The price of gold has risen sharply, and Chen Jinghe has become the biggest winner!
Recently, as the price of gold broke through a record high, Chen Jinghe, who has many gold mines, has naturally made a lot of money.
According to statistics, Zijin Mining, founded by Chen Jinghe, has more than 30 large-scale and super-large mineral resource development bases in 17 provinces and municipalities in China and 15 overseas countries.
At that time, Chen Jinghe, with his excellent management skills, single-handedly built a little-known small mine into the top of the listed mining list. He has also risen from an ordinary geological exploration engineer to the head of Zijin Mining, which is legendary.
Zijin Mining has such a glorious present, which is inseparable from Chen Jinghe's decisiveness.
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Today, Chen Jinghe, who holds many gold mines, has become a veritable "Chinese gold king".
In 1978, after the country resumed the college entrance examination, 21-year-old Chen Jinghe, like everyone else, poured into the vigorous college entrance examination army.
Chen Jinghe, who likes to read since childhood, was successfully admitted to Fuzhou University with excellent results, majoring in geology. The reason why I chose this major is because Chen Jinghe has a certain relationship with the mine.
Growing up in the mining area, he has a special affection for stones, not only likes to collect all kinds of stones, but even the decorations at home are small ores of different shapes.
After several years of university life, Chen Jinghe's horizons have been broadened, and his love for ore has also increased day by day.
With this love, he studied hard and was determined to devote himself to the country's mining construction.
In 1982, after graduating from university, Chen Jinghe was assigned to the Fujian Geological Brigade of Western Fujian Province to engage in exploration work, and he also became the youngest geological surveyor there.
Being able to deal with his favorite ores made Chen Jinghe excited. And Chen Jinghe's fate with Purple Mountain also started here.
It turned out that not long after joining the work, Chen Jinghe came to Purple Mountain Mining to carry out exploration tasks with the geological team.
Here, Chen Jinghe has been working for 10 years. Due to his strong work ability, he has grown from a small surveyor to a geological exploration engineer.
In 1992, the government decided to exploit the Purple Mountain mine. When the Ministry of Geology surveyed the Purple Mountain, it came to a surprising conclusion: the copper reserves of the Purple Mountain are about 1.16 million tons, while the gold reserves are only 54,500 tons, which has no mining value.
As a result, the Fujian Provincial Department of Geology and Mineral Resources delegated the mining rights to the local Shanghang County Mining Company.
As for the results given by the Ministry of Geology, Chen Jinghe resolutely disagreed. Based on 10 years of exploration experience, he firmly believes that the resources of the Purple Mountain mine are much higher than their predictions.
In order to verify his judgment, Chen Jinghe wandered around the Purple Mountain mining area every day to conduct repeated surveys, and the road up the mountain had been walked countless times by him.
After many explorations and records, Chen Jinghe finally concluded that the Purple Mountain gold reserves would exceed 200 tons, and the copper ore would even exceed 250 tons.
However, no one listened to and adopted the results of Chen Jinghe's exploration, let alone a mining plan.
Seeing so many minerals buried deep underground, Chen Jinghe was anxious.
In 1993, in order to develop mineral resources as soon as possible, Chen Jinghe resolutely resigned from the "iron rice bowl" that everyone envied and applied to work in Shanghang County Mining Company.
Chen Jinhe's outstanding resume has made Shanghang County Mining Company, which is in urgent need of mineral talents, a treasure. Not only did he appoint him as general manager, but he also put the development of the Purple Mountain mine on the agenda in accordance with the plan submitted by Chen Jinhe.
Shanghang County Mining Company is the predecessor of Zijin Mining Company.
At this time, the Shanghang County Mining Company that Chen Jinghe took over was a small company with only 76 employees.
The total assets of this company are 3.51 million yuan, the total annual output of gold, copper, iron and other mineral resources is less than one ton, and the net profit is only about 30,000 yuan.
Due to the poor efficiency, sometimes even the salary cannot be paid, and the employees have complained. According to the company's situation at that time, let alone the development of the Purple Mountain mining area, even the most basic life could not be guaranteed.
