Where there is mine, there is life; where there is no mine, there is death — — the real lifeblood of cement enterprise

Recently, the rebirth story of a cement enterprise in Kangding, Sichuan, triggered industry discussions. In May

2020, the 2500t/d clinker production line of Kangding Paomashan Cement Co., Ltd. was officially put into operation. Due to the lack of self-owned mines and the high cost of purchasing raw materials, the production line has been shut down for a long time. Affected by this, the enterprise has deteriorated and become insolvent, and eventually entered bankruptcy reorganization.

With the support of the local government, the enterprise successfully completed the bankruptcy reorganization, revitalized the stock assets, and successfully acquired the mine resources to achieve the rebirth of Nirvana. In May 2026, the enterprise completed the industrial and commercial change and officially changed its name to Kangding Yaobai New Materials Co., Ltd.; the brand conference was held in the next month to officially start a new journey.

The original Kangding Paomashan Cement Plant

is on the verge of bankruptcy due to the lack of mine resources, and has regained its vitality after replenishing the resources. This vivid case fully confirms that the limestone mine has already become the core lifeline for the survival of cement enterprises. As the core raw material of cement production, the consumption of

limestone is huge, and 1.3 tons of limestone are consumed for each ton of clinker production.

With or without self-owned mines, there is a huge cost gap between enterprises. For enterprises with their own mines, the cost of limestone mining is generally as low as 10-15 yuan/ton, while the unit price of purchased raw materials often reaches 40-60 yuan/ton, so the cost of raw materials per ton of clinker is nearly 40 yuan higher.

Especially in the current cement market demand is weak, the industry generally "price for quantity" environment, the high cost of outsourcing directly devours profits, making it difficult for non-mining enterprises to sustain.

Not only the cost, but also the source of raw materials has a profound impact on product quality and production stability. Most of

the purchased limestone comes from different ore spots, and the ore grade is uneven, so the enterprise needs to adjust the production parameters frequently, and the clinker quality is difficult to control. At the same time, purchased raw materials are also vulnerable to traffic control, extreme weather, supply default and other factors, facing the risk of supply interruption at any time, which not only disrupts the normal production rhythm, but also increases additional management costs such as quality inspection and dispatch. Enterprises

holding their own mines can optimize the proportion of raw materials by intelligent means, stabilize the quality of products from the source, and the supply of raw materials is completely autonomous and controllable, so as to ensure the continuous operation of production lines.

Nowadays, with the intensification of cement industry shuffling, market competition is no longer a simple price competition, and the ability to control core resources has become the key to success. Self-owned mines are no longer a plus for the development of cement enterprises, but a necessary base for the market. In the downward cycle of the industry, enterprises lacking this core resource will only be constantly squeezed out of their living space. Only by laying a solid foundation for raw materials and improving the layout of the industrial chain, can enterprises withstand the cold winter of the industry and go steadily and far in the fierce market competition.