During the 19th National Congress of the CPC, as a representative attending the plenary session, Group Company General Manager and Deputy Party Secretary Guo Wenqing gave exclusive interviews to the China News Service, 21st Century Business Herald, China Pictorial and other mainstream media reporters in Beijing. In the interviews, President Guo talked freely of his firsthand emotions upon attending the 19th National Congress and listening to General Secretary Xi Jinping’s report, gave a detailed introduction to the new China Minmetals’ vivid practices in integration, fulfilling the ‘Belt and Road’ proposal and other aspects following the recombination, and emphasized introducing the Group Company’s overall strategic plans to forge a metal mining group which is ‘First in China and first-class in the world’ to all sectors of society
Systemized according to its exclusive contents, the article has now been published in full text and various units are required to earnestly learn and comprehend its spirit.
Undertaking with Faithful, Passionate and Warm-blooded Loyalty in the Heart
Sparing No Effort to Forge a Metal Mining Enterprise Group which is ‘First in China and First-class in the World’
(Systemized according to the exclusive mainstream media interviews)
For the requirement to ‘cultivate enterprises that are first-class in the world and possess global competitiveness’ in the report given at the 19th National Congress, China Minmetals will depend on constantly developing its global mineral resource configuration and uniquely advantageous production, supply and marketing integration capability, thereby becoming the main force guaranteeing national metal mineral resources.
China Minmetals will also give full play to its dominant core technology, continuous reformation and innovation capability, and irreplaceable whole industry chain integration advantages, and strive to become the first national team of metallurgical engineering construction and operation services in the world.
- Group Company General Manager & Deputy Party Secretary Guo Wenqing
1. President Guo, as a representative attending the 19th National Congress and listening to General Secretary Xi Jinping’s report, what was your strongest feeling? Can you share it with us?
Guo Wenqing: The 19th National Congress of the CPC is a plenary of milestone significance convened in the critical period of determining victory in comprehensively building a moderately prosperous society, striving for the great victory of socialism with Chinese characteristics in the new age and comprehensively open socialist modernization setting out on a new journey. I felt the awesome power, penetrating power and emotional appeal of the report, and was deeply inspired to listen to the words of the General Secretary at the venue. The report grasps the overall situation and general trend of events with bright and lofty significance, broad and profound thoughts, and deep and rich connotations, profoundly answers a series of significant theoretical and practical questions about the Party and country’s long-term development, puts forward a series of significant new thoughts and viewpoints, significant judgments and significant measures of socialism with Chinese characteristics in the new age, and indicates the marching direction of realizing the ‘Two Centuries’ struggling goal and the Chinese Dream of Chinese nation’s great rejuvenation. With extremely high theoretical value, historic significance and creativity, the report is a splendid piece of Marxist literature of milestone significance and a programmatic document for guiding us as we strive for the great victory of socialism with Chinese characteristics in the new age, which will surely lead the Chinese nation to move towards its great rejuvenation. I am all for it and resolutely advocate it. Enterprises should seize the times and rise with great vigor; individuals should work hard without a thought for themselves.
When listening to the General Secretary’s report at the venue, my strongest feeling was unparalleled respect and admiration for the General Secretary, and unprecedented excitement and pride for the achievements we have made in these five years. Since the 18th National Congress of the CPC, the Central Party Committee with General Secretary Xi at its core has regarded the nation’s great rejuvenation as its own mission and started great historic reform on a large scale to correct work styles, make disciplines strict, deepen reform and make the country and its military more powerful. A series of prospective, strategic and long-term measures have been closely connected improved layer upon layer and continuously effective. Profound historic and decisive changes are happening in the Party member cadre team, economic and social situation, and internal and foreign affairs, winning splendid achievements which have attracted worldwide attention. The foundation of such achievements is the guidance of the strong core and direction control of General Secretary Xi Jinping, a leader renowned at home and abroad. He showed great foresight in proposing that ‘the original mind is the most accomplished mind of true enlightenment’, and pointing out that the original self and mission of Chinese Communists is to seek happiness for Chinese people and rejuvenation for the Chinese nation. General Secretary’s report was as long as three and a half hours, and the whole audience warmly applauded over 70 times. In the report, the General Secretary said ‘the people’ over 200 times, and warmth and deep feelings filled the space between the lines, embodying the bright and true political quality of thinking about the concerns and interests of the people and working with the people to generate inner strength and inspiration.
