China Mineral Resources Group Co., Ltd., a new central enterprise integrating various mineral resources, was established with a registered capital of 20 billion yuan and registered in xiong'an new area. Its business scope includes mineral resources (non-coal mines) mining, mineral processing, metal ore sales, import and export of goods, etc.
According to the business scope of this new central enterprise, China Mineral Resources Group may enhance China's influence and international voice in mining and other aspects from the following two aspects.
1. Buy more mine resources to become bigger and stronger.
In the future, China Mineral Resources Group can not only integrate mine resources at home, but also purchase some iron ore and other mine resources internationally, which may better ensure the domestic demand for all kinds of ores.
At present, China has a large amount of foreign exchange reserves. If this money is used for the acquisition and operation of some overseas mines, it will not only produce better economic benefits, but also better protect the needs of China.
In the future, the more mine resources you have, the more ore you will produce every year, the more share you will occupy in the world, the larger the scale of the enterprise, the stronger the competitive strength of the enterprise and the greater the corresponding right to speak.
Therefore, China Mineral Resources Group may acquire more mineral resources at home and abroad in various ways in the future.
2. Centralized procurement
At present, the global iron ore is basically in a relative monopoly position, and there are only four iron ore giants left in the world: Rio Tinto, BHP Billiton, Vale and FMG. It turns out that thousands of iron and steel enterprises in China purchase iron ore from four major suppliers. As a result, thousands of domestic enterprises are fragmented, resulting in weak discourse power and may have to pay more costs in procurement.
In the future, if China Mineral Resources Group concentrates on purchasing a large part of iron ore demand, then in the case of one to four, it is likely to lower the price, which may better reduce the cost of iron ore procurement, and thus may gain greater influence and voice.
Therefore, China Mineral Resources Group may expand its influence and voice through centralized procurement in the future.
3. Conclusion
To sum up, the establishment of China Mineral Resources Group, a central enterprise, probably has two major purposes. One is to integrate and purchase more mine resources, make the ore industry bigger and stronger, and gain greater influence and pricing power. The second is to concentrate on purchasing, enhance the right to speak and influence, and thus gain greater influence and pricing power.