Great events of global mining industry in 2013
Source: www.mlr.gov.cn Citation: www.chinamining.com.cn Date: Jan.2, 2014
Editor’s note: in 2013, mining industry had not got any good luck, the dream that the price of minerals raised prudently was smashed with a depressed market. Mining companies performed poorly and even the notorious splurge of mining giants slowly faded away.
2013 is a year during which energy and important mineral materials had taken great changes, situation complicated and market adjusted. International and domestic markets appeared three ups and three downs: Crude oil, iron ore, 10 kinds of non-ferrous metals production went up, domestic investment in mining industry continued to grow, imports of Copper, iron, coal and other bulk commodities rose. Meanwhile, base metal prices and mining stocks continued to fall, domestic and foreign geological exploration declined.
2013 has gone, but when we look back, there are something memorable. Today, we sort out some big events of the mining industry happened last year, maybe not fully, hoping to give some hints for the development of the industry.
Here we wish China’s mining good luck in the coming year!
The state council deployed the control on the total energy consumption
In January 30, the state council executive meeting studied the deployment of control on the total energy consumption. The meeting proposed that we should base on mode transformation and structural adjustment, fully give play to the role of market mechanism, optimize the industrial structure and layout, promote energy production and consumption revolution, speed up the formation of total energy consumption intensity and the double control mechanisms. The meeting agreed the target put forward by the national development and reform commission: by 2015, the national energy consumption of standard coal be controlled under 4 billion tons.
Comments: Energy is the lifeblood of the economy, to control the total energy consumption means the restrictions of economic growth. In recent years, China`s energy consumption has maintained a huge increment. But due to the unbalanced development throughout the country, local governments are powerful interest subjects, as well as the spokesman of related interest subjects in their respective jurisdictions. On the issue of local development, they would never compromise easily. So, despite the target of top decision-makers, control on the total energy consumption still has a long way to go.
The longest Coal conveying pipelines in the world was to be built in Yanan
In early march, Shenwei pipelines, the world`s longest, Asia`s first long distance coal conveying pipeline, started soldering in Shaanxi province Huanglong county, marking the coal project officially started. China petroleum pipeline company undertook the project. The pipe started from Shenmu in north to Weinan in south and had a total length of 80.56 km and a diameter of 610 mm.
Comments: After being turning into coal slurry, coal can be transported by pipeline, which will greatly ease the intensity of railway and highway system, lower transportation cost and solve the problem of northern coal transporting to south in Shaanxi. Besides the advantages of low investment, quick construction, low freight, the project is also environmentally friendly. Before, the raw coal transportation relied mainly on railway and highway in our country, Although pipeline had long been argued, it has not been implemented. If this pattern of coal transportation can be replicated in other places, it will trigger a revolution.
The first transformation and relocation project of independent industrial and mining area startup
On April 11, the national development and reform commission announced on its web portal, recently it would issued "on the implementation of the first transformation and relocation project of independent industrial and mining area notice (d&r in northeast [2013] no. 680), the first independent industrial transformation and relocation project officially started. The announcement proposed that we will try to achieve the target within ten years, fundamentally improve the basic development conditions and the basic living conditions of the masses of the independent industrial and mining area.
Comments: Independent industrial and mining areas refer to production and living quarters whose economic and social function are relatively independent. They rise up from mineral resources exploitation, taking resource extraction processing as dominant industry. The areas are far away from the city center, mining workers and their families being the main body of he residents. But at the moment, most of the resource reserve of the areas decline sharply, severely restrict the development and urgently require the national special policy support. the start of transformation and relocation project is a strategic action for advancement of modernization process and the construction of a harmonious society, meaning that the problems calculated for many years in independent industrial and mining areas will be readily solved.
China`s largest coke oven gas to methanol project was completed
In May 2013, in a coke oven gas to methanol project, Shanxi Coal Chemical Group, Huangling Mining Coal Chemical Company produced successfully 300,000 tons of qualified refined methanol. The project, began in June 2011, is a key part of the circular economy strategy of Huangling Mining Company, and a large scaled integrated utilization of resources project of the company, also the leading one of the ten large projects in the construction of circular economy park in Shaanxi province. It plans to produce methanol 800 to 900 tons daily, 300,000 tons annually, and annual output can reach 735 million Yuan.
