2014 National Geological Exploration Conference was held in Xiamen City on May, 29, Mr. Chen Jinhe, Chairman of Zijin Mining Group Co., Ltd ("Zijin") gave a speech in the conference. He briefly reviewed the world economy and made analysis on the relationship between mining and geological exploration.

Mr. Chen's views in the speech are as follows:

The economy in the US is completely out of the financial crisis and is recovering, Europe is moving away from the worst of European Debt Crisis and is on the right track. But in recent years, there is obvious slowdown in growth in emerging countries presented by China. The outlook of some BRIC countries is gloomy with high inflation rate and currency devaluation.

Over the past decade, the growth of metals' prices was closely connected with the high growth of emerging economies headed by China, although China's economy would grow at relatively high rate in next 10 years, the growth rate would slow down. Economic structure adjustment and shift of the growth pattern are the main stream at present, and it is impossible to continue to achieve economy growth by consuming large amount of resources, so it's normal that the current prices of metal and minerals fell back at a low point in a period of time. But in a historical context, the current prices of minerals are still at the upper level. Because China is short of minerals and resources, mining companies can still have reasonable profit. In addition, China will continue to increase the investment on infrastructure and push forward urbanization, so Chinese prospectors are lucky enough to have lots of opportunities on geological exploration.

On how to stand firm: the key point is to survive in the hard time. It's important for the enterprise to strengthen internal management and control the internal cost by advanced technology and reforms. Zijin has done a lot of work in cost control, especially in controllable cost, and that stops the cost rising.

The allocation of resources should be decided by the market, geological exploration companies should obey the market rules, although it is difficult, they should simulate the marketization operation in the company first.

At end of the speech, Mr. Chen called on the geological exploration companies to change their old notion. He pointed out that geological exploration companies should strengthen the geological environment work during the geological exploration, especially when they find a mine with special value. "The basis of exploration is to find the unusual metal by geophysical and geochemical exploration, and mining is like "removal of mines", which is cleaning up the source of pollution and use up the value parts." He also called on the relevant ministries of the country to introduce national supporting policies for detailed survey and exploration (including steps of areal geology survey, minerals survey, reconnaissance, general prospecting and general exploration.)

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