Seeing this scene, Chen Jinghe secretly vowed in his heart that he must lead the company out of the predicament.
Just as Chen Jinghe was ready to show his strength for the company's development, foreign investment companies also set their sights on the Purple Mountain mining area.
It turned out that with the acceleration of the pace of domestic investment, Australia's Xingsheng Company applied to the relevant departments to fight for the mining rights of the Purple Mountain mining area.
And the other party promised that as long as the government approved, they would bear all the mining costs, and pay Chen Jinghe an annual salary of 300,000 yuan.
This condition is quite tempting, you must know that at that time, Chen Jinghe's monthly salary and bonus together did not reach 3,000 yuan.
However, in the face of the huge temptation, Chen Jinghe decisively refused. At this moment, he is even more anxious in his heart: he must not let the country's resources fall into the hands of foreigners.
In order to keep the mining rights, Chen Jinghe made a better development plan than the foreign company overnight, and flew directly to Beijing the next day, intending to report to the State Gold Administration.
In the conference room of the State Gold Administration, the leaders listened carefully to Chen Jinghe's report with solemn expressions. And inside the Fuzhou Hot Spring Hotel, rival Xingsheng has begun to celebrate the impending victory in advance.
Under Chen Jinghe's arguments, the State Gold Administration finally decided to hand over the mining rights of the Purple Mountain mining area to Shanghang Mining Company.
Everyone later learned that Chen Jinghe's actions directly reduced the country's losses by more than 4 billion yuan.
After the acquisition turmoil, the first priority for Chen Jinghe was to develop the Purple Mountain mine.
However, there was a heated discussion about the mining methods in the Purple Mountain mine. Some people believe that the terrain of the Purple Mountain is dangerous, humid and rainy, and the mining technology proposed by Chen Jinghe is not suitable.
However, if the mining method of cyanidation of all deposits is adopted, the investment budget will be as high as 29 million yuan.
This is undoubtedly an astronomical amount for a small company with a net profit of only a single digit.
In order to save costs, Chen Jinghe decided to use the heap leaching process, which is not recognized by everyone, to carry out mining.
On December 17, 1997, after more than two months of deployment, Chen Jinghe used 1,000 tons of explosives to kick off the mining of the Purple Mountain mine.
With an earth-shattering bang, the entire Purple Mountain was razed to the ground.
At this time, the hearts of all employees of the company were very nervous.
They don't know what the outcome of this mining will be. If too few resources are mined, it will be worse for the company's current situation.
With the first piece of gold weighing up to 9.3 kilograms dug up, everyone's hanging hearts finally fell to the ground. Just this piece of gold can bring 54,000 yuan of profit to the company.
This result made the whole company excited. Chen Jinghe immediately decided: to start open-pit mining of the Purple Mountain mine.
In the end, Purple Mountain mined a total of 1,136.3 kilograms of gold, which greatly exceeded the original judgment, which also directly brought nearly 20 million profits to the company, thereby alleviating the company's financial pressure.
With the successful mining of the Purple Mountain mine, the company has gathered a large amount of capital flow, and the total assets have reached 600 million yuan, and the total annual sales are 400 million yuan, which is 200 times that of the original assets.
With the support of funds, Chen Jinghe has become confident.
Chen Jinghe, who won the first battle, was not carried away by the victory, and he clearly realized that if he only defended the Purple Mountain, the resources would one day be exhausted.
In order for the company's long-term development, Chen Jinghe has formulated a three-step strategy for the company in the future:
- The company is leading in the domestic gold industry;
- The company is a leader in the domestic mining industry;
- The company can successfully enter the advanced ranks of the international mining industry.
Just as Chen Jinghe was preparing to implement the acquisition plan, the resource market changed dramatically.
As gold prices continue to move lower. Many mining companies have chosen to stop their acquisition plans in order to avoid excessive losses.
However, Chen Jinghe made a decision at this time that surprised everyone: to use resource mergers and acquisitions to start acquiring domestic mineral resources.
