China's mining industry "going out" strategy and strategy

**Abstract:** Building an "aircraft carrier battle group" by effectively managing various elements — Wang Jiahua, Executive Vice President of the China Mining Association, discusses the strategy and approach for China's mining industry to go global. In today’s context, how to expand overseas and how to do it more effectively has become a major topic in the Chinese mining sector. On May 26th, during the National Prospecting Conference (the 7th Geological Team Leaders Symposium), a special symposium was held on overseas mergers and acquisitions by Chinese enterprises. The session reviewed data on overseas mining investments and invited representatives from five organizations, including Zijin Mining Group and the Henan Bureau of Geology and Minerals, to share their experiences and challenges in international expansion. At the event, Wang Jiahua, along with other delegates, analyzed the current state of China’s overseas mining efforts and proposed practical solutions. He emphasized that Chinese mining companies must adopt an international perspective when going global, understanding that each country has its own unique conditions and requiring tailored strategies rather than a one-size-fits-all approach. From a general classification perspective, developed countries tend to have well-established mining policies, strong environmental regulations, and high labor costs. Developing countries often have weaker legal enforcement but abundant labor and untapped mineral resources. Economically backward countries may have rich mineral deposits but lack infrastructure and face governance challenges. Wang pointed out several issues hindering China’s mining industry from successfully going global: outdated production methods, lack of international vision, poor handling of local community relations, failure to meet international standards, weak organizational support, and unclear strategic division of labor. To address these, he called for updated concepts, innovative models, platform building, operational guidance, standard setting, stronger organization, and a restructured strategy. He stressed that without a proper market platform — like those in Australia or Canada — the idea of “going out” would remain theoretical. Therefore, he proposed creating a demonstration base for mining finance reform in Tianjin, aiming to establish a “four-in-one” model. This includes hosting mining conferences, building information exchange platforms, upgrading the Tianjin Mining Rights Exchange into a capital and exploration platform, and developing a third-party service system involving law firms, assessment companies, accounting firms, drilling services, and labs. Wang likened this platform to an “aircraft carrier battle group.” The carrier itself consists of four key systems: government resources as the power source, intelligence collection as the radar, overseas contacts as the communication network, and a “capital reservoir” as the supply chain. Within this framework, reconnaissance planes represent geological units, fighter planes are small private enterprises, bombers are large-scale enterprises, and early warning aircraft are overseas Chinese-funded companies. He emphasized that a single aircraft carrier is not enough; a complete and multi-layered attack and defense system is necessary. This includes a “frigate” — the third-party service system — and a “destroyer” — the wind market trading platform. At the end of the symposium, Wang outlined the roadmap for China’s mining industry to go global: private enterprises will take the lead, geological units will cooperate, the industry will transition, and financial support will remain strong. Retired land will be converted into shares, and large enterprises will go public. Collaboration among multiple parties will lead to shared success. In summary, the “going out” strategy involves combining different enterprise elements to maximize strengths and minimize weaknesses. Private enterprises offer flexibility and quick decision-making, while geological units provide technical support. Mergers and acquisitions require careful planning, including exit strategies, risk management, and long-term sustainability. Large-scale deals should focus on mature projects with clear legal frameworks and stable environments. Ultimately, a coordinated effort between private, geological, and financial players is essential for successful international expansion.

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