New round of actions for critical minerals security

A total of 984 prospecting rights were transferred nationwide, including 570 strategic mineral prospecting rights, in the first three quarters of this year, an increase of 218.4 percent year-on-year, according to the Ministry of Natural Resources. Improving the domestic strategic energy resource guarantee capability and ensuring energy security are the main reasons for the sharp increase.

The worldwide clean energy transition has triggered a large demand for strategic minerals. Although the global strategic mineral output has grown rapidly, and lithium, cobalt and nickel are in oversupply, the trade volume has dropped significantly in recent years, and the stock prices of strategic mineral companies have fallen sharply, strategic minerals are still widely needed in the long run. By 2030, global lithium demand is projected to be seven times that of 2021, and China's demand for strategic minerals will increase dramatically before 2035.

The exploration and development of mineral resources are at the top of the global industry and supply chains. In 2023, almost all major countries and regions around the world revised their strategic mineral policies, and increased the localization of strategic minerals by reaching intergovernmental strategic cooperation or trade agreements on strategic minerals.

At present, China's dependence on foreign strategic mineral resources such as oil and natural gas is high, with oil as high as about 70 percent and natural gas at about 40 percent. With the continued rapid growth of demand for minerals used in clean energy and emerging industries, such as lithium, cobalt and nickel, it is necessary for China to effectively strengthen the exploration and development of its strategic mineral resources.

The central authorities have already paralleled mineral security with energy security, and ensuring mineral security has been elevated to a national strategy.

Reflecting the strategic importance the country attaches to the sector, the Ministry of Natural Resources continues to enhance its policy support to encourage mining investment and vitalize the mining market. It has issued a series of policies in recent months to support prospectors and mining enterprises to expand their operation and business, and strengthen the manufacturing of related equipment.

The prospectors and companies should make full use of these policies, and work together with relevant functional departments to strengthen the exploration, development and utilization of strategic mineral resources in the country. The purpose is to establish a reliable national exploration, development and reserve system at an early date. One featuring high adaptability of the energy and mineral resources supply system that can ensure the country's security in mineral resources and energy.

THE ECONOMIC DAILY