Listening to the General Secretary’s report at the venue, my confidence and determination to follow the Central Party Committee closely in energetically working towards the great cause of national rejuvenation became as solid as a rock. In his report, the General Secretary made the significant strategic judgment that ‘socialism with Chinese characteristics has entered a new era, profoundly expounded the CPC’s historical mission in the new era, systematically illustrated the thought and basic strategies of socialism with Chinese characteristics in the new era, put forward the fundamental policy and action program for the Party and country’s career development in the future, and put forward that it is not only necessary to lead the people to realize the first century struggling goal but also necessary to start a new journey of marching towards the second century struggling goal. We have found the Party and country’s new historical orientation, new coordinates and starting point at which to set off again. I felt deeply inspired and full of confidence to hear him say these things at the venue! Just as the General Secretary pointed out, ‘We are closer to the goal of the Chinese nation’s great rejuvenation than in any previous period in history, and we are more confident and capable of realizing that goal than in any previous period in history.’ I firmly believe that under the strong leadership of the Central Party Committee with General Secretary Xi at its core, we can surely seize victory in comprehensively building a moderately prosperous society and realizing the Chinese nation’s great rejuvenation!
As a member on the state-owned enterprise battlefront, we shall resolutely maintain the Central Party Committee’s authority and centralized and unified leadership with General Secretary Xi at its core at all times and under any circumstances, firmly establish the ‘four consciousnesses’, advocate the Party with red hearts, faithful, passionate and warm-blooded loyalty, undertake the work, pay back the Party’s trust with powerful work measures and solid and fruitful performance results, overcome all obstacles and difficulties and advance courageously on the road under the guidance of General Secretary Xi Jinping!
2. How will China Minmetals learn and implement the meeting spirit of the 19th National Congress?
Guo Wenqing: As a whole, China Minmetals will regard learning, comprehending and implementing the spirit of General Secretary Xi’s report at the 19th National Congress as the primary political task at present and in a future period. After the plenary session, we will immediately create a trend of learning, publicizing and implementing the spirit of the 19th National Congress of the CPC, and firmly, powerfully and quickly organize such learning, publicity and implementation work with a high sense of political responsibility and mission, quicker actions and more profound cognition. The deployment of learning and publicity shall be promoted layer by layer and deepened step by step. For learning and publicity in greater depth and breadth, it is necessary to enter diggings, teams and projects, and go abroad. It is necessary to seek coverage from top to bottom in such a way that the top leaders are synchronized with the common people. The contents of General Secretary Xi’s report are abundant, extensive and profound. We cannot learn it all in such a short period. We shall read intensively, research carefully, learn repeatedly, constantly and continuously, industriously and systematically learn profoundly and thoroughly, and finally guide our concrete practices by the spirit of the General Secretary’s report.
In concrete implementation and learning, it is necessary to grasp several key points: first, the China Minmetals’ Party Committee shall rapidly convene its theoretical central group enlarged learning meeting and earnestly convey the spirit of the 19th National Congress of the CPC. The Group Company’s Party Committee members shall discuss cognition and experience, and earnestly carry out self-learning and intensive learning. Second, the Party organizations of all Headquarters’ departments and all directly supervised units shall promptly convene special sessions to convey and learn the spirit. Third, the Party committees and grassroots Party branches of China Minmetals’ subsidiary enterprises at all levels shall concentrate on conveying and learning among all Party members. Meanwhile, we shall innovate learning patterns, ensure profound and incisive learning, and keep the contents in mind through special subject learning, article-soliciting activities and other practices. We will also organize special subject publicity and training, and do well in publicity work regarding communicating the spirit of the 19th National Congress to all Party member cadres and employees. In this aspect, Party organization members shall effectively carry out publicity of the spirit of the 19th National Congress through giving Party lectures, taking part in Party building activities, etc. in their own contact units and Party building work contact points. I will also give Party lectures to China Minmetals’ Party members and interactively communicate with Party branches concerning with the experience of listening to General Secretary Xi’s report at the venue and my feelings and experiences of learning the spirits of General Secretary Xi’s series of important speeches.
It is necessary to learn in order to apply knowledge. As a state-owned enterprise leader, to learn and carry out the spirit of the 19th National Congress means the transformation of trust and respect for the Party into faithful, passionate and warm-blooded loyalty, truly implementing loyalty to the Party by perfectly completing the career entrusted by the Party, and carrying out the spirit of the 19th National Congress of the CPC in all aspects of the new China Minmetals’ operation and development.
