This article was originally published in "Nonferrous Metals Technical and Economic Research" Issue 8, 1994
Abstract This article analyzes the scale classification standards for small and medium-sized nonferrous metal mines in my country and believes that there are inappropriate Department, it is recommended to re-formulate the classification standards; the characteristics and functions of my country's small and medium-sized non-ferrous mines are analyzed, and the status of small and medium-sized non-ferrous mines cannot be ignored, and the government should adopt supportive policies; based on the experience and policies adopted in foreign mining development, combined with our country's Based on the actual situation, several policy suggestions were put forward.
Keywords small and medium-sized; non-ferrous metal mines; characteristics; policy recommendations
1 Scale classification standards for small and medium-sized non-ferrous metal mines in my country and comparison with other developing countries
The significant difference between mining production and other industrial production is the immobility of labor objects and the relative fixity of their existence. This determines that the determination of mine production scale must follow objective facts. It should not be too large, resulting in insufficient use of equipment, nor too small, resulting in a huge difference in the reserve-production ratio and a long delay in resource benefits. In addition to fully considering the rational development of underground resources and realizing maximum benefits, its determination must also carefully weigh factors such as investment capacity, economies of scale, and depreciation life of mining equipment. According to the "Classification Standards for Large, Medium and Small Industrial Construction Projects" stipulated in Document No. 234 of the State Planning Commission [1978], non-ferrous metal mines with an annual mining and processing of placer ore of more than 2 million tons (vene ore of more than 1 million tons) are called large-scale Mines; those with an annual mining and processing of placer ore between 1 million and 2 million tons (200,000 tons to 1 million tons of vein ore) are called medium-sized mines; the annual mining and processing of placer and vein ore are 1 million tons and 200,000 tons respectively. Mines below tons are called small mines. In accordance with the spirit of Guotongzi [1992] No. 337, the China Nonferrous Metals Industry Corporation has defined the classification standards for the scale of nonferrous metal mines in more detail, dividing large and medium-sized mines into major one, major two, and middle one. , Secondary 2, see Table 1. It should be mentioned that as the comprehensive department for the development and management of mineral resources across the country, the Mineral Development Administration of the Ministry of Geology and Minerals still implements the 1978 classification standards. Due to limited data, this article uses the concept of small and medium-sized nonferrous metal mines corresponding to the 1978 regulations.
Table 1 my country's non-ferrous metal mine size classification standards Unit: 10,000 tons
As for the classification of foreign mine sizes, countries are different and the differences are large. For example, Bolivia calls a mine with a daily output of 400 tons of ore a large mine, while in the United States it is only classified as a small mine. Table 2 lists the classification criteria for some developing countries. Even in developing countries, the classification standards are different; in some countries, the classification standards are also different in different periods. India defines mines as small mines that do not use deep blast hole drilling and heavy excavation equipment and have no more than 150 employees in pit mining and no more than 400 employees in open mining. In the past few years, Mexico used annual sales revenue as the classification standard, and mines with an annual output value of less than 800,000 US dollars were called small mines; after 1992, mines with a daily output of less than 100 tons or annual sales of less than 10,000 US dollars were classified as small mines. Mines; mines with a daily output of 100 tons to 1,000 tons and annual sales of 10,000 to 1.6 million US dollars are designated as medium-sized mines. Through investigation, the United Nations also proposed a standard to classify mines with an annual output of less than 50,000 tons as small mines.
Table 2 Classification standards for small and medium-sized mines in some developing countries
As can be seen from Table 2, the scale classification of mines in my country is somewhat high. Statistics show that in 1991, the single ore output of my country's state-owned nonferrous metal mines ranged from 15,000 tons to 641,000 tons, and the single ore output of most mineral types was only tens of thousands of tons, see Table 3. The annual output of non-ferrous metal mines in townships is even lower. In 1992, the annual output of a single mine was only a few thousand tons, and the annual output of lead-zinc mines and mercury mines was only a few hundred tons. It can be seen from these situations that there are inadequacies in the classification of the scale of non-ferrous metal mines in my country. It is neither easy to compare with other countries in the world nor to provide targeted policy guidance. Therefore, it is recommended to re-formulate the classification standards for the scale of non-ferrous metal mines in my country as soon as possible.
