| As a result of evolution of industrialisation and adjustment of sector structures in China,the size and variety of the demand for mining resources has been changing.Referring to the history of industrialisation of developed countries and the dynamics of information technology,the author believes that the forthcoming characteristics of industries in China will be lean,scalable and high-end oriented.And the infrastructure,including traffic facilities,will be highly developed.The demand for non-mineral resourceswill shift from metallurgy and non-ferrous metals to non-ferrous metals and non-metal.As predicted,the peak of demand for copper will be far away.Currently,the consumption of copper per capita in China is 7.5kilograms,only half of the consumption in developed countries.Under the new economic conditions,the proportion of industry will keep stable.Due to rapid urbanization,heavy investment in infrastructure and properties,the demand for copper will be boosted.So,it is important to keep development of copper industry stable.The author summarises various works by others,and then analyses the current demand and supply of copper in China,through referring to the developing situation of China and comparison to foreign countries.After that,the author looks into the sector by investigating into several copper-producing companies,attempting to explore the reason for low utility of production capacities,poor profitability and high exposure to movement of prices.Finally,the author tries to design an risk guarantee fund to protect copper producers from adverse movement of prices.This suggestion is inspired by similar procedures used in other industries in China.The author's discussion is based on two key assumptions: China's copper industry is developing.In sum,improving or maintaining its capacity of resources supply is an effective way to protect China's economic and national security.The government has the responsibility as well as the ability to enhance the supply of resources. |
PDF Full Text Request