The Report of China Mineral Resource Exploration, 2018

Recently, the Report of China Mineral Resources (2018)which released by Ministry of Natural Resources systematically summarized the prospecting results in 2017.Compared with 2016, the exploration investment in oil and gas increased in 2017, but that in non-oil and gas mineral declined. In this report, the top 10 deposit exploration achievements were concluded in recent years in China.

1. Geological exploration spending

1.1. Investments in geological exploration

In 2017, the investment in geological exploration totaled RMB 78.285 billion in China, increased by 1.0% compared with the previous year, and rebounded for the first time after falling for four consecutive years. Among them, the investment in geological exploration of oil and gas minerals was RMB 58.449 billion, increased by 10.8%. The investment in geological exploration of non-oil and gas minerals was RMB 19.836 billion, decreased by 19.8% (Fig. 1).

Fig. 1. Investments in geological exploration in China.

1.2. Proportion of investments in geological exploration

Among the investments in geological exploration of nonoil and gas minerals in 2017, RMB 5.866 billion was fnanced by the central government, accounting for 29.6% of the total amount, and increasing by 16.2% over 2016; RMB 6.746 billion was fnanced by the local governments, accounting for 34.0% and increasing by 2.8%; and RMB 7.224 billion was from the social funds, accounting for 36.4% and decreasing by 19.0%.

Among the investments in geological exploration of nonoil and gas minerals in 2017, the investment in mineral exploration amounted to RMB 12.061 billion and decreased by 29.0% year on year, accounting for 60.8% of the total amount; basic geological survey amounted to RMB 3.446 billion and decreased by 1.2%, accounting for 17.4%;hydrogeological, environmental geological and geological disaster investi- gations and assessments amounted to RMB 2.463 billion and decreased by 2.1%, accounting for 12.4%;geological science and technology amounted to RMB 1.547 billion and increased by 9.0%, accounting for 7.8%; and data services and informatization amounted to RMB 0.319 billion and decreased by 0.9%, accounting for 1.6%.

1.3. Spending in geological exploration of major minerals

In 2017, the investment in geological exploration of oil and gas minerals (including oil, natural gas, shale gas, coalbed methane and natural gas hydrate) amounted to RMB 58.449 billion, increased by 10.8% year on year. A total of 3.8×104km 2D seismic data was acquired, decreased by 27.4%, and 3.3×104km23D seismic data was acquired, increased by 23.1%. A total of 2727 exploratory wells and 20696 development wells were drilled, increased by 0.44% and 31.1% respectively.

In 2017, the investments in geological exploration of gold,copper, coal and lead-zinc were the main part of the investment in non-oil and gas mineral exploration, accounting for 34.0% of the total investment in non-oil and gas mineral exploration in China. Compared with the previous year, the investments in gold, copper, coal, lead-zinc, molybdenum,iron ore, phosphate rock, manganese, graphite, etc. decreased signifcantly, in which the degrees of decline for iron ore,molybdenum and phosphate rock investments ranked the front(Table 1).

Table 1. Spending in geological exploration of major non-oil and gas minerals in 2017.

2. Progress in oil and gas exploration

In 2017, the newly-discovered geological reserves of oil and gas fell to the lowest levels in nearly 10 years. Oil and gas exploration activities were mainly conducted in Ordos, Tarim,Sichuan, etc., and sea areas. Ordos Basin continued to maintain a high growth of discovered geological reserves, and two oil fields (i.e. Huaqing and Jiyuan oil fields) more than one hundred million tons were discovered. Important discoveries were made in exploration of Chang 8 and Chang 9 oil reservoirs in Zhidan district of northern Shaanxi Province.Three gasbearing structures have been discovered in Kelasu -Dabei structural belt in Kuche Depression in Tarim Basin.Important new discoveries have been made in oil exploration in Shunbei area. On the north slope of Zhongguai in the northwestern margin of Junggar Basin, wells Mahu 8, Mahu 013 and Ke 017 in upper Wuerhe Formation produced more than 100 t of oil per day, and new areas with reserves of more than 1×108t were discovered. A new gasbearing zone has been discovered in the risk exploration of the northern tip of Altun Mountain in Qaidam Basin. Important breakthroughs have been made in deep natural gas exploration in the Bohai Sea area, with capacity tested to be 135 t of oil and 1.8×105m3of gas per day in well BZ19-6-2Sa in Bozhong Sag. The single well for Paleogene exploration in Lufeng Sag of Pearl River Mouth Basin produced 404 t of naturally fl owing oil per day.

The newly-discovered geological reserves of shale gas in Weiyuan County of Sichuan Basin amounted to 1.565×1011m3.That of shale gas in Jiangdong and Pingqiao blocks of Fuling Gas Field amounted to 2.202×1011m3, laying a solid resource foundation for the establishment of Fuling ’s 1×1010m3production capacity.

The quantitative evaluation of natural gas hydrate and the detailed description of reservoirs in Shenhu sea area in the northern South China Sea were systematically carried out, and the spatial distribution, characteristics and reserves potential of the reservoir were identified. Drilling targets were delineated and prioritized in natural gas hydrate plays in key sea areas. At present, two deposits with more than 1×1011m3of resources have been discovered in the South China Sea,and 11 prospective areas and 25 favorable blocks were delineated.

