Research Report on the Integrated Exploration and Mining Development Model of the Tenth Institute of Geological Exploration in Inner Mongolia

From the end of May to the beginning of June 2007, the Geological Exploration Department organized a special survey on the Inner Mongolia Tenth Institute of Geological and Mineral Exploration and Development (hereinafter referred to as the "Inner Mongolia Tenth Institute of Geological Exploration") to summarize and analyze the "Tenth Institute of Geological Exploration and Mineral Resources of Inner Mongolia". The experience and existing problems in the reform and development of geological exploration units based on teams since the promulgation of the "Decision on Strengthening Geological Work" will be used to collect materials for the study and formulation of development strategies and plans for geological exploration units. The investigation situation is now reported as follows:

1. The Tenth Institute of Geological Exploration and Development of Inner Mongolia has embarked on the road of rapid development

The Tenth Institute of Geological and Mineral Exploration and Development of Inner Mongolia is affiliated to Inner Mongolia Geological and Mineral Exploration and Development. The Bureau was formed by the merger of the former Inner Mongolia Second Regional Geological Survey Institute and the Inner Mongolia Third Hydrogeological Survey Institute. There are currently 952 employees, including 454 retired, 498 current employees, 28 management staff and 33 service staff.

(1) A new industrial structure has been formed based on the geological exploration industry, with mining development as the core, and engineering geological exploration and construction as the pillars.

Based on geological exploration. Organize a capable team, equip with excellent equipment, improve core competitiveness, carry out a large number of geological exploration projects, and obtain important geological exploration results, which has played a positive role in promoting the development of mining economy. In 2005, the Tenth Institute of Geological Exploration simultaneously undertook 29 1:50,000 mineral survey projects and more than a dozen mineral exploration projects, completing 15,000 meters of drilling work, 200 square kilometers of geophysical surveying, and completing the total monetary amount of geological exploration work. More than 45 million yuan. The amount of physical work and monetary work completed in 2005 alone was equivalent to the sum of the previous 10 years. Since the turn of the century, we have obtained more than 100 exploration rights.

With mining development as its core. The exploration and mining integration of the Inner Mongolia Geological Exploration Institute began at the end of the “Eighth Five-Year Plan”, entered the fast lane in five years, and has experienced “explosive” expansion since 2003. Jinyuan Company, which is responsible for the main development work, was established in 1995. It has successively explored and developed the Maoshandong fluorspar mine, Linxi Xinlin Town fluorspar mine, and Balinzuo Banner Sifangcheng copper mine. However, the scale was small and the benefits were not obvious. Entering a stage of rapid development in 1999, it successively explored and developed the Halabaiqi lead-zinc mine in Balinzuo Banner, Chifeng City, the Baimianshan bentonite mine in Songshan District, Chifeng City, and the Huaobote lead-zinc mine in Xiwuzhumuqin Banner, and operated the mining rights. The Alukelqin Banner bentonite mine was transferred, and the mining development industry has begun to take shape. Since 2003, it has experienced "explosive" development, investing nearly 100 million yuan to build a 1,000-ton dressing plant at Hua'aobaote lead-zinc mine, with a daily processing capacity of 1,400 tons of ore and an annual processing capacity of 300,000 tons of ore. In 2006, the total output value reached 500 million yuan. , realizing profits and taxes of 150 million yuan; in 2005, the Inner Mongolia Geological Survey Bureau, the Tenth Institute of Geological Survey and a local enterprise jointly established a limited liability company to develop the Huanghuagou lead-zinc mine in Wengniute Banner, Chifeng (the Inner Mongolia Geological Survey Bureau occupied the 30% equity, employees of the Tenth Institute of Geological Exploration and the Tenth Institute accounted for 45% equity, and local enterprises accounted for 25% equity). By the end of 2006, it achieved an annual output value of 50 million yuan and profits and taxes of 10 million yuan; in 2005, it invested 340 million yuan to purchase the project from Beijing. Bixi Group invests in the exploration rights of the Daolun Dam copper mine in Xiwu Banner. After a detailed investigation of 0.32 square kilometers, it was submitted that the copper reserves are 100,000 tons, tungsten 10,000 tons, tin 40 million tons, and silver reserves. 300 tons, the first phase of the project will build a 1,500-ton copper and tungsten dressing plant, with a total project investment of 500 million yuan. So far, the total annual mining output value of the Inner Mongolia Geological Exploration Institute is nearly 1 billion yuan.

