Coal companies step up to "go out"

Following the successful acquisition of coal mining rights in Australia, Indonesia and other countries, Shenhua Group has recently obtained a 40% stake in the western part of the Tarben Tolgoi coal mine. Although the closed spring Mongolia National Great Harald (Parliament) spring meeting did not reach a final resolution on the Tarpan Tolgoi coal mine bidding proposal. Professor Na Lin, a professor at the National Institute for Peripheral Research at Inner Mongolia University, said in an interview with a reporter from the China Energy News: “China is Mongolia’s largest trading partner and the largest investor, and it has invested in Mongolia for the first time in 13 years and China in Mongolia. The influence of the country is very obvious, and Shenhua Group will certainly be able to obtain a share of the coal mine."

Sino-Mongolian economic and trade relations experts and Qiu Jizhou, professor of the Economics and Management College of Inner Mongolia University, told this reporter that the Shenhua Group's strategy of “going out” is not only conducive to solving domestic coking coal supply and demand relations in a market-oriented and international manner, but also for domestic companies. "Going out" provides a good model and is conducive to promoting the internationalization of domestic coal companies.

In recent years, Chinese coal companies have been accelerating the pace of “going out”, and coal companies’ efforts to develop overseas coal resources have also continued to increase. Such as: Yankuang Group acquired a 100% equity interest in Felix Corporation with a capital of A$3.3 billion and obtained reserves of 2 billion tons, including 4 production coal mines, 2 coal mines under construction and 3 exploration projects; Kailuan shares were incorporated in Canada. And investment company to develop high-quality coking coal resources in Canada and provide operation platforms for its participation in stocks and mergers and acquisitions; China Coal Import & Export Corporation successfully entered Australia and implemented resource development... In an interview with reporters, Yan Wang, chairman of Yankuang Group, stated: “Resources The problem directly affects the sustainable development of coal companies. Take Shandong as an example, coal resources account for only 2.2% of the country's total, production accounts for 6% of the country, consumption accounts for 9%, and more than half depends on transfers from outside the province or abroad. Therefore, we must think ahead about implementing the 'go global' strategy and go outside to develop resources."

It is understood that the world's large-scale coal companies are multinational operating companies. Six of the top ten multinational companies have geographic coverage in all continents. The number of manufacturing countries is generally between 10 and 20 countries, among which 3 companies are The profitability of overseas operations exceeds that of the mainland. Under such development circumstances, the "going out" strategy for China's coal companies is no longer a simple question of acceptance, but a major event concerning the survival of enterprises. China's coal companies must go to the international market for survival, development, mergers and acquisitions, and make full use of high-quality, cost-effective coal resources in the world, develop and utilize domestically scarce coal resources, and use foreign resources to ease the strain on domestic coal resources. , improve their own competitiveness, and gradually become stronger and bigger. “Coal resources are the foundation for the survival of coal companies and their development. Having resources means survival and development. Only by surpassing others in 'going global' ventures can we gain competitive advantage and we can save the fate of being eliminated.” Huang Xinhai, chairman of Xuyuan Group, told this reporter.

Difficulties still need policy support. "For coal companies, through the implementation of 'going out', they have more resources, and their coal production and supply capacity has become stronger and stronger, and they have turned into economic advantages, which in turn has promoted the continuous improvement of company performance. To achieve sustainable and rapid development. At the same time, 'going out' will also help companies in the global industry planning and layout, to achieve the company's international business strategy, in an invincible position in the international competition." A securities analysis The division told this reporter that.

Regarding the difficulties and risks of “going global”, Xu Jianyuan, general manager of the International Economic and Trading Corporation of Xuyuan Group, told the China Energy News reporter positively: “Talent is the first element of development.” Chinese coal companies “going out” to invest abroad To run mines requires high standards for talented people and requires a combination of professionals who know the profession, understand the language, and understand international business. Such talents need a cycle to develop. “Also, if you want to truly succeed in investing in mines abroad, it is also important to have a detailed and in-depth understanding of the political, cultural, and religious fields of the target countries. At present, the situation of many companies is temporarily crumbling, and some of the negotiations will fail. The details or the understanding of the two sides is different.At the same time, it is also very important to have a thorough grasp of the quality of the project itself. The understanding of the mine project can not be limited to the geological and mining conditions, but also include the surrounding supporting facilities, such as considering the railway transportation capacity, the port Transport capacity, local coal market digestion, etc. There is also local policy that allows no mining, allowing no collapse, no surrounding cultural relics, parks, etc. Sometimes we need to consider the opinions of local residents, some The strength of the community in the country was very strong and it was agreed with the government, but in the end the local residents did not agree that it was a failure,” added Jianyuan Yuan.

Speaking of the country’s improvement of the “going global” support policy, Yu Jianyuan stated that the state has formulated many supportive policies in simplifying examination and approval procedures and returning exploration fees. For example, it is stipulated in the simplified examination and approval procedures that, in the case of overseas investment projects for resource development, if the Chinese investment is less than US$300 million, it will be approved by the provincial Development and Reform Commission. The supporting policies formulated by the state are all very good, but there is still a certain amount of room to implement the support policies for local enterprises that are not central enterprises. For example, after we reported on materials according to the requirements of relevant departments, we often fall into the ocean. These supportive policies have not really been implemented by local enterprises that are not central SOEs. Compared with SOEs, local enterprises need support and help.

At the same time, he also believes that the role of industry associations should be played. Industry associations must enrich talents, upgrade levels, strengthen service awareness, improve the communication and coordination capabilities of specific projects, and truly reflect the role of industry associations.