China Gold Group: Pioneer of "the belt and road initiative" Construction

Party Secretary, Chairman, China National Gold Group Corporation

Song Xin, President of China Gold Association

In his keynote speech at the opening ceremony of the "Belt and Road Initiative" International Cooperation Summit Forum on May 14, President Xi Jinping pointed out that over the past four years, more than 100 countries and international organizations around the world have actively supported and participated in the construction of "Belt and Road Initiative." important resolutions such as the United Nations General Assembly and the United Nations Security Council are also included in the construction of "Belt and Road Initiative. The construction of the "Belt and Road" has gradually transformed from concept to action, from vision to reality, and the construction has yielded fruitful results. Practice shows that the construction of "Belt and Road Initiative" has become an important measure to realize the diversified and sustainable development of all countries in the new era.

As the only central enterprise in my country's gold industry, China National Gold Corporation will thoroughly implement the spirit of President Xi Jinping's important speech at the "Belt and Road" International Cooperation Summit Forum, and inherit peaceful cooperation, openness and tolerance, mutual learning, mutual benefit and win-win results. The core Silk Road spirit actively participates in the construction of the "Belt and Road", and strives to be a pioneer in the construction of the "Belt and Road", and contributes to the construction.

Gold industry can be used as a leading industry in the construction of "the belt and road initiative"

The countries along the "Belt and Road Initiative" route gather about 80% of the world's emerging developing countries, and their per capita GDP is lower than the international average. Because of their rich mineral resources, the mining industry plays an important role in the national economic development of the countries along the "Belt and Road Initiative" route, and the mining industry in some countries is still the pillar industry of the country's economic development. Among the 18 countries in Central Asia, South Asia, Southeast Asia, and North Asia, which are relatively rich in mineral resources, 8 countries have mining output value accounting for more than 10% of GDP, and 4 countries have more than 20%.

In terms of gold resources, the resource advantages along the "the belt and road initiative" are even more obvious. According to incomplete statistics, the gold reserves of the countries and regions along the "Belt and Road Initiative" route are more than 23600 tons, accounting for about 42% of the world's gold reserves, of which Russia ranks third in the world. Kazakhstan ranks eighth in the world with gold reserves; Uzbekistan is rich in gold resources and is known as the "country of gold". Countries along the "Belt and Road" produce more than 1150 tons of gold, accounting for 36% of global gold production. Among the top ten gold mines in the world, 7 are in countries along the "Belt and Road". Among them, the Mulongtao Gold Mine in Uzbekistan and the Grasberg Gold Mine in Indonesia rank among the top two in the world with an annual output of 61 tons and 42 tons. It can be said that "the belt and road initiative" is also a "golden road".

The gold industry has a leading advantage and role in the construction of "the belt and road initiative. The basic supporting conditions required for the development of the gold mining industry are relatively low, and there is no need to build large-scale ports, docks, and railways; at the same time, due to the quick results of the development of gold resources, the products are easy to be realized, which can stimulate the employment of local residents in a short period of time and contribute tax revenue, which is conducive to the landing of the "Belt and Road Initiative" initiative as soon as possible.

my country's gold industry has technical advantages, especially in the treatment of refractory gold ore resources. The world's advanced gold extraction processes such as biological oxidation, raw ore roasting, and pressurized pre-oxidation have all been industrialized, and the technical indicators are also at the international leading level. This has created strong conditions for gold companies to "go global", especially to participate in the development of difficult gold resources in countries and regions along the "Belt and Road.

China's gold mines are small and scattered, and there are still few large and super-large gold mines, while the countries and regions along the "Belt and Road Initiative" route are not only rich in gold resources, but also have better resource endowments. Due to the limited economic level, the level of mining development in most countries and regions is low, and the exported mineral products are still mainly raw materials. Under the "Belt and Road" initiative, mining development is conducive to the full formation of gold resources along the route and my country's gold industry funds. Complementarity with technology, thereby accelerating local infrastructure construction and interconnection, and promoting the common development of countries along the "Belt and Road.

