CHINA MINING Congress and Expo 2011 Review

CHINA MINING Congress and Expo 2011 Review
Source: Portal Website of Ministry of Land and Resources Citation: China Mining News Date: Dec. 6, 2011

CHINA MINING Congress and Expo 2011 has been closed, but it will still have a substantial, positive and profound influence at home and abroad. In comparison with the theme of “Cooperation, Responsibility and Development” of CHINA MINING2010, “Enhancing International Cooperation to Accelerate Prospecting Breakthrough” proposed in CHINA MINING2011 is more pertinent and practical. The domestic and overseas orientation helped provide a good communication and cooperation platform for both Chinese and foreign mining delegates. Many high-level foreign government delegates participated in this Congress and Expo, including 23 ministers and deputy ministers of mining departments and their delegations from 18 countries and regions like Australia, Canada, South Africa and Angola. Both minister and deputy minister of mining department of Australia, Canada, Nigeria and Greenland attended CHINA MINING2011. Apart from some traditional delegations from Africa, Canada and Australia, new markets like South America and Russia were expanded actively. Domestic and overseas mining cooperation project signing, negotiation and communication activities were the focus at this Congress and Expo, which further promoted substantial project cooperation between domestic and overseas mining enterprises. 425 negotiation projects were brought out during this Congress and Expo, increasing by 32.81% than last year (320 projects). On the signing ceremony, agreements of 55 projects were signed, amounting up to RMB 15.7 billion. It is RMB 4 billion more than last year (RMB 11.7 billion), increasing by 34.19%. Among them, there were 3 extra large projects worth more than RMB 3 billion and 8 large projects worth more than RMB 100 million. There were 12 domestic projects which amounted to RMB 5.5 billion and 42 offshore projects which amounted to RMB 10.2 billion. These projects were mainly distributed in 18 countries and regions, including Australia (16 projects, RMB 1.5 billion), Nigeria (3 projects, RMB 150 million), Sudan (2 projects, RMB 6.5 billion). Gold (31 projects, RMB 5.4 billion), copper (13 projects, RMB 470 million), iron (6 projects, RMB 5.3 billion), lead zinc (3 projects, RMB 3.3 billion) were the main minerals. Clear Chinese policies On this global communication platform, international participants were very sensitive to Chinese mining policies. The reform and opening up policy of Chinese mining in a new situation gave confidence to overseas markets. Vice Premier Li Keqiang sent a letter of congratulation and stated that, Chinese government would base on domestic power, actively participate in international cooperation which is mutually beneficial, and make better use of domestic and overseas markets and resources to play a constructive role in prosperous development of international market. We would persistently rely on technological progress and institutional innovation, intensify geological prospecting and compressive utilization of resources, improve guarantee capacity and utilization of mineral resources, and actively participate in international mining cooperation which is mutually beneficial. Premier Li also met multi-national ministers of mining departments in Beijing. He interpreted Chinese government’s standpoint, policies and measures in energy and resources in an all-round way from intensification of pragmatic cooperation in energy and resources, bilateral and multilateral common development, and sustainable development. He advocated that the international society should cooperate with each other, take benefits of both producers and consumers into account and jointly respond to new challenges in the fields of energy and resources. Minister of Land and Resources Xu Shaoshi addressed at CHINA MINING 2011 that, Chinese government would implement the strategy of “Giving Priority to Conservation”, make breakthrough in minerals prospecting, intensify institutional innovation and coordinate resource exploitation and environmental protection, to speed up transformation of development pattern, improve resource guarantee capacity, perfect market-based resource allocation mechanism and promote green, low-carbon and sustainable development of CHINA MINING industry. Also, he advocated international mining peers to make efforts together to create an environment-friendly, innovation initiative, inclusive and harmonious new international mining industry order. Prior to commencement of the keynote session, the journalist found that all Chinese mining policies related documentations placed on the stands were snatched up by domestic and overseas delegates in minutes. Many senior mining officials gathered there in hope of learning about more Chinese mining policies.   