Table 3 List of single ore output of my country's state-owned nonferrous metal mines Unit: 10,000 tons
2 Characteristics of my country's small and medium-sized nonferrous metal mines
my country's small and medium-sized nonferrous metal mines In addition to the characteristics of small size, decentralization, flexibility and dependence of ordinary small and medium-sized enterprises, mines also have the following significant characteristics.
2.1 Large mines and small and medium-sized mines appear in the same place and in the same proportion, and the number and output of small mines change at the same rate
Of the 535 state-owned nonferrous metal mines, nearly 50% are concentrated in Jiangxi , Hunan, Guangxi, and Yunnan, correspondingly more than 50% of small and medium-sized mines are also distributed in these provinces. There are more than 8,000 nonferrous mines in townships, with a high degree of concentration and a correspondingly high share of output. Table 4 lists the mine distribution and output of major nonferrous metal mines in townships in my country. It can be seen that the corresponding relationship between the number of township mines and output is ideal if special factors are eliminated. This reflects the fact that the production scale of township nonferrous mines is not much different.
Table 4 Distribution and output of major non-ferrous metal mines in my country in 1991
2.2 Investment in small and medium-sized non-ferrous metal mines is higher than that in large mines
Subject to economies of scale Impact, the capital construction investment per unit of state-owned small and medium-sized nonferrous metal mines designed or put into operation in the 1980s in China is on average 30 yuan to 90 yuan higher than that of large mines, of which mining is 16 yuan/ton·year and mineral processing is 9 yuan higher /ton·year. Table 5 lists the investment status of underground mining of non-ferrous metal ores. What needs to be explained here is that the mines included in the statistics are all state-owned, and the investment in township non-ferrous metal mines is much less. It does not even require any investment. It can be mined with some simple picks, steel drills, etc., and it can be used as capital to accumulate capital. Expand reproduction and even invest in the downstream smelting and processing industry.
Table 5 Examples of investment in non-ferrous metal mines for underground mining
2.3 Small and medium-sized non-ferrous metal mines develop mostly small and rich deposits
Development of small and medium-sized mines Small and medium-sized mineral deposits are determined by proven reserves, which is a general rule; the development of rich ores is mostly determined by the high production costs of small and medium-sized mines, and high-grade ores must be developed to be profitable. Therefore, the development of small and rich deposits by small and medium-sized non-ferrous metal mines is in a sense the basis for their survival, especially local mines with less capital investment. This is especially true for township mines. Of course, the possibility of mining high-grade ore in large mines is not ruled out. For example, the grade of ore selected from the Fankou Lead-Zinc Mine in 1991 reached 4.26%, which was 1.8 percentage points higher than the system average. Table 6 lists the ore grades of copper, lead-zinc ores. It can be seen that the gap between the ore grades of large mines and medium-sized mines is quite large.
Table 6 Comparison of selected grades of large and medium-sized copper and copper-zinc mines in the Corporation's system in 1991
It is generally believed that under the planned economic system, the first choice for resource allocation is the central departments Affiliated enterprises, especially the development of large-scale mineral deposits, are not easy to form large-scale production due to narrow local financing channels and small investment scales. Therefore, generally speaking, local and non-ferrous metal mines directly under non-ferrous metal companies are small and medium-sized mines. It can be seen from Table 7 that the selected ore grades of small and medium-sized mines are higher than those of large mines.
Table 7 List of ore grades selected from non-ferrous metal mines in my country in 1990 Unit: %
2.4 Small and medium-sized non-ferrous metal mines account for a large proportion of the number and output
Statistical data shows that in 1991, my country's small and medium-sized non-ferrous metal mines (including more than 8,000 township mines) accounted for 99% of all non-ferrous metal mines, and small and medium-sized non-ferrous metal mines accounted for 93% of state-owned mines (Table 8).
Table 8 List of the proportion of small and medium-sized mines in non-ferrous metal mines in my country in 1991
There is no accurate estimate of the output of small and medium-sized mines in my country. According to calculations by foreign statistical agencies, the proportion of output of small and medium-sized nonferrous metal mines in market economy countries was relatively large in 1981, Table 9. Estimated output of small and medium-sized nonferrous metal mines in my country (Table 10). It can be seen that the production status of my country's small and medium-sized nonferrous metal mines cannot be ignored.