With engineering survey and construction as the pillars. Engineering survey and construction is another comparative advantage industry of the 10th Institute of Geological Survey. Its market share in Chifeng area can reach more than 50%, and it has contracted projects outside Chifeng City and the autonomous region. It has also achieved good results in geological disaster assessment and management. In the past two years, market revenue has reached more than 10 million yuan. In 2005, the engineering exploration and construction industry achieved total market revenue of more than 15 million yuan.

(2) The industrial economy has developed rapidly, the economic strength and competitiveness have been significantly enhanced, and the income of employees has increased significantly

The Tenth Institute of Geological Exploration has achieved rapid economic development. In recent years The overall momentum of sustained and rapid growth has been maintained, with major economic indicators growing at an average rate of more than double digits, extra-budgetary income obtained through the market has increased significantly, economic strength and competitiveness have been significantly enhanced, and employee income has increased significantly. In the past three or four years, the speed of enterprise development in the Ten Institutes of Geological Survey has far exceeded that of the previous dozen years, and the economic increase is equivalent to the sum of the previous 20 years.

In terms of market revenue, the Inner Mongolia Geological Exploration Institute's 10th Institute reached 500 million yuan in 2006, an increase of 100% from 2005, 3.4 times that of 2004, and 17 times that of 2003. In 2006, the Inner Mongolia Geological Exploration Institute's 10th Institute achieved profits and taxes of 120 million yuan, which was 4 times that of 2005, only 10 times that of 2004, and 40 times that of 2003. At the same time, the income of employees has increased significantly. In 2007, the per capita income was 70,000 yuan, which was 3.5 times that of 20,000 yuan in 2003. Corporate investment has also doubled year after year, from 40 million yuan in 2003 to 80 million yuan in 2004, and from 200 million yuan in 2005 to 350 million yuan in 2006. In the past few years, the market revenue of the Tenth Institute of Geological Exploration has increased more than ten times, the profits turned over have increased more than ten times, the income of corporate employees has increased several times, and corporate investment has increased dozens of times. This kind of development speed is no matter in the geological survey unit system Internally, or in various local enterprises, it is relatively fast. On the one hand, this shows that the cadres and employees of the Tenth Institute of Geological Exploration have made great efforts for the development of the unit in the past two years, but it also shows that after the restructuring of the Tenth Institute of Geological Exploration, the company's new mechanism has effectively activated the company's huge potential for self-development and Vitality has effectively promoted the rapid development of the corporate economy.

To date, the Tenth Institute of Geological Exploration has 2 mining companies in production, 2 mining companies under construction, 1 engineering exploration and construction company, 1 secondary geological exploration unit, and 3 technical consulting service companies. indivual. Among them, 1 company has an annual output value of over 100 million yuan, 4 companies have an annual output value of more than 10 million yuan, 1 company has an annual output value of more than 5 million yuan, and 2 companies have an annual output value of more than 2 million yuan. With the completion and operation of the Huanghuagou lead-zinc mine in Chifeng City, the Daolun Dam copper-tungsten mine in Xiwuqi, and the Ulan lead-zinc mine in Outer Mongolia, the total mining and processing capacity of mining companies controlled by the Tenth Institute of Geological Exploration can reach more than 3,000 tons/day. . Annual production (unit: metal amount): 50,000 tons of lead and zinc, 100 tons of silver, 5,000 tons of copper, 1,000 tons of tungsten, with a total output value of more than 1 billion yuan.

(3) Seize the opportunity, update concepts, and promote the joint-stock reform of institute-run enterprises

Transformation is a prerequisite. In accordance with the policies of the state and superior authorities on enterprise restructuring, the transformation of secondary economic entities has been vigorously promoted. Except for geological exploration companies, all institute-run enterprises of a certain scale have been transformed into limited liability companies, and a simulated legal person system has been implemented internally. So far, the Tenth Institute has controlled or relatively controlled 6 enterprises with independent legal personality, and 3 of them have quickly developed into large-scale enterprises with an annual output value of over 10 million and profits of over 1 million.

It is the foundation for all employees to become shareholders. In a limited liability company, the company's employees are allowed to combine to hold large shares, and all employees of the hospital become shareholders. The geological exploration unit has a relatively controlling shareholding, and social funds have appropriately participated in the shares. The restructured limited liability companies are all independently registered and have obtained independent legal person status.