Overseas participants shows enthusiasm All overseas mining industry forum and promotion shows were also crowded with worldwide participants. As there was no empty seat, the journalist had to make use of every single space. Keynote Session, International Mining Minster Forum, Enterprise Development Summit Forum, 23 sub-forums and 7 project promotion shows were held at this CHINA MINING. At International Mining Minister Forum, persons in charge of mining affairs of Canada, Australia, Angola, India, Laos and Tajikistan made keynote address, introducing their respective mining development and investment situation. Minister of Natural Resources of Canada Joe Oliver addressed on the opening ceremony that, Canada could help China satisfy its resources demands for economic development, promote common development of bilateral economics and create more employment opportunities. Additionally, he committed that Canada would continue to maintain friendly trade relationship with China and strengthen mining cooperation. Also, Canada would continue to improve investment environment so as to attract more foreign investments. Prior to commencement of sub-forums, when receiving interview from reporter of CHINA MINING News, Joe Oliver stated that as from 2012, corporation tax of Canada would be reduced dramatically. Mineral resources survey and prospecting of north part of Canada were just launched, so there is a huge development potential. Minister of Resources, Energy and Tourism (AMMP) Martin Ferguson also welcomed Chinese investment on the opening ceremony and committed to establish a long-term bilateral relationship in mining with China. As China’s economic growth in the past 10 years greatly contributed to global resource demands, Australia has the opportunity to become the most important iron ore supply for China market, as well as the main supplier of cooper, aluminum, zinc and nickel. Moreover, Australia has global leading mining technology and mining safety practice and it expects to establish a closer cooperative relationship with China. At International Mining Minister Forum, Martin Ferguson of AMMP introduced that, Australian government approved Chinese investments up to 16 billion dollars in 2010 and most of them were related to mineral resources, which made China the third largest investor in Australia. From 2007 to 2011, Australian government approved more than 250 applications from China and mining investment application from China amounted to 43 billion dollars. Last year, Australia modified mining investment policies so that foreign investors may better invest in mining industry.      According to what Martin Ferguson AMMP stated when receiving interview from reporter of China Mining News, as from July 2012, Australia would implement mineral resource rent tax (MRRT), which would not exert a great impact on foreign investors. After adoption of this taxation policy, Australia still has large numbers of resource investment projects approved, such as BHP Billiton’s and Rio Tinto’s projects in Pilbara. Minister of Geology and Mines of Angola Joaquim Duarte Da Costa David stated at the forum that, Angola is carrying out nationwide geological survey and geophysical and geochemical prospecting activities presently, and they expected cooperation with foreign companies in prospecting projects. He introduced that, Angola has examined and approved many iron ore prospecting right. It is believed that, in the coming three or four years, many prospecting projects will turn to mining projects and more mines will be constructed. He also promised that Angola will improve mining investment environment, complete legal system, actively follow international conventions to attract foreign investment. State Secretary of Ministry of Mines Shri S. Vijay Kumar said India unveiled a series of policies that make for mining industry development in recent years. In August, Indian Parliament reviewed and adopted Mineral Resources Amendments Act. Geological Survey of India is now making a nationwide geological survey and a 1:50000 geological mapping has been completed. Up to date, India has adopted the proposal of High Technology Reconnaissance and Exploration License (HTREL). Deputy Minister of Energy and Mines Somboun Rasasombath said, in the past five years, Laos always maintained an annual GDP growth of 13.87%, to which, mining industry made a great contribution. In 2009, mining industry exports accounted for 60% of total exports of Laos. Chinese companies also made undeniable contribution to development of Laos’ mining industry. Furthermore, a new department has been set up under Ministry of Energy and Mines to enhance mining industry administration. Chief Head of Geology Administration under the Government of Tajikistan Azim Ibrohim introduced that, Tajikistan government recently formulated and unveiled a series of policies, and stated explicitly that they are going to further develop mining industry and increase input in geological prospecting and mineral exploration. Tajikistan presently has more than 1,000 mineral deposits under development and production and has issued over 50 mineral rights related licenses to foreign mining enterprises. The country would work out policies to increase input in geological mineral prospecting and serve economic development. Also he expected to enhance cooperation with foreign companies in intensive processing of mineral products. During International Mining Minister Forum, seven project promotion shows were held, namely, Canada Mining Forum, Australia Mining Forum, Greenland Mining Forum, Argentina Mining Forum, Africa Mining Investment Forum, Asia