Serving the National Resource Strategy and Safeguarding National Economic Development

—Excerpted from the Speech at the First Silk Road Energy and Mineral Resources Conference

Ge Honglin Secretary of the Party Committee and President

China Nonferrous Metals Industry Association 

Photo source: official Wechat account of the China Nonferrous Metals Industry Association

At present, changes in the world, the times, and history are unfolding in an unprecedented way. In the critical stage of the global economy's moderate recovery and sustained green transformation, the stable supply and efficient cooperation of energy and mineral resources are crucial to the security of the global industrial chain and the future of human sustainable development. With the "Silk Road" as the link, this conference focuses on energy and mineral resources cooperation, which is timely and of far-reaching significance.

I. Remarkable Achievements of China's Nonferrous Metals Industry During the "14th Five-Year Plan" Period

2025 is the final year of the "14th Five-Year Plan." Based on the new development stage, implementing the new development concept, and building a new development pattern, China's nonferrous metals industry has made remarkable achievements in high-quality development, with continuously enhanced core functions. Domestically, it has strongly supported the high-quality development of strategic emerging industries, major projects, and national defense and military industry; internationally, it has strongly supported the trade game with Western countries, demonstrated strategic confidence, and become an important bargaining chip for countermeasures.

In 2025, China's output, operating income, and profits of major nonferrous metals will exceed 80 million tons, 10 trillion yuan, and 450 billion yuan respectively, radiating the vitality of "traditional industries developing like a rising sun." It is worth noting that according to the 2025 carbon emission forecast, China's aluminum industry has achieved carbon peaking ahead of schedule in 2024, six years earlier than the national "dual carbon" target. For a high-energy-consuming traditional industry, this is indeed not easy.

II. The Nonferrous Metals Industry is a Forerunner in Building the "Belt and Road" Together

As one of China's earliest industries to "go global," the nonferrous metals industry has always actively practiced the "Belt and Road" Initiative, deeply participated in global mining governance and industrial chain cooperation, with firm steps and fruitful results.

1. Upgraded and Expanded Overseas Investment, with Major Projects Taking Root

Chinese-funded enterprises have invested in more than 200 nonferrous metal resource projects overseas. In 2025, the total overseas assets and operating income of the top 20 enterprises in the industry's overseas assets reached 1.3 trillion yuan and 891.2 billion yuan respectively, a significant increase compared with 2020.

2. Rising Reserves of Equity Resources and Enhanced Security Guarantee Capacity

Chinese-funded enterprises have abundant equity resources of key minerals overseas, equivalent to building another strategic resource "granary." The proportion of overseas equity copper output in domestic demand has reached 23%, and the proportion of overseas equity bauxite output in imports has exceeded 60%.

3. Private Enterprises Emerging as a New Force in Going Global

Private nonferrous metal enterprises account for half of the industry in terms of investment scale, operating income, and profit contribution. They have made outstanding contributions in acquiring overseas resources such as bauxite, copper, lithium, cobalt, and nickel, playing an irreplaceable role in building China's diversified resource supply system.

III. Jointly Building a Safe, Win-Win and Sustainable "Metal Silk Road"

At present, the strategic status of the global nonferrous metal mining industry is becoming increasingly prominent, but new challenges such as intensified geopolitical games and the rise of resource nationalism are also becoming more and more prominent. Although there are risks and challenges in acquiring the country's scarce strategic resources, we must recognize risks to overcome them and achieve success in overcoming risks. Specifically, we need to do a good job in six aspects:

1. Proactively Develop Overseas Resources to Increase Reserves and Production, and Reduce Worries for China's Economic Development

China is a major producer and consumer of nonferrous metals, but not a major resource country. Despite accelerating a new round of prospecting, reserve increase, and production expansion in recent years, it is still far from meeting the demand, and some have paid a huge economic price, such as the negative TC/RC (treatment and refining charges) for copper smelting. We need to further raise the whole society's awareness of the importance of strategic resource guarantee, create new conditions, and encourage mining enterprises to "go global." At present, it is particularly important to strengthen the confidence and determination of private mining enterprises to go global, support and encourage them to acquire more strategic mineral resources for the country, and reduce worries for China's economic development, especially the development of strategic emerging industries.