Changing the way you do business is key. At present, the operation mode of the 10th Institute of Geological Exploration has changed. In the past, it was mainly based on concrete operations and supplemented by investment holdings. It has been transformed into one based on investment holdings and supplemented by concrete operations. As an investment parent, the Tenth Institute of Geological Exploration has fully developed its own advantages and is gradually realizing the operation mode of a group investment company based on enterprises, oriented by main business, and linked by capital.

To implement the modern enterprise management concept, the core is to clarify the economic relationship, property rights relationship and affiliation between the geological exploration unit and the enterprise from the legal procedures. The Tenth Institute of Geological Exploration promotes the reform of the internal system of the enterprise, making the enterprise management standardized, scientific and modern. It actively carries out the reform of the three internal systems of the enterprise, vigorously promotes the transformation of the enterprise's shareholding system, and uses new mechanisms to activate the huge potential and vitality of the geological exploration enterprise. Enterprise restructuring is only a form, not a purpose. The key issue in enterprise restructuring is to use new enterprise operating mechanisms to activate the huge potential of the enterprise itself and create a new world for enterprise development. The basic model of enterprise management by the original geological exploration unit is: the "decision-making center" is reflected in the leadership team of the geological exploration unit, the "profit center" is reflected in the geological exploration unit, and the "cost center" is reflected in the enterprise. In other words, whether an enterprise can run it or not , what to do after it is completed is decided by the leadership team of the geological exploration unit. After the enterprise makes a profit, the profit is completely controlled by the geological exploration unit, and the corporate managers only play a role in cost control at best. After the restructuring, the three centers have been moved downwards as a whole. The "decision-making center" of the enterprise is reflected in the shareholder meeting and the board of directors, the "profit center" is reflected in the enterprise, and the "cost center" is reflected in the enterprise team, workshop, and work section. This model reflects the modern enterprise The management concept clarifies the economic relationship, property rights relationship, and affiliation relationship between geological exploration units and enterprises from the legal procedures.

Then maximize the management effects of all vertical links and horizontal levels, and maximize the entrepreneurial passion and potential of the secondary economic entities themselves. This passion and potential directly translate into rapid economic growth and higher returns on corporate investment. Finally, the scientific and practical nature of modern enterprise management theory is reflected in a quantitative form, and the enterprise management of geological exploration units is gradually pushed towards standardization, scientificity and modernization.

(4) Build a harmonious geological exploration unit, increase the income of employees, solve the living difficulties of laid-off employees, and implement retiree policies

The Tenth Institute of Geological Exploration has established that economic development benefits from employees, A humanistic concept that benefits employees. At present, the income of employees of the Tenth Institute of Geological Exploration has shown a diversified trend. Salary income only accounts for a part of it, and various subsidies and bonuses also account for a certain proportion. The larger part is stock dividends. Now not only the employees of the company have shares, but also other employees of the hospital (including laid-off employees) have corresponding company shares, and can receive corresponding company profits every year.

As the economic situation of the company improved, the Tenth Institute of Geological Exploration continued to increase the living expenses of laid-off employees, from 246 yuan per month in 2004 to 340 yuan in 2005 (male employees with more than 30 years of service, and female employees with more than 30 years of service). Employees with more than 28 years of experience will receive a monthly living allowance of 650 yuan). In 2006, the internal retirement policy was implemented, and 188 laid-off employees were provided with internal retirement at one time. The internal retirement payment was more than double the original living expenses of the laid-off workers.

Implement the policy for retirees so that retirees can enjoy their old age with care and happiness.

Strengthen infrastructure construction and beautify the working and living environment.

With the support of the Inner Mongolia Geological Survey Bureau, the Department of Land and Resources, and the Chifeng Municipal Land and Resources Bureau, especially the departments/bureaus who came forward to help solve land use and other issues, the Tenth Institute of Geological Survey has been able to build employee housing. Great achievements have been made.

From 2001 to 2005, the Tenth Institute of Geological Survey was rated as "Advanced Party Committee" and "Advanced Unit" by Inner Mongolia Geological Survey Bureau for five consecutive years. In 2005, it was promoted to Chifeng City Civilized Unit (Model), and in 2006, it won Honorary title of "National Classic Geology Team".