"the belt and road initiative" Initiative Helps to Promote Transformation and Upgrading of Gold Industry in Countries Along the Line

Countries and regions along the "the belt and road initiative" are rich in gold resources and demand for gold is also great. As a leading industry in the construction of "Belt and Road Initiative", the gold industry will not only contribute to the development of China's gold industry, but also play an important role in promoting the economic development of countries and regions along the "Belt and Road Initiative" route.

First, the "the belt and road initiative" initiative will help China's gold industry to innovate and develop and promote transformation and upgrading. The exploration and development of gold resources is a technology-intensive and capital-intensive industry with high development risk and long capital recovery cycle. However, after more than 30 years of technological innovation, China's gold industry has already possessed five major advantages: mining full tailings high concentration cemented filling technology, refractory ore processing technology, low-grade gold ore heap leaching technology, tailings concentrated paste discharge technology and low cyanide gold extraction technology. In recent years, my country's gold industry has cooperated closely with domestic large-scale mining equipment manufacturers, and the manufacturing level of high-end technical equipment and large-scale equipment has also reached a new level, and the level of large-scale, automation and intelligence has become higher and higher.

At the same time, with the development of the industry, my country's gold production has ranked first in the world for 10 consecutive years, and consumption has ranked first in the world for 4 consecutive years; domestically identified gold resource reserves have jumped to the second place in the world; there are 3 gold companies The group squeezed into the top 20 global gold companies; the total gold trading volume ranks among the top three in the world, and China has changed from a follower of the global gold industry to a leader. In this context, with the advancement of the "Belt and Road" construction, China's capital and technology are fully qualified to effectively connect with the resources and industrial development of countries and regions along the route, so as to achieve the goal of mutual benefit and common development.

Although my country's gold industry has made great progress in recent years, the gold industry is also facing severe situations such as large fluctuations in gold prices, rising costs year by year, and increasing difficulty in mining. The degree of digitization and intelligence needs to be improved. The requirements for transformation and upgrading are becoming more and more urgent. Participating in the construction of "Belt and Road Initiative" can not only promote the output of mature technology and large-scale equipment in China's gold industry, and bring more economic value to enterprises, but also in the process of cooperation between China's gold industry and foreign enterprises, implement the construction of gold mines in accordance with international advanced standards and concepts, promote exchanges and cooperation between the two sides, and improve the automation and intelligent level of China's gold enterprises.

Second, the "Belt and Road Initiative" initiative is conducive to China's gold enterprises "going out" and building world-class mining enterprises. From 2014 to 2016, the total trade volume between China and the countries along the "the belt and road initiative" exceeded 3 trillion US dollars. China's investment in countries along the "the belt and road initiative" has exceeded US $50 billion. Chinese enterprises have built 56 economic and trade cooperation zones in more than 20 countries, creating nearly US $1.1 billion in tax revenue and 180000 jobs for the countries concerned. Among them, from 2015 to the first half of 2016, among the top ten projects of China's investment in countries related to the "Belt and Road", the proportion of minerals in terms of investment amount was 10.91, which is very huge.

"Going out" has always been the strategic goal of my country's gold companies, and the "Belt and Road" initiative is an important historical opportunity. Although as of 2015, my country's identified gold resource reserves reached 11563.46 tons, second only to South Africa, ranking second in the world, but the resource endowment is poor and the development is difficult. With China's economy entering the new normal and the increasing standards of resource development, domestic gold enterprises are facing pressure from environmental protection, resources, sustainable development and other aspects. If they want to become stronger, better and bigger, they must actively "go out". In the construction of "Belt and Road Initiative", China's gold enterprises have accumulated advanced international management experience through mining development and cooperation, especially through cooperation with international first-class mining enterprises, so as to provide a basis for entering the global gold industry in the future.

