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West minerals should be widely explored, deepened and integrated

Under the influence of supportive policies, economic incentives, and the lure of untapped resources, many domestic companies—especially in the chemical industry—are embarking on a new wave of "gold rush" as they move their operations westward. This has accelerated the development of mineral resources in western China, but it also poses serious threats to the sustainable use of these resources and the already fragile ecological environment. These challenges demand immediate attention from both the government and enterprises. There are three main factors driving this surge in mineral resource development in the west: First, there is growing confidence in the potential value of unexplored resources in the region. As investment in geological exploration increases, so does the estimated value of these resources. For example, in early 2007, the economic value of underground resources in Tibet was estimated at 650.4 billion yuan, but just a few months later, it had jumped to over 1 trillion yuan. With further exploration, this figure could potentially double. Second, improved transportation infrastructure has made mining more viable. The completion of the Qinghai-Tibet Railway significantly reduced the cost of transporting minerals from Tibet by over 20%, and overall costs dropped by about 30%. Better infrastructure not only helps transform resource advantages into economic benefits but also enables large-scale exploitation of previously overlooked deposits. Major mining groups, including some chemical companies, are now targeting high-altitude areas that were once considered too difficult or unprofitable. Third, the development of western regions has attracted a large influx of capital from the east, often in an unregulated manner. Due to the underdeveloped economy in many western provinces, local governments have sometimes prioritized short-term gains over long-term sustainability, leading to the proliferation of small, unqualified mining operators. These entities focus on quick profits and may exploit resources without regard for environmental or social consequences. With abundant resources and improving conditions, more capital is flowing into the western region. While the current stage of mining development is still in its early phases, a larger boom is expected. However, significant challenges remain. First, the level of geological exploration in the west is still very low, with only a small portion of reserves being recoverable. In Tibet, for instance, less than 1% of minerals have been identified in geological surveys, and only 15% of existing mines have conducted proper geological work. Similarly, in Qinghai, most of the remaining resources are located in high-altitude, ecologically sensitive areas, making them expensive and difficult to extract. Second, much of the accessible mineral deposits have already been claimed through "staking races," leaving the remaining resources in remote, high-altitude regions. These areas are not only challenging to develop but also home to ethnic minority communities, where improper mining practices could trigger social tensions. While mining can boost economic growth in the west, the region’s fragile ecosystem—particularly the Qinghai-Tibet Plateau, which is a major source of China’s rivers—makes it vulnerable to environmental degradation. If the same unregulated methods used in eastern and central regions are applied here, the consequences could be devastating. To address these issues, several measures should be taken: First, the government should implement a stricter mining access system in the west. Currently, a large proportion of mining activities are dominated by small and medium-sized enterprises, which lack scale and efficiency. To promote better resource utilization, the state should encourage investment in exploration while limiting entry into mining operations, and support the consolidation of smaller mines into larger, more efficient groups. Second, the mining order must be regulated, and resources should be integrated. Small-scale miners should be consolidated to support larger mining groups. This process should involve economic, legal, and administrative tools rather than simple top-down directives. Through mergers, acquisitions, and joint ventures, the goal is to achieve a more efficient and sustainable mining industry. Third, the development of western mining should follow a "professional, refined, specialized, and innovative" approach. Given the high costs and difficult conditions, orderly management is essential. Focusing on technological upgrades and value-added products will help create a competitive industrial chain that leverages the region's natural advantages. Fourth, environmental protection must be a priority. Strict enforcement of environmental impact assessments, land reclamation, and pollution control measures is necessary. For abandoned mines, restoration efforts should be intensified. Encouraging clean production technologies and responsible mining practices will help reduce environmental damage. Finally, the level of mechanization in mining should be increased, and outdated, polluting equipment should be phased out. Technological innovation is key to long-term sustainability, and western mining enterprises must adopt advanced, reliable technologies to ensure safe and efficient operations.

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