On August 11, Zijin Mining held a major event at its headquarters in Shanghang, Fujian province, to celebrate its 30th anniversary. The occasion served as an opportunity to reflect on the company’s fruitful thirty-year journey and to add impetus to its pursuit of new heights.
In 1993, the Shanghang Minerals Company was renamed Shanghang Zijin Mining Company when the development of the Zijinshan Gold Mine began, marking the first year of Zijin Mining’s existence. Three decades have passed in the blink of an eye, and Zijin Mining has grown into a strong, thriving business in its prime.
At the conference, Chen Jinghe, Chairman of Zijin Mining, delivered a keynote speech entitled Building Global Competitiveness by Leveraging Three Decades of Experience and Forging a Leading Global Mining Company to Realize a Long-cherished Dream.
Three stages of phenomenal growth
Chairman Chen said that the 30-year history of Zijin Mining can be divided into three stages, each lasting about ten years. The first stage was the successful development of the Zijinshan low-grade gold-copper mine through technological innovations. With limited funds, very few talent and no technology, a group of passionate and ambitious young people learned by doing, and made systematic, revolutionary innovations, turning Zijinshan into China’s largest gold mine. They also creatively combined bio-metallurgy with flotation to extract copper from Zijinshan’s low-grade resources, delivering high profits. During this stage, Zijin accumulated capital, developed its workforce, technologies and project management models, and fostered a spirit of perseverance, and entrepreneurship and innovation. This, along with Zijin’s restructuring as a joint-stock company, propelled its leapfrog growth in the following years.
The second stage was the company’s expansion across China, which was in with national development strategies. Zijin built and operated assets across China as a part of the government’s programs of Western Region Development and Revitalization of Old Industrial Bases in the Northeast. Meanwhile, it tested the waters for going global and got listed in the Hong Kong and Shanghai stock exchanges. During this period, Zijin achieved its first goal of becoming China’s top gold miner.
The third phase was the company’s going global endeavor. Zijin actively took part in the Belt and Road Initiative and conducted countercyclical M&A at low costs, taking over and commissioning a number of world-class mining projects. It also invested in renewable energy and advanced materials. As a result, the company’s global competitiveness took shape. Zijin’s overseas assets have already surpassed the company’s China projects in terms of resources, output and profits. It is the most successful Chinese miner operating overseas and has realized the second goal of becoming the top Chinese metals miner. Currently, Zijin is racing to grow into a leading global mining company, which is its third goal.
Key lessons learned
Reflecting on the entrepreneurial journey, Chen Jinghe emphasized the importance of treasuring the invaluable experience gained over the past 30 years. Key lessons learned from the journey are: alignment with national strategies, which led to Zijin’s strong growth; respect for market norms, which is an important guarantee for Zijin’s rapid, informed decision-making; focus on talent training and value creators; continued technological innovation, which created Zijin’s competitive advantages; commitment to mining as its core business and giving priority to mineral resources; expansion into mining-related industries such as smelting, materials, construction, logistics, trading and finance; and the company value of Development for All, and the creation of a shared future with all stakeholders.
Directions for future growth
Looking into the future, Chen Jinghe suggested that Zijin Mining has entered a new period of growth and stands at an important juncture. First, it will drive its growth based on an accurate understanding of the changing situations and major trends in the world. The global economy and industrial structure are undergoing profound changes. Amid the push for decarburization, the energy revolution will be the most important economic and social event in the future. The security of strategic mineral supply has become a major concern for global powers, and China is entering a new period of mineral exploration and mine development, with many opportunities present.
Second, Zijin will remain committed to the goal of becoming a leading global miner. By 2025, the company’s indicators such as resources and reserves, output of main products, revenue, assets and profits should increase significantly, and a global operation and management system should be largely built. By 2030, its main business indicators should grow further, a leading global operation and management system should be established, and its global competitiveness formed, making Zijin a green, high-tech, first-tier global mining company. The company will strive to become a leading global miner by 2040.
Third, Zijin will prioritize resources and expand its resource base of strategic minerals and minerals in short supply. By allocating resources globally, it will significantly grow its resource base through exploration and mergers and acquisitions. It will also tap further into strategic minerals in short supply in China, focusing on big projects and doing only what makes good sense.
