Poker Finance brand: the most trusted commodities and financial services industry think tank.
Cross-border, depth, professional – brings together the industry’s most worth sharing, the most knowledgeable information concentration.
Welcome to the venue and micro-channel public platform: depth analysis of the world’s largest mining company and the successful experience of the development process : puoketrader, Website: poker large investors and financial industry think tank platform
Wen | Chiu competing sources | Mining Australia, ID: miningau Edit | Poker investor, please indicate the source
research by world-class mining company’s development process and successful experience, summed up a number of common law in its development process.
Combined with the macroeconomic situation and the characteristics of the current non-ferrous industry, several key points discussed China Nonferrous mining enterprises and other small and medium sized mines in the developing world should pay attention to.
Decade “Eleventh Five-Year”, the China Nonferrous Metals Industry decade of sustained and rapid development.
Compared with the “Eleventh Five-Year” initially, to China Aluminum Industry, China Nonferrous Metals Group, China National Gold Group and other large central enterprises as the representative of China Nonferrous mining enterprises are earth-shaking changes have taken place from the size and strength.
However, in the face of the current complex economic situation, as well as under the “new normal” focuses on strong, innovation-driven new requirements, the basis for sustainable development of the China Nonferrous still strong, a lot of pressure to upgrade and difficulty.
Especially when compared with BHP Billiton, Rio Tinto and other international mining giant, the development of China Nonferrous enterprises still faced with the problem as a whole lags behind, either scale or resource control, profitability, the industrial structure, brand influence and popularity, both
there is a big gap.
However, it should be recognized that after the process of development of advanced enterprise companies continue to catch up with the development of the nature of the enterprise.
Although China Nonferrous currently large gaps in development and large multinational mining companies, but by learning the law of development of advanced enterprises, rational learn from their successful development strategies and development models, fully absorb its lessons, also can backward into the hair
a powerful driving force strengths and development in order to achieve the international mining giant to catch up with and even surpassed.
Therefore, the study of the law of development and characteristics of large multinational mining companies, enterprises and Make for China Nonferrous has important practical significance.
law of large mining companies to develop and features
This paper focuses on BHP Billiton, Rio Tinto, Glencore – Xstrata, Vale do Rio Doce,
Canada’s first quantum and other world-class mining companies were investigated and concluded that large-scale mining companies five major laws prevailing in their growth process.
a, globalization strategy oriented to developing countries to focus on development areas
large multinational mining companies at an early stage of development, due to the mining
technical and financial limitations, the majority are single minerals specialization, localization business model.
But after the accumulation of capital and the scale of production to a certain extent, with the horizontal and vertical continuous expansion of business areas, well-known international mining companies have to go abroad to carry out global management.
can be seen from Table 1, the distribution of large multinational mining company’s main business resources, in addition to the major mining groups based on the local, mainly to expand to developing countries and less developed countries.
The reason is: the Western developed countries increasingly saturated market of mineral resources, mining more difficult, higher costs, and protect the intent of developed countries on their own resources strong environmental constraints and regulatory restrictions on the entry of more and more mining investment
strict; and mineral reserves of developing countries are relatively abundant, relatively low level of mining exploration and development, and for the development of their economies, most of them tend to improve their mining investment environment to attract foreign exploration and development of its own resources.
Therefore, large multinational mining companies and mining investment in mineral exploration activities focused on the global stage most good mining investment environment in developing countries.
Second, to raise the upstream mineral reserve the ability to control resources as the fundamental implementation of the whole industry chain development strategy
non-renewable mineral resources determines the upstream resources
reserve the importance of sustainable development of mining companies.
The world’s largest mining company in the course of its development without exception, the upstream resource reserves, with strong and stable ore supply base as the basic starting point for strategic planning.
On the one hand by increasing self-exploration investment, on the other hand through the purchase of existing shares or exploration results of the continuous expansion of their way upstream resource reserves, expand the service life of the mine resource type.
such as BHP Billiton in more than a century the course of development, always adhere to the mineral resources and development as the main business, by controlling the huge amount of resources and improve the core competitiveness, iron ore, for example, its share
up to 10%, and with the monopoly pricing of iron ore and other several giant, which has always been living in an invincible position during price negotiations.
