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Digging up the roots of indiscriminate mining in phosphate mines
A report from the Ministry of Land and Resources warned that after 2010, phosphate rock resources would become one of the 20 critical minerals in China that could no longer meet the needs of the national economy. By 2005, the domestic supply gap for phosphate rock was expected to reach 7 million tons. To safeguard these increasingly scarce phosphorus resources, the three major phosphate-producing provinces—Yunnan, Guizhou, and Hubei—launched large-scale campaigns to regulate mining activities. While some progress was made, the challenges remained significant. In many areas, uncontrolled and reckless mining practices persisted, failing to be effectively curbed.
The two main forms of this unregulated exploitation are non-standard mining and the selective extraction of rich layers while abandoning poorer ones. Standard mining methods involve carefully tunneling along the seam, extracting ore systematically from the inside out, which requires substantial initial investment—often tens of millions of yuan before any production begins. However, small or unlicensed miners often bypass these steps. Instead, they drill randomly into the seams, digging until the mountain collapses, leaving vast amounts of mineral deposits buried and unrecoverable. For instance, a 100,000-ton deposit can yield up to 95,000 tons with proper methods, but only less than 20,000 tons with reckless mining.
Another issue is the practice of "taking the rich and leaving the poor." Due to geological conditions, some phosphate deposits have a "two-lean-one-rich" structure, where the upper and lower layers are poor, and the middle layer is rich. Small miners focus only on the rich layer, leaving behind large quantities of low-grade ore. On average, more than 10 tons of poor-quality phosphate are wasted for every ton mined.
This wastefulness has severe consequences. In Hubei, if current trends continue, phosphate reserves could be depleted within a decade, whereas scientific and sustainable mining could extend their use for 50 to 80 years. This prompted the Hubei Provincial Party Committee and government to take action. Yu Zhengsheng, the provincial party secretary, stated that the current management of phosphate mines was unacceptable. In November of the previous year, Governor Luo Qingquan issued Order No. 270, implementing the Interim Measures for the Administration of Phosphate Ore in Hubei. The order introduced total control over mining scale and a system for transporting phosphate ore. Mines not meeting planning standards, especially those with annual output below 100,000 tons or failing to utilize low-grade ore, were given a deadline to rectify. Although open and illegal mining has decreased, the problem of reckless exploitation remains unresolved.
Surveys indicate that two key factors drive this issue: rent-seeking behavior by officials and local protectionism. In some regions, it’s common to hear about “black stocks, dry stocks, and red stocks,†referring to illicit mining operations backed by local officials. A county official involved in mine regulation described being overwhelmed by constant phone calls and bribes, making it hard to enforce regulations. Some local leaders openly admit that without eliminating these corrupt practices, any reform will be short-lived. Compared to coal mining, phosphate mining carries fewer risks, making it a safer option for those seeking personal gain.
Additionally, local protectionism fuels the problem. The cost of producing one ton of phosphate rock is between 50 and 60 yuan, but its market price has risen sharply—over 350 yuan per ton this year. With such high profits, many investors, including large companies and real estate firms, have entered the sector. Local farmers, lacking capital, resort to small-scale operations, hiring excavators for 200 yuan an hour to extract a few tons and build small homes. Most mining companies are vital to the local economy, and local governments often turn a blind eye during inspections, allowing unlicensed operations to continue.
In conclusion, the root causes of uncontrolled phosphate mining are corruption and local protectionism. Addressing these issues is essential to ensuring the sustainable use of this critical resource. Without tackling these deep-seated problems, the depletion of phosphate rock will continue at an alarming rate.