February 22, 2025

Stone and mining investment prospects are broad

Abstract Zheshang controls the huge private capital and has the guarantee of national policies. It can completely follow up and operate boldly and obtain preferential mining rights through commercial exploration. Although the average growth rate of GDP during the “Twelfth Five-Year Plan” period has been predicted...

Zheshang controls the huge private capital and has the guarantee of national policies. It can completely follow up and operate boldly and obtain preferential mining rights through commercial exploration.

Although the average GDP growth forecast during the 12th Five-Year Plan period has been lowered to 7%, this does not mean that the demand for mineral products will be reduced. On the contrary, with the acceleration of industrialization, urbanization and agricultural modernization, The rigid demand for mineral resources will continue to grow, but the growth rate will slow down, and the pattern of conflicting supply and demand of resources will not change fundamentally. Moreover, recently, the central government has introduced a series of policies to "guarantee eight" in order to reverse the economic downturn. Therefore, the demand for minerals will not decrease, but will increase further.

Demand for bulk minerals and stone remains strong

It is predicted that by 2015, China's demand for iron ore finished ore will reach 1.32 billion tons, when the domestic raw ore will be 1.5 billion tons, and the synthetic ore will be 720 million tons. The supply and demand gap will reach 600 million tons of finished ore. The price of finished ore will remain at The higher price of 120 US dollars / ton or more; by 2020, considering the increase in the recovery level of China's scrap steel, the supply and demand gap of iron ore has declined, but still not less than 500 million tons of finished ore.

The supply and demand gap of manganese ore finished ore will remain above 15 million tons, and will drop to 13 million tons in 2020.

By 2015, copper consumption demand will reach 9.85 million tons. By then, domestic copper production will reach 160 tons. With the use of recycled copper, domestic copper raw materials can only meet 40% of consumer demand, and the supply and demand gap will reach 5.9 million tons. In the future, copper prices will continue to run at a high level of over US$6,000/ton. Therefore, the supply and demand gap of domestic copper raw materials will continue to increase to 6.8 million tons in 2020.

By 2015, the consumption demand of lead and zinc will reach 6.65 million tons and 6.46 million tons respectively, while the domestic production of lead and ore will reach 3.2 million tons and 5.14 million tons respectively, and the output of recycled lead and zinc will reach 2.66 million tons respectively. And 100,000 tons, lead and zinc supply and demand gap will reach 800,000 tons and 1.3 million tons, respectively, at this time, the price of lead and zinc will remain at a higher price of 2000-2500 US dollars / ton. By 2020, although the production of recycled lead and zinc has increased, especially the former, the output may account for half of the consumer demand, but the supply and demand gap of lead and zinc will still reach 200,000 tons and 1.3 million tons respectively.

The supply and demand gap of tin will reach 60,000 tons in 2015 and will further increase to 110,000 tons in 2020, as tin mines have been transformed from dominant minerals into shortage minerals.

In the future, the country will cancel export controls and encourage development. Tungsten, antimony, rare earth and molybdenum will still implement the total production control policy. However, due to the need to achieve relevant WTO commitments, the state will gradually loosen its export controls until it is finally cancelled. For building materials and mineral products, the demand for stone products will still maintain a huge base, but the growth rate will slow down.

There are huge supply gaps in China's bulk mineral products, and some can be solved by strengthening the development of domestic resources to improve the supply of mineral products, and some can only be solved by expanding imports. The country's major policy is to base itself on the domestic market and make full use of both resources. It can be expected that at least in the first 30 years of this century, mining is still a hot area of ​​investment in China.

The government encourages private capital to invest in mining

In order to provide more mineral resources for economic construction, the relevant state departments have formulated the "Strategic Action Plan for Prospecting Breakthroughs (2011-2020)", which clarifies that the target task of China's mineral exploration work in the coming period is to implement the prospecting strategy. To achieve new major breakthroughs, form a number of important mineral resources strategic connection areas, establish an important mineral resources reserve system, and provide strong resource guarantee and industrial support for the steady and rapid economic development.

