Domestic

Chinese are key players in the international market

(China Daily)
Updated: 2010-11-18 15:17

Visitors taking a look at the layout of a standard production base model at the China National Gold Group Corp's display. [Photo/China Daily]

Editor's note: During the ongoing China Mining Congress in Tianjin, experts and specialists exchange insight in the industry development trend.

Zhou Zhongshu, president, China Minmetals Corp:

"The global supply and demand landscape may change in the future. Consuming countries might have more bargaining power.

"Major resource companies are undergoing a reshuffle and expanding their production capacity at a rapid pace.

"Priority should be given to sustainable, steady development of the mining industry. Enterprises should pay more attention to both economic benefits and environmental protection and other corporate social responsibilities."

Xiong Weiping, president, Aluminum Corp of China:

"China is the largest mineral producer and consumer in the world, yet it has no decisive say in major mineral pricing.

"Major Chinese enterprises are tapping overseas resources and are involved in international mergers and acquisitions, with the giants taking the lead and emphasis going to medium-sized sources.

"Even with China's fast economic development and its status as a huge resource producer and consumer, it still lags behind its developed counterparts, like the United States in involvement in international exploration and global mergers and acquisitions."

Du Haiqing, deputy general manager, China National Gold Group Corp:

"The demand for gold will keep growing in the future because of its inflation-proof, value-added functions.

"Certain international organizations predict that China's gold reserves will dry up in six years, but China disagrees. Its proven gold reserves are increasing.

"As to the gold price in 10 years, it will keep fluctuating at a fairly high level, perhaps with adjustments from time to time."

Paulo De Sa, manager, Oil, Gas and Mining Policy Division, World Bank:

"China is consuming resources for its own development and for manufacturing and supplying various products for other global markets, such as the United States.

"Therefore, it is not fair to blame China for the short supply and price hikes of major resources.

"China is an important mining powerhouse in both consumption and production. That is why Chinese suppliers and consumers are key players in the global market.

"It is understandable for the Chinese government to control exports of minerals such as rare earth, because of sustainable development and environmental protection concerns.

"In fact, China should increase economic and environmental cost to restrict the production of rare earth so that this rare mineral can be better protected."

Paul Wright, president & CEO, Eldorado Gold Corp:

"China is the largest producer and consumer of gold in the world, but ranks only seventh in reserves.

"We currently have three gold mine joint ventures with Chinese partners in Guizhou, Qinghai and Jilin and we are seeking overseas opportunities together with our Chinese partners.

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"We need to stress that we couldn't be this successful without the support of the Chinese government and the local community.

"What we have done is just an example of how partnerships can bring results that neither one of the parties could do on its own. We brought the technology, the equipments, capital and the management skills, and our partner provided the resources, local labor, and wisdom that we lacked. It is a perfect marriage."

Liu Yikang, director, Sinomine Resources Exploration Co Ltd:

"Every economy will face resource problems with development at a high speed. And that will result in a boom in the mining industry.

The United States and Japan met resource problems around the time of World War II. Russia and China are currently going through a similar period. What characterizes China's problem is that per capita resources are one-fifth of the world average and we need to address that.

"China will realize its industrial capacity before 2023 and I predict that before 2025 resource shortages will peak."