A Must-Do: The Top-Level Design for High-Quality Development in the Sand and Gravel Industry

In the vibrant month of March, a reporter from China Mining News traveled westward along Provincial Highway S319 through the northern mountainous regions of Yuzhou City, Henan Province—passing through Wuliang Town, Qianjing Town, and Changzhuang Township. There, sand and gravel enterprises such as Yuzhou Xinqiang Building Materials, Dechang Building Materials, Pinghe Building Materials, Guotai Building Materials, Hongbin Building Materials, and Yixin Building Materials have risen against the mountainsides, their imposing presence evident: modern office buildings, standardized production lines, and garden‑like mining sites that offer a strikingly fresh sight. Yet just five years ago, this area was dotted with forty to fifty large and small sand and gravel mines, where the air was thick with the deafening roar of blasting, the constant hum of machinery, clouds of dust, and a landscape barren of trees and vegetation.

In China’s sand and gravel industry, the trajectory has been one of marked transformation: from widespread disorder and low prices five years ago, to a period of robust growth and soaring prices in recent years, and finally to a return to rationality and price stabilization since late last year and early this year. This evolution reflects both the self‑regulating power of the market—the “invisible hand”—and the prudent, well‑calibrated intervention of the government—the “visible hand.”

China boasts abundant sand and gravel resources, yet the industry has long relied on small‑scale, family‑run production. Coupled with the slow pace of urban development and infrastructure construction in the past, demand for sand and gravel remained modest, leaving the sector effectively marginalized—a “forgotten corner” of the economy. As a result, for many years China’s sand and gravel industry operated outside the mainstream industrial framework, lacking dedicated research and design institutions as well as a coherent standards system. Under such conditions, the sector stagnated, with no fundamental progress over the years. The adage “make do with what’s at hand, source materials locally, start production when needed, and halt when not” has come to epitomize the industry—practices that are fundamentally at odds with the goals of high‑quality development.

In recent years, guided by Xi Jinping’s Thought on Ecological Civilization, China’s sand and gravel industry has undergone profound transformation. A large number of small, family‑run mines—characterized by resource wastage, environmental pollution, and high energy consumption and emissions—have been rectified and shut down, while a wave of green, intelligent, large‑scale sand and gravel operations has emerged in their place. Despite its relatively late start, the sand and gravel sector has finally joined other industries in ushering in a new era of high‑quality development.

Top-level design, planning first.

Yuzhou City in Henan Province is a major traditional supply base for sand and gravel in the Central Plains region. For many years, the city’s sand and gravel have primarily been shipped north to Zhengzhou, east to Shangqiu and Zhoukou in eastern Henan, as well as to the neighboring cities of Pingdingshan and Luohe; on occasion, it has even been delivered as far as Fuyang in Anhui Province.

“Limestone resources are a key advantage of Yuzhou City and a major driver of its economic development. However, if planning lags behind, protection is inadequate, and exploitation becomes excessive, this strength that once fueled growth could turn into a bottleneck, ultimately hindering economic progress.” As early as 2016, building on previous rounds of consolidating sand and gravel aggregate mines, the Yuzhou Municipal Party Committee and Municipal Government explicitly set forth the guiding principles of “reducing the number of sites and output, pursuing large-scale development, standardizing mining operations, protecting the environment, and ensuring safe development.”

Yuzhou Yixin Building Materials was the first enterprise to “take the plunge.” Building on the consolidation of five sand and gravel mines, it raised hundreds of millions of yuan in debt to establish two state-of-the-art, large-scale production lines, becoming one of the first batch of national-level green mines. Subsequently, under the guidance of the government, other sand and gravel mines also carried out resource integration and upgrading, effectively reversing the previous pattern of small, scattered, disorganized, and polluting operations.

“Through scientific planning and the consolidation of sand and gravel mines, we have scaled up enterprises, enhanced safety, improved the environment, boosted economic returns, and significantly increased local fiscal revenues. This approach brings substantial benefits to businesses, the government, and the local ecological environment—without any drawbacks.” Tian Huiqing, a member of the Standing Committee of the Yuzhou Municipal Party Committee and Executive Vice Mayor, told reporters with satisfaction, “At present, Yuzhou City is revising its sand and gravel mine development plan in line with the strategy of ‘pilot projects first, completion within three years,’ further reducing the number of such mines and laying the groundwork for their high‑quality development.”

Meanwhile, in Hebi City, northern Henan Province, guided by the principles of unified planning and scientific site layout, authorities have actively explored an integrated remediation model for open-pit mines based on “government leadership, asset acquisition, and paid‑in withdrawal.” By the end of 2020, Hebi took the lead in Henan Province in completing a comprehensive overhaul under the “close small, upgrade large” approach: all 37 small- and medium‑sized ordinary construction‑stone quarries across the city were shut down. In line with the four‑pronged green‑mining standards—modernized production, green extraction, ecological restoration, and environmentally friendly transportation—the remaining operations were streamlined and consolidated into five large mining areas. Building on this foundation, Hengyuan Mining, in just eight months, has become Hebi’s largest and most diversified production facility to date, hailed as a benchmark in Henan Province for “the most thorough resource integration, the fastest construction pace, the largest investment scale, and the most advanced production processes” among open‑pit sand and gravel mines. This initiative has truly maximized ecological, social, and economic benefits, successfully establishing the “Hebi Model” for ecological restoration and management of mining sites.