Table 9 Proportion of output of small and medium-sized nonferrous metal mines in total output in market economy countries in 1981
Table 10 Estimated output of small and medium-sized nonferrous metal mines in my country in 1992
3 Policy recommendations for giving full play to the role of small and medium-sized non-ferrous metal mines in my country
At present, whether in developed or developing countries, the basic attitude towards the development of small and medium-sized mines is to support them, especially in the direction of global mining operations. After the privatization transfer trend accelerated, the government's support behavior became more obvious, and the incentive measures were more conducive to the development of small and medium-sized enterprises. For example, the Mexican government implemented a special supplementary plan to support small and medium-sized mining in October 1985, investing US$210 million to encourage and assist small and medium-sized mining groups with few financing channels, helping 200 mines across the country. Product output has increased, while providing 5,000 to 6,000 job opportunities for the society. In 1987, the Mexican government launched the "Product Tax Discount" program, with discount rates of 20% for large companies, 40% for medium-sized companies, and 80% for small companies. This program is more conducive to the development of small and medium-sized mining companies.
Peru, a major mining country, pays more attention to small and medium-sized mining companies that account for 40% of the country’s total solid mineral output value. Since the 1980s, the Peruvian government has insisted on supporting small and medium-sized mines in terms of taxation, financing, technology and services. In terms of taxation, the government stipulates that newly built or expanded small and medium-sized mining projects will be exempted from partial income tax, and the materials and parts imported by these mining companies will be exempted from general sales tax (1986); in April 1990, the government It also announced tax exemptions for small and medium-sized mining companies; in July 1991, the government implemented a "re-export tax rebate" policy for silver mines, allowing them to recover income taxes and property taxes. In terms of financial loans, the government authorizes the Peruvian Mineral Bank to provide loans to small and medium-sized mines. In 1976, the loan amount was US$6.4 million; in January 1982, a US$40 million "Mine Compensation Fund" was established in the bank. In 1982, 39% of the Mining Bank's loans went to small and medium-sized mining companies; in 1983, 60% of the loans went to small and medium-sized mining companies.
In addition, relevant government agencies also provide geological, mining and metallurgical services and assistance to small and medium-sized mines. For example, they invested US$12 million to open 20 mineral processing plants across the country to process ore from small and medium-sized mines. Mining trading companies facilitate the sale of mineral products from small and medium-sized mines.
Based on the successful experience of foreign countries in supporting the development of small and medium-sized mines, and combined with the actual production of small and medium-sized mines in my country, the author puts forward the following development policy suggestions.
3.1 Break the constraints of ownership boundaries and clarify laws and policies that are conducive to the development and growth of small and medium-sized mines
First of all, legally ensure that small and medium-sized mines have sufficient power to develop domestic resources . In terms of resource allocation, the utilization efficiency of resources should be used as the criterion. Those with good comprehensive benefits should be given priority to obtain the possession and exploitation rights of resources. On the contrary, their development should be restricted. At the same time, the priority of land use rights and the transferability of mineral development rights are legally defined.
Secondly, in order to ensure the sustainable and healthy development of domestic small and medium-sized mines, special policies should be provided in terms of financing and loans for mines; in terms of tax exemptions, mines should be given real benefits to ensure their development potential.
Third, provide regular pre-production and mid-production guidance and assistance in terms of exploration, development and other technical information, and provide one-stop services in terms of product sales and capital recovery. In places where small and medium-sized mines are relatively concentrated, central processing plants and smelting plants should be established at selected locations to radiate guidance and services in a satellite manner, process raw ore produced by surrounding mines, and solve long-distance transportation difficulties.
Fourth, establish a “Small and Medium-sized Mine Development Fund”. Support those poor areas that have resources but no funds or lack of funds to develop local resources; or mining companies that have mined mines that have stopped production due to irresistible external interference, and encourage them to resume production; support those companies that have the ability to operate well and develop Small and medium-sized mines with bright prospects but low resource utilization should undergo technological transformation to improve their ability to comprehensively utilize associated and natural minerals.
Fifth, boldly carry out reforms in business methods. Change state-owned enterprises into state-owned private enterprises, or carry out joint-stock reform. It can be divided according to central and local shares, or shares can be directly introduced to the society and within the enterprise to expand the enterprise's financing channels and diversify business risks.