Comments: This is by far the largest coke oven gas to methanol project in China. The project has fundamentally reduced the environmental pollution caused by the unloading of coke oven gas, and promotes the development of relevant industries, conforms to the developing direction of industrial structure adjustment, achieving a good environmental benefit, social benefit and economic benefit. it has very important significance for the development of new coal chemical industry in our country .
China`s first design specification of metallurgical mine release
The draft of the specification was held by North China Metallurgical Engineering Technology Co., Ltd, China Metallurgical Sky International Engineering Co., Ltd., Northeastern university, Wuhan Institute of Rock and Soil Mechanics(Chinese Academy of Sciences), Mining Branch co. of Meishan Metallurgy Development Co., Ltd., Luzhong Metallurgical Mining Co., Ltd and Panzhihua Steel Group Mining Co., Ltd participated. National standard of the metallurgy mining design specification GB50830-2013 was officially launched. The specification was enforced from October 1, 2013, part of which part is mandatory provisions.
Comments: As China`s first metallurgical mine design specifications, the "specification" promoted technological progress and innovation, improved the design quality and ensure production safety and reasonable utilization of resources. it ensures the mine design meet the requirements for the development of market economy and the high level of national standard. The release of the specification would provide strong technical support for the national metallurgical mining design guidelines and policies.
The central government appropriate billions to support the transformation of resources exhausted cities
The ministry of finance announced on its website in early July, 2013, the total payment the central government transferred to the resources exhausted cities was 16.8 billion Yuan, an increase of 5% over the previous year. It is known that in order to help the resource-exhausted cities to lighten historical burden and accelerate its transformation, according to the spirit of "state council`s opinions about promoting the sustainable development of resource-based cities (guo fa [2007] no. 38)" , in 2007, the central government set up transfer payments for the resources cities. After the approval of state council, 69 cities(county and municipal districts) like Fuxin, Liaoyuan, Yichun, Shizuishan, Fushun, Wuhai, Zhong Xiang, Wanshan area, Jingxing mining area would gradually be incorporated into the scope of transfer payment in 3 phases.
Comments: according to the type of resource depletion, non-agricultural population, province`s financial status, degree of the city`s financial difficulties, and other objective factors, transfer payment funds would be distributed in a formulaic way to the cities .Through the implementation of the transfer payment policy, typical resources cities like Fuxin, Fushun, Yichun, Shizuishan could pay the infrastructure debt accumulated for years, resolved some historical problems, implemented people-benefit project that had been planned for many years. Practice proved that the transformation of resource-dependent cities can not only improve the lives of tens of millions of people, but also create huge demand, answered multiple purpose.
Deep uranium exploration technologies made great breakthrough in China
On July 17, China national nuclear corporation announced in Jiangxi, Fuzhou, the first scientific deep drilling of uranium mine in our country made it to 2818.88 meters of drilling, breaking the former 1200 meters record. According to introducing, in addition to the updated record of mining depth, the equipment of this deep prospecting adopted the independent research and development of drilling equipment, its intelligent, digital level had filled the domestic blank in this field; In the drilling technology, it found lead and zinc copper poly-metallic ore for the first time, also for the first time to create core mineralized alteration hyper spectral identification technology, etc..
Comments: This breakthrough filled the gaps in deep uranium prospecting technology in our country, had far-reaching significance for the improvement of the guarantee degree of domestic natural uranium and meeting the needs of nuclear power development. Continental scientific deep drilling is known as the "telescope" going deep to the inside of earth. For a long time, the depth of the uranium exploration in our country is no more than 500 meters, which was far left behind France, Germany, Canada and other foreign countries in deep prospecting technology. The deep prospecting technology breakthrough greatly expanded the space of prospecting uranium resources.
China got the exploration rights in west Pacific rich cobalt crust mine
On July 19, in the 19th annual meeting held in Kingston, Jamaica, the international seabed authority approved China`s apply of exploring in west Pacific rich cobalt crust mine. It was proposed by ocean mineral resources research and development association in 2012. Rich cobalt crust，On the surface of the rock surface of seabed mountainous area, is rich in cobalt, manganese, nickel, copper and other elements of shell deposit, mainly composed of iron and manganese oxides, distributed mainly on slope and top of sea mountains between the depth of 800 meters to 4000 meters. the rich cobalt crust area where we got the exploration right locates in the western Pacific seamount area, there distributed the largest rich cobalt crust resources known for now and covers an area of 3000 square kilometers.
