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.

2. Situation of domestic enterprises

At present, the concentration of the domestic mining service industry is low, and there are fewer large-scale mine development service providers. In the era of planned economy, mine construction investment and production and operation are implemented in full accordance with the state plan, and mining operation and management have been organized and implemented by mining development enterprises, forming a pattern of "self-mining" unchanged for decades. At present, mine engineering construction needs to be undertaken by service providers with professional qualifications. Mining operation management service is a new operation mode developed in recent decades. The main competitive enterprises in the domestic mining development service industry are Guangdong Hongda, Tongguan Mining Construction, Huye Science and Engineering, Fourteen metallurgical, China Coal Three construction, China Coal Five construction, Gold credit and so on.

Jinxin Mining Management Co., Ltd. is a high-end development service provider mainly engaged in non-coal underground mine development services, providing mining services involving copper, lead, zinc, iron, nickel, cobalt, gold, silver, phosphorus, etc. Now it has comprehensive service capabilities integrating mining engineering construction, mining operation management, mine design and technology research and development. Serve China Nonferrous Metals, Aluminum Corporation of China, Everhower, Vedanta and other famous mining enterprises at home and abroad.

From the perspective of the company's operation, according to the company's announcement, in 2021, Jinxin achieved a total operating income of 4.504 billion yuan, an increase of 16.57%, and a net profit of 471 million yuan, an increase of 28.93%. In terms of business, in 2021, Jinxin mining operation management and mining engineering construction business generated revenue of 2.861 billion yuan and 1.428 billion yuan respectively, accounting for 95.2% of the total revenue.

6. Future development trend of mine development service industry

1. The outsourcing trend of mine development services is obvious.

Mining service outsourcing model has obvious advantages, and the dependence of mining development on mining service enterprises has gradually increased, and mining service outsourcing has gradually become the main mode of domestic mining development management.

2. The domestic mining service industry is developing towards large-scale, high-end and integration.

Internationally, the increase in international investment of Chinese mining companies or become the internationalization of Chinese mining service enterprises. Effective carrier. According to China Mining, the number of overseas investment enterprises in the mining industry increased from 996 in 2010 to 1,510 in 2017. With the deepening of China's "One Belt, One Road" strategy, Chinese mining companies are investing more and more internationally, especially in countries along the "One Belt, One Road". According to S&P Global Market Intelligence statistics, as of November 2018, China has invested in a total of 353 overseas non-oil and gas mine projects, 70% of which are concentrated in Asia Pacific and Africa. With the increase of overseas investment of Chinese mining enterprises, the participation degree of Chinese mining development service enterprises in Chinese-funded international mining projects will also increase year by year, and become an effective carrier for Chinese mining development service enterprises to go to the world.

The number of large and medium-sized mines in China is small and the output is relatively high, and with the further shrinking and consolidation of small and medium-sized mines under the influence of related product price fluctuations and environmental safety regulatory policies, the main target market of mining clothing in the future may serve the high-end development of large mines. Large-scale mine development has higher requirements for service providers such as capital, qualification, management and technology, and the package cost model of "design-construction-mining operation and other businesses" is generally adopted in the cooperative operation mode to reduce the conversion cost of each link, so the future requirements for integrated service capabilities of mine developers will be increasingly high.

3, the rapid development of mining development technology, the future or further to the deep mining and technical intelligence.

Relevant data show that in the next ten years, 1/3 of China's underground metal resources mining depth will reach or exceed 1000m, the maximum depth can reach 2000m-3000m, shallow mineral resources are reducing exhaustion, deep mining of metal mineral resources has become an inevitable trend in the development of metal mining.

With the rapid expansion of the scale of global mining development, the rapid improvement of mining intensity, the continuous improvement of safety standards, and the worsening of the shortage of related labor resources, the rapid development of global mining equipment, underground mining equipment is especially rapid development, and the trend of mechanization, trackless, automation and intelligent mine development is significant.

At the same time, in terms of mining engineering, mining technology at home and abroad has developed rapidly, and there is still a gap between domestic high-end technology and the international advanced level. The mining technology and equipment of underground mines are developing in the direction of high efficiency, high recovery rate, automation and intelligence, the production capacity and labor productivity of stope have been greatly improved, and the loss and depletion indicators have been greatly reduced. At present, the underground mining methods commonly used at home and abroad mainly include open stope mining, filling mining and caving mining. In addition, the international and domestic more advanced mines also use the advantages of resources and equipment, the use of various forms of continuous mining methods, efficient mining methods such as VCR method, etc., these technologies are currently in most of the domestic mines are restricted by conditions, and the international advanced level gap is large.

Through the collection, collation and processing of massive data of China's mining development service industry, Huajing Industrial Research Institute comprehensively analyzes the overall market capacity, competition pattern, market supply and demand situation and the production and marketing operation of typical enterprises in the industry, and predicts the future development trend of the industry according to the development trajectory and influencing factors of the industry.