Liberia is rich in domestic iron ore, has proven reserves of up to 40-65 million tons. Liberia was once the world’s third largest exporter of iron ore, with iron ore exports accounting for half of its total exports. After the end of the civil war, Liberia began to embark on the path of economic development and national reconstruction.

Over the years, India and China have strengthened their respective influence in the African region and continue to compete, each involved in infrastructure construction, industrial development and mining and so on. In 2013, the Government of India also provided Liberia with a total of $ 144 million in soft loans to help the country build transmission and distribution lines and two substations.

According to Indian media reports, China is still competing with Indian companies in Liberia’s largest iron ore Wo Condez mountain iron ore.

First, the Warnoguez mountain iron ore battle

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In the rich iron ore resources of the West African countries Liberia, India Jindal Iron and Steel Power Co., Ltd. (hereinafter referred to as Jindal) has long been “fancy” the country’s Wo Nuo Gezi mountain (Wologizi) iron ore. However, when the Chinese company also said that the iron ore are interested.

1, the Indian mining enterprises “overweight”

It is reported that Jindal began to express the intention to buy Voroguez mountain iron ore, and said it would invest 2 billion US dollars, in order to increase the “winning” chips, Jindal even promised to build a power station for the Liberian capital Monroe VIA suburbs.

India has published a special analysis of India’s African strategy, said India’s investment in Africa has more priceless resources, the African government for the revival of South-South cooperation through India is very enthusiastic, not only because they think that India’s development experience and technology with Own more relevant, and that India is more open than China, trusted partner.

However, the “Dean Herald” reported that the prospect of Jindal’s fight for the Wernoguez mountain mine was still uncertain because the Liberian government would enact a law that would allow foreign companies if they wanted permission from the Liberian government to do business , They must give the Liberian government at least 40% of the shares.

2, the British company’s “spoiler”

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Later British companies “spoiler” makes the situation more complex. British mining company Saibuer mining companies also fancy this piece of “fat”, they carried out a series of “ground” and “underground” activities.

In order to obtain the mining rights of the Volino Garcia Mountain Iron Mine in Liberia, Saebel Mining Company began to employ Sherman in early 2010 (the Liberian Solidarity Party Chairman Sherman was a well-known lawyer in Liberia with a wide range of contacts) for the company in Liberia Of the lawyers to help “get through the crowd.”

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Former chairman Tyler is suspected of charging $ 75,000 in fees and charges, to promote a benefit of the Saipur mining company’s legal amendments in the parliament approved.

According to this amended law, the Minister of Land, Minerals and Energy of Liberia has the right to declare that certain areas may grant mineral exploitation rights to individual companies without bids. Saibuer mining company was originally planned in the legal amendment was approved after the “back door” won the Wooke Gesi mountain iron ore mining rights, but failed to do so.

Although this Libyan’s largest iron ore Chinese enterprises did not receive the bag, but the success of the enterprise into another large iron ore in Liberia!

Second, Wuhan Iron and Steel will state mine “income in the bag”

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1, state mineral resources

The mine is located in the southwestern part of the central state of Liberia. The iron ore is distributed on the surface of the surface. Most of the ground is only three or four meters from the ground. It is very suitable for open pit mining and is a large open-air iron ore. A total of 1.31 billion tons, the prospect of reserves of more than 20 million tons, the average grade of 35.48%.

2, Wuhan Iron and Steel to obtain control

In order to achieve iron ore self-sufficiency, Wuhan Iron and Steel in 2010 to pay 68.46 million US dollars into the state mine project and get control.

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Liberia’s mine is the first overseas iron ore to be built, developed and operated by WISCO, and the largest project for Chinese enterprises to be put into operation in Africa.

The last century 60′s, Germany BMC company here mining. Later, long civil war, so that the only profit in Africa was destroyed iron ore, 15 years into a shutdown state.

State ore to attract Wuhan Iron and Steel, is in 2010.

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Since 2005, as the central enterprises of Wuhan Iron and Steel began to seek a global layout, hoping through the development of overseas mines, the end of their own steel enterprises and even high iron ore pressure was breathless dilemma.

In March 2010, Wuhan Iron and Steel bought a 60% stake in the Liberian Iron Mine Project from the China-Africa Development Fund for $ 68.5 million and was built and operated by WISCO China Africa (Hong Kong) Mining Company Limited.

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The project plans an annual output of 10 million tons. A project of 1 million tons, followed by 9 million tons, plans to put into operation in 2015.

The first phase of the Wuhan Iron and Steel Company has been put into operation in July 2013 and the second phase of the project has been put into operation in 2015. For Liberia, this project is also important – data show that Liberia’s GDP will double after the second phase of the state mine project.

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Global demand in 2016 is about 6.1 million tonnes, with consumption concentrated in Asia, Europe and the Americas. The apparent consumption of titanium dioxide in China increased from 770,000 tons in 2005 to 2.48 million tons in 2016, corresponding to about 11.2% of GAGR. The output of the same period increased from 700,000 tons to 2.6 million tons, corresponding to about 12.7% of GAGR. Demand growth, and the growing importance of the export market.

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At present, the United States, the European Union and other regions of the real estate industry has been warmer, the US new home sales have been restored to the pre-2008 level of economic crisis, the EU 27 national construction output rebounded slowly from the bottom of 2012; domestic, with the real estate industry boom gradually picked up, Titanium dioxide industry, the overall demand has rebounded significantly, and plastic and other downstream areas are still increasing demand, is expected to maintain a steady growth in the long term.

