Mining Gold: Private capital speeding into the field of mining investment

(Editor-in-Chief: Solemn choreographer: Kang Jiach Cong Zhang Zixian camera: Zhao Wei Air Zhang Ming 刘勋) Hello, Welcome to "economic half-hour", the National Bureau of Statistics released monthly economic data again sparked concern about prices. CPI, the consumer price index, has reached 4.4% per cent monthly, the highest in two years. Rising inflation pressures have not only raised prices, but also investment and commodity markets such as gold, jade and non-ferrous metals.　　And the mining investment has been quiet for some time now also hot up, some places appeared mining tide, the main force or Zhejiang private capital, today we will listen to a few mining investors story. Inner Mongolia xilinguole Tian Sheng Mining Co., Ltd. Executive Director Li Bu Li Bu: We are horizontal, like this is 30 square kilometers, so the son is 4 kilometers, there is 3 kilometers. The whole thing is this side of the hill, there are.　　We're just saying this is the central area right now. This is the xilinguole of Inner Mongolia in early November and the temperature has dropped to Conte during the day.　　However, when it comes to the future of this land, the Li Bu in front of the camera is very exciting. Li Bu: Now come to say that finally has had a breakthrough, we probably know below our mine position, the foreground is very good.　　That is to say a mood is to give me a confidence is next year to invest more. Li Bu, Zhejiang Wenzhou people, 1997 into the real estate industry, become a professional fried tenant.　　Starting from 1 million yuan, by 2004, Li Bu earned the first 10 million, and he began to look to the mining industry.　　Li Bu: A means that the real estate ah, we are different from the development, is generally a little bit, always feel that not their own can when the occupation, so that is also around some friends ah, there are some large environment under the influence of the idea of choosing a mine. Li Bu said that in Wenzhou, there are many private capital involved in mining, especially the coal industry. He thought about it at first, but finally gave up because of security.　　At the beginning of the mining industry, he and his companions went to Burma, Indonesia, the Philippines and even to Kenya, Uganda and other countries, but finally chose the country.　　Li Bu: This difficulty a to our own technical force Ah, financial strength ah not necessarily can keep up, this is the second to say the local, the most important we consider some local policies, some countries compare, they are politically unstable. After exiting the real estate industry, Li Bu became half a geological expert.　　In 2008, he locked himself in the Inner Mongolia and got 12 square kilometres of exploration rights in the mountains, and now has dropped more than 20 million.　　Inner Mongolia xilin Gol White River: There is this black tungsten, and this, this is containing lead and zinc, zinc oxide, you see, this is more obvious, this is more obvious tungsten, black tungsten you see, shiny this has been more obvious black tungsten. Journalist: This place is a mineralization.Is it a vein?　　White River: This belongs to the veins. Li Bu revealed that in the more than 20 million of this investment, in addition to a part of his savings, the rest are from several trade friends, they are because of the decline in profits, mining as the first choice for the transition, there is no financial problems.　　Over the past two years, the average Li Bu to come here two or three times a month, and the local herdsmen have made friends, and sometimes herders will actively assist him to find a mine, this iron ore sample is used by the herdsmen to carry a magnet found.　　Bai Long River: Because we this area before the pastoral is also, the grassland is very small, and now the country also implements prohibition grazing activities, husbandry is basically not too big future, grassland is still small, so still want to Li always they come to develop this, herdsmen are very welcome him. Li Bu told reporters that drilling exploration will take place next spring.　　According to the current geological data, there will normally be 10 times times or even higher returns.　　Li Bu: Here, if I say this confidence is more than 90%, I am more optimistic. For the Li Bu of Wenzhou in Zhejiang Province, their investment in Inner Mongolia has a certain suspense, and for the Wang Jianming of Tangshan in Hebei Province, invest in mining has been a real gain.　　Wang Jianming 1999 from scratch, built the fire Door Factory, 2003, Wang Jianming suddenly found that the price of raw materials rose markedly.　　Hebei enlightened industry and Trade Co., Ltd. Chairman Wang Jianming: Later, we can not see, steel or the country's largest demand, in addition, in general, our country in these years of development infrastructure AH, the entire infrastructure investment is particularly large, steel consumption is also relatively high, so we see no, have to rush into the iron and steel this mining. Since its own funds are not many, Wang Jianming at the beginning of the eyes locked in the domestic, Xinjiang, Inner Mongolia and other fields were inspected. It was one of the mines he owned.　　Wang Jianming said that over the past few years he has been most concerned about iron ore, on the one hand, investment in technology, funds for exploration, the sale of second-hand mines.　　Wang Jianming: Land succession, land continued to buy, land continued to throw Bai. So how about investing in mineral revenues over the years, Wang Jianming always Xiaoerbuda. However, market analysis shows that from 2003 to 2009, China's iron ore imports from 148 million tons to 628 million tons, iron ore prices from less than 20 U.S. dollars per ton to more than 100 U.S. dollars, Wang Jianming earnings imaginable.　　