Minmetals Securities·2025-06-17 01:45Investment Rating - The investment rating for the non-oil and gas geological exploration industry is "Positive" [5]. Core Insights - The geological exploration industry in China has entered a new growth cycle, with non-oil and gas geological exploration investment increasing for four consecutive years. In 2024, the total investment reached 22.957 billion yuan, a year-on-year increase of 14.4% [2][12]. - The funding for mineral exploration is primarily directed towards gold, copper, and uranium, with significant increases in rare earths, gold, and silver exploration investments in 2024 [2][15]. - The industry is experiencing a structural transformation, with a slight reduction in personnel and an increase in social capital investment, which accounted for 46.05% of total funding in 2024 [3][30]. Summary by Sections Investment Trends - In 2024, the total investment in non-oil geological exploration reached 22.957 billion yuan, with mineral exploration accounting for 13.917 billion yuan, representing 60.6% of the total [12][15]. - The investment in rare earth exploration saw a remarkable increase of 128.9% year-on-year, while investments in phosphorus and molybdenum also rose significantly [15][19]. Industry Performance - The total revenue of the geological exploration industry in China for 2024 was 404.637 billion yuan, reflecting a year-on-year growth of 2.46% [26]. - The workforce in the geological exploration sector has slightly decreased, with a total of 402,400 employees by the end of 2024, a reduction of 3.1% compared to the previous year [27]. Strategic Developments - Major mining companies are focusing on brownfield exploration to enhance resource acquisition efficiency and extend the lifespan of mines. Companies like Zijin Mining and China Minmetals have established subsidiaries dedicated to exploration [4][34]. - The report highlights the importance of technological innovation and strategic partnerships in enhancing exploration capabilities, with companies leveraging digital technologies and AI for improved efficiency [35][38]. Market Dynamics - The report indicates that the capital market for mineral exploration in China is still developing, with government funding constituting a significant portion of total investment, unlike in more mature markets like Canada and Australia [30][36]. - The exploration rights for non-oil minerals in China have increased, with a total of 11,681 valid exploration rights by the end of 2024, marking a 3.8% increase from the previous year [21].