In just a few years, Zijin Mining has successively acquired several mines such as Guizhou Shuiyindong Copper Mine, Xinjiang Ascher Copper-Zinc Mine, Jilin Hunchun Gold and Copper Mine, and Xiyulong Copper Mine, seizing market opportunities.
Chen Jinghe's resource merger and acquisition plan made everyone worried, but what they didn't expect was that the resource market ushered in a huge turnaround.
Gold prices began to bottom out, and then Zijin Mining's assets soared, and this time Chen Jinghe made the right choice.
With sufficient financial support, Zijin Mining slowly gained a firm foothold in the industry, and on December 23, 2003, Chen Jinghe's Zijin Mining was successfully listed in Hong Kong.
With the help of the capital market, Chen Jinghe's assets began to grow rapidly, and in 2006, Zijin Mining's annual gold production reached 4.928 billion tons, accounting for 20.53% of the country's total output.
Whether it is industry or revenue, Zijin Mining has achieved the first place in the industry.
Zijin Mining has grown rapidly, ranking 17th in the Forbes list of China's top companies.
In 2007, Zijin Mining became the second largest company in China.
In order to keep Zijin Mining firmly at the top of China's gold industry, Chen Jinghe began to implement the third step of the strategy, opening the global sweeping mode.
In just a few years, Zijin Mining has owned 18 important mining areas overseas, including copper and lithium mines, in addition to gold mines.
Of course, Chen's goal is not limited to this, and he plans to make Zijin Mining one of the world's most important producers of lithium, molybdenum and silver within the next five years.
By the end of 2023, Zijin Mining had 2,998 tonnes of gold, more than 74 million tonnes of copper and more than 13 million tonnes of lithium carbonate.
At the same time, Zijin Mining has become the world's largest gold enterprise and the sixth largest metal mining enterprise with an annual revenue of 293.404 billion yuan, a year-on-year increase of 8.54%, and a net profit attributable to the parent company of 21.12 billion yuan, a year-on-year increase of 5.38%.
In the first quarter of this year, Zijin Mining made a net profit of 6.2 billion.
What was once a small company that was almost bought by foreign investors has now become a world-class mining giant.
However, Chen Jinghe has a bigger goal in mind: he hopes to build Zijin Mining into a world-class mining company by 2030.
From an exploration engineer to the helm of Zijin Mining, Chen Jinghe has always maintained a forward-looking vision and an unyielding entrepreneurial spirit.
He turned a little-known small mine into a gold giant with a market value of more than 400 billion. It can be said that Chen Jinghe has created a major miracle in the field of gold production in China.
Although four years ago, the 63-year-old was controversial by the outside world because he married a 38-year-old wife, but as an entrepreneur, Chen Jinghe is undoubtedly excellent.
It is worth mentioning that Chen Jinghe not only created a lot of wealth for the country, but also prevented the outflow of resources from the perspective of national interests, and acquired foreign minerals through resource mergers and acquisitions, thus providing a large amount of resources for the mainland's economic development.
China is a large country rich in mineral resources, but in the long run, resources are not inexhaustible.
Although Zijin Mining is now making a fortune of 2 billion yuan a month, the company's debt ratio is also surprisingly high, nearly 60%.
How to resolve liabilities, maintain cash flow at a high level, and revitalize foreign assets is a major challenge faced by the company.
In addition to gold, Zijin Mining's output of copper and zinc also ranks among the top five in the world, and the company is also firmly grasping the new energy outlet and laying out lithium mines.
This wave of wealth and wealth, Chen Jinghe is currently holding it firmly.
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Bibliography:
The Paper: China's mining king has invested more than 50 billion yuan, and he wants to "gamble" big
NetEase: Chen Jinghe, chairman of Zijin Mining: Zijin may become the world's largest equivalent lithium carbonate producer in five years
Huatong Baiyin.com: Chen Jinghe, chairman of Zijin Mining, said that he will reach the top of global lithium carbonate production in five years, and production will rise steadily in 2023
China Securities Network: Zijin Mining Chen Jinghe: Continue to deepen the main business and unswervingly follow the path of high-quality development
Author: Chenyuan