In 2017, commodity market prices will continue in the slow rise in the trend of shock. At the same time, with the ‘all the way along the’ step by step, the development of China’s mining enterprises will usher in new opportunities. Which is conducive to breaking the current mineral resources on China’s economic development of the restrictive impact.
Analysis of Global and Chinese Mineral Resources
In 2016, the world economic recovery difficult twists and turns, the international market demand remains in the doldrums, the world investment into a new stage of uncertainty increases. According to the United Nations Conference on Trade and Development estimates that in 2016, the global foreign direct investment (FDI) traffic may decline 10% to 15%. This brings uncertainty to the outlook for mining investment. In 2016, the international commodity markets, including mineral products generally warmer, the overall price has experienced a rapid rise to fall to stabilize the process. Outlook 2017, the commodity market prices will continue in the slow lift in the trend of shocks.
Mineral resources investment should “go out”
The Competitive Advantage of Mining Enterprises in Cost. The size of the mining industry has been expanding, production continues to increase, the cost continues to decrease. The future, some small-scale, high-cost mining companies will withdraw from the market, which is the result of market competition. Some competitive multinational companies will have an advantage. In the current situation, the mineral resources-related enterprises need to reshape the value chain, from the incremental expansion to reduce the incremental benefits. At the same time, Chinese enterprises should be encouraged to ‘go out’, pay attention to overseas markets, through cooperation with foreign companies mergers and acquisitions, to achieve coordinated development.The next 5 to 10 years, ASEAN, India, Brazil and other countries is the replacement of China’s major mineral resource demand, mineral resources demand in these areas will be in a new upward trend, is also related to the transfer of mineral enterprises in important areas. Therefore, Chinese mining enterprises should actively ‘go out’ to share benefits.
Industry experts generally believe that the future, China’s mining enterprises to do everything possible to reduce costs, give full play to the advantages of China’s processing technology, stripping non-performing assets, through the optimal combination of assets, capital, technology or mergers and acquisitions to enhance the strength of enterprises, Out “to lay the edge.