Abstract: Based on the pattern of copper resources reserves, the pattern of production control and the stock ownership information of major copper mining companies, this paper analyzes the characteristics of the market main body in the current pattern of copper resources in the world, at present, the state-owned and wholly-owned national copper industry of Chile is the world's largest copper resource controlling enterprise, Europe, Latin America and North America are the three main source of producers, and the scale of mergers and acquisitions and cross-sector investment of copper mining enterprises is increasing. This paper predicts the development situation of copper mine resources in the future, and draws the following conclusions: The pattern of copper mine resources can not be changed in a short time; the mergers and acquisitions of large copper mine enterprises aggravate the monopoly of the industry;. Based on the analysis of the pattern of global copper resources and the conclusion of the future development of copper mining industry, this paper puts forward some suggestions for the development of China's copper mining industry. Copper is one of the earliest metals discovered by human being. It is a very close Non-ferrous metal with human being. It is widely used in electric, light industry, Machinery Manufacturing, construction industry, national defense industry and so on. With the rise of emerging markets such as China and India, demand for minerals, especially copper, has increased. At present, China has become the world's largest copper consumer, China's dependence on foreign copper resources is high. In view of China's high dependence on copper resources and the tight supply and demand situation of copper resources, it is necessary to master the global copper resources and economic situation, analyze the pattern of copper resources, and predict the development trend of copper industry. The resource pattern is analyzed from three aspects: Reserves Pattern, production control pattern and capital (mainly equity information) , and some suggestions are put forward for the development of copper mining industry in China.

1.Pattern of copper resources and reserves

In 2011, global copper reserves were 690 million tons, up 9.5 percent year-on-year, with Chile and Australia seeing significant growth. Chile, Peru and Australia have the largest copper reserves in the world, followed by Mexico, the United States, China, Indonesia, Russia, Poland, Congo (gold) , Zambia, etc. [1] .

Sentence is too long, please supply a shorter sentence. From the resource reserves, it can be divided into three echelons. The first echelons are Chile, Peru and Australia. The Chilean copper belt, which accounts for almost half of the country, is dominated by porphyry copper deposits in the north-central region. The second tier is Mexico, the United States, China, Indonesia, Russia, Poland, Congo (DRC) , Zambia, Kazakhstan. The third tier is Mongolia, South Africa, Argentina, Bulgaria and other countries, with total reserves of 80 million tons in 2011.

In the past two years, copper exploration in South America is still a hot spot, and new progress has been made in resource quantity. For example, in 2011, Bolivian authorities discovered a large copper mine with reserves of nearly 100 million tons in Coro Coro, Bolivia, 110 km from the capital, with an annual production of 30,000 tons of copper. In 2011, the eschalones copper mine, which is owned by the silver mine of South America in Canada, was located 100 km south of Santiago, Chile. The newly discovered large copper deposit is estimated to have 1.8 million tons of copper reserves.

2.Output pattern of copper resources

Currently, there are more than 100 large enterprises mainly engaged in the production and processing of copper mines, the top 10 companies in terms of global copper output were Chile's national copper mining company, Freeport Macmillan copper and gold, BHP Billiton, XSTRATA, Mexico, Antofagasta, Rio Tinto, Poland's copper group, and Anglo American of South Africa, in 2011 it accounted for more than 2.9 per cent of global production. China Minmetals China Minmetals twenty-two.

In terms of the countries where resource production control companies are located, the UK has the highest proportion of copper producers to companies, followed by Chile, the US, Australia, Canada, Switzerland, Mexico, Russia, Poland and Japan in 10th place. SEE FIGURE 3.

Europe, Latin America and North America are the three main sources of producers in terms of the continent in which they are located. From Europe and North America, mainly international multinationals; from Latin America, mainly large indigenous mining groups; and from Oceania and Asia, next to Africa, copper producers. SEE FIGURE 4.

Large copper refineries are owned by large copper producers, mainly from Europe and the United States, Latin America is mainly Mexico group and Asia is mainly Japan. See Table 1.

3.Distribution of equity interests in major global copper miners

Most of the major producers of copper in the world are listed companies. However, the largest producer in the world is the Chilean state copper industry, which is still unlisted and wholly state-owned, as well as the Polish copper industry, it is also a large copper miner, largely funded by the government. The rest of the listed mining companies are mainly owned by internal stock institutions and public funds. See Table 2[5-8].