Third, the "the belt and road initiative" initiative will help promote the development of gold markets in countries along the route. Most of the countries along the "Belt and Road" are emerging economies and developing countries. The "Belt and Road" initiative has a good foundation and advantages for promoting the cooperation and development of the gold market in the countries along the route. The development potential of the gold market in the countries and regions along the "Belt and Road" is huge. Affected by traditional culture, the countries along the "Belt and Road" have a wide range of gold demand, especially India, Turkey and some countries in Central and West Asia. China's gold production and processing capacity ranks first in the world, and the "Belt and Road Initiative" initiative has brought new major opportunities for China's gold and jewelry industry to expand international cooperation. On the other hand, advanced manufacturing technologies such as intelligent manufacturing and 3D printing can bring major changes to my country's gold and jewelry manufacturing process through the expansion of international cooperation and cultural exchanges, and contribute to the development and growth of my country's gold and jewelry industry.

Countries and regions along the "Belt and Road" also have a large demand for physical gold investment, with an annual demand of more than 730 tons, accounting for more than 72% of the world's total. The world's top ten gold trading markets account for 6, of which three gold exchanges in Shanghai, India and Dubai account for 15% of the world's futures trading volume. With the launch of the Shanghai Gold Exchange International Board and "Shanghai Gold", the Shanghai Gold Exchange's international market positioning has been further established. At present, the number of members of the Shanghai Gold Exchange International Board has reached 68. The "Belt and Road Initiative" initiative is not only conducive to opening up the development space of China's gold market, but also plays an important role in establishing and prospering the gold trading market in the "Belt and Road Initiative" region and promoting the economic development of countries along the route.

China Gold Group Actively Participates in the Construction of "the belt and road initiative"

China Gold Group has made great progress in internationalization in recent years, especially in countries along the "Belt and Road Initiative" route. China Gold Group is actively participating in mining development and cooperation and implementing the "Belt and Road Initiative" initiative with practical actions.

China Gold Group's overseas resource mergers and acquisitions are based on the basic idea of "based on the surrounding areas, entering developed mining countries, and participating in Africa and Latin America". The primary investment targets are my country's neighboring countries, such as Thailand, Mongolia, Laos, Vietnam, Indonesia, Papua New Guinea, Russia and Five countries in Central Asia, and Africa is also one of the key areas for China Gold Group to conduct overseas mineral resource mergers and acquisitions.

In May 2015, under the witness of President Xi Jinping and Russian President Putin, China Gold Group and Russian Polar Gold Company signed a cooperation framework agreement on the cooperative development of gold and non-ferrous metal resources. The Sorimi copper-lead-zinc mine has been built in Congo (Brazzaville) in Africa and has been put into operation. There are two large-scale mining projects in Kyrgyzstan, namely copper-gold mine and gold mine. Last year, it acquired 82% of the shares of Guizhou Jinfeng Gold Mine, a Canadian Elrado Gold Company. At the same time, China National Gold Group is also tracking a number of mineral resources projects to further increase its participation in the construction of the "Belt and Road. In addition, CICC has undertaken overseas mine construction projects in Congo (Brazzaville), Kyrgyzstan and Eritrea. CICC Trade has opened up new channels for the import of gold concentrates and exported large-scale gold production equipment to Russia in the form of railway trains. Changchun Gold Design Institute has undertaken relevant design projects in Tanzania. Changchun Gold Research Institute took the initiative to introduce international gold standards.

In order to better implement the "Belt and Road Initiative" initiative and actively "go out", China Gold Group has set up an international talent team to understand overseas mining markets, capital markets, law, finance and so on. Through the running-in with the international mining market and capital market, we have established our own project information database. At the same time, China Gold Group maintains a very good international image and has received a BBB rating in the international market. Congo (Brazzaville) President Sassou once spoke highly of the development projects of China Gold Group in Congo (Brazzaville). He said that China Gold Group is a real help to help the people of Congo (Brazzaville) develop mining, increase employment opportunities and develop the economy. In Kyrgyzstan, China Gold Group strictly abides by local laws and regulations, pays attention to the relationship with the local community, and actively participates in charity, which is widely praised. The chairman of Kyrgyzstan's National Industrial Energy and Mineral Management Committee said that China Gold Group is a powerful, skilled and responsible large enterprise and a conscientious enterprise.

