A report from the Ministry of Land and Resources stated that after 2010, phosphate rock resources will become one of the 20 minerals that cannot meet the development needs of China's national economy. In 2005, the domestic phosphate rock supply gap will reach 7 million tons. In order to protect the increasingly scarce phosphorous resources, the three major provinces of phosphate rock resources in Yunnan, Guizhou, and Hubei successively carried out massive rectification of phosphate rock mining order activities, and achieved some phased results, but the target is still very high. In the big gap, the phenomenon of indiscriminate exploitation in some places has not been fundamentally curbed.
There are two main manifestations of indiscriminate mining: First, non-standard mining. The standard mining method for phosphate rock is to make a roadway along the seam, hit the top of the seam, and then pick it up from the inside out and from the top to the bottom, and take out the ore as much as possible. This method has a large investment in the early stage, and it has to invest tens of millions of yuan before mining. However, small miners and unlicensed miners will not spend such money. They will drill holes in the seams and dig them until they see the mines, until the mountain collapses, and a large number of mineral deposits are pressed on the bottom of the mountain and they can no longer be mined. Often a 100,000 tons of phosphate rock, standard mining can be recovered 95,000 tons, indiscriminate mining can only dig out less than 20,000 tons. The second is to use rich to abandon poverty. Due to geological reasons, some forms of phosphate rock are “two leans and one richâ€, that is, the upper and lower layers are poor and the middle layer is rich. For some small miners, as long as they are rich, they will not dig or dig for poor mines. On average, more than 10 tons of poor mines will be lost for every 1 ton of mined ore.
The waste of resources caused by indiscriminate exploitation is astonishing. In Hubei, if indiscriminate mining occurs, phosphate mineral resources will be consumed in less than 10 years, and scientific mining can be used for 50 to 80 years. The development and utilization of phosphate rock resources in Hubei caused the attention of the Hubei Provincial Party Committee and the provincial government. Yu Zhengsheng, secretary of the Hubei Provincial Party Committee, said: “The general policy of the phosphate mine is rather unacceptable and cannot be taken care of.†In November last year, Hubei Provincial Governor Luo Qingquan signed the provincial government's No. 270 Order, promulgating and implementing the “Phosphorus Ore in Hubei Province.†The Interim Measures for the Administration of Resources decided to implement total control over the scale of phosphate rock mining and adopt a system for the transport of phosphate ore (powder). If it does not meet the planning requirements, the annual mining scale is less than 100,000 tons and low-grade phosphorus is not comprehensively utilized. The mine's mining company will rectify the deadline. The issuance of No. 270 Order has opened up the rectification of the order of phosphate rock mining in Hubei Province. However, although the phenomenon of openly and unlicensed exploitation is indeed less than in previous years, the phenomenon of indiscriminate exploitation still has no fundamental change.
The survey shows that there are two main reasons for this phenomenon:
First, power-seeking rent encourages indiscriminate exploitation. In some places where there are phosphate rocks, we can hear “black stocks, dry stocks, and red stocksâ€. Behind some private phosphate mines, there are often several cadres bracing. A person in charge of the county’s responsible department responsible for the renovation of the mining area said that he had been in office for more than a month. He had been greeted by phone calls and “sliversâ€. This made him very embarrassed. The head of a town-run phosphate company said frankly that if these red stocks, dry stocks and black stocks are not eliminated, the rectification will be a gust of wind. Mining phosphate rock is much safer than mining coal mines. Once coal mines have an accident, the behind-the-spot grime will soon be exposed, and relatively safe phosphate rock protects some power-seekers. Recently, the Hubei Provincial Department of Land and Resources issued a notice requiring employees of the province's land and resources system to participate in mining or taking shares. They must declare their withdrawal within the prescribed time, or they will be removed from office and those who violate the criminal law will be referred to the judicial authorities for disposal. This document shows that the phenomenon of rent seeking for power has caused the province's great attention and is taking measures to gradually eradicate it.
Second, local protection encourages indiscriminate exploitation. It is understood that the comprehensive cost for each 1 ton of phosphate rock is between 50 and 60 yuan. Last year, 1 ton of phosphate rock rose to more than 200 yuan. This year it reached 350 yuan. The annual net profit of 100,000 tons of phosphate rock is 20 million yuan. Therefore, various types of investment entities are concentrated in the mining area, and even some large stock companies, real estate companies, and large enterprises in the coastal areas have come. The local farmers did not have large capital. They hired an excavator for 200 yuan per hour and sneaked a few days behind the house to earn a small apartment building. Most of the mining companies are the financial pillars of the local government. The government of the mining area is responsible for law enforcement inspections. It is often easy to deform and lose shape, and even unlicensed ore can easily pass the cards.