1) the National Copper Company of Chile is the world's largest producer of copper resources and is wholly owned by the state, cooperating with others through agreements and other means. Chile's state copper is the world's largest producer of copper, accounting for 13 percent of global production in 2011, and Chile's state-owned and unlisted enterprises, cooperation with foreign investment mainly through agreements. In recent years, Chile's national copper industry has been cooperating with Chinese and Japanese enterprises and institutions through agreements and other means. A. Cooperation from China. Minmetals, which has a $2 billion joint venture with Chile to develop copper resources in Chile since 2005, has a 50 percent stake in the joint venture with the Chilean State Copper Company. In return, minmetals was awarded a long-term contract to supply copper. In 2007, Chile's State Copper Company sought to amend its minmetals agreement with China to keep Gaby copper nationalized. In 2008, China Enfei signed a cooperation agreement with Chile's National Copper Company, mainly on technical cooperation. B. Cooperation from Japan. In 2012, Japan strengthened its cooperation with Chile's National Copper Corporation. In August Mitsui and Chile's state copper signed a financing agreement to establish a strategic partnership. According to Japanese media reports, the two sides will share a 29.5% stake in Anglo American sur (AAS) , a subsidiary of Anglo American resources. Mitsui & CO. IS PROVIDING $1.9 billion in short term financing. At the same time, the Mitsui & CO. INVESTED $1.1 BN in its joint venture with the Chilean State Copper Company, Acrux , to acquire 17 per cent of the joint venture (equivalent to 5 per cent of the AAS stake) and to acquire approximately 120,000 t of the copper interest held by Acrux in AAS. In addition, Mitsui & Co. is likely to buy an additional 15.25 percent of ACRUX FOR $1 billion when the company refunds its short term financing. In addition, Chile's National Copper Company is expected to work with Japan's Mitsui to develop Maricunga lithium mine. In September 2012, Chile's National Copper Company has been involved in the development of Maricunga lithium assessment. Located in northern Chile, the Salt L. Mine covers an area of 145 KM2 and is the second largest lithium-containing Salt L. Mine in Chile.

2) among listed companies, diversified institutions participate in iron ore investment. A. Banks, trusts and insurance institutions such as the Bank of Australia, the Bank of New Zealand and the United States, the bank and trust of the United Kingdom, the United States Agricultural Bus Insurance Company, etc. . B. Investment firms such as blackstone, Franklin, Fisher capital management, and American brokerage firm Van Eyck capital management, among others, have assets and financial services. Blackstone Group, formerly known as Blackstone Group, is a leading alternative asset management and financial advisory firm based in New York. It is one of the largest independent alternative asset managers in the world and the largest publicly listed investment manager in the United States. [12] its alternative asset management business includes corporate private equity, Real Estate Opportunity Funds, Hedge Fund funds, senior debt funds, private hedge funds and closed end mutual funds. Blackstone also provides a variety of financial advisory services, including merger and acquisition advisory, reconstruction and restructuring advisory and fund-raising services. Blackstone has offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco, London, Paris, Mumbai, Hong Kong and Tokyo. In 2012 blackstone raised $2.4 billion for the first energy focused private equity fund. C. Family owned companies such as Antofagasta are 65% owned by the Luksic family of Chile.

3) the scale of mergers and acquisitions and cross-sector investment of copper mining enterprises is increasing. In 2012, the mining giant was ranked fifth in the world in terms of mining capital, while the renowned copper producer, Strathfoshan, and the sixth ranked Glencore announced the start of a merger process. The new company will be named Glencore Strathar International, with a market capitalisation of $90bn. The Glencore xstrata deal was awaiting regulatory approval from China as of March 2013. If merged, the new group would become the world's fourth-largest mining company, with operations in the production and sale of 18 commodities and investments in 33 countries. The mega-deals will create the world's first large vertically integrated commodities trading company. The new company will have a full range of operations that combine mining, processing, storage, transportation, logistics and marketing. In 2012, U.S. MINING GROUP FREEPORT MCMORAN COPPER & Gold bought PLAINSEXPLORATIONAND PRODUCTION AND McMoRanExploration for about $20 billion, making a dramatic re-entry into the oil business. This international mining giant mergers and cross-industry investment, will continue to drive new, large-scale mergers and acquisitions between enterprises, enterprises will become larger and larger.

4.Analysis on the pattern of global copper resources

Judging from the copper resources in the world and the amount of copper resources in the hands of producers, it has formed the pattern that Latin America is the main source of copper resources and the native mining enterprises in Europe, America and Latin America control the production. From the resource and Economic Control Pattern analysis, there are the following predictions. 1) the pattern of copper resources can not be changed in a short time. Latin America is the main reserve of copper resources. From 2011 to 2012, the Escondida copper mine, the largest in the world, was drilled into the ground and its reserves increased greatly. Its reserves were 45.7 million tons, up 25% , and its resources were 80 million tons, up 17% . At the start of 2013, new discoveries were made at the Cotabambas copper mine in Peru and the condor copper mine in Ecuador, among other projects. For example, since the second half of 2012, the reserves of the Coyavashi copper mine in Chile have increased by 10 percent, the resources of the Los Herados copper mine in Chile have increased by 8.54 million tons, and the resources of avanco resources'Karagas copper project in central Brazil have increased by 24 percent [14] . As a result, Latin America is still the main area of copper resource growth.