In order to improve core competitiveness, enhance its influence in the gold industry, and participate in the construction of "Belt and Road Initiative", China Gold Group vigorously promotes strategic transformation, strives to be practical and excellent, and vigorously implements cost control in the whole process. In the past three years, through the vigorous implementation of the whole process of cost control, the cumulative potential has been tapped and the efficiency has increased by up to 1.092 billion yuan; through the strict implementation of the concept of "construction is not complete, optimization is not limited", and the total optimization has reduced investment by 5.628 billion yuan. These measures have effectively responded to the price of major mineral products. The risk of falling has significantly enhanced the ability to resist risks, and economic benefits have increased significantly. China Gold Group adheres to the financial management concept of cash as king, accelerates the integration of industry and finance, and further enhances its multi-channel financing capabilities. In recent years, the establishment of financial companies and leasing companies has marked the further development of China Gold's entry into the field of financial services in the transformation and development, adding new impetus to the expansion of market-oriented financial business for the whole group.

Scientific and technological innovation is an important bargaining chip for China National Gold Group to become the forerunner of "Belt and Road Initiative". As the president unit and industry leader of the China Gold Association, China National Gold Group has always regarded scientific and technological innovation as a strategic fulcrum to meet market challenges. continue to build scientific and technological innovation bases and high-end talent training platforms, continue to increase investment in science and technology, and vigorously tackle key scientific and technological problems, A major breakthrough has also been made in low-cyanide gold extraction technology. China Gold Group has two national scientific research and design units with a history of nearly 60 years, Changchun Gold Research Institute and Changchun Gold Design Institute. It has 7 national innovation platforms, 5 provincial and ministerial innovation platforms, 2 academician expert workstations, and model workers There are 45 studios and 11 high-tech enterprises; 2 people in the "Thousand Talents Program" and 1 person in the "Ten Thousand Talents Program, there are 1 national technical expert and 11 experts enjoying the special allowance of the State Council; a total of 86 technical standards have been developed and 68 standards have been promulgated, accounting for more than 95% of the total number of my country's gold industry; it has 536 valid patents, and the award-winning patents have entered the top 80 of central enterprises for the first time; 8 systems and management methods to promote scientific and technological innovation have been formulated; an information sharing platform for scientific and technological achievements of the Golden Group; preparations are under way to build the Central Research Institute and innovation base of China Gold Group; during the 12th five-year Plan period, it has won 224 scientific and technological awards at or above the provincial and ministerial level, 424 authorized patents and 42 promulgated standards, and the number of scientific and technological achievements has increased rapidly, 3.2 times, 6.1 times and 1.2 times that of the Eleventh five-year Plan period, respectively. We have formed a gold industry technology innovation alliance with 25 gold enterprises, leading China's gold industry technology.

Gold resources development should actively practice the "five development concepts"

Although China has broad prospects for mineral resources cooperation with countries along the "Belt and Road", it also faces many challenges. As the leading industry of the "Belt and Road Initiative" initiative, in the construction of "Belt and Road Initiative", China Gold Group has continuously deepened its understanding of the "Belt and Road Initiative" initiative. firmly establish the five development concepts of "innovation, coordination, green, openness and sharing" put forward by President Xi Jinping.