“Sand and gravel are indispensable bulk mineral commodities, yet the industry is prone to rapid, uncoordinated expansion. Therefore, the sand and gravel sector must be guided by top-level design and forward‑looking planning. When formulating mineral resource plans, it is essential to strike a balance—both reducing excess capacity and expanding it—based on resource endowment and market demand. In regions where production capacity is excessive, while reducing the number of mines and curbing the issuance of new sand and gravel mining rights, we should also introduce additional measures in line with green mine‑building standards. Conversely, in areas where capacity falls short of local market needs, we must accelerate the granting of new mining rights,” said an official from the Natural Resources Department of a certain province.

Where there is demand, there is a market. Ensuring the supply of primary mineral products to meet the needs of infrastructure development is a responsibility and obligation that the sand and gravel industry must shoulder. However, in practice, some regions have failed to heed this objective reality: lacking comprehensive planning, they have arbitrarily shut down sand and gravel mines, even resorting to blanket, one-size-fits-all measures against open-pit operations, thereby triggering severe shortages and sharp price spikes. The “hard-to-find sand” situation that emerged across the country in recent years serves as clear evidence of this trend.

“Planning is the guiding force. Affected by the COVID‑19 pandemic and other factors, some regions are currently experiencing a sharp, temporary drop in demand for sand and gravel. However, developing a new mine—from exploration and planning to securing mining rights and completing all prerequisite preparations, followed by the tendering, auction, and listing process for mining rights and the construction of the mine—cannot be accomplished in less than two years. Without scientific planning and coordinated consideration, blindly shutting down operations or prohibiting the issuance of new sand and gravel mining permits, only to scramble to catch up when supply falls short, will leave everything too late and easily trigger drastic fluctuations in sand and gravel prices,” said Hu Youyi, President of the China Sand and Gravel Association.

Raise the threshold, balance production.

It is undeniable that, in the past, sand and gravel mines were rife with a mix of reputable and substandard operators, drawing widespread criticism—largely because the industry’s entry barriers were low and environmental protection standards were lax. These issues were closely linked to the intrinsic characteristics of the sand and gravel sector and to the policy environment prevailing at the time.

“As an age-old and traditional industry, sand and gravel—though consumed in vast quantities—has long been overlooked,” said Hu Youyi, president of the China Sand and Gravel Association. Compared with sectors such as metallurgy, coal, petroleum, chemicals, and building materials—including cement, glass, and ceramics—these industries may be smaller in scale, yet they boast well‑established systems comprising research institutes, design firms, quality‑standard bodies, universities, and specialized academic institutions. By contrast, the sand and gravel aggregate sector lacks dedicated university programs, has no specialized R&D or design organizations, and suffers from a paucity of product standards as well as an underdeveloped quality‑inspection and testing framework.

Meanwhile, in the past, with relatively lax national standards for ecological and environmental protection, enforcement agencies often adopted a lenient, soft‑handed, and permissive approach toward sand and gravel mines. Coupled with a widespread lack of environmental awareness among many operators, the industry has long been plagued by severe resource waste and other inefficiencies. In some regions, it has even earned a reputation for being “dirty, chaotic, and substandard,” becoming a high‑risk sector that draws intense public scrutiny and tolerates little compromise—so much so that even minor infractions can trigger orders to suspend operations for rectification.

Limited reserves, small scale, and low production capacity are also the primary reasons why sand and gravel mines are reluctant to invest further. In light of this, Henan Province has taken the lead nationwide in imposing a “double‑one” requirement on existing sand and gravel mines: reserves must be no less than 10 million tonnes, and annual production capacity must be no less than 1 million tonnes. For newly established sand and gravel mines, the standards are even higher. The main objective is to raise the entry threshold for such operations and ensure rigorous oversight at the source.

At this juncture, the China Sand and Gravel Association, as an industry organization, stepped forward in a timely manner and assumed responsibility for fostering the healthy development of the sand and gravel sector. Through in-depth research and in light of the industry’s current conditions, it has successively issued multiple technical standards to guide and steer the sound, orderly growth of sand and gravel mining operations. Meanwhile, the Association has strengthened its coordination and communication with national ministries and commissions, including the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Natural Resources. It has also drafted standards for green mines and green factories in the sand and gravel industry, which have been promulgated as industry standards by the Ministry of Natural Resources and the Ministry of Industry and Information Technology, respectively.

Thanks to the persistent advocacy of the China Sand and Gravel Association, China’s sand and gravel industry has garnered attention at the national level. On November 4, 2019, ten national ministries and commissions jointly issued the “Several Opinions on Promoting High-Quality Development of the Mechanically Produced Sand and Gravel Industry”; on March 25, 2020, fifteen national departments jointly released the “Guiding Opinions on Promoting the Healthy and Orderly Development of the Sand and Gravel Industry”...

