Feng Rui, Chairman of Silverway: Pay attention to improving the international competitiveness of China's mineral exploration

On July 15th, at the 2021 China Prospectors Annual Meeting, Feng Rui, Chairman of Silverway Metal Mining Co., Ltd., conducted an objective analysis of the international competitiveness of China’s mineral exploration industry and put forward suggestions on the risk management and control of overseas mineral exploration.

Feng Rui pointed out that China’s mineral exploration funds mainly come from government finances and enterprises’ own funds, and they are decreasing year by year. Foreign surveys mainly come from large companies and junior risk survey companies. The total financing of junior and intermediate survey companies has continued to rise, and the amount of single financing has increased. Global investment in non-ferrous mineral exploration is also decreasing, but it is still higher than the 2016 low. The number of Chinese geological and mineral prospecting personnel is decreasing year by year, and the number of foreign mineral prospecting personnel is also gradually decreasing. In 2020, my country’s mineral exploration results will reveal newly discovered mineral deposits in the country: 29 large-scale, 36 medium-sized, and 31 small-scale. Chinese mining companies still acquire resources mainly through mergers and acquisitions.

According to Feng Rui, the international competitiveness of my country’s mineral exploration is mainly reflected in talent organization, exploration technology and human resources. Domestically, the well-established Bureau of Geology and Mineral Resources (geological team) is more stable and integrated than foreign self-employed “qualified persons” and temporary project teams, and it focuses on the systematic accumulation of exploration technology and knowledge. When the mining industry is at a low tide, a large number of foreign employees have switched careers, and the capital guarantee of domestic institutions is more conducive to retaining talents. The disadvantages of my country’s international competitiveness in mineral exploration mainly lie in the lack of familiarity with the investment environment, policies, laws and regulations of overseas investment sites; limited economic strength and single financing channels, unable to acquire the “Brown Field Project” that has been discovered; Mining exploration operation experience and operation management talents are insufficient, and comprehensive management talents are lacking; after the transformation of the business to the enterprise by the geological team, the enthusiasm of mobilizing the prospecting personnel is subject to the limitations of the ownership system and reward mechanism. At the same time, there is a lack of strategic understanding of the “two-wheel drive” (ie, “resource + community relationship” drive) and “dual license” (ie, “government license + community license”) of foreign mineral exploration.

Feng Rui said that the risks faced by mineral exploration are the same regardless of whether they are domestic or overseas. They mainly include resource risks, government-community relationship risks, legal and regulatory risks, operation and cost risks, unsustainable financing risks, national policy risks, and environmental risks. Risks, labor relations risks, partner cooperation risks, etc.

How to improve the international competitiveness of China’s mineral exploration? Feng Rui said: “We must give full play to the advantages of human resources and exploration technology, avoid’greenfield projects’ overseas, and try to acquire discovered’Brown Field projects’ to shorten the prospecting cycle. Participating in the foreign mergers and acquisitions of large Chinese mining companies Among the opportunities, participate in or control a Canadian/Australian listed junior mining company; participate in a foreign mineral exploration company’s mineral exploration project in a third country through technical consultation and services, master information, and pick up the opportunity to acquire the company when the mining is low; manage overseas The project uses Internet cloud services to grasp the progress of first-line exploration in real time, allowing geological experts to guide multiple projects in China.”

At present, Silverway Group manages 11 “production exploration + prospecting exploration” projects distributed in 4 countries in the Beijing center through the use of mobile Internet information tools “Shishi Ming”, realizing rapid information transmission in all links of the mineral exploration process , Accurate, complete and uniform quality. Use the mobile Internet form tool “Shishi Ming” paperless electronic cataloging to realize rapid information transmission, uniform terminology, and quality monitoring, thereby improving work efficiency.

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