Study On The "Go Global" Strategy Of Mineral Exploration Enterprises In China

The implementation of "going global" strategy is an important part of China’s opening up policy. Under conditions of economic globalization, it is necessary for a country to take the global strategy of mineral resources and bring the "going global" of mining industry into the national strategic system. This means that mineral exploration enterprises such as Geological Prospecting Bureau and other mining companies engaged in mineral exploration business have to undertake the mission of national strategy of "going global".In fact, the international development strategy of mining industry is part of the national strategy of "going global". At present, Chinese enterprises have made great progress on overseas mining investment. However, Chinese enterprises face many challenges such as lack of strength, collaboration and Strong policy support in the process of going global. Moreover, compared with other enterprises in China, mineral exploration companies have its own characteristics due to the historical and institutional aspects, thus facing more challenges than others. The success of these enterprises depends not only on the government’s strategic planning and comprehensive policy support, but also on the mutual cooperation mechanisms among them and its own strategic management capability. To be honest, the present theory of global strategy of mineral resources has lagged behind the practice; therefore, it is of urgency and significance for us to explore the "go global" strategy of mineral exploration enterprises in China systematically.This paper can be divided into seven parts. First, the theory of "go global" strategy of mineral exploration enterprise is explored, which is the correlation mechanism of economic globalization, global resource allocation and corporate strategy adjustment. Then the strategic opportunities, key areas and target country selection of "go global" for Chinese enterprises are examined. Next, the status quo, and the difficulties of Chinese enterprises "going global" are investigated. Finally, from the three levels of government functions, industry collaboration and enterprise development, some countermeasures on promoting mineral exploration in China enterprises "going global" strategy are proposed.The main conclusions are listed as follows:(1)Economic globalization has become a world trend and characteristics of the times. So the Chinese enterprises have to learn to how to find the correct position in the global division of labor, and how to go global to explore overseas mineral resources. Mineral exploration enterprises must pay full attention to the strategic direction and corporate positioning, thus choosing the right strategy of "going global".(2)As a key element, mineral resources allocation globally is the inevitable result of economic globalization. With the deepening of industrialization, the world’s industrial center has also been transferred. Asia will be the next global mineral resource consumption center after Europe and America. Affected by the global economic crisis in2008, Chinese enterprises will gain more advantages than foreign enterprises on the exploration of global mineral resources. The next ten years are expected as important strategic opportunities of "going global" for Chinese enterprises due to the huge domestic demand of minerals and national resource security.(3)Overseas investment decisions requires a thorough grasp of foreign mining investment environment, thus it is necessary to make careful evaluation, comparison and classification on potential target countries. Globally, countries in the first level of mining investment environment include Canada, Australia and the United States. The second level countries are European countries while developing countries in Asia, Africa and Latin lies in the third level. As a developing country, China should focus on neighboring countries as well as African countries which are the potential target countries of mineral investment.(4)Since the implementation of national strategy of "going global", Chinese mineral exploration enterprises has managed to go abroad to invest overseas minerals and made great achievements. However, it is worth noting that they are facing a series of predicament, especially lack of service support system which have affected or restricted the full implementation of the strategy of "going global" of Chinese enterprises.(5)At present, we should take measures to break through the predicament and promote the national strategy of "going global". First, the funding and service support system should be improved from the perspective of national strategy. Second, collaboration between enterprises should be valued and strategic allies and the industry association should be established. Third, domestic enterprises should have a clear strategic orientation and enhance strategic management capabilities.