2023 Industry Outlook: Mining in China | An Underground Miner

The People's Republic of China is a large country rich in mineral resources, with a long history of funding national development through mining production.

The raw materials mined in China are used to make a wide variety of important industrial products.

The remarkable abundance of certain minerals has led to several foreign investments vying for mining rights from the government throughout the years.

Keep reading for a detailed look at China's mining industry, including its history, as well as the effects environmental protection interests and other relevant laws have had on the industry in recent decades.

If you aren't familiar with the Chinese economy, you may find yourself wondering, "Is mining big in China?"

The fact is the country is actually considered the biggest mineral extraction industry in the world.

Mining has long been important to China's economic development, and it continues to be a major facet of the country's economy to this day.

The country is a leading exporter of several important mineral resources, including gold, zinc, copper, and solid fossil fuels.

In fact, one of the only major mineral resources not found in abundance on the mainland is iron ore.

Mines have been active in China for over 6,000 years, long before the dawn of the global industrial age.

Chinese gold miners pioneered some of the earliest mineral processing technologies in 1096 C.E. when they realized they could crush gold-threaded rocks to extract the precious ore more easily.

With the rise of environmental protection interests in the 20th century, the government instituted a reform commission that required an environmental impact assessment to be performed before the opening of any new mines.

A comprehensive application of ecological restoration technology is expected of all developers wishing to perform mineral extractions.

A considerable resource tax is levied on all natural resources logged or extracted from Chinese soil, including a value-added tax for mineral resources.

Today, the government sets strict national standards for mineral rights, property rights, and business licenses for Chinese miners and mining activities.

Land use licenses are only valid for a certain period of time, after which the rights will come under assessment again.

Foreign investment in Chinese mines is also closely regulated by the relevant authorities within the legal system, and financial institutions are forbidden from issuing mining permits, which must come instead from the government.

CC Image by LHOON via Flickr

Coal mining is one of China's most prevalent mining industries, producing nearly half of the world's entire supply.

There are proven reserves all over the country, including large deposits of top-quality coking coal in the western and northern regions.

However, other non-metallic minerals, such as natural gas minerals, aren't as common.

While experts have extensively researched engineering services to make geophysical prospecting and oil exploration more efficient, these efforts have not borne much fruit.

Mainland China is also a leading producer of rare earth metals. These highly valuable mineral products are used in a variety of electronics, clean energy, and several other types of new technologies.

China announced a joint venture between three of its largest mining companies in December 2021, allowing the Chinese government to consolidate its rare earth mining assets into one huge company.

Gold is another extremely valuable mineral resource commonly extracted in the country.

In fact, China was listed as the largest producer of gold ore in 2021 by the United States Geological Survey.

If you're wondering, "What is the largest mine in China?" the answer is Jinfeng Gold Mine in the Guizhou Province.

Mineral deposits of base metals such as copper, aluminum, and zinc are also very common.

These elements are vital to several aspects of industry, development, and technology and are in high demand around the world.

Radioactive minerals are less widespread but still constitute an important chunk of the industry.

The government announced it had discovered massive reserves of uranium in the spring of 2022.

If true, the claim would put the country on par with Australia as a holder of the technologically significant mineral.

China also maintains significant mining activities in several other countries, most notably in parts of sub-Saharan Africa and Australia.

These mining sub-sectors are China's primary source of iron ore and other raw materials that are in short supply on the mainland.

Learning about the scope of this country's mining investment can lead a person to wonder: How many mines does China have?

The answer is in the tens of thousands, though several of these mining sectors are under the control of foreign investors rather than being held by state administration or local governments.

Some of the largest mining companies in the country are:

Thanks to its impressive bounty of mineral resources, China has been a global leader in mining activities for thousands of years.

The country is the world's largest producer of many of the most industrially significant metals, as well as several precious metals and certain fossil fuels.

There is little doubt that the Chinese mining industry will continue to be a major influence on global mineral extraction and processing in the decades and even centuries to come.

This article was written by An Underground Miner