Metal mining industry faces reshuffle

The global metal mining sector will inevitably face reorganization this year because of worries among investors, said Zhou Zhongshu, president of China Minmetals Corp.

Speaking during the China Mining Conference, he said there are three major problems in the metal mining industry, namely overcapacity, homogeneous competition and unreasonable profit distribution.

"The industry reshuffle will be really cruel," he said. "Many companies will be eliminated if they lack core competitiveness."

However, he said China's economic slowdown will not dramatically affect the company's whole year performance target although there has been some impact.

Commodity prices, including copper, aluminum and steel, have fallen about 25 percent since the beginning of the year. Iron ore prices have dropped nearly 40 percent.

Zhou said the situation has been ongoing for a long time and it has aroused worries.