Jiangxi Restructures Jiangxi Tungsten Industry Group, a Feast of Investment in the Tungsten Industry is Imminent



Jiangxi Restructures Jiangxi Tungsten Industry Group, a Feast of Investment in the Tungsten Industry is Imminent

On August 30 this year, the state-owned enterprise reform in Jiangxi Province made fresh progress. Jiangxi, a province long acclaimed as the “Global Capital of Tungsten”, this time focuses the key reform target on tungsten and rare metals. According to Chen Deqin, Secretary of the CPC Party Committee of Jiangxi Province State-owned Assets Supervision and Administration Commission, Jiangxi will restructure Jiangxi Tungsten Industry Group, strive to complete province-wide restructuring and integration of tungsten and rare metals industry by the end of the year, create group company with international competitiveness. Meanwhile, Jiangxi will organize provincial mineral resource investment company, intensify efforts in mineral resource prospecting, development, and integration, propel orderly prospecting, scientific allocation, and integrated development of Jiangxi Province mineral resources. This also means that Jiangxi Province’s integration of tungsten and rare metals is now formally put on the agenda, by the end of this year, Jiangxi Province’s tungsten and rare metal industry is expected to take on a brand-new look.

China boasts the world’s largest tungsten reserve. According to data from the “Overview of Global Mineral Resources 2015”, China’s tungsten resource reserve ranks top worldwide in 2015, proven reserve is 1.90 million tonnes, accounting for 57% of total global reserve; tungsten output ranks top worldwide, up to 71000 tonnes, accounting for 81% of total global output. According to data of the Ministry of Land and Resources, China’s proven tungsten resources are mainly concentrated in 9 provinces including Jiangxi, Hunan, and Henan, whose combined reserve accounts for up to 90% in total tungsten resource reserve of 23 provinces and municipalities nationwide, wherein Jiangxi and Hunan province have a combined figure of 4,126,700 tonnes, accounting for 59.2% nationwide.

Although the state government imposed quota control on total exploitation volume as early as in 2002, the result is negligible, over-mining in the industry is on the verge of going out of control, supply is excessive. Enterprises are lured by immediate interest, and lack long-term strategic vision of growing big and strong. Long-time sluggish tungsten price also results in depression in the entire industry. Nevertheless, “opportunities” surely exist when there is “crisis”. In the recent several years, China Minmetals first struck out the pace of integrating China’s advantageous tungsten resources in the industry, up till now it has developed complete tungsten industrial deployment, in 2015 its tungsten resources accounted for about 30% in domestic resources, meanwhile it ranked among leading positions in the global context. Today, Jiangxi Province State-owned Assets Supervision and Administration Commission sent signal to restructure Jiangxi Tungsten Industry Group and restructure province-wide tungsten industry by the end of this year, this is another big piece of good news for the tungsten industry. This move can not only create a rare metal group in Jiangxi Province with international competitiveness, meanwhile it also conforms to the requirements of the reform of supply front and the reform of state-owned enterprises in the current national domestic economic development progress, and further propels integration and upgrading in the tungsten industry.

Although China’s tungsten reserve ranks top worldwide, the entire tungsten industrial chain remains at low level compared to standards in international developed countries, its overall competitiveness is not strong, enterprise integration represents the general trend.

Furthermore, according to published data, Jiangxi Tungsten Industry Group, full name Jiangxi Rare Earth and Rare Metals Tungsten Group Corporation, is a state-owned large industrial enterprise owned by the provincial government with century long history, and also China’s biggest tungsten-featured mining group integrating rare earth and rare metals prospecting, exploitation, smelting, processing, trade, and equipment manufacture. This time’s move to propel the integration of tungsten and rate metals is not the ultimate aim of Jiangxi Tungsten Industry Group. As early as in the beginning of 2016, Chairman of Jiangxi Tungsten Industry Group said, it is required to drive forward the listing development of 1-2 hi-tech enterprises as soon as possible, achieve integration of industry and finance, fully bring out the leading and guiding role of hi-tech products and hi-tech enterprises. Jiangxi Province’s move to propel the restructuring of Jiangxi Tungsten Industry Group will also exert positive boosting impact on the Group’s own strategic deployment.

As restructuring and integration of the tungsten industry moved into top gear, the overall competitiveness of industrial chain will experience obvious enhancement, the turning point of the industry is within sight and not very far away.

Tin Production by Province or City in 2016

Unit: metric ton

Name of province or cityProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Zhejiang22511819.53 Jiangxi228917014-0.13 Hunan280321899-10.33 Guangxi77366-9.41 Yunnan80236281616.61 Total output China1430011813711.72

Source: China Nonferrous Metals Industry Association (CNIA)

Magnesium Production by Province in 2016

Unit: metric ton

Name of provinceProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Shanxi1178695509-30.54 Liaoning6583948-1.2 Henan487051032-17.49 Shaanxi3572928920016.51 Ningxia138789663345.94 Xingjiang444417991-34.03 Total output China737405756641.6

Source: China Nonferrous Metals Industry Association (CNIA)

Refined Copper Production by Province or City in 2016

Unit: metric ton

Name of province or cityProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Tianjin141723973-13.79 Hebei616250086-22 Shanxi1976112415513.9 Inner-Mongolia1329010542325.4 Liaoning100057989053.23 Shanghai3219319953.77 Jiangsu820587058-2.5 Zhejiang2850525831019.36 Anhui108382855776-1.69 Fujian2770922304523.69 Jiangxi108799834511-6.41 Shandong11346284343618.21 Henan5199131580194.94 Hubei39446283063-14.49 Hunan50961920854.35 Guangdong84126160619.22 Guangxi3565027568453.03 Sichuan151416.02 Yunnan6071638185316.88 Tibet7534424872.8 Shaanxi124808-5.5 Gansu79172578675-3.86 Xinjiang1029339032-12.44 Total output China74318854977488.66

