Mine will stop producing iron ore prices will also explore

In the morning, I was still in touch with the matter of urging the delivery of the construction drawings. At one telephone call in the evening, a gold mine project was suspended and there was no timetable for resuming work.

Mr. Zhu, a middle-class company in a large mining company, was "depressed." "I didn't expect it to be so fast. A construction plan for a gold mine is almost done. Stop and stop. What we do for this group of people." Mr. Zhu told reporter.

An insider of a central mining company told reporters that this year's non-ferrous industry is very sluggish and it is estimated that no bonus can be made.

Zhou Zhongshu, president of China Minmetals Corporation, previously said at a mining forum that commodity commodities will remain weak and volatile in the second half of the year and the mining downturn will continue. The reasons for this market trend are the weakening of the impact of quantitative easing policies on metal prices and the imbalance in supply and demand caused by the global economic downturn.

An unoptimistic data shows that compared with the end of 2010, the decline in the market value of major mining companies in the world generally reached 30% to 40%. In 2012, the net profit of major mining companies in the world fell by 40% to 80% compared with 2011.

Summer "cold stream"

At this time in previous years, Mr. Zhu should rush across the various mines. Now, Mr. Zhu is seemingly “leisurely” sitting in Beijing’s office drinking tea.

“Several projects, construction plans have progressed to half, many large-scale equipment have been ordered, construction has begun construction, and the suspension stopped.” Zhu told reporters. For the sad description of the day, Mr. Zhu remarked, "The company has more than half of them are rested and can not predict the output value of this year, but there are indeed few projects in the hands. According to the words in the company meeting, it is said this year. The half-year production value is particularly low."

The downturn of the mining industry also reflected in the stock market. On June 20, the non-ferrous metals sector dipped in the afternoon and fell by 3% as of 2.00pm that day. The decline was the highest. In terms of individual stocks, Jinrui Technology fell 9%. Tibet Mining fell 6.16%, Shenghe Resources fell 5.84%.

Mr. Ma, chairman of an iron ore production company in Qinhuangdao, is in a more tragic situation because the mining industry made money in the past few years and invested the funds in the real estate sector. With the increase in real estate regulation, several real estate transactions in Hebei Province are bleak.

The iron and steel industry's downturn has caused iron ore to lose its market. According to the latest data from the China Iron and Steel Association, from June 10 to June 14, the average price of domestic iron ore was 870.08 yuan per ton, down from the previous week. 5.49 yuan; the average cif price of imported iron ore is US$125.63 per ton, equivalent to 905.54 yuan per ton for the tax-inclusive price of the iron ore, down by 16.99 yuan per ton from the previous week. Some experts believe that iron ore prices will continue the downward trend.

Mr. Ma’s mine is already in a semi-closed state. Mr. Ma said that the proportion of steel mills using imported iron ore is gradually increasing and it is not interested in domestic mines.

When communicating with reporters, Mr. Ma asked reporters to help him ask if anyone would buy his iron ore assets. "Even if you lose some money, you have to sell it," said Mr. Ma.

Two years ago, Mr. Ma had also wanted to use iron ore to achieve the listing.

The shrinkage of the world's large-scale mining companies has confirmed the downturn of the mining industry from the side. Rio Tinto just sold its high-quality nickel ore in the United States to Lending Mining Company on US$325 million on June 13. Insiders believe that this price is relatively low compared to mine value. In addition, some media said that in the next few years, BHP Billiton will strip up to 35 billion US dollars of non-core assets. The iron ore producer Brazil Vale has hired Bank of America Merrill Lynch to help it sell minority interests in two coal mine assets in Australia. Vale's latest financial report showed that net profit for 2012 was US$4.86 billion, a sharp drop of 74% from 2011, the worst annual performance since 2004.