First, innovation and development, positive transformation. China's gold enterprises should give full play to the role of the technological innovation alliance of the gold industry, strengthen the tackling of difficult problems in the industry, and transform gold enterprises to multi-metal diversification. extend to the fields of gold intensive processing and intelligent manufacturing, and provide technical support for the construction of "Belt and Road Initiative. At the same time, actively promote business model innovation, grasp the new opportunities of the "Internet", give full play to the powerful traction of large-scale customization and personalized demand for gold jewelry processing, vigorously implement digital products and high-tech product strategies, and explore new models for enterprise development New business formats.

The second is coordinated development and unity of quality and efficiency. When developing resources in countries along the "Belt and Road Initiative" route, we should pay more attention to the quality and efficiency of development while paying attention to the speed of development, and achieve quality and endogenous development; we should coordinate the relationship between mining and non-mining, large gold enterprises should carry out classified development during the construction of "Belt and Road Initiative", and speed up strategic coordination for non-mining sectors. Prevent the dispersion of investment and excessive decentralization of energy, to achieve a win-win situation; to coordinate the relationship between overall benefits and employee income, the reason why the gold industry can become the leading industry of the "Belt and Road" initiative is because mining development can drive local employment and promote local economic development. Gold companies are participating in the "Belt and Road". In the construction of "One Road", it is necessary to let the majority of employees, especially local employees, share the benefits brought by mining development.

The third is green development and fulfilling responsibilities. To participate in the construction of "Belt and Road Initiative" and the development of gold resources, it is necessary to speed up the pace of sustainable development, strictly grasp safe production, develop green economy, adopt green gold extraction technology and mine development methods, and fulfill social responsibility. this is related to the future and destiny of gold enterprises in mining development in countries and regions along the "Belt and Road Initiative" route. The politics, culture, religion, and ideology of the countries and regions along the "Belt and Road" are more complicated. In the process of resource development, it is necessary to abide by local laws and regulations, respect local social customs, and maintain good relations with all relevant parties. Strengthen communication with non-governmental organizations and ordinary people to win a better external environment for mining investment. At the same time, actively explore new ideas for the development and construction of international mines, and use the idea of green development to guide the whole process of the development of the gold industry.

Fourth, open development and win-win cooperation. To implement the "Belt and Road Initiative" initiative, Chinese gold enterprises should step up their efforts to "go global", give full play to the advantages of gold's leading industry, and make full use of investment platforms such as the Asian Infrastructure Investment Bank and the Silk Road Fund. We will work with countries and regions to build a capital platform for mineral resources investment, invest and benefit together. At the same time, Chinese gold companies must also unite to "go global" and actively cooperate with central enterprises, state-owned enterprises, private enterprises that have "gone global", and foreign enterprises to achieve strong alliances to enhance their "going global" strength. Relying on CICC International, China National Gold Group absorbs international capital on the basis of resources, which improves the international operation level of the project and promotes the rapid development of China National Gold Group.

Fifth, shared development and complementary advantages. President Xi Jinping said at the opening ceremony of the "Belt and Road" International Cooperation Summit Forum that the construction of the "Belt and Road" is not to start anew or overthrow, but to achieve strategic docking and complementary advantages. When China Gold Group invests and builds in countries along the "Belt and Road", it mostly conducts joint ventures and cooperation with the host country, forming a mutually beneficial and win-win joint development model. At the same time, learn from others' strengths, actively absorb the advanced experience of foreign mining companies, and strengthen the mutual exchange and learning between the gold industry and the non-ferrous, coal, steel, non-metallic mining industries, learn from experience, achieve complementary advantages, and promote the development of the gold industry.

At the opening ceremony, President Xi Jinping quoted a proverb: "There is an old Chinese saying: 'No small steps, no miles. 'An Arab proverb says, 'Pyramids are built from stone to stone.' There is also a saying in Europe: 'Great undertakings are not built in a day'. The construction of the Belt and Road is a great undertaking that requires great practice." China National Gold Group will practice the "Five Development Concepts" with practical actions, actively participate in the construction of the "Belt and Road", and cooperate with countries and regions along the route for win-win cooperation and common development with an open and inclusive attitude.