Mineral resources are important primary products for economic and social development. More than 90% of disposable energy, 80% of industrial raw materials, and 70% of agricultural production materials currently used in China are derived from mineral resources. As the world's largest industrial producer, China's annual consumption of mineral resources is equivalent to the total consumption of other industrialized countries in the world. Improving the supply and security capacity of China's mineral resources is not only a need for resource and economic security, but also a need to build a new development pattern and achieve high-quality economic development.

In December 2021, the Central Economic Work Conference clearly stated that as China enters a new stage of development, profound changes have taken place in the internal and external environment for development, and many new major theoretical and practical issues need to be correctly understood and grasped. One important aspect is "correctly understanding and grasping primary product security". The world today is undergoing major changes that have not occurred in a century, and the original global production system is changing. The new round of industrial revolution and technological revolution has brought opportunities and challenges to many countries in the world. Geopolitical conflicts, trade frictions, the COVID-19 and other emergencies have also profoundly affected the safety of industrial chains and supply chains in various countries. The prices of scarce bulk mineral resources such as crude oil, iron ore, and copper ore have skyrocketed, resulting in a situation where the ex factory price index of industrial products is steadily rising, and inflationary pressures are increasing; A new round of technological and industrial revolutions has led major economies in the world to pay more attention to the application of high-tech minerals such as lithium, cobalt, nickel, and rare earth. The supply and technological competition of these high-tech minerals are becoming increasingly fierce, and the supply gap of mineral products is likely to evolve into a "grey rhinoceros" event. Strengthening the safety management of China's mineral resources and improving their supply and security capabilities is of great significance to China's economic security and the realization of the Chinese Dream of the great rejuvenation of the Chinese nation.

Currently, there are three major weaknesses in China's mineral resources supply and security capabilities. First, the level of mineral resources conservation, intensification, and recycling is low, and the efficiency of resource utilization needs to be improved. Currently, the energy utilization efficiency of China's manufacturing industry is only 68%, 50%, and 48% of that of the United States, Japan, and Germany; The comprehensive utilization rate of tailings is about 30%, which still lags far behind developed countries in the world. The second is the insufficient reserves and production capacity of domestic mineral resources, the mismatch between the variety and scale of strategic reserves and the resource security situation, and the imperfect emergency mechanism for production and strategic reserves. China's reserves of bulk minerals such as oil, natural gas, iron, copper, and high-tech minerals such as lithium, cobalt, and nickel are not high in the global reserves. During the 20 years from 2001 to 2020, China's newly added reserves of crude oil, iron ore, copper ore, and other bulk minerals have not kept pace with the consumption rate of these mineral reserves, and the growth rate of production has not kept pace with the consumption rate. Third, some important mineral resources are heavily dependent on imports and highly dependent on foreign countries. China's dependence on crude oil and natural gas, which are in short supply of bulk energy minerals, is between 70% and 40%, while the dependence on iron and copper, which are in short supply of bulk metal minerals, is between 80% and 70%, and the dependence on lithium, cobalt, and nickel, which are high-tech minerals, exceeds 80%.

To improve China's mineral resources supply guarantee capacity, the following aspects of work need to be strengthened:

First, promote comprehensive conservation and efficient utilization of mineral resources. Establish and improve an incentive and constraint mechanism for dynamically adjusting the minimum indicators of mining recovery, mineral processing recovery, and comprehensive utilization of mineral resources, as well as the leader indicators with technological progress. Accelerate technological transformation in the development and utilization of mineral resources, and reduce unit energy and material consumption in the production of mineral products. Relying on the domestic large-scale mineral product market, we design intensive and economical technological paths for exploration, development, utilization, storage, and recycling, and achieve circular links between production and living systems. Pay attention to the recycling of secondary resources, accelerate breakthroughs in recovery and utilization technologies such as tailings and high-value wastes, and improve the efficient recovery mechanism of urban minerals.

The second is to enhance the production guarantee capacity of domestic mineral resources. Vigorously promote the adjustment of mineral exploration structure and optimization of exploration layout. Intensify the exploration and exploration of scarce bulk energy minerals such as crude oil and natural gas, scarce bulk metal minerals such as iron and copper, and high-tech minerals such as lithium, cobalt, and nickel. Accelerate technological innovation in the development and utilization of marine resources, and improve the level of development and utilization of marine mineral resources. Identify the strategic bottom line of self-sufficiency in domestic production of scarce bulk and high-tech mineral resources, and strengthen the construction of the national strategic mineral reserve system. Give full play to the supporting role of state-owned enterprises, accelerate the promotion of technological innovation in deep exploration and mining, and gradually establish a mixed reserve mechanism with the participation of the government and enterprises, mainly focusing on core mineral product reserves and supplemented by production capacity and production area reserves.

The third is to optimize the guarantee capacity of overseas mineral resources. Actively participate in the global mineral resources governance system in a mutually beneficial and win-win manner to ensure the safety of the international supply chain and industrial chain of mineral resources. Establish safe and stable supply guarantee channels, actively explore diversified import channels for mineral products, and reduce dependence on single import source mineral products. Strengthen and consolidate China Russia, China Central Asia energy and mineral cooperation, strengthen China's cooperation with South America, Africa, and other regions in high-tech minerals and bulk scarce minerals, strengthen the capacity building of the mineral product trading system, implement core national and regional mining investment guarantee projects, and improve the supply guarantee ability and risk resistance ability of China's mineral resources industry chain and supply chain.

(Source: China Mining News

Cheng Jinhua is the Deputy Secretary of the Party Committee and doctoral supervisor of China University of Geosciences (Wuhan), and Chen Jiahao is a doctoral candidate of China University of Geosciences (Wuhan)