During the Fifth China International Import Expo (" CIIE "), China National Mineral Resources Group Co., LTD. (" China Minerals Group "), known as the youngest central state-owned enterprise, hosted the first summit in the history of CIIE with the theme of the security and supply of mineral resources -- the International Summit on Mineral Resources. During the forum, China Minerals Group signed strategic cooperation agreements with three global iron ore giants, Vale, BHP Billiton and Rio Tinto Group.
The reporter has learned that China Minerals Group was established in July 2022. The establishment of China Minerals Group is a major measure taken by the CPC Central Committee and The State Council to make good use of both domestic and international markets and resources, and enhance the ability of ensuring the supply of important mineral resources in China. It has great significance for our country to ensure the security of the industrial chain supply chain and promote the high-quality development. As a wholly state-owned company directly managed by the central government and a state-authorized investment institution, China Minerals Group is committed to building itself into a world-class comprehensive mineral resources service enterprise with global competitiveness and influence. According to industry insiders, in the future, China Minerals Group may negotiate with overseas iron ore producers on behalf of the domestic steel industry, so as to enhance the right to speak in the iron ore price game, and make a reasonable industry mix and allocation of domestic imported iron ore resources more effectively.
"As the world's second largest economy, China plays a vital role in the global industrial and supply chain," said Eduardo Bartolomeo, chief executive officer of Vale. Last September, China successfully hosted the International Forum on Industrial and Supply Chain Resilience and Stability, which fully demonstrated China's responsibility as a major country. The establishment of China Minerals Group in July this year and the signing ceremony of this strategic cooperation in mineral resources also reflect China's determination to maintain the resilience and stability of the industrial chain and supply chain, which is not only good for China's domestic economy, but also good for the global economy and in the interests of all countries in the world." Vale said it looks forward to deepening its strategic cooperation with China Minerals Corporation in the future to become the closest and most reliable supplier of raw materials in China's pursuit of high-quality development.
BHP Billiton (BHP) said that this year, BHP Billiton is approaching the milestone of 3 billion tons of cumulative iron ore exports to China, and the signing of the MOU is of great significance to China Minerals Group, BHP Billiton and BHP's customers in China. It is another important milestone. It marks the commitment of both sides to jointly create, strengthen and deepen strategic cooperative relations, and jointly explore mutually beneficial development opportunities in the field of mineral resources.
In September, BHP Billiton CEO Mike Henry and China Minerals Group Chairman Yao Lin met by video and agreed to establish a strategic partnership to jointly promote efficient, win-win and sustainable development of the iron ore value chain. Together, we will contribute to China's sustainable development and economic prosperity in the next stage.
Jakob Stausholm, group chief executive of Rio Tinto, said: "China is Rio Tinto's largest market and an important long-term strategic partner with whom we have worked for more than 120 years with a long, fruitful and mutually beneficial history. This new partnership with a Chinese state-owned enterprise once again demonstrates Rio Tinto's commitment to supporting China's high-quality and sustainable development. We look forward to working with Sinomine and China's steelmakers to advance low-carbon development across the value chain." Rio Tinto also said it will focus on cooperation in iron ore and steel industrial and supply chains, including building a stable supply chain, promoting carbon reduction in the industry, and strengthening cooperation in mineral resources development.
At the forum, Yao Lin, chairman of China Minerals Group, said that the development of the resource industry has benefited from economic globalization, and the smooth flow of resources around the world has also strongly promoted the growth of the world economy and people's well-being. The world today is undergoing profound changes unseen in a century. Changes in the development landscape and environment have created opportunities and challenges for industries and enterprises related to industrial chains and supply chains, such as resource development, trade logistics, processing and manufacturing. The sustained and healthy development of China's economy will continue to provide an important anchor of stability and source of growth for the demand for resource products and the sustainable development of the industry. China Mineral Industry is willing to work with all parties to promote the industry ecology towards a more open, inclusive, balanced and win-win direction.
Zhang Rui, professor of economics and director of the China Market Society, said that China is the world's largest iron ore demand country, relying on overseas iron ore imports up to 80 percent, but in terms of bargaining power, there is a big shortage. Sinomine's successful tie-up with three of the world's biggest iron ore producers may improve past pricing woes. In the future, China Minerals Group is likely to continue to promote substantive strategic cooperation with overseas miners. For example, the two sides can carry out and promote cross-shareholding at the capital level, jointly develop third-party iron ore and other mineral resources, and jointly develop resource optimization plans and standards such as green and low-carbon technologies, and finally form a win-win consortium to a certain extent. Of course, what needs to be viewed objectively is that although China Minerals Group can enhance the power of discourse in the iron ore price game externally, and may construct a more favorable pattern for domestic iron ore import, it remains to be seen whether it can change the established and stubborn international negotiation rules by itself, and how much scope and depth it can arouse the cooperation resonance of international iron ore suppliers. Based on this, while extending the long arm of commercial power overseas, it is more necessary to expand and deepen the effective path of "cure the root" from the perspective of industrial layout and resource utilization at home.