It seems that the problem of indiscriminate exploitation of phosphate rock is, from the source, the issue of rent seeking for power and local protection. In order to eradicate the indiscriminate use of phosphate ore, it is not necessary to attack these issues.
There are two main manifestations of indiscriminate mining: First, non-standard mining. The standard mining method for phosphate rock is to make a roadway along the seam, hit the top of the seam, and then pick it up from the inside out and from the top to the bottom, and take out the ore as much as possible. This method has a large investment in the early stage, and it has to invest tens of millions of yuan before mining. However, small miners and unlicensed miners will not spend such money. They will drill holes in the seams and dig them until they see the mines, until the mountain collapses, and a large number of mineral deposits are pressed on the bottom of the mountain and they can no longer be mined. Often a 100,000 tons of phosphate rock, standard mining can be recovered 95,000 tons, indiscriminate mining can only dig out less than 20,000 tons. The second is to use rich to abandon poverty. Due to geological reasons, some forms of phosphate rock are “two leans and one richâ€, that is, the upper and lower layers are poor and the middle layer is rich. For some small miners, as long as they are rich, they will not dig or dig for poor mines. On average, more than 10 tons of poor mines will be lost for every 1 ton of mined ore.
The waste of resources caused by indiscriminate exploitation is astonishing. In Hubei, if indiscriminate mining occurs, phosphate mineral resources will be consumed in less than 10 years, and scientific mining can be used for 50 to 80 years. The development and utilization of phosphate rock resources in Hubei caused the attention of the Hubei Provincial Party Committee and the provincial government. Yu Zhengsheng, secretary of the Hubei Provincial Party Committee, said: “The general policy of the phosphate mine is rather unacceptable and cannot be taken care of.†In November last year, Hubei Provincial Governor Luo Qingquan signed the provincial government's No. 270 Order, promulgating and implementing the “Phosphorus Ore in Hubei Province.†The Interim Measures for the Administration of Resources decided to implement total control over the scale of phosphate rock mining and adopt a system for the transport of phosphate ore (powder). If it does not meet the planning requirements, the annual mining scale is less than 100,000 tons and low-grade phosphorus is not comprehensively utilized. The mine's mining company will rectify the deadline. The issuance of No. 270 Order has opened up the rectification of the order of phosphate rock mining in Hubei Province. However, although the phenomenon of openly and unlicensed exploitation is indeed less than in previous years, the phenomenon of indiscriminate exploitation still has no fundamental change.
The survey shows that there are two main reasons for this phenomenon:
First, power-seeking rent encourages indiscriminate exploitation. In some places where there are phosphate rocks, we can hear “black stocks, dry stocks, and red stocksâ€. Behind some private phosphate mines, there are often several cadres bracing. A person in charge of the county’s responsible department responsible for the renovation of the mining area said that he had been in office for more than a month. He had been greeted by phone calls and “sliversâ€. This made him very embarrassed. The head of a town-run phosphate company said frankly that if these red stocks, dry stocks and black stocks are not eliminated, the rectification will be a gust of wind. Mining phosphate rock is much safer than mining coal mines. Once coal mines have an accident, the behind-the-spot grime will soon be exposed, and relatively safe phosphate rock protects some power-seekers. Recently, the Hubei Provincial Department of Land and Resources issued a notice requiring employees of the province's land and resources system to participate in mining or taking shares. They must declare their withdrawal within the prescribed time, or they will be removed from office and those who violate the criminal law will be referred to the judicial authorities for disposal. This document shows that the phenomenon of rent seeking for power has caused the province's great attention and is taking measures to gradually eradicate it.
Second, local protection encourages indiscriminate exploitation. It is understood that the comprehensive cost for each 1 ton of phosphate rock is between 50 and 60 yuan. Last year, 1 ton of phosphate rock rose to more than 200 yuan. This year it reached 350 yuan. The annual net profit of 100,000 tons of phosphate rock is 20 million yuan. Therefore, various types of investment entities are concentrated in the mining area, and even some large stock companies, real estate companies, and large enterprises in the coastal areas have come. The local farmers did not have large capital. They hired an excavator for 200 yuan per hour and sneaked a few days behind the house to earn a small apartment building. Most of the mining companies are the financial pillars of the local government. The government of the mining area is responsible for law enforcement inspections. It is often easy to deform and lose shape, and even unlicensed ore can easily pass the cards.
It seems that the problem of indiscriminate exploitation of phosphate rock is, from the source, the issue of rent seeking for power and local protection. In order to eradicate the indiscriminate use of phosphate ore, it is not necessary to attack these issues.
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