Recently, the global mining market has been undergoing dramatic changes. Leading Chinese enterprises such as Zijin Mining, CMOC Group, Shandong Gold, and Western Mining have achieved significant scale expansion and optimized their resource portfolios through mergers, acquisitions, or investments in high-quality core projects—accelerating the reshaping of the global mining landscape.

However, in this wave of M&A activity, companies that pursue resource expansion at the expense of development quality risk falling into the trap of being “big but not strong.” How can mining M&A truly deliver a “1+1 > 2” synergy? The author believes that enterprises must make four critical strategic shifts.

First: Shift from “fragmented resource allocation” to “systematic optimization,” with supply chain resilience as the core objective.

Behind this industry-wide M&A surge lies a fundamental revaluation of strategic mineral resources driven by the rise of new energy, artificial intelligence, computing power, and other emerging sectors. Critical minerals such as copper, lithium, cobalt, and nickel are now fiercely contested globally, as the structure of mineral demand undergoes profound transformation. For example, demand for copper is expected to grow steadily over the next two decades, fueled by electric vehicles and AI infrastructure.

Policy guidance is already clear. The Work Plan for Stabilizing Growth in the Nonferrous Metals Industry (2025–2026), jointly issued by eight ministries including the Ministry of Industry and Information Technology, provides a strategic roadmap for resource integration: on one hand, intensifying exploration for copper, aluminum, lithium, nickel, cobalt, tin, and other key resources to deliver new geological discoveries; on the other, rationally planning projects such as alumina refining, copper smelting, and lithium carbonate production to avoid redundant, low-level investments and enhance the precision and effectiveness of capital allocation. This means corporate M&A must evolve from simple scale accumulation into a systematic effort aimed at securing and strengthening supply chains.

Second: Shift from “cyclical profit dependence” to “value chain reconstruction.”

Mining companies are undergoing a fundamental redefinition of their value proposition. Traditionally, profitability was heavily tied to commodity price cycles, leading to volatile earnings. Today, industry leaders are proactively embedding themselves into emerging industrial ecosystems through vertical integration and horizontal collaboration to build more sustainable and stable value creation models.

In vertical integration, some mining firms are moving beyond raw extraction and basic smelting to enter high-value-added sectors such as semiconductor materials, battery materials for new energy vehicles, and advanced alloys—unlocking exponential value from their resources.

In horizontal collaboration, upstream mining companies are deepening partnerships with downstream users—through long-term offtake agreements, equity investments, and joint ventures—to establish new “risk-sharing, benefit-sharing” supply relationships. Such deep integration not only secures raw material flows but also enhances the overall resilience of the industrial chain.

Third: Shift from “resource dependency” to “technology-driven growth.”

The mining industry has shed its old image: technological innovation is now the cornerstone of competitiveness and a critical buffer against price volatility. In upstream exploration and mining, technologies like smart mines and advanced beneficiation are unlocking the potential of low-grade and complex ores. In midstream processing, advances in materials science are enabling products to evolve toward high-purity, specialty, and composite forms. Downstream, “urban mining” and resource recycling technologies are reducing reliance on primary mineral resources.

Building a technological moat is no longer just about improving efficiency or cutting costs—it is essential for smoothing out cyclical fluctuations and ensuring long-term sustainability. For instance, despite a sharp decline in lithium carbonate prices, Salt Lake Co., Ltd. has maintained relatively stable profitability, thanks to its continuously optimized brine lithium extraction technology and production costs significantly below industry averages.

Fourth: Shift from “asset acquisition” to “capability export” in overseas M&A.

As Chinese companies expand globally, overseas mining acquisitions are increasing. Success is no longer measured solely by the volume of resources acquired, but by the ability to build global operational capabilities and create localized value. This requires strong competencies in cross-cultural integration, localized management, environmental, social, and governance (ESG) practices, and global risk management.

Truly successful international mining companies integrate their capital, technology, and market strengths with the host country’s resource endowments, industrial needs, and development aspirations—transforming their role from mere “investors” to trusted “co-builders.” This identity shift lays the foundation for stable, long-term operations abroad.

Looking back at global M&A cases, the acquisition itself is only the beginning—the real challenge lies in post-merger integration and operational excellence. The future of mining competition will not be a race over resource reserves alone, but a comprehensive contest of resource integration capability, value chain coordination, technological innovation, and global operational excellence. Only by maintaining strategic discipline—and prioritizing quality alongside scale—can enterprises navigate this profound industry transformation with confidence and resilience.

(Source: China Economic Net)