28
2026
-
09
Interpretation of Document Kuangan〔2026〕No.78 and Its Impacts on the Rock Drill Tools Industry
Although Document No.78 does not directly target rock drill tool products, the drastic transformation of mine construction organization models will profoundly reshape the market landscape, customer structure and business strategies of rock drill tool manufacturers.
In June 2026, the National Mine Safety Administration issued Opinions on Regulating Excavation (Stripping) Construction Teams of Metal and Nonmetal Producing Mines (Document Kuangan〔2026〕No.78), introducing systematic regulations targeting long-standing chaos in outsourced operations within the non-metallic mine sector. In the past, some mines divided excavation projects into sub-contracts for small construction crews, resulting in prominent risks and hidden dangers to work safety, such as affiliated qualifications, illegal subcontracting, management-by-outsourcing and void safety accountabilities.
The document clarifies that metal and nonmetal mines may only adopt two compliant approaches: establishing in-house excavation construction teams or engaging overall trusteeship. Underground mines shall complete rectification by May 1, 2027, while open-pit mines shall meet compliance requirements by May 1, 2028. Failure to finish rectification on schedule will lead to legally ordered production suspension for rectification. The document strictly prohibits the use of labor dispatch personnel in underground mines. Secondary subcontracting and re-outsourcing under overall trusteeship are banned. Mine property owners shall not be exempted from the primary work safety accountability. Institutionally, it puts an end to the extensive operation model of scattered small construction crews and promotes the upgrading of mine safety management systems.
Although Document No.78 does not directly target rock drill tool products, the drastic transformation of mine construction organization models will profoundly reshape the market landscape, customer structure and business strategies of rock drill tool manufacturers.
In terms of short-term market changes: a large number of scattered small construction crews will gradually exit the market. Small-batch, low-value rock drill tool orders previously sourced by these crews will shrink. Small crews in the past prioritized low procurement costs and paid little attention to product service life and quality stability, which will gradually reduce market demand for low-end and non-standard rock drill tools. Meanwhile, as mines switch to in-house teams or overall trusteeship by large enterprises, mines will establish unified material procurement and equipment consumable management systems. Procurement entities will shift from scattered construction teams to mine enterprises and large trusteeship organizations. Procurement will become more standardized and centralized, with greater emphasis on product quality, service life, supply stability and supporting technical services. The survival space for low-end, low-priced products will shrink.
In terms of medium and long-term development opportunities: the policy forces mines to raise the level of mechanized operations, continuously unleashing demand for high-performance rock drill tools. After unified mine management, greater importance will be attached to drilling efficiency, equipment wear control and work safety. Market demand for high-reliability drill rods, button bits, high-strength shank adapters and other premium products will rise. Rock drill tool manufacturers with advantages in material technology, capacity to provide on-site technical services and adaptability to diverse mine geological conditions will gain stronger competitive edges. In addition, large trusteeship enterprises and group-owned mines will become core customers, enabling rock drill tool manufacturers to secure long-term framework supply agreements and complete-set supporting cooperation. This drives enterprises to transform from pure product vendors to a “product + technical service” model.
At the same time, rock drill tool enterprises are confronted with new challenges. On one hand, during the rectification period of small and medium-sized mines, some mines will face short-term investment pressure and adopt cautious procurement budgets, bringing periodic market fluctuations. On the other hand, customer concentration raises higher standards for enterprise delivery capacity, quality control and after-sales technical support, imposing stricter requirements on enterprise supply chains and technical service capabilities.
Overall, Document Kuangan〔2026〕No.78 promotes survival of the fittest in the non-metallic mining industry and accelerates industrial reshuffling. Rock drill tool enterprises shall proactively adapt to the transformation of mine management models, continuously optimize core processes including steel selection and heat treatment, improve the service life and reliability of rock drill tools, strengthen mine-oriented technical service capabilities, keep pace with mine rectification schedules, seize structural market opportunities brought by standardized mines and achieve high-quality corporate development.
Previous article
RELATED INFORMATION
2026-08-31
Follow LHS ：
Contact Us
Address: Lianhua Mountain, Yangjiazhangzi Economic and Technological Development Zone, Huludao City, Liaoning Province, China
Tel.:0086-429-4428053 0086-429-4428052
Tik Tok
WeChat Official Account
Privacy Policy Power by: 300.cn Jinzhou SEO