING 2015 was held at Meijiang Exhibition Center of Tianjin, with the theme “New Normal, New Opportunities, New Development”. This is a scene that H.E. Mr. Juan Carlos Capunay, Ambassador of Peru to China, delivered a speech at the opening ceremony of CHINA MINING 2015.

Respected Guests,

Good morning!

I’m very honored to attend CHINA MINING 2015.

I would like to express my gratitude to the Ministry of Land and Resources for inviting Peru to CHINA MINING 2015 and to Tianjin Municipal Government. It reflects good partnership in mining between China and Peru. Based on the globalization of economy and trade, world economic development not only provide opportunities to countries and regions, but also promote social integration and development through increasing employment and payment. Peru has close partnership with China for a long time. Against the backdrop of global economic development, countries and regions are provided with chances of favorable development and cooperation. It is very helpful to countries and society. Especially for countries in Latin America, new mining technologies are brought.

Through high-tech work, every country has increased income and efficiency as well as our living standard. CHINA MINING 2015 made great contributions to the rapid development of mining economy and was beneficial for countries to participate in the process of globalization so as to obtain the win-win goal. Meanwhile, new mining technology also improved the society and people’s wellbeing.

Nowadays, with changes of world economy, we hope to see a rapid recovery of mining economy and we look forward to having more cooperative opportunities. China’s position is becoming increasingly important, especially in economy and trade, and it is playing a vital role in Asia and in the global community. It was proposed by President Mr. Xi Jinping in the New Year Speech that seeking mutual development through the Internet was a basic element of economic recovery in Asian-Pacific region. And he proposed the Belt and Road Initiative.

CHINA MINING 2015 brought great investment and cooperative chances in three respects for Latin America, including Peru.

Firstly, it provided new technology. CHINA MINING brought more investors and capital. Participating in this congress and expo, we gained good learning opportunity as well as a favorable platform for better understanding and integration. From the perspective of market, the Belt and Road Initiative proposed by President Mr. Xi Jinping triggered the transference of mining market to the Asian-Pacific region. This fundamental element of economic recovery would make great contribution to the world, improve maximal integration and development, promote global trade and mutual benefit. It would not only be a choice but also a chance, not only a political initiative but also a win-win project.

We have good partnership with China and bilateral free trade cooperation. We totally support the Belt and Road Initiative.

Please allow me to express my point of view. By building the twin Ocean Railroad Connection Project, the 21 Century Maritime Silk Road shortened the distance between Tianjin or Shanghai and Latin America, including Peru. It strengthened the relationship between Latin America and China. For economies of Latin America, China is an important partner as well as an investor. Investment from China brought huge wellbeing and more jobs to Latin American people no matter in mining, finance, or ocean shipping. I hope that the Maritime Silk Road which extends from the coastal areas of China to South America would enhance mutual economic and cultural development.

Mining development is very important for Peru. Peru and China has had longstanding partnership and friendship, and China is the largest trade partner for Peru in South America. The Belt and Road Initiative proposed by President Mr. Xi Jinping would help Chinese companies integrate to Latin America and build Pan Pacific Union. No matter in China or in Peru, the economy was dynamic and had evident increase. China and Peru witnessed growing trade communications.

As a major mining country, Peru relied heavily on mining except for fishery. Being the largest gold producer, the second largest copper producer, and the largest silver producer in Latin America, Peru was also the largest zinc and molybdenum producer worldwide. At the same time, we had rich natural gas and oil reserve and high-quality agricultural products. We were exporting our products to China and other countries in the Asian-Pacific region. Participating in CHINA MINING 2015, we would promote Peru’s mining industry, meanwhile, on behalf of the people of Peru, we would shoulder the responsibility to show Peru’s other advantages to Chinese people.

We hoped that China and Peru would deepen this kind of lasting partnership. Through long-term cooperation, we have built strong trust and had cooperation in infrastructure construction. We hoped that more Chinese entrepreneurs would invest in our agriculture and new energy industry. For both China and the international community, Peru represented new investment chances. Therefore, I would like to take this opportunity to invite friends from the world to Peru for more investment chances, where you would receive warm welcome from the people of Peru and build deeper friendship.

Thank you!

