Iron ore long-term development plan started

On March 18th, the preparation work for China's first “Mid-term and long-term development plan for iron ore industry” was formally launched in Beijing. The planning work led by the Ministry of Industry and Information Technology and the China Metallurgical Mines Association and Angang Mining Company will start with the overall development plan, the special development plan, and the key regional development plan, based on the current status of the industry, drawing The 10-year development blueprint for the mining industry from 2016 to 2025. This will play an extremely important role in breaking the predicament that China's iron ore raw material supply is highly dependent on imports.

China has more than 70 billion tons of iron ore resources, but its dependence on foreign iron ore remains as high as 70%. Data show that in the past 10 years, China’s steel companies have spent more than 2 trillion yuan in raw material costs due to high ore prices, and huge raw material expenditures have swallowed most of the profits of steel companies. In 2013, the sales profit rate of steel mills with a capacity of over 5 million tons nationwide was only 0.55%. If the investment income is taken into consideration, the main iron and steel industry is actually at a loss. There are many reasons leading to the dilemma of China's iron and steel industry, but the development of domestic iron ore resources lags behind and the high degree of dependence on iron ore imports is an important factor. With the increasingly fierce competition in global resources, it is imminent to strengthen the planning and construction of domestic mines and establish a strategic security system for iron ore.

According to Shao Anlin, team leader of the planning team and deputy general manager of Anshan Iron and Steel Group Co., Ltd., at present, the domestic mining enterprises are small and scattered, with low resource utilization and high production costs, which make China's iron ore resources have a low level of protection and highlight ecological and environmental problems. It is difficult to meet the needs of the healthy development of the national economy, and it is difficult to ensure the strategic safety of raw materials for the iron and steel industry. It is necessary to stand at a strategic level to carry out overall planning and system integration of the metallurgical and mining enterprises in China.

Leading enterprises took the lead in the preparation of the industry's development plan, mainly because the development experience of Anshan Iron and Steel has guided and demonstrated the role of China's metallurgical and mining enterprises. In recent years, Angang Mining Company has taken the lead in implementing a corporate development strategy in China's metallurgical and mining industry and built a smart mine. Since 2008, Anshan Iron & Steel has accumulated more than 35 billion yuan in profits, and paid taxes of 18.2 billion yuan. At present, the company has become a leading metallurgical mine enterprise with a complete industrial chain in China. It controls the largest amount of resources in the world, ranks the second largest in the world in terms of extraction volume, ranks fifth in the world in iron ore output, and achieves acquisition and selection technologies. Internationally advanced level.

Regardless of the level from which it is viewed, the initiation of the preparation of this plan is of great significance. From the national perspective, through the development of iron ore resources development planning, the formation of a clear and clear roadmap for the development of mining enterprises, can standardize and lead the development of the industry, the overall improvement of the metallurgical and mining industry's contribution to the development of the national economy. From an industry level point of view, under the severe situation in which foreign mining giant monopoly resources have led to large losses in China's steel industry, through the development of iron ore resources development plans, it is possible to promote resource integration, increase industrial concentration, and increase competition in the global mining market. The power of discourse guarantees the strategic security of raw material supply for China's steel industry. From the perspective of the enterprise itself, through the formulation and implementation of a systematic development plan, it can promote enterprise management and technological innovation, increase resource utilization, achieve green development, and enhance the company's ability to innovate and compete.

Domestic experts and scholars are optimistic about the implementation prospects of this plan. A number of experts said that the formulation and implementation of this plan will create China's first iron ore resource protection strategy, which indicates that iron ore resources have risen to national strategies and boosted China’s production of world-class iron that combines production scale and innovation capabilities. Mining enterprises are a powerful counterattack for China’s monopoly on foreign mining giants, and will have a major and far-reaching impact on the global mining market.