Mining Investment Forum and Oceania Mining Investment Forum. Present governmental sectors attached a great important to them. Ministers of mining or ambassadors to China introduced investment opportunities of respective country and recommended mining cooperation projects. Minister of Minerals and Petroleum of Greenland Ove Karl Berthelsen stated that, some large mineral projects (such as iron, zinc and rare-earth metals) of Greenland have entered a critical phase. Greenland expects to launch some mineral projects (such as gold, copper, molybdenum and PGE) via international cooperation and build necessary and close relationship with some mining companies. However, mineral prospecting and exploitation in Greenland must comply with relevant policies and laws, and concerned information shall be disclosed to the public. Peruvian Minister of Energy and Mines Carlos Herrera Descalzi stressed in his address that, Peru would ensure a safe investment environment by means of stable legislation regime. Exports of metallic and nonmetallic minerals account for 62% of total exports of Peru. Taxes in mining industry account for 33% of total taxes. Peru would continue to encourage mining investments and expects investors to enhance protection of society and environment during mining investment. After a sub-forum, South African ambassador in China Langa said when receiving interview from reporter of China Mining News, all countries expect resources development to bring benefits to the country and would maintain safety of resources, but this does not mean resources protectionism. He said South Africa welcome investment from China. Last year, South Africa implemented new mining policies, especially amendment of Charter of Mining Industry, in order to fulfill predetermined objectives and enhance mining development. Deputy Minister of Mineral Resources and Energy of Mongolia B. Ariunsan together with his interpreter intentionally attended Asia Mining Investment Forum and Oceania Mining Investment Forum. He explained clearly that, Mongolia would unveil a plan recently to further cooperate with foreign investors in preliminary and intensive processing of mineral products. They plan to further carry out preliminary processing of iron ores and intensive processing of coal in the coming three years. Additionally, Mongolia expects to communicate and cooperate with China in the fields of environmental protection, labor protection, social responsibility, laws and regulations, and taxation as well.   Executive Director of Russian Mining Advisory Council Nikolay Matyash elaborated their prospecting and exploitation opportunities and laws and regulations related to mining industry, and explained the subsequent influence of Russia’s redefinition on strategic mineral products. Russia would encourage investment in prospecting and exploitation by altering fiscal and taxation policies and modify rules about cancellation of existing licenses in order to provide sound guarantee for investors. Besides, it would ensure open and transparent bidding procedure. More open and transparent geological information would be available to investors. To create a bright future together Despite the uncertainties in international economic situation, major mining countries all showed their intention to cooperate with China. They are generally positive about China’s development and its influence on international mining markets. After Mining Industry and Macroeconomics Forum, participants would have a clear grasp of China’s development direction and confirm their investment confidence. Present delegates generally believed that, as a fundamental industry for economic and social development, mining industry would have positive prospect in a long term. Senior Economist of the Organization for Economic Cooperation and Development (OECD) Vincent Koen predicted at the meeting that, global economic growth would have increased to more than 4% by 2014 and international mining industry would have a new prosperity period. Some experts held that, after the first two development circles resulted from U.S. and European industrialization, global mining industry is now in the third super cycle as some emerging economies represented by China are developing rapidly. However, China has to follow the global development step, adjust mining policies and promote better mining development. Research Director of Development Research Center of China Geological Survey Wang Wen pointed out, Chinese mining must maintain sustainable development. According to the “Twelfth Five-Year Plan”, we must improve development and utilization of technology, transform the mode of production relying on high consumption, and construct a green mining industry. Mining development must aim at livelihood improvement. To realize transnational operation and international and industrialized development, mining enterprises must abide by international mining rules. Now many countries have started to enhance oversight of resources security, levy more taxes and fees, and raise social responsibility for mining exploitation. Nevertheless, as Chinese mining enterprises go out in a more steady way, with sufficient capitals in hands, there is still a huge space for international cooperation. (By Wang Hongfeng)