Since 2013, China has about 30-40 million tons of production capacity to gradually withdraw from the market, the current domestic production capacity has dropped to 3 million tons; the other hand, industry mergers and acquisitions are continuing, since 2014, domestic and foreign enterprises have accelerated The pace of mergers and acquisitions, market concentration to further enhance. Since the rebound in demand since 2016, the real operating rate of the industry gradually rose to 75% -80% level, micro, Bai Li Lian and other leading enterprises in recent years to maintain the status of full production. On the other hand, the future of the global capacity of new titanium dioxide production capacity is relatively controllable, by 2017 the new global production capacity of about 500,000 tons, of which the domestic added about 310,000 tons.

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Since 2016, with the overall situation improved, titanium dioxide prices continued to rise. May 8, 2017, Huntsman once again announced the global price increase of about 250 US dollars / ton; the current domestic rutile market in East China market price of 19,800 yuan / ton, compared to 2016 early 10,500 yuan / ton low Nearly doubled. This year, affected by environmental remediation, domestic titanium concentrate prices continued to rise, compared to 2016 early low price rose more than 200%.

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As the world’s largest non-patented pesticide supply, China’s pesticide production enterprises have more than 2,200, of which more than the scale (annual sales of more than 20 million) more than 800 enterprises. In 2016, China’s total output of 3.78 million tons of pesticides, according to the National Agricultural Technology Promotion Center forecast statistics, the total demand for pesticides in 2017 920,000 tons. A serious imbalance between supply and demand, will make the whole industry competition in the market chaos. With the deepening of the policy of zero growth in pesticides, environmental pressures are becoming increasingly tense. These five pesticide companies will face being eliminated:

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1. Ignore environmental protection business

Into 17 years, environmental protection has become a topic of cliche. National People’s Congress Chairman Zhang Dejiang Ren environmental law enforcement group leader, environmental protection supervision is already an indisputable fact. Not so much business do not want to do environmental protection, it is better to say that many companies lack energy, human, financial resources to implement environmental requirements. Many listed companies, the annual investment in environmental protection are hundreds of millions of dollars, high processing costs, the scale of the following enterprises simply can not afford. Last year in the China Pesticide Industry Association drafted pesticide industry, “thirteen five” development plan also proposed by 2020 the number of pesticide companies to reduce 30%, environmental protection is the most powerful starting point. The final realization of a number of out of a number of rectification, standardize the purpose of a group.

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Lack of technology

Now the pesticide market in the end is selling products or selling technical services, the concept from the beginning of 16 has already begun. And now, if the company is also close to the product, by price to capture the market. Lack of technical and service guidance, the future is bound to be eliminated. At present, China to ensure the safety of food supply, the provisions of the 18 million mu of arable land red line. With the acceleration of urbanization, more than 10 million people each year from the rural areas into the city. Data show that the average per capita use of edible oil in rural areas is about 12 kilograms, and into the city will grow to about 18 kilograms. It means that only edible oil per year on the basis of the original increase of 60 million kilograms. If the unit planting area to achieve high yield, technology is the inevitable choice for the development of agricultural enterprises.

3. blindly follow the trend of the enterprise

China’s pesticide registration, “swarm” like the registration phenomenon is particularly common. Foreign outstanding patent products expire, the inevitable set off some domestic registration boom. And blindly follow the trend of registration and production of pesticides, will deteriorate the operating situation of the whole industry, will also make their own enterprises to phase out. With BASF’s pyrazolium azoxystrobin, after the expiration of the patent in 2015, the product is worth about 500 million in the domestic market, and BASF’s products can account for about 300 million of the market value. In the remaining domestic market share of 200 million, with more than 1,500 registration cards to share the market share of 200 million (pyrazole mushroom registration after the upsurge of the cold thinking, enterprises should pay attention to!), The average of each registration card on Only 130,000 yuan, not to mention the profit is how pitiful. If the enterprise blindly follow the trend, the lack of consideration of the product market. That such behavior will eventually push the enterprise to be eliminated by the cliff.

Lack of integrity of the enterprise

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Needless to say, China’s pesticide market is quite mixed in the market, there are invisible elements in the market, infringement of intellectual property rights, undocumented production, illegal production of waste disposal and so on and so on chaos, some enterprises in the industry is quite serious plot, disrupting the pesticide industry normal The production and operation order. With the implementation of the new pesticide management regulations, to strengthen the regulation in the pesticide market links, and the establishment of corporate integrity files, so that the industry will be more rules at all. But also those who lack integrity, disrupt the market, to the pesticide industry discredited enterprises can not survive.

5. The lack of innovative spirit of the enterprise

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Innovation is the only way to upgrade our country from pesticide production to pesticide power. Speaking of innovation, we have to lament the six multinational companies R & D capabilities, the six multinational companies in research and development on the investment of more than 30 billion yuan each year. While the total income of China’s agricultural is 50 billion, R & D funding and multinational companies we still have a huge gap. In today’s rapid development of China’s pesticide industry, it is too early to say that the lack of innovative enterprises will be eliminated, but if the enterprise lacks the spirit of innovation, sooner or later the pace of progress in the industry will eventually be eliminated.

To ensure food security, to ensure that 1.3 billion people eat and drink is the responsibility of every pesticide. Pesticide industry is in such a social responsibility to grow and grow up. Pesticide industry in each of the pesticides, not only to farmers yield, harvest as their responsibility, but also to care for our survival of the land and other resources and environment. Excellent pesticide companies must establish a sense of responsibility, mission, and jointly create a better future of China’s pesticide industry.

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