After the new profit distribution mechanism was established, the employees of the company showed a sincere willingness to rise and fall with the company, and to advance and retreat independently. They took the initiative to care about the big and small things of the company, and took care of every plant and tree of the company. Consciously treat the company's affairs as their own business, supervise each other, cooperate with each other, be dedicated to their work, and work hard without complaining.

(5) Open up markets, diversify risks, and actively "go out" to develop and utilize foreign mineral resources

In order to open up markets, diversify risks, and also find new economic growth points, The Inner Mongolia Geological Exploration Institute actively “goes out” to develop and utilize foreign mineral resources. In 2004, the Tenth Institute of Geological Exploration and several other mining companies jointly invested 54 million yuan to purchase four mineral rights in Mongolia, with preliminary control of 3 million tons of lead and zinc reserves, 3,000 tons of silver, and 8 tons of gold. In 2005, a comprehensive exploration of the Wulan lead-zinc mine was carried out, and very gratifying results were achieved. The actual reserves were much larger than the expected reserves. In 2006, it was transferred to development. The total investment of the project was 500 million yuan, and the ten institutes accounted for 10 % shares. In addition, in 2006, the Inner Mongolia Geological Exploration Institute and other geological exploration units jointly obtained mining rights for non-ferrous metals such as copper, lead, and zinc in Algeria and Zambia in Africa.

2. The main experience of the successful integration of exploration and production of the Tenth Institute of Geological Exploration in Inner Mongolia

Seizing market opportunities, taking advantage of policy advantages, and striving to innovate are the key to the exploration and mining integration of the Tenth Institute of Geological Exploration in Inner Mongolia. The main experience of successful integration is adopted. Among them, seizing opportunities is the prerequisite, making full use of policies is the foundation, and self-efforts are the key. At the same time, the three must play a good interactive role.

(1) Seizing market opportunities

Seizing market opportunities is a prerequisite. In fact, the mining development of the Tenth Institute of Geological Exploration started early. In 1995, it established Jinyuan Company, which is mainly engaged in mining development. In the late 1980s and early 1990s, it had begun what was then called "exploring and mining at the same time." Maoshandong fluorite mine, Linxi Xinlin Town fluorite mine, and Balinzuo Banner Sifangcheng copper mine were explored and developed, but the scale was small and the benefits were not obvious. The main reason was that the mining industry was in recession at that time and the market prices of mineral products were low. From an international perspective, the late 1990s was a period of structural adjustment for the world's mining industry. At that time, a large number of mineral exploration and development companies went bankrupt or were acquired and merged.

After a long period of hard work in the market, the Inner Mongolia Geological Survey Institute has seized two opportunities.

The first is to get the right time.

In 2003, when the Inner Mongolia Institute of Geological Exploration stepped up its efforts to develop, it was precisely when the international mining industry entered a new growth cycle, a new round of domestic heavy chemical industry development had strong demand for mineral resources, and mineral product prices were running at high levels. Since the beginning of the 21st century, as China, India, Brazil and other countries have entered a new round of industrialization, the world's mining industry has changed from the sluggishness of the past 20 years and entered a new period of prosperity. Currently, the global mining industry is in a period of prosperity, with investment in mineral exploration growing rapidly. Beginning in 2002, global mineral exploration began a new cycle. Global investment in solid mineral exploration was less than US$2 billion in 2002, and increased to US$7.5 billion in 2006, an increase of nearly 300%. From a domestic perspective, since 2004, my country's domestic exploration investment has continued to grow rapidly, and the exploration workload has increased significantly, showing a good development trend. In 2006, investment in solid mineral exploration reached 10.8 billion yuan, ranking tenth in the world for the first time, with a year-on-year growth of 63.0%, the fastest growth in recent years, and more than five times that of 2001. In that year, Inner Mongolia invested 1 billion yuan in geological exploration (a year-on-year increase of 208%), and the Tenth Institute of Geological Exploration invested 45 million yuan in geological exploration (a year-on-year increase of 60%). The rapid growth of mineral exploration investment stems from the prosperity of the mining industry. In 2006, the prices of the world's major mineral raw materials, including oil, iron ore, copper, lead, zinc, nickel, etc., increased by 2 to 4 times compared with around 2001. Global mining profits are at an all-time high, and resource stocks continue to appreciate. This period of opportunity still exists, and there is huge room for growth in both world mineral exploration investment and domestic mineral exploration investment. Of course, this growth trend cannot continue forever, and opportunities must be seized as soon as possible.

