During the 26th China International Mining Conference held in Tianjin, the International Mining Research Center under China’s Ministry of Natural Resources released the “Global Mining Development Report 2024” on October 16th.
The report offers a comprehensive analysis of the global mining landscape amid the new economic cycle, building on a series of studies by Chinese research institutions aimed at promoting sustainable development in the global mining sector.
According to the report, the global economy is facing significant challenges, with geopolitical issues and financial policies influencing the evolution of the global manufacturing landscape, leading to heightened risks in supply chains. Investment in global solid mineral exploration stands at approximately $12.76 billion, marking a 1.8% decline compared to the previous year. While financing for global mining projects has decreased, mergers and acquisitions have seen an uptick.
In terms of supply and demand, there is an ongoing adjustment in global energy resource reserves, production, and consumption. Notably, fossil energy supply and demand have both risen. However, the situation for bulk minerals shows a clear divergence: the supply and demand for steel has decreased, leading to an increase in oversupply; in contrast, copper supply growth outpaces demand, significantly narrowing the supply-demand gap; aluminum supply is also surpassing demand, indicating oversupply.
Moreover, strategic emerging minerals are witnessing rapid production growth, with lithium, cobalt, and nickel in oversupply and a marked decline in trade volumes. After initially soaring, the demand for precious metals like gold and silver has retreated, while demand for platinum has also seen a decline.
As for market prices, international mineral product prices are generally trending downward. The average price of energy minerals has dropped, and prices for bulk solid minerals have experienced increasing volatility, with battery-grade lithium carbonate prices plummeting over 80% this year.
Mining companies are facing fluctuating stock prices. Major oil and gas companies have seen their share prices decline significantly, along with a noticeable drop in net profits. Key solid mineral companies initially experienced declines before rebounding, yet their net profits have dropped by over 20%, although they remain at relatively high levels overall. In contrast, strategic emerging mineral companies have seen their stock prices fall sharply, with profits decreasing more than 60% year-on-year.
The report concludes that new productive forces are providing fresh momentum for high-quality development in the mining sector. Advanced technologies such as satellite remote sensing, big data, and the Internet of Things are expected to continuously give rise to new industries, including AI-driven mineral exploration and smart mining. Data asset pricing is anticipated to lead global mining infrastructure into a new era, enhancing the comprehensive utilization of mineral resources and urban mining initiatives.
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