Minerals

China is the world's largest producer and consumer of coal, accounting for over half of global production and consumption. Here's a breakdown of key details about coal in China:

Coal Production and Reserves:

China produced 4,781 million tons of coal in 2024, with reported coal reserves of 114.5 billion tons, including 62.2 billion tons of bituminous coal, 33.7 billion tons of sub-bituminous coal, and 18.6 billion tons of lignite.

 The majority of China's coal reserves are found in Inner Mongolia, Shanxi, and Shaanxi provinces.

Coal Consumption:

Coal accounts for approximately 59% of China's electricity generation, with the industry relying heavily on coal for power.

China consumes 30% more coal than the rest of the world combined, with coal-fired power plants operating at an average utilization rate of around 50%.

Coal-Fired Power Plants:

China has over 1,000 operational coal-fired power plants, with many more under construction.

 In 2024, China started constructing 94.5 gigawatts (GW) of new coal-fired power capacity, the highest level in the past 10 years.

Environmental Impact:

Coal combustion in China generates significant environmental concerns, including air pollution and greenhouse gas emissions.

The country aims to reduce its reliance on coal and transition to cleaner energy sources, with President Xi Jinping pledging to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.

Regional Distribution:

 Major coal-producing provinces in China include:

  Inner Mongolia: Known for its abundant coal reserves and large-scale coal production.

  Shanxi Province: Often referred to as the "coal capital" of China, it has numerous mines and power plants.

  Shaanxi Province: Another significant coal-producing region in China.

  Xinjiang: A key region for coal production and new coal-fired power plant construction.

China has an impressive array of metallic minerals, with 59 types discovered in the country. Some of the notable metallic minerals found in China include:

Copper: China has seen substantial growth in copper reserves, driven by advancements in geological research and exploration.

Lead and Zinc: These minerals have also experienced significant reserve growth, contributing to China's rich metallic mineral resources.

Nickel and Cobalt: China's reserves of these minerals have increased, supporting the country's growing demand for battery production and other industries.

Lithium: As a key component in batteries, lithium reserves in China have grown, solidifying the country's position in the electric vehicle and renewable energy sectors.

Rare Earth Elements (REEs): China dominates the global production and refining of REEs, including:

Neodymium: Used in permanent magnets for electric vehicle motors and wind turbines.

Praseodymium: Essential for high-performance magnets.

Dysprosium and Terbium: Crucial for advanced technologies, including electric vehicles and renewable energy systems.

Other notable metallic minerals: China also has significant reserves of metallic minerals like gallium, germanium, and beryllium, which are vital for high-tech applications.

China's dominance in metallic minerals is attributed to its strategic investments in mining and refining infrastructure, as well as supportive government policies. However, the country's control over critical minerals has raised concerns globally, particularly regarding supply chain security and trade dynamics.

China is a significant player in the global copper market, with substantial resources and production capacity. Here's an overview of copper in China:

Copper Production:

China produced 1,699.87 thousand tonnes of copper in 2024, with a decline in production expected in September 2025 due to new tax regulations constraining scrap copper supply.

The country is the world's fourth-largest producer of copper, accounting for 8% of global production.

Major copper-producing regions in China include the Qinghai-Tibet Plateau, known for its significant copper deposits, including the Yulong and Duolong copper deposits.

Copper Consumption:

China is the world's largest consumer of copper, with demand driven by the electrical and electronics sector (38.25% of national consumption), construction, and automotive industries.

The country's copper consumption is expected to grow, driven by the development of renewable energy infrastructure, electric vehicles, and 5G networks.

Major Copper Companies in China:

Jiangxi Copper Corporation: One of China's largest copper producers, with a domestic mining-to-refining chain exceeding 1.2 million tons.

Zijin Mining Group: A leading copper producer with significant operations in China and abroad.

CMOC Group: A major copper producer expanding its overseas exposure through strategic investments.

Tongling Non-ferrous Metals Group Holding Co., Ltd.: A significant player in China's copper industry.

Market Trends:

Copper prices in China have been influenced by global market trends, with prices fluctuating in response to changes in supply and demand.

The country's copper market is expected to remain significant, driven by growing demand from the renewable energy and electric vehicle sectors.