The second is the geographical advantage. Chifeng City, where the Tenth Institute of Inner Mongolia Geological Exploration is located, is located in the non-ferrous metal mineralization belt on the west slope of the middle section of the southern foothills of Xing'an Mountains, and has unique resource advantages. The Inner Mongolia Geological Exploration Institute has rich geological data on the central and southern sections of the Greater Hinggan Mountains and the northern edge of the North China Platform. It owns the Huaobote lead-zinc mine in Xiwu Banner, the Shuiquan copper polymetallic mine in Zhalut Banner, the Huanghuagou lead-zinc mine in Wengniute Banner, Ningcheng County Dongbei Gou Gold Mine and many other mining rights with economic and development value. The mineral belt is located from the Huanggangliang iron-tin mine in Keshiketeng Banner to the northwest side of Baiyinnuoer lead-zinc mine in Balinzuo Banner, spanning Keshiketeng Banner, West Ujimqin Banner, and Zhalut Banner, and starts from Harchulutu Silver in the west. Lead-zinc mine (Dalinol Lake), east to Chaohortu silver-copper polymetallic mine (Huolin River), about 200 kilometers long from east to west and more than 50 kilometers wide from north to south.

(2) Making full use of policy advantages

Making full use of policy advantages is the foundation. A series of major policy measures adopted by the Inner Mongolia Autonomous Region Government in recent years have created opportunities, injected vitality into the reform and development of geological exploration units, achieved practical results, and greatly improved market competitiveness. On the one hand, the government has strengthened the leadership and management of geological exploration units. On the other hand, state-owned geological exploration units have accelerated their integration into the local economy and further enhanced their service functions, forming a new situation in which geological work and regional economy mutually support and promote each other.

First, it made full use of a series of geological exploration unit reform policies with the "three constants" as the core proposed by the autonomous region government in 2004. In accordance with the overall direction of the State Council on the corporate reform of geological prospecting units, and in accordance with the spirit of the autonomous region's "Opinions on the Pilot Reform of Public Institutions Directly Affiliated to the Autonomous Region" (Nei Dang Ban [2005] No. 13), Inner Mongolia implements the separation of internal affairs and enterprises, and retirees and in-service personnel The personnel are managed separately and the enterprise-oriented operation and management are actively promoted. The basic principles are "three constants" (the business brand remains unchanged, the geological exploration funds remain unchanged, and the status of existing employees remains unchanged), and "new people use new methods, and old people use old methods." The social functions of geological exploration units will be transferred to local governments; the funds of retired personnel and in-service personnel shall be managed separately; the funds of in-service personnel shall be contracted and responsible for profits and losses; the autonomy of employment shall be expanded; the internal management of geological exploration units shall be implemented as an enterprise. The reform of geological prospecting units in Inner Mongolia has promoted the strengthening of geological work and is conducive to the development of geological prospecting units. Employees have enjoyed the benefits of the reform. Each team of the Geological Survey Bureau builds employee housing, and the department will help solve land use and other issues.

The second is to make full use of a series of preferential policies proposed by the Department of Land and Resources of the Autonomous Region for geological exploration units to obtain mining rights. The Department of Land and Resources decided to give priority to geological exploration units to undertake geological exploration projects in the autonomous region; to support geological exploration units in their bid for mineral rights and mineral rights; when transferring mineral lands formed with state investment for a fee, 10% of the price will be withdrawn and returned to the geological exploration units for support Geological survey work. These preferential policies provide strong support for geological exploration units to promote reform and accelerate development.

The Department of Land and Resources provides certain preferential policies for geological prospecting units to apply for mining rights. Each team can apply for three mineral rights. If the geological prospecting unit cannot find a suitable application scope, the department also organizes the Geological Survey Institute to help screen.

The third is to maintain a harmonious relationship with the Chifeng Municipal Land and Resources Bureau. One example is that the Inner Mongolia Geological Exploration Institute and the Chifeng Municipal Bureau of Land and Resources signed an agreement to jointly provide geological and mineral technical consulting services, and jointly established a geological and mineral technical consulting service department.

(3) Self-effort and innovation

Self-effort and innovation are the key. With the market and policies in place, the key lies in our own efforts. Under the same environment, the 10th Institute of Geological Survey has achieved dizzying achievements, mainly due to its own efforts and innovation.