“In line with the relevant industrial policies and planning requirements outlined above, the entry barriers for the sand and gravel sector have risen significantly. Small-scale sand and gravel mines that operate in an unregulated manner and cause environmental pollution will be phased out. Looking ahead, the industry is poised to evolve toward greater intelligence, green practices, higher quality, improved management, enhanced profitability, and larger scale. The sand and gravel industry has now fully entered a new stage of high-quality development characterized by green and low-carbon principles,” said Hu Youyi.

Another issue that cannot be overlooked is the unique nature of sand and gravel products, which dictates that sand and gravel mines must maintain balanced production. “Compared with other mineral commodities, sand and gravel have a distinctive characteristic: when supply falls short, buyers will pay even premium prices; but when the market becomes saturated, no one will take it—even if it’s given away for free. This requires sand and gravel mines to exercise strict self-discipline and carefully manage their production capacity,” said Yan Yajun, Chairman of Yuxin Building Materials in Yuzhou, Henan.

Dongping County in Tai’an City, Shandong Province, is home to numerous sand and gravel mines, where market competition is fierce and cutthroat price dumping is rampant, adversely affecting both corporate profitability and local government revenues. In recent years, Dongping County has implemented “centralized management” of its sand and gravel mines, rationally setting production quotas based on individual mine conditions and establishing unified sales‑management protocols. This approach has effectively curbed malicious competition and price‑cutting among mines, thereby fostering the orderly development of the county’s sand and gravel mining sector.

Safety First, Green Development

Safety is the lifeline of sand and gravel mines, while green practices are their survival line. As the sand and gravel industry enters a new phase of high-quality development, mines must adopt a dual‑pronged approach, ensuring both environmental sustainability and operational safety.

Safety is the foundation of high-quality development, the top priority for sand and gravel mines, and a key component of public welfare. In recent years, sand and gravel mines have continuously enhanced their safety governance by increasing investment, strengthening the implementation of responsibilities across all stakeholders, conducting thorough hazard identification and rectification, and improving their safety assurance systems. Some enterprises have even engaged leading domestic specialists—such as Hongda Engineering Blasting Co., Ltd. and China Gezhouba Group Yipuli Co., Ltd.—to oversee the entire mine operation, including blasting, transportation, and processing, thereby bolstering the mines’ overall safety capabilities.

“Although sand and gravel mines have a higher safety margin compared to coal mines and others, isolated accidents still occur. A few years ago, a sand and gravel mine in our area suffered a serious accident involving blasting, resulting in significant casualties,” said the manager of a sand and gravel mine in Qianjing Town, Yuzhou City, Henan Province. “Since we partnered with Yipuli Company, our safety record has improved dramatically, and we have not experienced a single injury or fatality.”

Green is the most beautiful backdrop of high-quality development and also the only viable path forward. In recent years, guided by the “dual carbon” goals and the new development philosophy, and under the vigorous impetus of national government departments and the advocacy of the China Sand and Gravel Association, China’s sand and gravel industry has accelerated its transition to green development, with a host of nationally recognized green mines—such as the Huzhou Xinkaiyuan Crushed Stone Company—being established, serving as exemplary models for the sector.

However, it must not be overlooked that some regions still harbor a one-sided understanding of green mines, prioritizing outward appearances over substantive substance. In some cases, mining enterprises even treat green‑mine initiatives as mere “cosmetic” tasks, merely going through the motions. As revealed by feedback from central environmental inspections and by “follow-up reviews” of green‑mine programs conducted across various localities, such issues are readily apparent—and they significantly impede the high‑quality development of the sand and gravel industry.

In fact, over the past several years, both the natural resources sector and industry associations have been vigorously promoting the development of green sand and gravel mines. The China Sand and Gravel Association has kept pace with the times, conducting in-depth research each year and, through the organization of national and international sand and gravel technology conferences, advancing cutting-edge green technologies, highlighting exemplary green mining practices, and progressively elevating the industry’s green development model—from “Sand and Gravel Aggregate 1.0” to today’s “Sand and Gravel Aggregate 4.0+ (integrated development).”

“In 2021, China’s sand and gravel aggregate industry advanced steadily and robustly, achieving breakthrough progress in areas such as standard-setting, market‑wide regulatory compliance, the development of green mines and green industrial bases, the promotion and application of manufactured sand and gravel, technological innovation, and the greening of logistics. This marked a strong start to the 14th Five-Year Plan period and put the sector on a fast track toward high‑quality development,” said Hu Youyi. “In the year ahead, we will seize the opportunities presented by the new stage of development, implement the new development philosophy, and foster a new development paradigm. By fully leveraging the inherent advantages of the sand and gravel industry, we will usher in a new era of green, low‑carbon, safe, and high‑quality growth, thereby making an even greater contribution to national infrastructure development and stable economic growth.”

(This article was published on Page 1 of the China Mining News on March 30, 2022.)