China is the world's largest producer and consumer of zinc.

 Here's an overview of the zinc industry in China:

Production: China produced 4 million metric tons of zinc in 2023, accounting for 33% of global production. The country's zinc output is expected to remain significant, driven by large-scale mining operations and investments in the sector.

Major Producers: Some of the leading zinc producers in China include:

Zijin Mining Group: A major mining company with significant zinc production capacity.

Silvercorp Metals: A mining company with zinc production operations in China.

Consumption: China's zinc consumption is driven by various industries, including:

Construction: Zinc is used for galvanizing steel and other infrastructure applications.

Automotive: Zinc is used in the production of electric vehicles and other automotive components.

Electronics: Zinc is used in the manufacturing of electronic components and devices.

Market Trends: China's zinc market is influenced by global supply and demand dynamics, as well as domestic factors such as production costs and government policies. The country's zinc prices have been volatile in recent years, with fluctuations in global market trends and supply chain disruptions.

Exports and Imports: China exports zinc to countries like Vietnam, Taiwan, and Japan, while importing zinc concentrates from countries like Australia, Kazakhstan, and Iran. The country's zinc exports are expected to increase due to a growing incentive to export.

Future Outlook: China's zinc market is projected to experience a slight increase in performance over the next decade, driven by growing demand from various industries. The market volume is expected to reach 5.4 million tons by 2035, with a forecasted compound annual growth rate (CAGR) of +0.2% 

China is the world's largest producer and consumer of lead, accounting for 44% of global production. The country's lead output increased by 1% in 2023 compared to 2022, with a growth rate expected to continue at 1% between 2023 and 2027.

Lead Production:

China produced 4.723 million tons of refined lead in 2017.

The country's primary lead smelting stage loss was 2.95 million tons from 1949 to 2017, with 77 kilo tons lost in 2017.

Secondary lead smelting stage loss was 0.85 million tons, with 60 kilo tons lost in 2017.

Major Lead Producers:

Zijin Mining Group: A leading mining company with significant lead production capacity.

Silvercorp Metals: A mining company with lead production operations in China.

Consumption:

China's lead consumption reached 4.723 million tons in 2017, accounting for 42% of global consumption.

 Lead-acid batteries are the primary consumption field of lead in China, accounting for 73.5% of lead products in 2017.

Environmental Impact:

Lead pollution in China mainly comes from mining, processing, production, use, and recovery of lead.

The country emitted 2.1519 million tons of lead compounds in 2017, with 84% coming from the product use stage and waste disposal and recovery stage.

Efforts to reduce lead pollution include increasing recycling efficiency, improving waste management, and implementing cleaner production practices.

China plays a significant role in the global nickel market, accounting for 3% of global production. Here's an overview of nickel in China:

Production:

China is the world's seventh-largest producer of nickel, with output increasing by 0.35% in 2022 compared to the previous year.

The country's nickel production is expected to rise by a CAGR of 0.4% between 2023 and 2027.

Major nickel-producing regions in China are not specified, but Chinese companies are heavily invested in Indonesia, a major nickel-producing country.

Consumption:

China is a significant consumer of nickel, driven by the stainless steel and electric vehicle industries.

The country's demand for nickel is expected to continue growing, driven by increasing demand from the renewable energy and electric vehicle sectors.

Market Trends:

The nickel market in China has been impacted by oversupply, leading to a decline in prices. In 2023, nickel prices fell by 45% due to increased production from Indonesia and China.

The oversupply situation is expected to persist in 2024, with prices potentially decreasing at a modest pace.

Chinese companies are investing heavily in Indonesia's nickel industry, with many projects focused on producing battery-grade nickel.

Key Players:

Tsingshan Holding Group: A major Chinese company involved in nickel production and processing.

Huayou Cobalt: A Chinese company that has invested in nickel production and processing in Indonesia.

CNGR New Energy Science & Technology: A Chinese company involved in nickel production and battery materials.

Challenges and Opportunities:

The nickel industry in China and Indonesia faces environmental concerns, particularly related to the use of coal-fired smelters and high-pressure acid leaching (HPAL) processes.

Despite these challenges, China's investments in Indonesia's nickel industry are expected to continue, driven by growing demand for battery-grade nickel.

