In 2016, the overall price of gold climbed, and the Chinese gold industry has a greater room for maneuver on the road of development. The overall situation of the mining industry is also improving. With the opening of the "Thirteenth Five-Year Plan" and the gradual deepening of the "One Belt, One Road" strategy, Chinese gold companies are also paying close attention to the new historical opportunities of the mining industry, and they are actively stepping out of the country.

In 2016, Chinese gold companies have become more and more mature in the process of internationalization, and they have made continuous attacks in the rapid expansion. They have made great efforts to improve the level of internationalization and have burned a deep "China Seal" in the global resource distribution.

Strength: Fully promote internationalization

Song Xin, general manager and party secretary of China National Gold Group Corporation, said that the internationalization of enterprises is an irresistible trend. China National Gold Group Corporation will unswervingly achieve the strategic goal of “building a world-class mining company”.

In 2016, Chinese gold companies worked hard to connect with the world and participate in global mining development. Whether it is capital investment or reserves of talents and resources, it shows that Chinese gold companies are seized the opportunity of history and strive to build an international mining enterprise.

According to the statistics of the Hong Kong International Mining Association, as of December 1, the investment amount of Chinese-funded mining enterprises was US$15.229 billion, up 42% from the previous year. The Chinese mining enterprises announced an investment of US$22.499 billion, an increase of 94% over the previous year. .

Under the influence of “mining winter” in the past few years, the operating pressure of global mining companies has continued to increase, and some large enterprises have chosen to “slim through the winter”, such as Anglo American and Barrick Gold. At the same time, with the full implementation of the “One Belt, One Road” strategy, gold mining industry as a leading industry, China's gold companies seized the opportunity in the past year, and fully launched investment cooperation with countries along the “Belt and Road” to increase Resource reserves, expand overseas projects, and improve the internationalization level of enterprises.

Song Xin said that gold mining enterprises should seize the historical development opportunities, take advantage of the “One Belt, One Road” strategy, actively “go out” into the global economy, and realize the transformation and upgrading of China's gold industry. This is not only the internal needs of the industry, but also the practice. The proper strategy for national strategy.

Based on this, China National Gold Group Corporation made a decisive attack and discussed multilateral cooperation in mining with Russia, Congo (DRC) and Australia in 2016. China Gold Group has taken a big step in the internationalization process.

In 2016, Zijin Mining 601899, the stock bar group in the Congo (Golden) Camoa copper mine to detect 9.4 million tons of high-grade copper resources, making Camoa's overall copper resource reserves reached 33.4 million tons.

The overseas investment mergers and acquisitions of Chinese gold industry companies reflect the strength and determination to promote the internationalization of enterprises.

Speed: speed up the pace of internationalization

2016 is the first year of the “13th Five-Year Plan” and a crucial year for Chinese gold companies to “go out” actively. After a few years of mining winter, the global mining industry has a tendency to pick up. In 2016, Chinese gold companies accelerated their overseas investment mergers and acquisitions, accelerating the pace of internationalization of enterprises.

Under the historical opportunity of the internationalization of China's gold enterprises, the Chinese gold industry has held a series of meetings on overseas investment and internationalization to jointly discuss the internationalization of mining companies. From the China International Gold Conference to the China International Mining Conference, from the Overseas Mining Investment Forum to the China Mining Industry Chain Conference, we will discuss the problems and countermeasures of mining overseas investment under the new situation, and seek new investment space and cooperation opportunities.

Lu Dongshang, chairman of Shandong Zhaojin Group Co., Ltd., said at the 11th China Gold and Precious Metals Summit that internationalization is a major trend in China's gold mining industry, and internationalization is a major achievement in China's gold mining phoenix nirvana. power.

While discussing the internationalization of gold companies, China's major gold companies are also using practical actions to accelerate the pace of internationalization of enterprises.

Chen Jinghe, chairman of Zijin Mining Group Co., Ltd., said at the mobilization and deployment meeting for production and operation in the first quarter of 2016 that Zijin Mining will continue to take “internationalization” as its direction in the new year. In 2015, Zijin Mining acquired a 49.5% stake in Camoa Holdings Ltd., owned by Ivanhoe Mines, for a joint investment of US$412 million to jointly develop the Camoa copper project.

In the “13th Five-Year Plan”, China National Gold Group clearly stated that it must unswervingly build a world-class mining company, actively implement an internationalization strategy, actively connect and serve the national strategy, promote joint sharing, and accelerate the improvement of international management. In 2016, China National Gold Group accelerated the pace of internationalization: in April, the acquisition of Eldorado Gold Company's Guizhou Jinfeng Gold Mine; in September, China National Gold Group Corporation Zhongxin International Financial Leasing Co., Ltd. opened; October, China Gold Group The Congo (Brazza) Soremy project was commissioned and put into production...

When Chinese gold companies fully promoted internationalization, Shandong Gold 600547, the stock bar group also carried out a scientific assessment of its position in the global gold industry: currently the enterprise ranks first in the domestic gold industry, but in the global gold enterprises, In the second echelon, for the Shandong Gold Group, which is aiming to build a world-renowned gold enterprise, its internationalization is far from reaching its goal.