Fourth, Zijin will speed up the construction of large mines and achieve synergy among its various segments. Output of copper, gold, and lithium must be increased by unleashing the potential of existing projects, to turn Zijin into an important global lithium producer. It will expand further into renewable energy and materials to an appropriate degree, and commercialize its ammonia-based hydrogen energy technology. A portfolio of companies invested by Zijin will be built, to inject vitality for its growth.
Fifth, Zijin will rely on scientific and technological progress to build its global competitiveness. Technological innovation capabilities are at the heart of a company’s global competitiveness, and internationally competent talent is the key. Zijin will promote the Five-Pronged Mining Engineering Model across its assets, and push harder for technological breakthroughs in such fields as exploration, mining, processing, metallurgy, environmental protection, renewable energy and new materials. It will also enhance its capabilities in developing information technologies, improve its ESG system in accordance with international standards, and build a new model of green, high-quality and sustainable mining.
Chairman Chen stressed that in the era of fierce competition amongst numerous market players, Zijin should never slack or hesitate. He urged everyone in the company to remain persevering, enterprising and innovative, rekindle the passion for entrepreneurship, and act in accordance with the overarching principle of improving quality, controlling costs, and boosting profitability. By doing so, Zijin will contribute to a better life for humanity in a low-carbon future.
Wide participation and speeches by representatives
The conference was attended by heads of industry associations, universities, research and engineering institutes, mining companies, as well as academicians, experts and officials. These include Wang Dexue, Chairman of China Occupational Safety and Health Association, Peng Qiming, President of China Mining Association, Shen Zhengchang, Member of the Standing Committee of the National People’s Congress and academician of the Chinese Academy of Engineering, and academicians Zhu Rixiang, Hou Zengqian, Fu Xianzhi, Qiu Guanzhou, Cheng Huiming, Wu Qiang, Shao Anlin, Mao Jingwen, Chai Liyuan, Zhao Tianshou, Deng Jun, Sun Youhong, and Xu Zhenghe.
Present at the meeting were also Jia Mingxing, Vice President of China Non-ferrous Industry Association, Chen Jieping, Chairman of the national committee of Machinery, Metallurgy and Building Materials Union, Zhang Yongtao, Vice President of China Gold Association, Yang Renshu, President of University of Science and Technology Beijing, Wang Hua, President of Kunming University of Science and Technology.
Officials that attended include Ye Bihai, Deputy Director General of the Fujian Provincial Department of Science and Technology, Shi Bin, Vice President of the Fujian Provincial Association of Science and Technology, Chen Xiasheng, Executive Deputy Mayor of Longyan City, Luo Jian, Mayor of Shanghang County, as well as retired officials of Shanghang Ding Shida, Zheng Ruzhuan, Zhang Siliang, Xie Haibo, and Qiu Heqing.
Senior executives of Zijin Mining that attended the meeting include Chen Jinghe, Lin Shuiqing, Lin Hongfu, Lin Hongying, Xie Xionghui, Wu Jianhui, Li Jian, He Fulong, Mao Jingwen, Li Changqing, Suen Man Tak, David Bo, Wu Xiaomin, Shen Shaoyang, Shen Shaoyang, Long Yi, Que Chaoyang, Wu Honghui, Zheng Youcheng, and Liao Yuanhang. They were joined by former board directors, supervisors and executives, including Luo Yingnan, Wang Jianhua, and Lan Fusheng.
At the meeting, Wang Dexue, Peng Qiming, Chen Xiasheng, and Luo Jian delivered speeches. Jia Mingxing, Chen Jieping, and Zhang Yongtao read congratulatory letters from the industry associations they represent. Medals were awarded to representatives of employees who have worked in Zijin for 30 consecutive years to honor their dedication and service.
The meeting was also attended via video link or telephone by Chinese and international employees in venues in the Xiamen Office, the Zijinshan Gold-Copper Mine, and other Chinese and overseas affiliates.
Translator: Li Yuanxing Reviser: Jian Editor-in-Chief: Wang Jie