3.2 Actively guide small and medium-sized mines to take the path of joint development
my country's small and medium-sized mining enterprises adopt the division of labor and cooperation, extensive alliances, and then enter the path of regional group operation and development. This is the development path of my country's mineral industry. The existence of regional concentration and relatively dispersed output is determined by the objective reality. It is an objective requirement for the development of the socialist market economy, and it is an inevitable product of the development of the market economy to the stage of socialization and specialization of production. Since the China Nonferrous Metals Industry Corporation proposed a new model for mining operations in 1987, enterprise groups have been established for 18 years, and many consortiums have emerged one after another, including aluminum conglomerates, copper consortiums, lead-zinc consortiums, rare earth consortiums, and niobium and tantalum smelting Enterprise consortiums, etc., have attracted more and more attention from all walks of life due to their good economic effects, huge competitiveness and potential development momentum.
Great Wall Aluminum Company, which has emerged in the Central Plains in recent years, has been recognized by all sectors of society for its new mining operation model as a "valuable exploration" for its significant investment and social benefits. Great Wall Aluminum Co., Ltd. jointly operates mines, crushing sites, storage and transportation with local governments, organically combining local resources, land, and labor advantages with the company's capital, technology, and equipment advantages, thereby expanding the scale of the head office and greatly increasing benefits; After the establishment of the local mines or enterprises, with the help of the strong driving force of the head office, the benefits have also flourished. Both parties have obtained benefits that are incomparable independently from the alliance. It is foreseeable that in the near future, China's nonferrous metal industry and other mining sectors will see a large number of regional exploration, mining, selection, smelting and processing joint organizations or joint organizations of certain links and certain enterprises. Promote the development of my country's mining industry.
As for the ways of union, the author believes that there are three types as follows.
(1) Exploration-mining combination.
At present, domestic mining production is faced with the dual pressures of insufficient investment in exploration funds and tight backup resources for mining mines. In the form of shares, the exploration and mining parties jointly raise funds to explore the favorable mineralization areas around the prospect areas or production mines, expand the mining reserves, and then jointly occupy and share the proven reserves according to the investment ratio of the exploration and mining joint ventures. development benefits.
(2) Union between mines.
One form of this alliance is the alliance between large mines and small and medium-sized mines; the other is the alliance between small and medium-sized mines. The content of the joint cooperation is extensive, which can be mutual financing, or complementation in technology and equipment, giving full play to the advantages of both parties, and jointly achieving the maximum extent of resource efficiency. The combination of funds can jointly invest in planning and development projects, purchase large-scale procurement equipment, and share the benefits of resource development according to shareholding; the combination of technology and production facilities aims to improve the use efficiency of technology and equipment, so that small and medium-sized enterprises can Mines can rely on large mines to survive and develop. Small and medium-sized mines can, under the guidance of the government, coordinate development planning, build processing and smelting plants, and achieve on-site processing and proliferation of resources.
(3) Combined mining-processing-smelting.
This should be an agreement-based alliance, with each link binding the behavior of both parties in the form of a contract.
The mine guarantees to provide stable raw ore to the mineral processing enterprise on time, quality and quantity. At the same time, the mineral processing enterprise guarantees the supply of concentrate powder to the smelting enterprise; in turn, the smelting enterprise should promptly feedback various information to the mineral processing enterprise and pay the amount in full. To the mineral processing enterprise, the mineral processing enterprise also guarantees to fulfill various commitments to the mining enterprise to ensure the smooth realization of the responsibilities, rights and interests of both parties. This type of agreement-based alliance is relatively common in our country. Some large consortiums or enterprise groups have been operating for many years and have achieved good results.
All forms of alliances must abandon the framework of ownership boundaries. Large enterprises must put down their pretensions and take the initiative to unite with small and medium-sized mines (investment-share alliances are more ideal), and change the past buyer-seller relationship to an agreement type (or Cooperative) combination, which will promote joint promotion and coordinated development. What needs to be emphasized is that this agreement-based alliance is reached and maintained based on the rules of benefit sharing and economic reciprocity levers. If this rule is violated, the agreement will cause friction in the implementation until it breaks down.