First, we are committed to developing comparative advantage industries and highlighting core competitiveness. The Tenth Institute of Geological Exploration regards mining development as the "core of economic development" and "the main tone of corporate development strategy" in a combination of leveraging strengths and avoiding weaknesses, and achieves leap-forward development. Geological exploration units do not have many industrial advantages if they want to integrate into the market, but comparatively speaking, mining development should be the most advantageous industry. However, it is not easy for geological prospecting units to find ore and even more difficult to mine. They lack funds, have no social influence, cannot coordinate local relations, etc. However, geological prospecting units also have advantages. In particular, geological prospecting units are technically savvy and talented, have accumulated a large amount of geological data, hold many mineral rights, control mineral lands and prospective target areas for further exploration and development, and have Tilt in national policies and regulations. The organic combination of these beneficial elements undoubtedly builds the core competitiveness of geological exploration units in mining development, indicating that geological exploration units should make a difference in mining development. It is based on this understanding that in recent years, the Tenth Institute of Geological Exploration has firmly grasped the keynote of mining development as an enterprise development strategy, calmly analyzed the situation, actively integrated various beneficial factors, made full use of various social resources, and grasped the Opportunities, taking advantage of the situation, strongly promoted the establishment of mining development as a pillar industry. Without high-quality mining rights, it is impossible to develop mining. The Inner Mongolia Geological Survey Institute's 10th Institute has a long history of past regional survey teams, which is also one of its advantages.

The second is to organically combine the mining rights market and the mining capital market in accordance with the rules of the market economy. First of all, the Inner Mongolia Geological Exploration Institute started operating the mining rights market relatively early. From 2001 to 2002, it transferred the mining rights of the bentonite mine in Aruhorqin Banner and the Hala white lead-zinc mine in Balinzuo Banner, and gained primitive accumulation. Without this "first pot of gold", a series of subsequent mining development projects would have been just a pipe dream. Now, the Tenth Institute of Geological Exploration has been very cautious when transferring mining rights. Unless it is not in line with the company's development strategy and the prospects are not promising, it will generally not be transferred easily. There are also lessons in this regard. The Tenth Institute of Geological Exploration once transferred the mining rights of the highly profitable Daolundaba Copper-Tungsten Mine for hundreds of thousands of yuan, but in 2005 it bought back the mining rights of the project for 330 million yuan. right. Secondly, sell part of the equity in the mining project to raise funds. This is the case with the Huanghuagou lead-zinc mine. Thirdly, all employees hold shares, which not only raises necessary funds, but also further mobilizes the enthusiasm of employees. Finally, after the local Geological Survey Institute gained considerable economic strength, in order to find larger and better economic development space, explore new models of capital operation, and create a new platform to connect with international economic activities, the Ten Institute of Geological Survey and Research in 2007 It plans to complete the H-share listing of the Xinyuan Company under its control in Hong Kong. This is also a sign of verifying whether the company is properly operated, scientifically managed, and has great development potential and long-term profitability. This approach of the 10th Institute of Geological Survey is basically in line with international practice. Many successful resource companies in the world also operate in this way.

Third, through joint-stock reform and employee participation, the bottleneck of "shortage of funds" that restricts the development of geological exploration units has been overcome. The biggest difficulty for geological prospecting units to establish large-scale enterprises is the lack of funds. After establishing a joint-stock enterprise, the employees of the enterprise must become the major investors of the enterprise and assume the main investment obligations in order to become the major shareholders of the enterprise. The geological exploration unit will step back and become the secondary investor, and can price the enterprise with qualifications, equipment, sites, mineral rights, etc. Capital contribution, and then attract social funds to supplement the insufficient part. This naturally builds a diversified model of corporate investment entities, effectively expands the financing channels and financing capabilities of geological exploration units, and fully taps the potential of geological exploration units to run large projects and The financial potential of large enterprises.

In recent years, enterprises sponsored by the Tenth Institute of Geological Exploration have invested hundreds of millions of yuan. In all investment projects, they have successfully ensured the timely arrival of project funds and have never been in arrears. However, this has not resulted in any new problems. Debt and book fund balances have not decreased, but have achieved larger increments in the development of the enterprise.