Currently, BHP Billiton global mineral exploration business through six specialized subsidiaries around the world (Asia, Singapore, Australia, Perth, Johannesburg, South Africa, Europe, Moscow, Rio de Janeiro and South America, Canada, Vancouver) is.
In 2014, BHP Billiton exploration investment of about 10 billion US dollars, accounting for 2.44% year operating costs.
According to the statistics of the major mining companies the proportion of the total cost of exploration costs seen in 2014, BHP Billiton, Rio Tinto and Canada’s First Quantum and other world-renowned mining exploration company into operating costs generally account for the year
about 2% -2.5% (see Table 2).
On the basis of control of resources on the world’s major mining companies generally internal to the minerals industry downstream industry chain extension, increase the added value of products, the implementation of vertical integration business strategy.
Such as Brazil’s Vale on the basis of iron ore, coal resources mining and smelting on, respectively, with JFE Steel Corporation in the United States established a joint venture in California Steel Industries, Inc. (the company is currently the world’s largest steel billet import enterprises), production
flat steel, galvanized steel and composite pipe, its annual output will reach 2.8 million tons of steel; and the German company Thyssen Krupp Brazil joint venture of the annual output of 5 million tons of steel TKCSA projects; and Dongkuk steel joint venture in northern Brazil
construction of the annual output of 300 million -600 ten thousand tons of steel slabs CSP projects.
Third, relying on mergers and acquisitions to achieve optimization and
the world’s largest mining company achieve strategic resource reserves, and the whole industry chain strategy through mergers and acquisitions, in order to
big as a means Zuoyouzuoqiang as a fundamental goal.
In the process of M & A, the world’s largest mining companies can better achieve operating scale and optimize the allocation of resources, reduce operating costs and improve efficiency, strengthen the core business, enhance the competitiveness of enterprises, to better achieve and consolidate its international
monopoly minerals market.
Such as BHP Billiton in 2005 for $ 7.3 billion acquisition of Australia’s WMC mining company, a move not only for BHP Billiton increased world-class nickel, copper reserves, but also by new uranium mine in order to improve the company’s energy industry chain.
mining company Xstrata in 2001, only a small Swiss-listed mining company, worth about $ 500 million, mainly in Europe and South Africa and zinc ferroalloy business operations.
In 2002, the company successfully acquired Enex Australia and South Africa Duiker coal worth $ 2.5 billion in assets, has become the world’s largest thermal coal exporter.
In June 2003, Xstrata again to $ 2.9 billion to buy MIM … Holdings, MIM … Holdings is an Australian mining company, mainly engaged in the business of coking coal, copper, lead, zinc, silver and gold.
The acquisition expands Xstrata’s business area, and opened up two new areas of production: copper and coking coal.
2013 years Xstrata and Glencore merger agreement, the merger of Xstrata Group by 2.8 per share will be exchanged 1 share by the way Glencore.
The transaction became by far the largest mining industry merger, the merged Glencore – Xstrata Group will control 32% of international trade in steam coal, 15% of zinc production, and become the world’s third-largest copper producer
, after BHP Billiton, Rio Tinto and Vale, the world’s fourth-largest mining giant, with a total market capitalization of $ 90 billion.
Fourth, experienced a period of adjustment
After rapid growth
major multinational mining companies to enter the time and the market environment in the mining sector are different
, but most experienced birth, growth, rapid expansion and development stage adjustment.
Strategic adjustment and economic development enterprises, especially industrial economic development are closely related.
The two oil crises in the 1970s after the Second World War had led to the worst economic crisis in Western countries, the consumption of the overall international economic environment deteriorate, copper, aluminum, zinc and other minerals appear sharp drop in raw materials, mineral products international market prices
decline in global mining market is the “great Depression” state, a large number of mines were forced to cut production or shut down.
So, from the mid-1980’s, the world-renowned mining companies have taken positive asset restructuring approach, the lack of competitiveness of enterprises divest non-core businesses and focus on the use of funds to the development of the core return
business, excellent large-scale mergers and acquisitions of mining assets in small and medium sized mining companies, in order to strengthen its core competitiveness and brand.