In the interview, the reporter noted that Wang Jianming iron ore negotiations and other events are very concerned about, he told reporters, the future will be mineral exploration, mining-oriented. Wang Jianming: The state of the management of resources more and more stringent, more and more norms, from the development of the country is also more and more standard, so we are now mainly to increase the prospecting itself is the actual development, the actual dry head, is that this is a fundamental.　　Through the dry, through the exploration, so that their own in the future to sell, guide the mine itself this is still less, prospecting itself is still big. In an interview.During the Wang Jianming by friends invited, also came to Inner Mongolia.　　But unlike Li Bu, he came here to focus on oil. Inner Mongolia Xilin Hot Huaneng Industry and Trade Co., Ltd. Manager Liu Shichi Liu Shichi: Here is the only place in China to open up oil, no, no more, oil is light oil per ton more sell dozens of Yuan Wang Jianming came to the Xilinguole Xianghuangqi, the road is full of work on both sides of the oil machine, to the boundless wilderness adds infinite vitality. Local people, the underground is rich in oil, and open to private capital.　　I can see that Wang Jianming is also interested in the project. Wang Jianming: New things, from the resource point of view a year more than a year of cars, fuel consumption a year than a year.　　Venture capital is very mature, some two or three years, a good investment opportunities. Just now we see that China's mineral resources and high prices, so that some private capital to see huge business opportunities to enter the mining industry. Li Bu and Wang Jianming, although aiming at different kinds of mines, but they are like Shari of gold miners, hope from the vast grassland to Amoy to buried in the wealth of the underground. According to statistics, the National Collective enterprises and private enterprises have more than 5,000 exploration permits, accounting for the total number of mining licenses two-thirds more.　　However, the sand nuggets, dug is not all gold, for these folk gold miners, prospecting, mining process is full of risks, and even suffered a fiasco.　　Li Bu from Wenzhou, Zhejiang, told reporters that at the beginning of the mining industry, the situation of investors around the investigation.　　Li Bu: Ratio failed, according to our industry communication should be in One-third.　　Li Bu said that, in order to learn from experience, he had made a special visit to these investment losers, the main reason for failure is two, one is the purchase of second-hand mines, due to the lack of understanding of the real situation, the final depletion of resources led to losses. Li Bu: What else failed?　　That is to say this mine, mine is not his, he is a bag of a mine, after a mine, that is, I know a friend, this mine in the open in the very good, he himself cast more than 20 million, but then, the contractor has reneged (loss). This middle-aged man, who is talking to a journalist, has the same experience as Li Bu said. He came from Shanghai, initially to do foreign trade processing, and then turned to trade.　　In 2006, he put all his savings into the mining industry. Mr. Wang, mining investor Mr. Wang: Also a friend, he told me, you want to change careers?　　Hear this mineral resources this is very hot, I know a mine in Shanxi this place, polymetallic ore, very good, many places have outcrop, at that time I do not know what meaning. Under the introduction of friends, Mr. Wang came to Quwo County, Shanxi Province, in this valley began a gold rush trip. He signed a contract with a local person to provide information, he put money in, and began to look for mine.　　In the first half of 2008, after nearly 20 million yuan, finally found a vein, and is a higher grade gold mine. Mr. Wang: Of course I'm happy, flowerSo much money, finally found a self, you can, of course, this industry, into the industry, at that time did not understand, very happy.　　However, Mr. Wang was not happy how long, the next Olympic period, the mine all production, until the resumption of production soon, he was suddenly informed that he has no right to exploitation, he signed the contract is invalid.　　Mr. Wang: That's when we found out that there was really no card, and it was always so muddled, with a contract in the presence of a mining permit. In fact, Mr. Wang says, this is just a exploration area, and the exploration unit is the 214 di zhi dui, but di zhi DUI contracted the project to a local person, his partner. This partner and Mr. Wang signed a cooperation agreement, in fact, Mr. Wang is only a piece of paper is not protected by the law of the contract.　　The head of the local land department confirmed this.　　Quwo County, Shanxi Province, deputy director of land and Resources Bureau Liang Haichao Beam Tide: Not allowed to mining, he this is not allowed to mining, he is a prospecting, prospecting is not allowed to mining. Mr. Wang revealed that he also wanted to have a mining permit, but eventually failed to do so.　　Now the mining area is full of mine holes, Mr. Wang said, the gold resources here have been seriously damaged, even if there is a chance, he will not continue to enter. Mr. Wang: Then we do not dare to go back, this is illegal things, explosives and explosives is also illegal, procedures are illegal, money into the future if not earn money, the people also get in, then how to do?　　That's not even more Shing.　　