To concretely combine with China Minmetals’ actual situation, it is necessary to continuously and vigorously carry forward the enterprise spirit of ‘Never delaying and never slacking’, regard ‘three steps and two doubles’ as strategic guidance, and depend on constantly developing the global mineral resource configuration and uniquely advantageous production, supply and trade integration capability, thereby becoming the main force guaranteeing national metal mineral resources and the first national team in metallurgical engineering construction and operation services in the world by virtue of our dominant core technology, continuous innovation and creation capability, and irreplaceable whole industry chain integration advantages. By 2020, the Group will realize the goal of becoming a Chinese metal mining group which is ‘First in China and first-class in the world’, give full play to the supporting role of backbone central enterprises in the national economic strategy and realize the dream of protecting and serving the country worthily through the metal mining industry.
3. Since China Minmetals and MCC Group’s strategic recombination in 2016, what achievements has the new China Minmetals gained in integration and quality and efficiency improvement?
Guo Wenqing: Over a year has passed since the recombination meeting we convened in 2016. One core index of inspecting work efficiency after the recombination is the enterprise’s operation performance. After the recombination, the new China Minmetals’ economic benefits have been greatly improved, the total profit for the first half year has increased by over 100% on a year-to-year basis and the operating budget for the whole year has been basically completed within the first three quarters, which sets the best level historically and enables the value of state-owned property to be preserved or increased.
It is very difficult to gain such achievements. We did so by continuously carrying forward the spirit of ‘Never delaying and never slacking’, and successively overcoming numerous difficulties in the downturn stage of the metal mining industry. On the whole, China Minmetals has comprehensively tended towards good prospects in enterprise operation quality, enjoyed rapid growth in both scale and benefits in the first three quarters, and reached the highest level historically in total profits; the balance sheets have been continuously improved and developed more steadily; the production cost of main products has been substantially decreased and cost competitiveness constantly improved; and the international credit rating is in the forefront among global mining industry companies.
In recombination and integration as well as quality and efficiency improvement over the past year, the media has paid more attention and many works have become well known by all sectors of society. I won’t say more than is needed in all aspects. I particularly want to introduce the implementation situation of several key works: first, the construction of an RMB 100 billion internal market. This is a measure put forward by the China Minmetals’ Party Committee through prudent thinking and investigation after the recombination of the two enterprises. The new China Minmetals first opened up a whole industry chain channel embracing resource acquisition, design, construction, development, operation, smelting, processing and circulation services in the global metal mining industry field, and its competitive whole industry chain advantages have been greatly enhanced. To forge an RMB 100 billion internal market is a significant strategic measure to give full play to recombination advantages which can reduce transaction costs, control risk and improve efficiency, as well as a form of internal supply-side reform. The internal market has already completed a synergy project contract amount of RMB 67.75 billion. Second, the effects on quality and efficiency improvement have been significant. We have completed SASAC’s pressure reduction assessment tasks while surpassing both the production target and expected yield. Meanwhile, the enterprise took serious measures to manage and reduce risks, and the cost reduction effects have been prominent. This year, our refined copper yield will exceed 600,000 tons, while the complete cost of our iron ore concentrate has decreased by RMB 60 per ton compared with last year; the complete cost of tungsten concentrate and the processing cost of hard alloy products have also reduced by 11% and 14% respectively on a year-on-year basis. Our traditional comparative advantages are obvious and the competitive advantages of our product costs are becoming more prominent. Third, certain top-level business design thoughts have become even more distinct. We are constructing a globalized bulk commodity trade system and realizing a higher market share in the base metal field in accordance with the thought of ‘putting both ends of the production process on the world market, locking the risk in at both ends, large-volume import & export and closed cycle operation’. In such strategic emerging industry fields as new energy, we are comprehensively integrating our exiting resource advantages in nickel, cobalt and lithium, and technological research and development advantages in the high-end lithium battery power positive material field, making an overall layout for the new battery material industry, forging an RMB a 100 billion new material industry sector covering the whole industry chain, and making full preparations for our country to race to control the high ground in the fourth technical revolution.
4. In recent years, particularly under the ‘Belt and Road’ proposal, China Minmetals and the MCC Group are quickening their pace of ‘Going Global’. What achievements have been gained so far? What are the plans for the future?
Guo Wenqing: In the ‘13th Five-Year Plan’ strategy, the new China Minmetals after the recombination is clarifying its strategic positioning as the ‘Guarantor of resource safety, leader of industrial upgrading and keeper of the Belt and Road’. To implement the national ‘Belt and Road’ proposal has become one of the most important parts of China Minmetals’ development strategy.