The new “core” Anglo American in the 1980s has raised about $ 80 billion from divesting non “core” assets (mainly in the industrial and financial services of the majority stake), while acquisitions worth about $ 12 billion in assets
, including: the acquisition of Shell’s stake in Australian coal and Venezuela, followed by the acquisition of Colombia’s largest coal mine –CerrejonNorte one-third of the shares, and $ 1.3 billion in net acquisition of large-scale, low-cost copper producer in Chile
enterprise –Disputada, thus ensuring Anglo American’s position as the world’s leading low-cost copper producer, and the acquisition of Kumba Mining Limited (Kumba resources Limited) 67% stake, to achieve a strategic companies to enter the iron ore industry
CVRD has always adhere to the reorganization of the way the ongoing positive internal adjustment.
According to statistics, since 2000, the company’s total carried out 40 mergers and acquisitions activity, the total expenditure of $ 8.51 billion; and the spin off of the same period owned enterprises reached 54, return of capital of $ 10.09 billion (of which: 2008 international financial
peel crisis before 21 enterprises, involved funds of US $ 4.15 billion; peel has 33 enterprises after the financial crisis, the funds in question were $ 5.94 billion).
Fifth, advanced management, in line with their actual maturity management system
to BHP Billiton, for example, through the development of more than a century, the company in business management
the already quite mature: First, efficient operation and management systems.
BHP Billiton to all of its enterprises to establish a common ERP system.
The system will be personnel, finance, market information and other modular enterprise run by big data to improve the standardization of management, reduce duplication of effort, so as to enhance business efficiency.
Second, strict capital management systems.
BHP Billiton to optimize net present value, internal rate of return on capital and income funds as the core management system, sustainable access to financing through asset-liability ratio to maintain a healthy and competitive funding to the project.
The third is active portfolio management systems.
Focus on mergers and acquisitions in high-quality projects, while BHP Billiton ongoing internal integration, positive internal reorganization of assets, in order to better integrate resources and improve efficiency.
Fourth, improve risk management systems.
BHP Billiton has a mature enterprise risk warning and the corresponding preventive system, a comprehensive assessment of the factors causing the potential impact on business goals, including external risk, business risk, financial risk, operational risk and risks for sustainable development, and by the risks detailed
analysis propose appropriate measures to avoid.
Implications for China Nonferrous Enterprises
a, seize the opportunity to adhere to the development, speed up the “going global” < / p>
currently, many Chinese non-ferrous enterprises have to go abroad, overseas resource development layout has formed a considerable scale, for the quality and efficiency goals laid a solid foundation, created favorable conditions.
The next step should continue to play the characteristics and advantages, carry out international operations, to seize the opportunity of the international non-ferrous metals market downturn, unswervingly adhere to the development, to maximize the cumulative strength, expand strategic resource reserves, narrowing the gap with the international giants.
Second, focus resources to high-end, concentrating power
China Nonferrous shall ensure that the core competitiveness of enterprises and on the basis of first-mover advantage
allocation of resources human, technical, financial, channels, social relations through internal optimization, to further promote the development of mineral resources.
On the basis of rising levels of resource control, to strengthen efforts on resource reserves to increase economic efficiency or cost to achieve the leading premise of timely promote the conditions and the potential of its high-end value chain resource projects in your field extension, foster new competition
Third, orderly retreat, restructuring and development
In the current economic situation, some global resources giant has begun to certain vulnerable downstream industries
exit and focus on more profitable upstream mining industry.
In the case of government strategic adjustment of economic structure, structural adjustment and transformation and upgrading has become the main trend of the development of the industry, it should be adhering to the “advance and retreat, orderly retreat” principle, and consider and handle the “retreat” of
For prospects, strong management, high profitability, good business development trend, in accordance with the requirements of mixed ownership reform, the introduction of employee stock ownership mechanism, the use of equity incentives and other means to find ways to retain these core business management and technical personnel
, with a solid foundation to further tap its potential; the prospects are not optimistic, lack of energy management mechanisms, the development of a heavy burden of enterprises, should be leveraging the capital markets, accelerate the withdrawal or give up a controlling stake, to reduce stress and burden for the transformation
upgrading and improving efficiency to create good conditions.