In two years, Mr. Wang has spent nearly 20 million of his time here, except for the recovery of 3 million or 4 million by the exploration and the rest of the water. Mr. Wang: In fact, the risk is still very large, you like us this time is not understand the mining law, do not understand the law of geological conditions, so blindly credulous others, before mining conspiracy to see mining permits or prospecting permits, what documents are not read, credulous people put money into, wait until the money into the future,　　Only then discovered that oneself originally is a dry illegal matter, does not have the document, is not protected by the law. Strictly speaking, the first two years have been the talk of the coal bosses, in fact, also belong to investment in mining private capital. There are many legends about their lucrative, one-night wealth, so many people are looking forward to investing in the mining industry. But for laymen unfamiliar with mineral resources and related laws and regulations, this hides a lot of traps.　　From other fields, can private capital be ingenuity on minerals? In front of us, we know three folk gold miners who are investing in mining, they have their own stories, and they are full of bitter, sour and sweet. In fact, private capital not only entered the domestic mineral field, but also began to go overseas, staged a foreign gold rush. In a foreign country, can they succeed?　　Let's get to know an overseas gold digger. Zhejiang huayou Cobalt Industry Co., Ltd. Chairman and President Chen Shehua Chen Shehua: This is the cobalt mine that we pulled from Africa, the company60,000 tonnes of cobalt ore are pulled from Africa every year. Chen Shehua, a Tongxiang in Hangzhou, said cobalt is a very scarce metal, mainly used in battery materials, aerospace industry.　　1995, Chen Shehua self-financing a hundred thousand of yuan to start a cobalt processing plant, but soon encountered a resource bottleneck. Chen Shehua: We found that the resources of cobalt in China are very scarce. Its own material is 10% of the capacity.　　So we analyzed this industry has this characteristic, to do this and the industry must have the material to be guaranteed, we observe the world's production, Africa is the supply base, and Africa's core place in Congo (gold). The average content of cobalt in the Earth's crust is only 0.001%, and many are associated with sulfides such as copper and nickel. China is a cobalt-poor country, and Africa's recoverable reserves accounted for 69% of the world, not only rich in reserves, but also shallow buried.　　Chen Shehua first arrived in Africa in 2003, and he was so excited to see the local cobalt mine. Chen Shehua: In my heart, I can't seem to say the taste.　　One of the hearts of the worry, one of the next to a bar will immediately start, the mine control down. Returning from Africa, Chen Shehua immediately began to set out overseas.　　It is worth mentioning that the excitement of the Chen Shehua is not lack of calm, his first step is not to find a joint venture or build a factory, but carefully studied the Congolese (golden) labor law, mining law, tax laws and regulations. Chen Shehua: We have made a detailed understanding of the legal environment, human environment, and other industrial supporting investment environment, including logistics and so on, and then came back to make a strategic plan to invest in Africa.　　Then in 2003-2005 we learned about the business in the form of a business trip and began to invest as an entity after 05. In 2007, Huayou Cobalt was started in the first smelting project of Congo (Gold), which was put into production in October and completed in the second phase of the 2008 fire. At present, Huayou Cobalt has established a wholly-owned smelting company in Congo (Gold), three holding mining development company, one equity company.　　According to the amount of metal, the world's annual production of cobalt is only more than 60,000 tons, at present, huayou cobalt industry annual production capacity of 4700 tons of cobalt, accounting for the world's total production capacity of about 8%, ranked seventh in the world.　　Chen Shehua: Now our vacant resources in Congo are at least enough for decades. Chen Shehua is now investing more than 1 billion yuan in Africa, and will have to invest another 600 million dollars by 2015. All investment programmes have been completed. Data show that in the past decade, Chinese companies have conducted 370 overseas mining transactions overseas, with a total value of $50 billion, of which 80% occurred after 2008.　　Zheng, chairman of the Sino-Mining Joint Fund, was founded in 2009 as China's first equity investment fund to focus on investing in mineral resources around the world, and has invested five or six projects overseas. Zheng Zheng, chairman of China Mining Joint Fund: Because this private enterprise invests abroad, it has its advantages, its advantage is that the first decisionThe quality of the strategy is relatively fast more flexible, you like our Brazilian potash, the Ethiopian potash, which we are saying is taken, no matter how much you share, the first I want is a product underwriting right, you like us to invest in these two projects, basically we want 25% of potash, finished product underwriting right,　　Because China is a country with a severe shortage of potassium, we must first underwrite this product in the form of a law. Zheng told reporters that at present China only rare earths, tungsten and other mineral products in the world have a pricing power, in 45 of the main mineral products, only 6 of China can meet demand.　　The private capital enters the overseas mining industry, has the far-reaching significance to strengthens the mining strategic reserve. Zheng: And we're like this. There are some large resources and relatively poor, especially as iron ore is more obvious. China now the entire steel enterprise, the entire iron and steel enterprise's production profit is inferior to must expand has the resources to create the value.　　