To this end, Shandong Gold Group has successively established Shandong Gold Financial Control Group (Hong Kong) Co., Ltd. and Shandong Gold Asset Management (Hong Kong) Company. Shandong Gold Group has used these two financial institutions to accelerate its entry into the overseas mining market and actively carry out overseas mergers and acquisitions. Since the beginning of this year, Shandong Gold Group has opened a new channel to enter the overseas mining market through the communication with Barrick, Newmont, Morgan Stanley, Citibank, Bank of Montreal, Rothschild and so on.

In 2016, a series of major events took place in China's gold industry. These big events that have attracted worldwide attention highlight the fact that China's gold industry is moving faster and further on the road to internationalization.

Breadth: investment globalization

In the past few years, due to the lack of talents and experience, Chinese mining companies have experienced many difficulties in the process of internationalization, lack of experience in international operations, lack of international talents, unfamiliar policy environment, and weak sense of participation in international rules.

After years of exploration, in 2016, Chinese gold companies no longer blindly internationalize, and investment mergers and acquisitions are more rational. Instead of simply pursuing overseas investment and acquiring the number of mines, we will pay more attention to quality; instead of simply investing in all minerals, we will pay more attention to special minerals and supplement them with other minerals; It is more focused on the investment environment.

Tong Junhu, manager of overseas development department of China National Gold Group Corporation, said that China Gold Group will prefer the “One Belt and One Road” countries in the process of internationalization; second, choose gold mines and copper mines; third, choose mines in production; Fourth, choose the project to complete the feasibility study, the gold reserve resources are above 100 tons, and the copper reserves are more than 1 million tons. Fifth, the investment environment is an important consideration. Prudently treat countries that restrict the holding of foreign companies, and try to choose countries that are more welcoming to Chinese companies, as well as countries with relatively loose foreign exchange control, personnel access, and product sales control. In addition, the infrastructure is also considered more, if the investment required in this area is too large, it will also give up.

Chen Yumin, Chairman of Shandong Gold Group Co., Ltd. said that during the “Thirteenth Five-Year Plan” period, Shandong Gold Group should carefully select high-quality overseas M&A projects, focusing on North America, Northeast Asia, Central Asia, Australia and Africa with rich resources. Further increase the intensity of mergers and acquisitions. In 2016, Shandong Gold Group set up a think tank, held a strategic seminar, and convened experts from all aspects of the gold industry to discuss the company's overseas investment path.

In the past year, Chinese gold companies have made global arrangements on projects.

In 2016, the most active minerals in China's overseas energy and mineral investment projects were: precious metals, 21 non-ferrous metals and precious metals, with a total of 41 projects, accounting for 47.67%. Judging from the number of announced and completed investments, there are 19 gold investment projects; from the announcement and completion of total investment, the total investment in copper mines is the largest, totaling 13.02 billion US dollars.

Depth: Building a large international mining company

In 2016, although the internationalization of gold enterprises has achieved a series of achievements, compared with international large-scale mining enterprises, there are still far differences in terms of internationalization concepts and comprehensive strengths. Chinese gold companies also need to further improve the international level of enterprises and create a truly international mining company.

Zijin Mining Group Co., Ltd. Executive Director and Vice President Fang Qixue said that Zijin Mining will become an important player in the global mining industry by 2020, and gold and copper production will enter the forefront of the world; by 2030 It has become a world-class mining group; the ultimate goal is to become a high-tech and profitable international mining group. "Zijin Mining will follow the trend of the times and vigorously promote international development, focus on releasing the vitality of scientific and technological innovation, and strive to participate in the large-scale industrial development pattern and explore the path of transformation and development."

At present, the total amount of metal resources controlled by Zijin Mining's overseas projects exceeds one-third of the total resources of Zijin Mining. The mine gold production of overseas projects accounts for more than one-third of the total output of Zijin Mining Gold. The mine copper production may exceed the domestic level in a few years. Production, overseas projects contribute one-third of the group's total profit, and will reach more than 50% in a few years.

Internationalization has always been the goal of Zijin Mining, and has developed a “three-step” strategy. In 2016, Zijin Mining’s second-step development strategy has been achieved and is now making great strides toward the ultimate goal.

Not only Zijin Mining is planning for internationalization, in the first year of the “13th Five-Year Plan”, major gold mining companies are also doing their own international strategic planning, and strive to build an international mining enterprise.

Tong Junhu said that the “13th Five-Year Plan” of China National Gold Group Corporation will focus on overseas development and hope to make it better and stronger by developing and building overseas projects. At the same time, the output of mineral gold and mineral copper will increase substantially, and strive to enter the world's top ten gold companies as soon as possible.

Chen Yumin emphasized, "We have established the strategic goal of "being a first-class international and brave in the top ten in the world" during the 13th Five-Year Plan period. By 2020, the annual output of gold will exceed 55 tons, and the operating income will exceed 100 billion yuan. Leading domestic gold producers and entering the top ten global gold mining comprehensive strength."

(Editor: Li Xingwang HF015)