2. Accelerate the Legislation Process for Overseas Investment Protection to Escort Enterprises Going Global

Overseas investment and operation often face complex geopolitical environments and legal regulatory systems. Faced with challenges such as "decoupling and breaking chains" pursued by individual countries and the rise of protectionism, while requiring enterprises going global to establish and improve risk identification and response systems, we should also respond to the calls of these enterprises, accelerate the legislation process for overseas investment protection, and upgrade the protection mechanism from administrative response of "case-by-case handling" to a systematic project of "having laws to abide by," so as to safeguard legitimate overseas interests and personnel safety in a legalized manner.

3. Explore the Establishment of Overseas Mining Development Funds to Increase Financial Support for Enterprises Going Global

At present, China's industrial development funds mainly operate domestically. Many investors are accustomed to the high-speed growth of enterprises and hope to "expand the market in six months, see results in one year, and list in three to five years." However, overseas mining investment, due to its late return and long cycle, faces greater operational difficulties in the initial and final stages of fund operation—fundraising, investment, management, and exit. Despite the considerable challenges, it is still worthwhile to explore the establishment of overseas mining development funds. To a certain extent, this is also an inevitable path for China to become an investment power. It is suggested to actively seek the support of relevant government departments, organize the participation of social forces, explore the establishment of overseas mining development funds, and focus on private investment projects of key mineral resources that China is short of in politically stable regions along the "Belt and Road," so as to increase financial support for private enterprises going global.

4. Attach Great Importance to Country Concentration Risk and Proactively Develop New Overseas Resource Countries

At present, the supply sources of China's key overseas resources are still relatively concentrated, showing a phenomenon of "excessive clustering" to varying degrees. For example, the concentrated mining and large-scale supply of bauxite in Guinea have reached a point where changes must be made. From 2021 to 2024, the proportion of China's bauxite imports from Guinea alone has rapidly increased from 51% to 69%. Historical experience tells us that excessively high country concentration may transform interdependence into one-way dependence, which is prone to triggering policy fluctuations in the host country. Even without geopolitical interference, there will be geoeconomic interference. Enterprises going global should be good at developing new countries and avoiding follow-up investment.

5. Fulfill Social Responsibilities with the Times and Systematically Integrate into the Operation of Overseas Projects

"Friendship between countries lies in the amity between their peoples." Many Chinese-funded enterprises have built schools, hospitals, and protected cultural heritage in countries such as Zambia, Peru, the Democratic Republic of the Congo, and Guinea. These initiatives have won the hearts of the people and are the bounden responsibilities and obligations of Chinese-funded enterprises in practicing the concept of a community with a shared future for mankind. Enterprises going global should be willing and good at fulfilling social responsibilities, promote people-to-people bonds, systematically integrate ESG concepts into overseas operations, drive local development through projects, feed back communities with industry, actively release social responsibility reports, and build a community with a shared future with local societies.

6. Attach Great Importance to Overseas Industry Self-Regulation and Resolutely Prevent "Involution Externalization"

"Involution" can be prevented, and even if it occurs, there are ways to deal with it, although some costs may be incurred. The legalized and market-oriented reform of China's electrolytic aluminum industry in 2017-2018 is a successful case, and the reform dividends are still being continuously released. Various cases show that "involution" mostly evolves through a process of accumulation, so it is important to prevent problems before they occur. Enterprises going global, operating in overseas markets, should attach great importance to communication and coordination, and establish industry associations or self-regulatory organizations when conditions permit, form market rules that all parties abide by, and prevent "involution externalization."