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

China’s enterprises outbound investment forum of CM2015 held in Tianjin

Source: www.mlr.gov.cn    Citation: www.gtzyb.com      Date: October 21, 2015

On October 20, China’s enterprises outbound investment forum of CHINA MINING 2015 was held in Tianjin. Representatives present at the conference focused on two issues. The first one was that with the continued downturn of the global mining industry, overseas mining investment is or not a period of strategic opportunity. And the second issue was that where the key points of overseas investment locates.

Representatives present at the conference believed that mining industry has entered into the era of loss, which is a hard time for the development of mining enterprises. From the perspective of invest, commodity prices are low and most of the mineral assets shrink. For example, western mining companies assets fell 60% in five years and China`s mining enterprise assets fell 80% and are experiencing difficulties. These may mark that the mining industry is hitting bottom, but it is not certain that it is the best period for enterprises to merger mine assets.

Some experts pointed out that during the recent 10 years, more and more Chinese mining enterprises invest in overseas, gaining experiences and learning lessons. Lessons from failure included bad timing, wrong target selection and inaccurate value judgment. According to representatives present at the conference, experiences gained from investing overseas included that enterprises should operate honestly with the concept of brand-oriented and keep a good public relations with partner countries, choose the correct development strategy and positioning, strengthen risk control, attach great importance to the performance of the corporate social responsibility and participate in local public welfare undertakings and so on. (Ding Quanli, Zhao Binyan)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Release of China Mineral Resources Report (2015)

Source: www.mlr.gov.cn    Citation: www.gtzyb.com      Date: October 21, 2015

Released recently by the Ministry of Land and Resources of PRC, China Mineral Resources Report (2015) revealed that in 2014, China had made efforts in the following work: further finding out its current situation, strengthening the resources saving and comprehensive resources utilization, perfecting the administrative policies of mineral resources, and improving the service level of geological work. With all these efforts, China achieved many “the first times” and “the No.1”.

Last year, China invested 114.5 billion yuan in its geological exploration with 249 large-medium ore fields are newly found. Great breakthrough has been made by China in oil and gas exploration with the geological reserves of shale gas proved to be 106.8 billion cubic meters for the first time, the newly added petroleum reserves proved to reach 1.06 billion tons and natural gas reserves amounted to 943.8 billion cubic meters. The potentiality assessment of 25 major mineral resources showed that the average identification rate of mineral resources was 30.3% with a huge potentiality of ore prospecting. It was calculated that 2000 meters under the ground contains the coal reserves of 3,880 billion tons and the related identification rate was 29.6%. As for other ore reserves, the prospective iron ore reserves reach 196 billion tons with an identification rate of 33.1%, the prospective copper ore reserves reached 0.304 billion tons with an identification rate of 29.5%, and the prospective aluminum ore reserves reached 17.97 billion tons with an identification rate of 20.3%.

The resources saving and comprehensive resources utilization was further strengthened. China formulated and released the evaluation index standard of comprehensive utilization of mineral resources. The extract recovery rates, concentration recovery and evaluation index of comprehensive utilization of 20 minerals were publicized three years in a row. 159 advanced and applicable technologies were selected to be promoted three years in a row and 661 mining companies were selected in 4 batches to be the national green mining pilot units.

The administrative policies of mineral resources were further perfected. China recommended the administrative laws and regulations for registering the mineral exploration blocks, mining registration and the administration of transferring the exploration and mining rights. China also released its geological environment monitoring administration methods and administrative penalty methods of land and resources, and canceled 23 administrative procedures for examination and approval related to mineral resources. Meanwhile, China cut the compensation fee rate for coal, oil and gases to zero and the coal tax rate will be fixed and the relevant taxes will be levied according to the coal price.

The service level of geological work was further improved. At the end of 2014, the areas of 1:50,000 surveyed regions and 1:250,000 revised regions occupy 31.7% and 61.7% of the national land areas respectively. China also achieved the comprehensive geological survey for 1∶1,000,000 regions of China’s jurisdiction sea areas. Last year, more than 170 combined exploration and production hydrological wells were constructed, which solved the problems of 300,000 people who had difficulty in drinking water. The access amount of national geological data-sharing service platform reached 620,000 times a year and the national and the provincial geological data-sharing service institutions offered the related services to the public for 130,000 times.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.