After the recombination, China Minmetals firmly took the strategic opportunity period of the ‘Belt and Road’, emphasized giving full play to its integration advantages and high efficiency in the whole industry chain, made efforts to increase the overseas market development of the ‘Belt and Road’ and fought to be the pioneer and effective strength of the ‘Belt and Road’ proposal.
Up to now, China Minmetals has carried out business in 27 countries along the ‘Belt and Road’ route, established 91 wholly owned and holding enterprises with a layout covering nearly half of the countries along the ‘Belt and Road’, and mainly carried out project contracting, resource development, metal smelting, mineral product trading, real estate development, financing services and other businesses.
The footprints of China Minmetals and MCC have been left in many places along the ‘Belt and Road’: Baosteel’s Zhanjiang Steel Project is a model of the green ecological steel city and its main economic and technical indexes have caught up with and surpassed the advanced world level; the Vietnam Ha Tinh Steel Plant Project is the only newly built 10-million-ton steel and iron joint venture enterprise in nearly 20 years in the global overseas market, and it successfully realizes an international 10-million-ton steel and iron system design and whole industry chain output; the Malaysia Kuantan Project is an example of the ‘21st Century Maritime Silk Road’ driving international capacity cooperation with MCC’s whole process advantages in metallurgy; in June, 2016, by virtue of the driving force of the ‘Belt and Road’, China Minmetals and the Poland Copper Group signed another long-term electrolytic copper purchase contract with a total value of about USD 3 billion. In the resource development field, China Minmetals has carried out a large quantity of resource cooperation projects in South and Central Asia along the ‘Belt and Road’ route, acquiring a total copper resource quantity of 12.03 million tons, zinc resource quantity of 1.33 million tons and lead resource quantity of 470,000 tons, as well as alleviating local employment problems.
In countries along the ‘Belt and Road’ route, there are over 13,000 China Minmetals employees. Its subsidiaries positively undertake their social responsibility, actively learn about the development demands in the community, help the locals to promote infrastructure construction, improve medical and sanitation conditions, and improve the livelihood and welfare of the local residents, for which reason China Minmetals can be called an economic and cultural envoy along the ‘Belt and Road’ route.
It was pointed out in the report at the 19th National Congress of the CPC that it is necessary to regard ‘Belt and Road’ construction as the key point and insist on emphasizing introduction and going global so as to drive and form a new comprehensively open pattern; it is necessary to innovate foreign investment patterns, promote international capacity cooperation and accelerate the cultivation of international economic cooperation and competitive advantages. As the only state-owned capital investment company in the metal mining industry field, China Minmetals will earnestly carry out the spirit of General Secretary Xi Jinping’s instructions concerning ‘Belt and Road’ construction, firmly carry out the Central Party Committee’s decisions and deployments, bravely become the main force and effective strength for implementing the ‘Belt and Road’ proposal, make the core main industry larger and stronger in the future, continuously increase the investment degree in copper, lead, zinc, nickel, cobalt and other high-quality mineral resources in the countries along the route, innovate overseas project contracting and operating models, vigorously boost metallurgical and municipal infrastructure construction in the countries along the route, perfect new overseas trade systems and boost unblocked trade with ‘Belt and Road’ countries.
We will strive to give full play to our role as the main force of overseas resource development and create the ‘going global’ model of the ‘Belt and Road’. With major mining projects as the foundation and mining enterprises as the core, we will form a composition of forces with mine design, construction, equipment, financing and other related upstream and downstream mining enterprises going global; drive related infrastructure investment along the route with mining projects as the support; and mining projects will drive logistics transportation and insurance enterprises to go global after being put into operation. In the countries and regions with conditions, it is fair to consider establishing smelting plants nearby, promoting capacity cooperation and further leading smelting, design, construction, equipment manufacturing and other types of enterprises to go global. The pertinence and overall efficiency of Chinese enterprises going global will be improved through the model of ‘giving priority to developing mining industry and jointly developing overseas careers with other enterprises’.
5. How is the pilot work of China Minmetals’ State-Owned Capital Investment Corporation carried out?
Guo Wenqing: All sectors of society have paid close attention to this pilot work. China Minmetals is also firmly grasping the pilot opportunity, combining the company’s actual reform and development situation, completing the top-level design, making unified deployments and carrying out comprehensive promotion.
