What’s the Weakness of the Domestic Mining Industry and Products?

It’s reported that the main disadvantages of the domestic mining industry and mining products lie in the low-end machines and the weak industry development. So how can we make sure that this opinion is showing the truth?

As we all know, the mineral resources are non-renewable resources, so it’s a huge challenge for the mining machinery to realize the energy saving goal. The mining machinery belongs to a high capital and technology intensive heavy industry and the improvement of the mining technology will play a key role for the future development of the mining industry. At present, the whole industry is falling into the negative situations where engineering machinery has too many subcontracting cases and there exists little research and development. Whether to create and research and develop will not only cause great pressure of a huge sum of researching capital but also leads to the uncertainty of the final results.

China now is in the basic construction period with a large scale of investment and all cities’ demands of the mineral resources are increasing, leading to the mania of investing mineral resources. The mine fields all over the country are small in size, and they seek to succeed quickly with little investment. The tight market causes a large number of mining machines with rough manufacturing, low technology, high energy consumption and serious environment pollution to enter the market. Usually these machines can only occupy the market through the low price strategy.

At present, the global high end mining machinery market is occupied by the European and American enterprises; in the domestic market, foreign companies are making up 85% of the world mining market share and minority of the enterprises are controlling the whole industry. Additionally, although Chinese mining machines are abundant in types and production, they are large in size with weak competition in fact. Therefore, we need to analyze the reasons and then think out useful solutions.