China plays a significant role in the global cobalt market, with key aspects including:

Cobalt Refining: China refines approximately 73% of the world's cobalt, with a focus on lithium-ion battery production.

Cobalt Consumption: China is the world's leading consumer of cobalt, with nearly 87% of its cobalt consumption dedicated to the lithium-ion battery industry. Batteries account for about 57% of cobalt demand in China.

Cobalt Production: Chinese companies are expected to control 46% of the global cobalt mined supply by 2030, with significant investments in countries like the Democratic Republic of Congo (DRC) and Indonesia.

Major Cobalt Companies: Some notable Chinese cobalt companies include.

GEM: A leading recycler of cobalt and other metals.

Huayou Cobalt: A major cobalt producer with operations in China and abroad.

China Molybdenum (CMOC): A significant player in cobalt production, particularly through its acquisition of the Tenke Fungurume mine in the DRC.

Global Market Impact: China's dominance in the cobalt market has raised concerns about supply chain security and trade dynamics, particularly in the context of global tensions and tariffs.

The DRC remains the world's largest producer of cobalt, accounting for 74% of global production, with Chinese companies playing a significant role in the country's cobalt industry

Lithium

China is the world's leading producer and processor of rare earth elements (REEs), accounting for approximately 70% of global production and 90% of processing capacity. The country's dominance in the rare earth industry is attributed to its large reserves, advanced refining capabilities, and strategic investments in mining and processing technologies

Key Rare Earth Elements in China:

Light Rare Earths:

 Neodymium (Nd): used in electric vehicle motors, wind turbines, and electronics

 Praseodymium (Pr): used in high-performance magnets and electronics

Heavy Rare Earths:

  Dysprosium (Dy): used in electric vehicle motors, wind turbines, and nuclear reactors

 Terbium (Tb): used in fuel cells, solid-state devices, and medical imaging

 Lutetium (Lu): used in oil refining, PET scan detectors, and cancer treatment

Other Rare Earth Elements:

 Samarium (Sm): used in samarium-cobalt magnets, nuclear reactors, and optical lasers

 Gadolinium (Gd): used in MRI contrast agents, magnets, and reactor shielding

 Scandium (Sc): used in aluminum alloys, metal halide lamps, and fuel cells

 Yttrium (Y): used in white LEDs, CRT phosphors, lasers, and superconductors

China's Rare Earth Industry:

Production: China produced 270,000 metric tons of rare earth oxides in 2025, accounting for approximately 70% of global production.

Reserves: China has significant rare earth reserves, with 44 million metric tons of rare earth oxides.

Processing: China dominates global rare earth processing, with nearly 90% of the world's rare earth elements processed in the country.

Implications of China's Dominance:

Global Supply Chain: China's control over rare earth production and processing has significant implications for global supply chains, particularly in industries reliant on these critical materials.

Geopolitics: China's rare earth dominance provides leverage in international trade and negotiations and has raised concerns among governments and industries worldwide.

Environmental Concerns: Rare earth mining and processing have significant environmental impacts, including acid mine drainage, radioactive waste management, and high-water consumption

China is a significant producer of various metallic minerals, with several provinces playing crucial roles in the industry. While specific provinces aren't mentioned for all metals, here are some key regions and their associated minerals:

Lingshou County, Hebei Province: Known for its significant mica reserves, with 1.7 million tons of proven reserves, making it China's largest mica production and export base.

Qinghai-Tibet Plateau: Rich in copper, gold, and other metallic mineral deposits, with notable copper deposits like Yulong and Duolong.

Provinces like Sichuan, Qinghai, and Jiangxi: Significant lithium production and reserves.

Some of the major metallic minerals produced in China include:

Aluminum: China is the world's largest producer, with 43 million metric tons produced.

Copper: China is a significant producer, with 1.8 million metric tons produced.

Zinc: China is the world's largest producer, accounting for 33% of global production.

Nickel: China is a notable producer, with 120,000 metric tons produced.

Gold: China produced 380 metric tons.

Iron ore: China is among the top producers, with significant reserves and production.

China's dominance in metal production is attributed to its vast mineral reserves, advanced refining capabilities, and strategic investments in mining and processing technologies