The fourth is to pay attention to handling local relations. Mineral resource exploration and development are closely related to local and regional economic development. Mining development promotes regional economic development, especially in terms of taxation, employment, etc. Without the support of local areas, communities and local people, mining development will be difficult to carry out. When developing mining projects, the Tenth Institute of Geological Exploration pays more attention to local interests and properly handles local relations to ensure the smooth progress of mining projects. For example, the Huanghuagou lead-zinc mine development project in Wengniute Banner, Chifeng finally reached a development agreement after repeated negotiations with the local government. It was finally jointly funded by the Inner Mongolia Geological Exploration Bureau, the 10th Institute of Geological Exploration and a local company *** LIMITED. The registered capital is 15 million yuan, with Inner Mongolia Geological Exploration Bureau accounting for 30% of the equity, employees of the 10th Institute of Geological Survey and the 10th Institute accounting for 45% of the equity, and local enterprises accounting for 25% of the equity.

The fifth is to attach great importance to geological prospecting. As the source of mining development and a necessary condition for the sustainability of mining activities, the 10th Institute of Geological Exploration attaches great importance to geological prospecting and regards geological prospecting as its primary task to do a good job. The 10th Institute of Geological Exploration not only uses government funds to prospect for minerals for the country, but also uses social funds to prospect for minerals for owners. More importantly, it also uses its own funds to prospect for minerals for itself. At present, these three areas account for roughly the same proportion in the geological exploration investment of the Ten Institutes of Geological Survey. Of course, from a mechanism perspective, it is definitely more efficient to use your own money to find funding mines than to use other people’s money to find other people’s mines. The Tenth Academy of Geological Exploration stipulates to increase investment in self-exploration, ensure that 10% to 20% of the profits earned in the year are used as special exploration funds every year, continuously analyze and study existing mining rights, identify key projects to increase investment, and do more work Fine (the current exploration mining areas of Inner Mongolia Geological Exploration Institute are no longer based on shallow geological conditions, and generally stop until -500 meters or when granite bodies are seen). With continuous development, the 10th Institute of Geological Exploration is no longer willing to assume the role of "worker" in terms of geological prospecting.

3. Some thoughts and experiences

(1) The integration of exploration and production is an important way for the reform and development of geological exploration units

The integration of exploration and production is an important way for the reform and development of geological exploration units. It is an important way for the reform and development of exploration units and is of great significance. First, this is an effective way to develop mining. At present, the geological exploration industry has "hundreds of bureaus and thousands of teams". Just imagine, if one team has one mine, and one bureau has ten large-scale mineral processing plants, the national mining economy will develop rapidly, and a number of modern resource companies will emerge. It will play an important role in alleviating resource constraints. Second, mining rights, technology, talents, and long-term accumulated geological data are the core competitiveness of geological exploration units participating in mining development. They attach relatively great importance to increasing revenue and reducing expenditure, which is conducive to protecting mineral resources and the environment. Third, geological exploration units that integrate exploration and mining attach relatively great importance to geological prospecting and allocate part of the funds from mining revenue to support the sustainable development of mineral exploration. This is in line with international practice and is also an important basis for commercial mineral exploration.

(2) Further development requires getting rid of the shackles of the business mechanism

In the Inner Mongolia Geological Exploration Institute, internal affairs and enterprises are separated, and the mining entities operate in accordance with the modern enterprise system and operate in a standardized manner. This is important experience for its success. However, from a national perspective, the geological exploration industry’s “hundred bureaus and thousands of teams” institutional structure has basically not changed so far, and no geological exploration unit has yet achieved a substantial breakthrough in corporate transformation. The existing institutional structure has been unable to adapt to the new situation and requirements in terms of property rights system, distribution mechanism, etc., resulting in insufficient incentive and restraint mechanisms, inability to retain talents, inability to expand the industry, and inability to make enterprises strong. The current global and Chinese mineral exploration and development markets are fiercely competitive. Geological exploration units are facing competition with mining companies and private enterprises: not only for mining rights, but also for markets and talents. In the past, the "brain drain" of geological exploration units was lost to other industries. Now, they are still engaged in mineral exploration and development, but they are flowing from geological exploration units to mining companies and private enterprises. At present, the incentive mechanism implemented by the Inner Mongolia Geological Survey Bureau and the Tenth Institute of Inner Mongolia Geological Survey is relatively effective. In the past one or two years, it has also reversed the situation of being unable to enter college students in the past ten years. However, from the perspective of the business mechanism, this is " edge ball". At the same time, if it expands, property rights issues will further restrict development (such as the case of Yunnan).

