China Metallurgical Group as a whole merged into the new Minmetals volume exceeded the world's three largest mining giants

On June 2, 2016, a low-key restructuring conference was held in Beijing. China Minmetals Corporation (hereinafter referred to as "China Minmetals") and China Metallurgical Science and Industry Co., Ltd. (601618.SH, hereinafter referred to as "China Metallurgical Group") The reorganization and integration has taken another key substantive step.

On December 8 last year, the State-owned Assets Supervision and Administration Commission of the State Council announced that China Metallurgical Group as a whole was merged into China Minmetals and became its wholly-owned subsidiary. Since then, two of the world's top 500 central enterprises have embarked on the road of restructuring.

In terms of personnel arrangements, China Minmetals announced on its official website on May 9 this year that China Minmetals held an enlarged leadership meeting that morning and announced the appointment of Guowenqing as the general manager, director and deputy party secretary of China Minmetals. At the restructuring meeting on the same day, Xiao Yaqing, director of the State-owned assets Supervision and Administration Commission of the State Council and deputy secretary of the party committee, revealed that the newly established China Minmetals is actively applying to become a pilot enterprise for the reform of state-owned enterprises, and pointed out that China Minmetals should achieve results through the pilot reform.

The scale exceeds 700 billion yuan,

New Minmetals volume exceeds the world's three mining giants

He Wenbo, chairman and Secretary of the Party group of China Minmetals, said that the reorganization is an important measure to implement the requirements of the Party Central Committee and the State Council on "strengthening, optimizing and expanding state-owned enterprises", "continuously enhancing the vitality, control, influence and anti risk ability of the state-owned economy", deepening the reform of state-owned enterprises, promoting the structural adjustment of the state-owned economy, and building world-class enterprises with international competitiveness. After reorganization, China Minmetals's capital strength and resource mastery have greatly increased, and the enterprise's development space has been further expanded, and it has the development foundation to become a world-class enterprise.

According to the data provided by China Minmetals, the reorganized assets exceed 700 billion yuan, with nearly 240000 employees and 29 national science and technology innovation platforms and key laboratories, with a total of more than 18000 valid patents. Overseas mines are located in major resource areas such as Asia, Australia, South America and Africa, and overseas institutions and engineering projects are located in more than 60 countries and regions around the world. In 2015, the operating income exceeded 430 billion yuan, larger than the three mining giants BHP Billiton, Rio Tinto and Vale, it is the world's largest mining company.MetalThe mining industry is a veritable "aircraft carrier".

"The main business of the former China Minmetals and the former China Metallurgical Group is less repetitive and less competitive in the same industry. Through restructuring, the overall synergy of different links in the industrial chain can be obtained." He Wenbo said.

Guo Wenqing said in his speech that the reorganized China Minmetals has established new advantages in four aspects: business scale and influence, industrial chain integration capabilities, asset portfolio, and talent technology. He pointed out that the reorganized China Minmetals has taken the lead in opening up the entire industrial chain channel from resource acquisition, exploration, design, construction, operation to resource circulation in the global metal mineral field, forming a systematic solution and engineering for metal mineral companies. The service capability of the whole life cycle of construction and operation integration has greatly improved the competitiveness and voice of enterprises in the entire industry.

The independence of China Metallurgical Group will not be affected.

Public information shows that China Minmetals was established in 1950. It is a large global group that focuses on the development of metals and mineral products and concurrently operates financial, real estate, and logistics businesses. The main overseas institutions are located in 34 countries and regions around the world, with 177000 employees and holding 7 domestic and overseas listed companies. China Metallurgical Group is the world's largest metallurgical construction contractor and metallurgical enterprise operation service provider. It is one of the key resource enterprises determined by the state. It is the steel structure manufacturer with the largest domestic production capacity. It has been successfully listed in Shanghai and Hong Kong.

According to the previously disclosed restructuring plan, China Minmetals and China Metallurgical Group decided to carry out the restructuring in three steps: the first step is to complete the integration of strategy and management system in 2016; the second step is to strengthen management and control and further integrate enterprise business; the third step is to further integrate business from the perspective of their respective advantages and business classification.

He Wenbo said that after the reorganization, China Minmetals should seize the major strategic opportunity period of deep adjustment of the global metal and mineral market, and put forward three major tasks -- to become the national "guarantor of resource security, innovator of industrial upgrading and driver of circulation transformation".

After the reorganization, China Minmetals will focus on the following five aspects: accelerate the construction of overseas copper, zinc, nickel and other domestic scarce resource supply bases; Through the whole industry chain system integration and integration services to enhance the innovation driving capacity of the metal mining industry, to build the world's first metallurgical construction and operation service enterprises; Actively promote the integration of superior metal assets and protective development, break through the core key technologies and common basic technologies in the field of downstream materials; fully develop modern logistics, e-commerce, financial services and other productive services, strengthen global resource allocation and market operation capabilities; give full play to the advantages of full-license financial services, and build an industry-leading financial services and industry-finance integration platform in the field of financial capital.

At the same time, according to the requirements of the governance standards of listed companies, the independence and integrity of China Metallurgical Group as a listed company will not be affected, and the existing organizational structure and management system will remain stable.

Is applying to become a pilot reform of state-owned enterprises

At the reorganization meeting held on the same day, Xiao Yaqing, director of SASAC, said that after the reorganization, China Minmetals is actively applying to become a pilot enterprise for the reform of state-owned enterprises, and SASAC will fully support this.

In February 2016, SASAC announced that it would carry out "ten reform pilot projects" for the reform of state-owned enterprises, one of which is "state-owned capital investment and operation company". As an important part of the current round of state-owned enterprise reform, state-owned capital investment and operation companies are regarded as the substantive reform of the state-owned supervision system. Lou Jiwei, Minister of finance, once pointed out that "the reorganization and establishment of state-owned capital investment and operation companies is an important way to realize capital management, and has become the key to the reform and improvement of the state-owned assets management system."

During the two sessions this year, Zhang Xiwu, deputy director of the State-owned Assets Supervision and Administration Commission, publicly stated that since 2014, the State-owned Assets Supervision and Administration Commission has selected COFCO and SDIC to conduct a pilot state-owned capital investment company. In the process of promoting the reform of state-owned enterprises, "always adhere to the pilot project first, go straight to the problem, and strive to give full play to the role of demonstration, breakthrough and driving in the overall work."

"At present, the 1 N series of documents on the reform of state-owned enterprises have been issued one after another, the top-level design has been basically completed, and the supporting policies have been continuously improved. It is hoped that the new Minmetals will be conscientiously implemented in combination with the actual situation." Xiao Yaqing expressed the hope that the reorganized new Minmetals will continue to deepen internal reforms and strive to make substantial breakthroughs in key areas and key links in the reform of state-owned enterprises.

Xiao Yaqing pointed out that it is necessary to establish and improve the decision-making, implementation and supervision mechanism of equal power and responsibility, operation coordination, and effective checks and balances, strengthen the operation and control of funds, and better adapt to the development requirements of marketization and internationalization. We will speed up the construction of a labor employment and social distribution mechanism that is more in line with the requirements of the market economy, and truly form a reasonable flow mechanism in which all kinds of managers can go up and down, and employees can enter and leave.