Therefore, it can be seen that the source possession in the field of resources, the development of enterprises, the development of national economy, its value and positioning is very important. In the interview, a number of industry insiders told reporters that private capital investment in mining, one-third of the loss or underestimate, even some people think that more than half of the people in the industry drubbing. It is difficult to prove whether these statements are accurate, but the high return on mining investment and the associated high risks are obvious to all. We also understand that, in the context of increasing inflationary pressure and the increase of liquidity currencies, many private capital and social capital choose to enter the mining industry has more realistic consideration, that is, through the possession of resources, to achieve asset preservation and appreciation. What should we think of the rising heat of the mineral investment?　　The head of the Department of Land and Resources management also accepted our section of the interview. Reporter: Recently a large number of private capital to accelerate the exploration and development of mineral resources in the field, for this phenomenon of our land and resource department how to master?　　How to evaluate it? Liu Lian and Liu Lian, director of mineral Development and Management Division of Ministry of Land and Resources: from the development of mineral resources, this phenomenon should be said to be a good phenomenon, in fact, because we in the 30 years of reform and opening-up,　　Is that our exploration and development of mineral Resources has only a single national financial investment turned to a national financial and social capital of a joint investment in such a stage. Liu Lian and Introduction said that 2002, the National Mineral Resources Exploration investment is only less than 3 billion, of which, the financial capital investment more than Two-thirds. By 2010, mineral exploration investment is expected to reach 30 billion, the financial resources to less than One-third, all the rest from the enterprise and private investment. In the next five years, China will invest huge sums of money to find ore, to ensure that "Twelve-Five" during the new batch of iron ore and other domestic shortage of reserves, the proportion of social funds will be much more than other funds. But at the same time, the mineral resource exploitation will be controlled by the total amount of resources and the two-way adjustment of supply and demand should be carried out. For scarce resources, such as iron, copper, aluminum and other encouraging development, to the effective balance of coal mining, tungsten, tin, rare earths and other advantages of mineralTotal volume control, improve the access system for mining.　　Liu Lian and: At the time of admittance, the first is that we are in the prospecting right, mining rights of the Government is to take the way to sell, then the way of the sale of competition, we have to further improve, improve the participation in the conditions of increase, such as competitive strength, mining strength, management strength. State Council supervisor, Ministry of Land and Resources chief engineer Zhang Hongtao told reporters that China's mineral resources distribution dispersed, intensive degree of congenital deficiency. 1995, the country has a total of 288,800 mines, production capacity of only 60 to 7 billion tons.　　Since 2005, the authorities have made up their minds to consolidate and the total mine has dropped to 117,900, and the capacity has risen to nearly 14 billion tonnes. State Council supervisor, Ministry of Land and Resources chief engineer Zhang Hongtao Zhang Hongtao: So the community criticized also a lot of, in the future you are not the country into the people back? Is it not a market economy?　　On the contrary, I think this is a misunderstanding, we most important, I think one of the main point is in the context of the socialist market economy to integrate it, we do not use administrative means, we oppose the administrative means, the less the better the administrative intervention. Zhang Hongtao stressed that this integration will continue in the face of the future. But the integration should take the modern enterprise as the main, through the legal means, the economic method implements. Finally let the fund is abundant, the technical level is high, the social responsibility strong enterprise stands out.　　The nature of capital does not set the threshold, regardless of capital, in this integration will be treated equally. Liu Lian and: Strict access only to his company's technical, economic and management strength have requirements, but not to any request, so the future look if a class of capital such as the integrated exploration, integrated development, large-scale operation, intensive management of the level of high, strong ability of enterprises,　　He must be the first to continue to enter the entire mineral resources development capacity. Half an hour to observe the extension of private capital from traditional processing trade to mineral resources development is the inevitable result of China's economic development. From the actual effect, the entry of private capital has also played a role in discovering resources and promoting value of mineral industry. Because of this, the Land and resources Management Department of Mineral Resources Control and integration, and it is impossible to exclude private capital, close social funds to invest in mineral resources. But on the other hand, in the past several times to rectify the mineral order there is a death, a loose on the phenomenon of chaos, which is not conducive to private capital entry, but led to a lot of illegal mining and waste of resources. How to guide the orderly and rational development of private capital and improve the utilization rate of mineral resources also depends on establishing a more perfect mining capital market system and laying a more solid resource base for the Chinese economy.