Amid a global economic slowdown and increasing political uncertainty, Chinese mining companies are accelerating technological reform efforts in a bid to conquer operational challenges stemming from an "unprecedented transformation" across global capital markets, according to company executives and economists.
In an Oct. 10 speech at the China Mining Conference and Exhibition in Tianjin, BOC International Holdings Ltd. CEO Li Tong said global capital markets are faced with an "unprecedented transformation" against the backdrop of a continuous escalation of trade tensions between the world's two largest economies, loose monetary policies by central banks across the globe and rising downside risks for the global economy. BOC International Holdings is a subsidiary of Bank of China Ltd.
"It casts a shadow over global mining demand and will bring more operational challenges for companies in the industry," Li added.
Li anticipates further adjustments to commodity prices, which may make it more difficult for mining companies to improve profitability.
This view was echoed by George Fang, executive director and senior vice president of Zijin Mining Group Co. Ltd., and Li Faben, general manager of China Molybdenum Co. Ltd., who believe the macroeconomic picture is posing challenges to traditional industries including mining.
To deal with the challenges, China Molybdenum's Li said Chinese mining companies are prioritizing the integration of technology into their operations to improve profitability and reduce the impact on the environment, amid increasing regulation by the Chinese government. "Intelligent mining and green mining will be the biggest stories for the Chinese mining sector into the next few years," Li added.
Li also said the company will be seeking more opportunities to introduce artificial intelligence, fifth-generation network powered equipment, and big data technology to better manage and operate its mines.
Zijin Mining's Fang also said the mining industry should keep up with the most advanced technology, noting equipment like the 5G network powered excavator developed by Huawei Technologies Co. as one of the latest technology adopted by mining companies.
Speaking of the company's strategic plan over the next 10 years, Fang said Zijin Mining is aiming to become a first-tier mining company by 2030 by enhancing its brand image in the world.
"We are targeting to be a major player in the global gold, copper and zinc markets by 2020," Fang said. "By 2030, Zijin's goal is to become a tier-one mining corporation in the world and another 'Huawei' in the mining sector."