3. Progress in non-oil and gas mineral exploration

In 2017, a total of 109 new mineral deposits (37 large-, 29 medium- and 43 small-sized deposits) were discovered in China. The top 5 minerals present in the newly discovered mineral deposits are gold (17), graphite (11), coal (8), leadzinc (5), iron ore (4), silver (4) and phosphate rock (4).

New developments were continuously made in integrated exploration. A large uranium deposit named Dalin was discovered in Tongliao integrated exploration area in Inner Mongolia. The deep prospecting discovery of gold was remarkable. Thick, large and high-grade gold ore bodies were discovered at the depth of 2800 m in Jiaojia Fault Belt on Jiaodong Peninsula. A total of 1.32×106t of lead-zinc were newly discovered in Sachakou deposit in Huoshaoyun leadzinc integrated exploration area in West Kunlun, Xinjiang.The Pb-Zn resources newly discovered in Fankou lead-zinc integrated exploration area of in Guangdong Province totaled 1.05×106t. A total of 1.5×104t of silver resources were newly discovered in the silver-polymetallic deposit situated at Shuangjianzi Mountain in the integrated exploration area at the southern foot of Greater Khingan Mountains in Inner Mongolia. A large deposit at Wanlong Mountain was discovered in Dulong integrated exploration area in Maguan County, Yunnan Province, and 7.7 ×104t of tin resources were newly discovered. The deep prospecting results of manganese in the integrated exploration area in Chengkou,Chongqing were remarkable, and the new manganese resources amounted to about 1.1×108t. More than 7×107t of crystalline graphite were newly discovered in Huangyangshan integrated exploration area of in Qitai, Xinjiang. A total of 4.27×105t of quartz-vein type lithium were newly discovered in Shaotangou deposit in Kangding-Daofu-Yajiang rare metal integrated exploration area in Sichuan Province. The beryllium-tungsten-tin polymetallic ore body with further prospecting potential was discovered for the first time in the Zhaxikang integrated exploration area, in Cuonadong region,Tibet.

Appendix

Ten discoveries for China mineral resources in recent years

1. Asuper-large Huoshaoyun lead-zinc deposit was discovered in Hetian, Xinjiang

In 2016, a total resources of nearly 1.9×107t Huoshaoyun lead-zinc deposit was discovered in Hetian, Xinjiang. The metal resources of 333+(334) lead-zinc was 1.89496×107t ,with average grades of lead 4.58%, zinc 23.92%, lead+zinc 28.51%. It is an uncommon high grade deposit, which leadzinc resources rank No. 1 in China and No.7 in the world.

2. A ten-million-ton copper deposit was discovered in Gaize,Tibet

In 2016, a metal resource of 1.3492×107t copper deposit was discovered in Rongna and Naruo of south Tiegelong deposit in Gaize, Tibet, with 332-grade copper taking up more than 70%. In addition, a metal resources of 0.7×107t was previously explored in Duobuza and Bolong copper deposits.The total metal resources of copper is over 2.0×107t in the ore area.

3. A super-large tungsten deposit was discovered in Zhuxi,Jiangxi

Zhuxi tungsten-copper deposit with 333+334-grade WO3resources of 2.86×106t was discovered in 2016. It is 2.7 times size of the former Dahutang tungsten deposit and now is the largest tungsten-copper resources in the world.

4. A super-large manganese deposit was discovered in Taoziping, Tao County, Guizhou

In 2016, a super-large manganese deposit was discovered in Taoziping, Tao County, Guizhou, with the 332+333 manganolite ore resources of 1.06 ×108t, ranking No. 4 in Asia and No.12 in the world.

5. A large coal deposit was discovered in Licheng, Shanxi

In 2016, a large coal deposit with more than 2.6 ×108t resources was discovered in Licheng, Shanxi. All the coal layers were strongly bonded-super-bonded coking coal and fat coal, which can be used as coking coal.

6. A super-large bauxite deposit of 2.4×108 t resources was discovered in Yanlong, Henan

In 2017, a super large bauxite deposit of 2.4×108t resources was discovered in Yanlong, Henan, consisting of 6 ore bodies with an average thickness of 3.21 m. It is one of the largest bauxite deposit in the world.

7. A super-large gold (copper) deposit was discovered in Katabasu, Xinyuan, Xinjiang

In 2016, a super-large gold (copper)deposit was discovered in Katebasu, Xinyuan, Xinjiang, with gold resources of 78.73 t (average grade of 3.13 g/t) and copper reserve of 48300 t (average grade of 0.53%).

8. The high-grade manganese ore resources in Xinjiang has risen to the first place in China

In recent years, more than 0.5×108t manganese ore resources has been discovered in Malkansu of west Kunlun,Xinjiang, with an average grade of more than 30% and the high-grade manganese ore resources in Xinjiang has risen to the first place in China.

9. Asuper-large pyroxene-type lithiumdeposit was discovered in Jiajika, Ganzi, Sichuan

In 2016, a lithium deposit of 1.8877 ×106(metal amounts)was discovered at the junction of Kangding, Yajiang and Dao fu counties (ci6ties) in Ganzi, Sichuan, which is expected to exceed 3 ×10.

10. An independent rubidium deposit was firstly discovered in Guangdong

A total of 1.75×105t resources super-large independent rubidium deposit that was first discovered in the world located in Tiantang mountain, Heyuan, Guangdong.