Transporting oversized mining equipment to China’s Tibet Autonomous Region is likely to become more frequent as companies such as Huayu Mining expand operations in remote corners of the region.
Tibet miners extract a variety of minerals including lead, zinc, antimony, copper and silver. Falling demand due to China’s cooling economy pushed prices for these minerals lower over the past year, according to a Changjiang Securities report, prompting some mining companies to delay expansion projects.
But Huayu Chairman Liu Jianjun is optimistic about the future of the company’s Tibet operations. According to a press release, Liu considers “the rational and orderly development of mineral resources as an impetus” for accelerated economic development in Tibet.
“Stable development of the Tibetan mining industry not only provides raw materials for industry, but it also promotes the development of agriculture, services, local transportation, energy and related infrastructure,” Liu said.
The Changjiang report said global mineral prices are expected to hover at current, low levels for the next two to three years before rising again. As a result, the report said, Tibetan miners are likely to face business challenges in the near term but enjoy long-term growth.
