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Digging up the roots of indiscriminate mining in phosphate mines
In a report issued by the Ministry of Land and Resources, it was stated that after 2010, phosphate rock resources would become one of the 20 critical minerals that China could no longer meet its economic development needs. 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, achieving some progress, but the challenges remain significant. Despite these efforts, unregulated and reckless mining still persists in certain areas.
Unregulated mining manifests in two primary ways. First, non-standard mining practices are widespread. The proper method involves creating tunnels along the ore seam, breaking the top, and extracting the mineral from inside out, ensuring maximum recovery. This approach requires substantial initial investment, often tens of millions of yuan before any extraction begins. However, small or illegal miners avoid such costs. Instead, they drill into the seams and dig until the mountain collapses, leaving large portions of the ore buried and unrecoverable. For example, while standard mining can recover 95,000 tons from a 100,000-ton deposit, unregulated methods may only extract less than 20,000 tons.
The second form of wasteful mining is "mining rich and abandoning poor." Due to geological factors, some phosphate deposits have a "two-lean-one-rich" structure—poor layers on top and bottom, with a rich layer in the middle. Many small miners focus only on the rich layer, ignoring the poorer sections. On average, more than 10 tons of low-grade phosphate are lost for every ton mined.
The waste caused by such practices is alarming. In Hubei, if unregulated mining continues, the province's phosphate reserves could be depleted within a decade, whereas sustainable mining methods could extend their use for 50 to 80 years. The issue has drawn the attention of the Hubei Provincial Party Committee and government. Yu Zhengsheng, the provincial party secretary, emphasized that the current mining policies were unacceptable. In November last year, Governor Luo Qingquan issued Order No. 270, introducing interim measures to manage phosphate resources, including total control over mining scale and a system for transporting phosphate ore. Mines failing to meet planning requirements, especially those with an annual output below 100,000 tons or not utilizing low-grade phosphate, face mandatory rectification.
Despite these efforts, the problem of unregulated mining remains unresolved. Surveys indicate two main causes: first, rent-seeking behavior among officials, which fuels unchecked exploitation. In some areas, local officials are involved in mining operations, often referred to as "black stocks, dry stocks, and red stocks." A county official responsible for mining regulation admitted being overwhelmed by constant phone calls and bribes. Another mine manager openly stated that without eliminating these corrupt influences, any regulatory efforts would be short-lived. Phosphate mining is considered safer than coal mining, making it a favored area for those seeking power and influence.
Second, local protectionism plays a key role. With the price of phosphate rock rising sharply—from around 50-60 yuan per ton to over 350 yuan this year—the profitability of mining has attracted numerous investors, including large companies and real estate firms. Local farmers, lacking capital, engage in small-scale illegal mining, using excavators for a few days to earn modest profits. Most mining companies serve as financial pillars for local governments, leading to lax enforcement and even allowing unlicensed operations to go undetected.
In conclusion, the root causes of unregulated phosphate mining lie in corruption and local protectionism. To address this, comprehensive reforms targeting these issues are essential. Only through strict enforcement and systemic changes can the unsustainable exploitation of phosphate resources be effectively curbed.