Indeed, the distribution mechanism and employment mechanism of the business system have restricted development. Under the dual transition system, it is impossible for state-owned geological exploration units with technical talents and resources to develop into mining enterprises like Zijin Mining and Western Mining and with vitality. resource company. A career has a career mechanism, and an enterprise has an enterprise mechanism. If we don’t take the path of modern enterprise transformation, if we don’t improve the system and transform the mechanism, and if we are “restful with a small amount of wealth”, we will still have difficulties in the market, and there may be some “future troubles”. In the short term, "wearing a career hat and following the path of an enterprise" can "share the interests of both parties", but in the long term, it is not conducive to the sustainable and healthy development of geological exploration units. In fact, companies such as the Inner Mongolia Geological Exploration Institute, which has been relatively successful in integrating exploration and mining, are already aware of these problems. If they have to make a choice, they would rather choose corporate status.

(3) Effectively improve the mining rights system

State-owned geological exploration units such as the Inner Mongolia Geological Exploration Institute have long-term accumulation and good bureaus (land and resources bureaus). Although the Department of Land and Resources has preferential policies for obtaining mining rights, it is still believed that the acquisition of exploration rights is the most important factor restricting its development. When talking about "going global" to develop and utilize Inner Mongolia's mineral resources, the main reason mentioned is actually to diversify the risk of not being able to obtain mining rights at home. Although the autonomous region government encourages geological exploration units to obtain mining rights, due to Inner Mongolia's implementation of forward-moving mining rights review and approval, the main approval power lies with the municipal governments of each league. In addition, the new "recruitment, auction, and listing" of exploration rights has raised the threshold for geological exploration units. It is actually very difficult to obtain mineral rights. This requires us to think further about where the problem lies. The system construction of mining administration needs to follow the laws of nature and economics and adapt to market principles. However, our current bidding and auction system for mining rights fails to do this and has been blindly expanded. Judging from the natural attributes of different types of mineral resources, oil and gas are suitable for bidding and auctioning systems, but we have not implemented them. Solid minerals are generally not suitable for bidding and auctioning systems, but we currently sell most of them through bidding and auctioning. Under market economy conditions, mining rights can be granted through bidding/transfer in the following situations: petroleum (also includes leaseable minerals in a broad sense, including natural gas, coal and other mineral deposits generally distributed in layers); sand, gravel and soil and other ordinary building materials and minerals (generally no so-called "high-risk" exploration process is required, and the value is relatively easy to determine); mineral rights that have been "confiscated" or "revoked" by the mining administration department due to the mining rights holder's own illegal behavior "Mining rights (at this time, the prospect of the mining rights is relatively clear, and bidding/auction can be applied. Recently, Australia's famous Weipa bauxite deposit has been taken back by the state government and then transferred through bidding); during the national public welfare geological survey process Occasionally discovered mineral deposits with very clear prospects (but these mineral deposits are very rare and have an "accidental" nature, because public welfare geological survey work generally does not extend in the direction of mineral exploration. For example, the United States Geological Survey in the 20th century The large Prodhoe Bay oil field was "accidentally" discovered in the 1960s (but this situation is currently controversial); mineral deposits with very promising prospects formed by national investment (such as Brazil in the 1970s and 1980s). In countries such as India, Sweden, and Turkey, the state directly engages in some mineral exploration activities. In this case, there is no dispute over previous investments, but the extent of the work of the geological exploration funds that will be established in the future will not be sufficient for commercial mineral exploration. Whether it has a "pull" effect or a "crowding out" effect is highly controversial). Except for these five situations, the "early applicants first" principle applies to the acquisition of mining rights, and no fees are required. The current practice in our country is to invite bids for all projects that can be tendered, even for blank areas. This itself is inconsistent with the basic laws of mineral resource exploration and development. The bidding and auctioning of mineral rights initially imitated land practices, which is illogical in itself. The two purposes at the beginning of the design of the regulations were not realized: first, to protect the state-owned assets of mineral resources from being lost, which is a confusing logic, not to mention that the mining management department does not have this function; second, to prevent corruption in the administrative award of mining rights. In fact, after the bidding and auction, corruption increased. The scope was not well defined when the regulations were formulated, and it was natural for local governments to blindly expand the scope later. It is necessary to study and sort out the issues of bidding, auctioning and selling of mining rights.

(June 2007)