China Mining Industry Overview
China is a leading producer of many major minerals including bauxite, copper, gold, silver, and zinc. In terms of application, coal mining is the most prominent section in Asia-Pacific region among all other types of mining in the region and generates the highest revenue due to the substantial coal deposits. Metal mining is also an important segment and is expected to grow at an annual average rate of 11% per year by 2022.
China is one of the fastest growing mining market and the demand for high quality machinery and mining services can be an opportunity for mining supply and service exporters. As noted elsewhere, China has recently begun placing a higher importance on environmental sustainability. This creates a major opportunity for sustainable exporters in this area. Suppliers can also be used to improve health and safety conditions, another area that is growing in priority in China.
China is the largest contributor to the Asia-Pacific coal-mining sector in terms of production, consumption, and reserves. Growth in mineral production is expected to continue, driven by infrastructure construction and continued urbanization.
Drills and breakers are experiencing a high adoption in the mining equipment market with an increase in surface and underground extraction activities. The application of rotary blast hole drills for coal and metal mining processes is growing rapidly. Manufacturers in the market are developing customized solutions based on the specifications of the companies. China has experienced high adoption of these solutions owing to the favourable policies regarding the export of metals and minerals.
In 2017, China made further policy moves toward opening the country to foreign investment in a number of sectors including mining. Specific changes for the mining sector include relaxing restrictions on Foreign Direct Investment in the development of non-conventional oil and gas resources; the exploration and mining of precious metals; lithium mining and mineral processing; and the smelting of rare metals, tungsten, molybdenum, tin and antimony. The government also supports the development and application of new technologies, such as utilization of tailings and recovery in the mining life cycle.
China will continue to be a major producer and consumer of metals and minerals going forward. Increased interest in high-tech solutions and environmental management are among the opportunities for suppliers.