The Ministry of Land and Resources took this opportunity to study and implement the “Strategic Action Plan for Prospecting and Breakthrough”. The program will build an institutional platform in accordance with the laws of the market economy, attract various social funds including private funds to invest in mining, and achieve diversification of mining investment to improve resource security and supply capacity. It is planned to achieve significant progress in prospecting in three years, achieve major breakthroughs in prospecting in five years, reshape the mining exploration and development pattern in 8-10 years, promote the westward shift of resources industry strategy and overseas expansion, and establish an important resource reserve system.

Iron ore, manganese ore, copper ore, lead-zinc, gold, tungsten, molybdenum, antimony and tin are important minerals for this strategic breakthrough. The state will increase the inventory of iron ore through the exploration of iron ore, and form a large-scale mineral resource base. To this end, the Ministry of Land and Resources has set up the first batch of 47 prospecting breakthrough strategic operations in the country, most of which can become resource replacement bases. In order to rapidly transform resource advantages into economic advantages, the state encourages various social funds to invest in commercial exploration of mineral resources and prioritize mining rights. The Ministry of Land and Resources (2011) No. 55 clearly states that the exploration right holders who implement the whole-scale exploration may not be able to introduce social funds for joint venture exploration, risk sharing and benefit sharing. The central and local financial funds are mainly used for public welfare geological work. After completing the preliminary inspection, they should withdraw and publicly disclose the exploration rights to the public. This essentially points out that fiscal funds can only play a role in geological exploration and do not allow them to compete with the people. The document also stipulates that for large mining areas suitable for mining, large enterprises should be introduced to adopt advanced technology for exploration and mining, and encourage large enterprises and various social funds to follow up. This provides an excellent opportunity for large companies and social funds to obtain mineral rights. In the future, the allocation of resources must be tilted toward large and powerful enterprises. There is no such problem as “national advancement and retreat”.

Zheshang controls the huge private capital and has the guarantee of national policies. It can safely and boldly follow the operation and obtain the preferential mining rights through commercial exploration. To obtain mineral rights in this way, although there are certain risks, the cost of intervention is small. Iron ore, manganese ore, copper ore, lead-zinc, gold, tungsten, antimony, tin and fluorite ore are the preferred minerals for Zheshang to obtain mineral rights through commercial exploration. Oil sands and oil sheets The commercial exploration and development of rock is also worth investing. Tibet, Xinjiang, Inner Mongolia, Qinghai, Sichuan, Yunnan, Gansu, Heilongjiang, Guangxi and Hunan are the top ten hotspots for China's mining investment.

However, investment in mining must strive to be practical. Now, the national policy is to allocate resources to powerful enterprises and enterprise groups, to enlarge and strengthen our mining enterprises, and to improve the industrial concentration of mining. It is hoped that Zheshang will unite and appear in the future mining arena with the consortium of Zhejiang consortium and even Jiangsu and Zhejiang consortium.

Early commercial exploration is worth investing

During the “Twelfth Five-Year Plan” period, the state will increase the development of mineral resources to meet the growing demand for mineral products. For example, according to the iron ore mining and selection industry plan, by 2015, there will be 8 new 10 million-ton mines, 15 5 million-ton mines and 20 2 million-ton mines, forming a production capacity of 80 million tons of finished mines. . The same is true of other large mineral resources. By 2015, the new copper concentrate production capacity will be 1.3 million tons/year, the new lead-zinc concentrate production capacity will be 2.3 million tons/year, and the new nickel production capacity will reach 60,000 tons/year. The prospects for future mining investment are worth looking forward to.

At present, the reserves of China's mineral resources, in addition to a part of the occupied mines, there is a considerable part of the identified resource reserves that can be planned to use the mining area. These can be planned to use a large number of mines in the mining area, the reserves level is low, can not meet the needs of the design of the mine construction, and need to conduct pre-commercial exploration.

The cost of commercial exploration before the construction of new mine projects and projects is relatively large, but the risks are relatively small. After the project is put into production, the investment benefits higher than the general processing industry can generally be achieved. Therefore, it is recommended that private funds participate in the mine capital construction project and the commercial exploration in the early stage, and invest in the mining industry in a safe and small way.

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