From the perspective of local finance, CMOC is the “cash cow” of Luanchuan County and even Luoyang City.
Its contribution is most directly reflected in the two major channels of taxation and dividends.
Although the company does not directly disclose the total annual tax payment, as the absolute pillar of the county economy, its tax contribution accounts for more than 30% of Luanchuan County’s fiscal revenue.
This means that for every 10 yuan of fiscal revenue in Luanchuan, at least 3 yuan comes directly from China Molybdenum, providing a solid financial guarantee for local education, medical care, transportation and other public utilities.
What is more intuitive is the cash dividend.
Since its listing in 2012, the company’s cumulative cash dividends have reached 27.7 billion yuan.
Among them, the second largest shareholder, Luoyang Municipal State-owned Enterprise Luoyang Mining Group Co., Ltd. holds 24.91% of the shares. Based on this calculation, its cumulative dividend income is approximately 6.9 billion yuan.
This continuous inflow of huge funds has directly enriched the “money bags” of local state-owned capital and has become an important source of funds to support local development.
Switching to the dimension of industrial ecology, China Molybdenum’s role is more like an “industrial mothership”.
It is not an isolated mining enterprise, but has driven the formation and development of the entire regional industrial cluster.
Focusing on its mining, dressing and smelting business, a cluster of hundreds of supporting enterprises covering mining equipment manufacturing, logistics and transportation, metallurgical deep processing and other fields has been spawned in Luanchuan.
This driving effect is quantified.
In 2025 alone, its domestic molybdenum and tungsten sector will drive an increase in the output value of local related industries by approximately 3 billion yuan and indirectly create more than 2,000 jobs.
The company’s intelligent upgrades (such as the introduction of pure electric mining trucks and AI mining distribution systems) not only improve its own efficiency, but also force and stimulate the technological upgrading of local supporting companies, causing the average annual revenue growth rate of some service providers to reach 15%-20%.
As the Henan Provincial Government evaluates, its “local deep cultivation + global operations” model has set a benchmark for industrial upgrading in resource-based regions.
For ordinary residents, the most personal feeling of CMOC’s performance growth is that their “jobs” are more stable and their “money bags” are bigger.
The company directly employs about 12,000 local employees, and the number of people employed in mining and related industries in Luanchuan County accounts for 41.2% of the total employment population, highlighting its status as an employment “ballast”.
Performance growth directly translates into an increase in residents’ income.
From 2021 to 2025, the company’s employee salaries will increase by more than 60%. The strong salary level has driven the average annual salary of urban non-private units in Luanchuan County to jump from 68,000 yuan to 109,000 yuan.
Reflected in macro data, the per capita disposable income of urban residents in Luanchuan will reach 38,000 yuan in 2025, an increase of 45% from 2021; the income of rural residents has also increased to 19,000 yuan, an increase of 52%.
In addition, as a local listed company, its development dividends also benefit residents through the capital market. Some local investors have obtained generous returns through long-term shareholding, sharing the value of corporate growth.
Taken together, CMOC’s performance growth has provided all-round and deep empowerment to the Luanchuan County economy.
It has built a virtuous cycle with itself as the core, increasing fiscal revenue, prospering industries, and making residents wealthy.
This “one enterprise prospers one county” model has not only achieved its status as a global mining giant, but also profoundly reshaped the economic outlook of its hometown.
However, this deep binding also implies two-sided thinking: on the one hand, Luanchuan enjoys huge dividends from leading companies; on the other hand, the regional economy’s dependence on a single company and the mining cycle has also increased.
In the future, how to use the industrial and financial foundation laid by China Molybdenum to cultivate more diversified economic growth points and realize the leap from “prosperous due to mining” to “strong due to industry” may be a long-term issue that Luan Chuan needs to plan after reaping the current fruits.