The year of 2017 is a critical year for China Minmetals to comprehensively promote reform implementation, and an opening year for comprehensively implementing the pilot work of the State-Owned Capital Investment Corporation. We have printed and distributed the Guiding Opinions of China Minmetals Concerning Comprehensively Deepening Reform in the form of File No. 1, implemented the opinions into 45 concrete reform tasks, clarified the leading departments, signed the reform assignment book and clearly defined the task division and duty fulfillment.
In the concrete work progress, achievements have been constantly made. For example, the State-Owned Capital Investment Corporation’s top-level design has been completed, several platform companies for developing the surrounding core main business plates are being established, the initial businesses of business sector integration are starting to be integrated and new competitive advantages are being recreated; for example, the Headquarters’ functions have been constantly clarified, governance structures have been perfected and the decision matters, power interface and corresponding decision processes of the Party Organization Board, Board of Directors and General Manager’s Office Board have also been clearly defined.
6. Will China Minmetals also pursue overseas mining asset acquisition?
Guo Wenqing: China Minmetals is working on becoming a metal mining group that is ‘First in China and first-class in the world’, and it shall positively undertake the strategic mission of being the national metal mineral resource guarantor. The country’s demand for metal mineral resources is fundamental, long-term and considerable. We currently possess the Las Bambas Copper Mine, Dugald River Zinc Mine, Ramu Nickel Mine and other important mineral resources. These are first-class in the world but far from sufficient to meet the requirements of guaranteeing national metal mineral resource supply and safety. We will further increase the degree and strive to build a large-scale, long-periodic and low-cost world-class mineral resource asset portfolio through exploration, mergers & acquisitions and many other channels.
Mergers & acquisitions is one of our approaches. We will continuously focus on the merger and acquisition opportunity of high-quality assets, especially focused on enhancing our overseas resource allocation capability in copper, iron, nickel, lead, zinc and other fields, and continuously promote the Company’s core competitiveness and sustainable development ability; meanwhile, the related research and optimization work shall be continuously carried out for assets that do not yet meet the Company’s development strategy standards.
7. Taking the opportunity of the 19th National Congress, what is China Minmetals’ development goal?
Guo Wenqing: In his report, the General Secretary clearly stated the significant strategy judgment for the ‘new era’ and put forward the fundamental policy and program of action for the Party and the country’s career development into the future. This is a new strategic opportunity for China Minmetals. We shall seize the new coordinates, spare no efforts and strive in the direction pointed out by the General Secretary.
To ‘seize the new coordinates’ means that it is necessary to forge China Minmetals into the main force guaranteeing national metal mineral resource safety according to the requirement of ‘cultivating enterprises that are first-class in the world and have global competitiveness’ put forward by the General Secretary in his report, and by virtue of constantly expanding our global mineral resource allocation and uniquely advantageous production, supply and trade integration capability. It is also necessary to give full play to our dominant core technology, continual innovation capability and irreplaceable whole industry chain integration advantages, and strive to become the first national team of metallurgical engineering construction and operation services in the world.
Specifically, it is necessary to rapidly and profoundly learn and carry out the spirit of the 19th National Congress, as well as to know, treat, design and plan the Company’s development at the strategic height of being loyal to the Party and resolutely completing the tasks entrusted by the Party. It is necessary to shoulder the central enterprises’ unique political responsibility, economic responsibility and social responsibility with the undertaking of a large enterprise, further raise the banner of an industry leader and integrator, give full play to investment platform functions and the influence and driving force of a backbone central enterprise, lead the promotion of the international competitiveness of China’s metal mineral industry and guide it towards the highest level in the world.
To this end, we propose that when comprehensively building a moderately prosperous society in 2020, we will simultaneously reach the development goal of ‘three steps and two doubles’: the first step is that by the end of 2017 our profits will double on a year-on-year basis compared with 2016 and reach RMB 10 billion; the second step is that by the end of 2018 our profits will double again compared with 2017 and reach RMB 20 billion. China Minmetals will completely return to its operation essence, completely realize uniformly accelerated development, and possess the complete functions of a state-owned capital investment company. For the third step, we will strive to remain first in the world in tungsten, stibium, indium, germanium, bismuth and many other metal mineral products up to 2020. Copper, lead, zinc, nickel, etc. have strong international influence. Through a series of measures, we will attain the goal of becoming a metal mining industry group that is ‘First in China and first-class in the world’, and realize the dream of protecting and serving the country honorably through the metal mining industry.