2) diversified nature of copper mine production control enterprises and increased number of fund organizations. From the above analysis, the main mining enterprises in the world include state institutions, state-owned enterprises, family-owned enterprises, multinational investment companies and so on. Investment institutions in different fields participate in mining investment, especially fund institutions. In the listed enterprise, almost most enterprises have the public fund or the Private Equity Fund participation. According to a 2012 Yasunaga report, as traditional sources of capital dried up, more and more private capital began to flow into the mining industry to finance new mining ventures. As of 30 September 2012, private equity investors represented 25 per cent of global mining activity, up from 12 per cent in the same period in 2011. More and more non-mining enterprises enter the mineral resources market, which makes the mineral resources pattern full of variables, especially on the mineral products price and other kinds of decision-making.

3) the mergers and acquisitions of large copper mining enterprises aggravate the monopoly of the industry. In the market, copper mining enterprises are changing the pattern of copper resources. With the increase of mining industry contracts, the scale of copper mining enterprises is growing. Mining enterprises are becoming more and more horizontal (parallel) vertical (vertical) integration. It extends to mining, processing, storage, transportation, logistics and marketing. It extends to small copper mining companies and energy companies. A merger between Glencore and XSTRATA could lead to a wave of future mergers between big companies such as BHP Billiton, Rio Tinto and Freeport mclaren copper and gold. Although investment in global mining declined significantly in 2013 and many large mining companies are selling assets to reduce their liabilities, large mergers and acquisitions between companies are inevitable due to the combined advantages of capital and technology. Once such a behemoth appears, it is bound to create an absolute voice in the price of copper resources, processing and smelting, as well as import and export trade, which will be a great challenge for small mining enterprises. If the current mergers and acquisitions and cooperation between the giants are frequent, the pattern of mining entities will gradually evolve from the mergers and acquisitions between the multinational mining giants to the monopoly of a giant, but this requires the multi-party integration of mining groups and the country's political economy. So, in the short term, the mining monopoly will continue.

5.Countermeasures for the development of China's copper mining industry

China is a country of great demand for copper resources, although the output is higher, but the demand is greater, the dependence on copper is very high. Under the current and future situation of global copper resources, and under the situation that China can not get rid of its dependence on copper mines in a short time, the following countermeasures should be taken to solve the contradiction between supply and demand of copper mines. 1) in terms of copper reserves and production pattern, South America is an important strategic resource region for the present and future. Chinese enterprises should strengthen and expand their cooperation with South American countries, especially Chile and Peru, and strengthen their project cooperation with local enterprises, such as Antofagasta of Chile and national copper mine of Chile. 2) Chinese enterprises must move towards international enterprises. The top 10 companies in the world's copper output are Chile's National Copper Mining Company, Freeport mcmoran copper and gold, and BHP Billiton, among other large international mining companies. In contrast, the domestic enterprise personnel and scale is not the key gap, what is important is the company management level and development concept. Enterprise management should have a long-term vision, at the same time there is an international vision and philosophy to dominate the enterprise. 3) Chinese mining enterprises shall, in accordance with their own conditions and enterprise size, launch overseas listings in a timely manner, improve their financing capacity and expand their financing channels. CHALCO has been participating in international competition for copper resources by listing overseas to improve its financing capacity and achieve its right to speak and control over the resources. In 2001, Chalco was listed in the United States. In 2013, Chalco has been participating in many international projects and cooperation with international multinational companies. Although it has paid a huge price, it is also exploring a route for Chinese mining enterprises to go international. Chinalco Mining International, which listed in Hong Kong on January 31,2013, is backed by five cornerstone investors. The estimated recoverable and pre-recoverable reserves in accordance with JORC criteria for the TOROMOCHO project orebody in Peru in the hands of Chinalco contain about 7.3 million tons of copper, 29,000 tons of Molybdenum and 10,500 tons of silver. 7.3 m tonnes is almost a year's worth of copper consumed by the Chinese market. Strategically, the listing is well financed and the completion of Chinalco's Peru project will significantly increase the bargaining power of Chinese companies in the copper raw material negotiations. 4) judging from the current pattern of copper resources, the number of non-mining institutions such as funds involved will increase greatly. Opportunities for mining enterprises to cooperate with non-mining enterprises will also increase in the future. Mining enterprises need to learn to cooperate with financial investment institutions such as banks and insurance companies to make full use of the resources and capital advantages of non-mining enterprises, so as to realize the size and strength of their own mining enterprises. 5) the role of the government is to guide the healthy development of enterprises and improve supporting services. Enterprises can not rely solely on the protection of the government to enhance their competitiveness. The role of the government is to improve the level and quality of standardized services and services with the characteristics of the mining industry, to provide a series of dynamic supporting services such as finance, taxation, personnel training and information, in accordance with the global mining cycle and industry laws, and to enhance the competitive strength of enterprises. 

Source: Poker investor  Authors: Wang Wei (School of Geoscience and resources, China University of Geosciences) , Li Yike (Ministry of Land and Resources of the People's Republic of China) , Feng Ning (Institute of Mineral Resources, Chinese Academy of Geosciences)