Chen Jinghe: Join hands to build the global competitiveness of China’s mining industry

On October 21, Chen Jinghe, chairman of Zijin Mining Group Co., Ltd., stated at the theme forum of the 2021 China International Mining Conference that the shortage of mineral supply will seriously affect global economic security, and mineral resources are the most important material foundation of industrial society.

“China needs mining companies with global competitiveness.” Chen Jinghe believes, “Mining is a tough industry, and it is also the most suitable industry for Chinese companies and Chinese people. Chinese people are the most able to bear hardships and stand hard work. Mining is also technically active, and geological prospecting is very difficult. Different geological backgrounds, natural environments and national communities must be independently researched, designed and implemented. In essence, mining is a special geotechnical engineering, and mining development can be highly coordinated with environmental protection and ecological construction. China’s engineering capabilities have attracted worldwide attention. The development level has surpassed overseas counterparts in many aspects.” However, Chen Jinghe also said that due to the extremely uneven distribution of mineral resources, the best mineral resources in the world are basically controlled by Western companies. As newcomers to the global mining market, Chinese mining companies must have “unique skills” to catch up.

How to become a globally competitive mining company? Chen Jinghe believes that, firstly, the global control of mineral resources should match its market position; secondly, it is a basic requirement to manage and operate in accordance with international rules, and at the same time form the ability to respond to risks; thirdly, it is necessary to solve the shortcomings of global talents and make up for the international Insufficient experience and defects; fourthly, to apply the innovative capabilities and technologies of Chinese enterprises, combined with current informatization, automation, and intelligent technologies, to form new technological advantages and achieve catch-up; fifthly, to combine the excellent Chinese culture with overseas countries Combining actual conditions to create a path of global development with Chinese characteristics.

In addition, new market demands and changes have provided mining companies with new opportunities. Global decarbonization accelerates the new energy revolution, replacing the internal combustion engine with electrification to become the vanguard of the new energy revolution. The increase in demand for strategic metals such as copper, nickel, lithium, and cobalt related to energy transformation and upgrading will open up new growth space and gain strong upward momentum.

Regarding the development of China’s mining industry, Chen Jinghe emphasized that the entire industry should work together to build global competitiveness. In this regard, he made four suggestions:

First, allocate resources globally to increase influence. Strive to control the amount of resources/production to match China’s consumption; allocate resources globally to enhance the global influence of strategic mineral resources and production. Focus on the new trend of global mining mergers and reorganizations, dare and be good at competing with global mining companies.

Second, follow international rules and improve operational management capabilities. Operation and management capabilities that comply with international regulations; technology and engineering innovation capabilities; investment and cost control capabilities; information intelligence capabilities; green ecological development capabilities; cross-cultural integration capabilities.

Third, build the global competitiveness of China’s mining industry through innovation. Take innovation as the driving force to form a mining development road with Chinese characteristics and build global competitiveness; provide Chinese wisdom and Chinese solutions to the global mining industry, and form an industry position that matches the scale of China’s economy.

Fourth, re-recognize the importance of mining and comprehensively improve the mining investment environment. All sectors of the society should objectively understand the important foundational status of mining; the government should optimize the mining development environment and scientifically supervise; strengthen cooperation and coordination between the upstream and downstream of the entire industry, and work together to realize the global mining dream of Chinese mining enterprises.