Source: China Nonferrous Metals Industry Association (CNIA)

Aluminium Production by Province or City in 2016

Unit: metric ton

Source: China Nonferrous Metals Industry Association (CNIA)

Alumina Production by Province in 2016

Unit: metric ton

Name of province Production inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Shanxi123075791934518.83 Inner-Mongolia19707192677-4.44 Jiangxi Shandong161749311758797-7.2 Henan9417957984604-8.6 Guangxi73691058070202.97 Chongqing427733903047.61 Guizhou388139290729225.71 Yunnan828056649033.26 Total output China506144438905318-0.3

Source: China Nonferrous Metals Industry Association (CNIA)

Nickel Production by Province or City in 2016

Unit: metric ton

Name of province or cityProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Inner-Mongolia Liaoning Jiangxi419664-55.17 Guangxi918514232.87 Sichuan7721183554.83 Yunnan Shaanxi24901971730.47 Gansu1221097973-2.38 Xinjiang85278091.89 Total output China17645154530-7.92

Source: China Nonferrous Metals Industry Association (CNIA)

Production of the Ten Major Nonferrous Metals in 2016

Unit: metric ton

Name of metalProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Copper74318854977488.66 Aluminium271306920687926-1.76 Lead35087228351237.26 Zinc5166764052774-0.97 Nickel17645154530-7.92 Tin1430011813711.72 Antimony17670139332-3.74 Mercury280236045.46 Magnesium737405756641.6 Titanium47523978113.07 Total China4452191341033740.67

Source: China Nonferrous Metals Industry Association (CNIA)

Fabricated Copper Production by Province or City in 2016

Unit: metric ton

Name of province or cityProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Beijing2792672-57.75 Tianjin72811575342-10.99 Hebei4612453789.44 Shanxi1817162057.71 Inner-Mongolia2723416311152.1 Liaoning18947845895.88 Heilongjiang3232411397.85 Shanghai23586185062-7.95 Jiangsu280917208916718.1 Zhejiang262352229622411.85 Anhui267234212880319.68 Fujian1985514519827.04 Jiangxi26848419612005.43 Shandong720125947115.58 Henan56200390034-0.66 Hubei32038197401267.36 Hunan4583431880414.89 Guangdong167527122766312.95 Guangxi758745148-4.52 Chongqin176881276747.29 Sichuan73695229012.85 Guizhou241344525.53 Yunnan18987128385-0.13 Shaanxi1611130593.37 Gansu3456927116080.92 Qinghai403442459-47.15 Ningxia3772242507.66 Xinjiang400025175-11.14 Total output China17191131313852512.65

Source: China Nonferrous Metals Industry Association (CNIA)

Lead Production by Province or City in 2016

Unit: metric ton

Name of province or cityProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Inner-Mongolia 34555179025.28 Liaoning6990482956.85 Jiangsu1266977922-36.39 Anhui51003251517162.45 Jiangxi8318114085-10.55 Henan1009979696164.13 Hubei225422103834.44 Hunan84828640916-1.19 Guangdong430531597-10.28 Guangxi166760339-30.13 Guizhou523829437373.73 Yunnan3030524500325.05 Shaanxi45106819-56.06 Gansu230517125-7.89 Qinghai18621431210.93 Ningxia217518512-2.47 Xinjiang38252315423.92 Total output China35087228351237.26

Source: China Nonferrous Metals Industry Association (CNIA)

Copper Mine Production by Province or City in 2016

Unit: metric ton(metal ontent)

Name of province or cityProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Hebei48613-29.64 Shanxi352427803-1.91 Inner-Mongolia32361221536-16.22 Liaoning8836326-6.93 Jilin1369103934.65 Heilongjiang284517801-12.04 Jiangsu69-79.15 Zhejiang8515783-1.83 Anhui168741325951.27 Fujian2518209129.53 Jiangxi253131910175.26 Shandong917753117333.46 Henan1691112115.3 Hubei5594445301.22 Hunan10607163-22.56 Guangdong10005240-22.03 Guangxi1432014-58.45 Sichuan579746756-7.47 Guizhou Yunnan2222714760128.44 Tibet2814200397.11 Shaanxi1601417-25.49 Gansu14651989517.86 Qinghai406718249-37.09 Xinjiang100667235612.79 Total output China16503411634933.24

Source: China Nonferrous Metals Industry Association (CNIA)

China’s Major Non-ferrous Metals Imports & Exports

(End of July. 2016)

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Source: General Administration of Customs of the People’s Republic of China

Zinc Production by Province in 2016

Unit: metric ton

Name of provinceProduction inAugust. 2016Total outputJan.-Aug. 2016% Change2015-2016 Hebei188212779-1.62 Inner-Mongolia49263366501-0.84 Liaoning256581849714.73 Jiangsu263249504-12.05 Zhejiang397524626-6.72 Anhui80516196842.43 Fujian16212556.47 Jiangxi10013728116.25 Henan22186208341-0.63 Hubei Hunan85481675936-16.29 Guangdong191911448614.86 Guangxi37888303280-9.72 Sichuan22625152753-2.43 Guizhou10169681-46.14 Yunnan973437630739.25 Shaanxi9436270749610.27 Gansu320092724210.9 Qinghai99726251-46.26 Xinjiang1295826933.95 Total output China5166764052774-0.97

Source: China Nonferrous Metals Industry Association (CNIA)