In 2022, China's mining development service (mining service) industry development status, competition pattern and trend analysis, toward large-scale, high-end, integration trend

I. Overview of mining

Mines are divided into energy mines, metal mines and non-metal mines according to the types of solid mineral resources. It is divided into coal mines and non-coal mines by industry, of which the non-coal mines are subdivided into non-ferrous metal mines, ferrous metal mines, chemical mines, building materials mines and other non-metallic mines by industry; According to mining methods, it can be divided into open-pit mines, underground mines and in-situ leaching mines.

At present, the mine development service providers in the market are divided into coal mine development service providers and non-coal mine development service providers according to the industry; According to the mining method, it can be divided into open pit mine development service providers and underground mine development service providers.

Second, mine development service industry chain

Mine development service industry covers all links of mine development, including geological exploration, design and research, engineering construction, mining operation, mineral processing operation chain for owners to provide operational services in a number of links. Mine engineering construction and mining operation are two important stages in mine development: 1) Mine engineering construction refers to all the engineering construction and equipment and facilities installation and commissioning involving fixed asset investment during the basic construction period, renovation and expansion period of all kinds of mines. 2) Mining operation refers to the implementation of resource allocation, process management, technical support and mining operations during mining production, which specifically involves mining design, mining plan, grade control, production exploration, development, mining approval, cutting, drilling, blasting, ore dropping and other specific work.

Specifically, the upstream of the mining development service industry chain is mainly the mining machinery and equipment manufacturing industry, brazing tools, fire materials and other upstream industries, but the concentration is low; The downstream is mainly the development of various mineral resources.

Third, the mining development service industry related policies

Mineral resources are the foundation of national economic development, and resource shortage has become increasingly prominent in China, and resource security has risen to the national strategy. A series of policy documents issued by the national industry authorities clearly propose to further strengthen the development and integration of non-ferrous metals, gold, iron, phosphorus and other mineral resources and exploration work, and promote the construction of large and medium-sized mine projects.

Iv. Analysis of the status quo of mine development service industry

1. Current situation of mining industry

With the deepening of China's supply-side reform, environmental protection policies have also been gradually standardized, and industry regulatory authorities have strengthened the environmental protection of the mining industry. Affected by this, domestic small mines stopped production and more remediation in 2018, and have gradually recovered since 2019. According to the data, in 2021, under the adverse impact of the epidemic, the revenue of non-ferrous metal mining enterprises above scale in China still rebounded, with a total annual revenue of 309.36 billion yuan, an increase of 16.2%, accounting for 0.3% of the annual GDP. In 2022, the revenue of non-ferrous metal mining enterprises above designated size in China totaled 363.13 billion yuan.

In terms of the number of enterprises, the number of domestic non-ferrous metal mining enterprises above designated size has continued to decline in recent years, and data from the National Bureau of Statistics show that the number of domestic non-ferrous metal mining enterprises above designated size has dropped to 1204 in 2022.

2. Market size of mining service industry

Benefiting from the recovery of the development of non-ferrous metal mining and the increasingly mainstream trend of mining service outsourcing model, the market space of the mining service industry has the logic of base and coefficient expansion, and the industry market space is huge. According to the company's convertible bond prospectus, the domestic mining operation management and mining engineering construction market capacity declined from 2016 to 2018, and began to gradually recover in 2019. According to the actual completion of fixed asset investment in the mining and selection industry, it is further estimated that by 2022, the market capacity of domestic black and non-ferrous underground mining operation management business and mining engineering construction business will reach 71.663 billion yuan and 8.065 billion yuan respectively.

5. Competition pattern of mine development service industry

1. Foreign enterprises

From the perspective of the global market, overseas mining service enterprises are concentrated in the developed regions of Europe and the United States, with significant technical strength and financial advantages, and almost cover the service business of the development of large-scale high-quality mines in the world. At present, the main international large-scale mine development service providers are: Redpath Holdings, Thyssen Schachtbau, Leighton, Dumas, Cementation, Byrnecut Mining, Deilmann-Haniel, and other major international service providers, High market share of mining services developed in large quality mines around the world.