Comments: Since its foundation in 1994, the international seabed authority successively put forwards stipulations regulating three main mineral resources exploration: regional poly-metallic nodules, poly-metallic sulfide and rich cobalt crust. Previously in 2001, china got exploration rights in poly-metallic nodules mining area in the northeast Pacific Ocean. In 2011 China got exclusive exploration rights in poly-metallic sulfide mining area in southwest Indian Ocean .This success in achieving the exclusive rights of exploration and priority rights of the mine area makes our country the world`s first to have exclusive exploration mine lot concerning the three main international seabed mineral resources.
Eight departments jointly combat violation behavior of rare earth industry
The ministry of industry and information technology, the ministry of land and resources, the ministry of public security, environmental protection, the general administration of customs, state taxation administration, state administration for industry and commerce, the state administration of production safety supervision and management joint together to carry out a "specific project of hitting the violation behavior in rare earth mining, production, circulation". the action would carry on from 15 August to November 15 in full swing across the country.
Comments: Chaos in rare earth industry has always been criticized. The specific project focus on attacking illegal mining rare earth behavior, reorganizing illegal production behavior, cracking down on violation behavior in circulation, sorting out enterprise doing waste recycling and comprehensive utilization of rare earth product, fighting against illegal benefit chain and checking the implement of regulatory responsibilities. Previously multi-sector joint strike were carried out many times, but the effect was not satisfactory.
Quality problems were frequently found in china`s imported iron ore
General Administration of Quality Supervision, Inspection and Quarantine releases a news: in the first half of 2013, Inspection and Quarantine Bureau in Hebei Province Jingtang Office inspected 405 batches imported iron ore, among which there were 178 batch unqualified goods,no coincidence rate is 43.95%, unqualified goods accounted for 35.36% of the total weight and it also accounted for 33.55% of the total value. We have also learned that in the first half year, among the Mexico iron ore imported through Beijing and Tianjin port, the unqualified rate is as high as 100%, of the 14 batches of imported Mexico iron ore, total iron difference can be as large as 4.94%; more than 90% of the imported iron ore from Brazilian had been detected Mingshui. Ore imports from southeast Asia and Mexico had relatively higher sulfur content.
Comments: As early as in 2009, the percent of pass of imported iron ore quality that related department released was only 51%. The China iron and steel association had also accused that China`s imported iron ore grade became lower and lower, the quality was worse and worse. In recent years, the three major international mines, relying on their monopoly position, continuously raised ore price. Although the price of imported iron ore fell a little, it remained in high level, which gave domestic steel mills a heavier burden. therefore, our country began to import iron ore from other countries, while good quality could not be ensured.
Seven departments jointly deployed tailings comprehensive treatment
In mid-September, the state administration of work safety, the national development and reform commission, the ministry, the ministry of finance, the ministry of land and resources, environmental protection, south-north water diversion project office of the state council and other seven departments issued a document together, putting forward the next work target of tailings rectification action, it demanded each region research and formulate specific implementation plan for themselves, comprehensively diagnose and screen tailings in this region, get to know clearly the numbers of waste repository (no owner), closed repository, "trilateral" and "overhead" repository; besides, basically completed the 153 comprehensive treatment projects that the central government financially supported, and speed up the implementation of comprehensive treatment project about the hidden danger in the 790 unclaimed tailings; it is also necessary for us to Strengthen emergency management, and vigorously promote the rainfall regime monitoring ability to protect the tailings, accelerate the establishment of a defense linkage mechanism of emergency rescue for the tailings.
Comments: The dam breaks of tailings pond had frequently hurt Chinese people`s feeling for a time. In recent years, China`s dam safety and environmental protection is getting better. By the end of 2012, the number of the not-that-safe repositories in China dropped to 1223 from 4910 in the end of 2008, reducing 75.1%, the tailings` intrinsically safe level had improved significantly. Practice had proved that as long as the government and local authority attach great importance, there is no problem cannot be solved.
Our country for the first time found gold in siegenite
In early October, one gold team of armed police in copper gold deposit of Heilongjiang province gold factory found a new type of gold-carrying mineral---siegenite. Gold mining factory, located in the southeast of Heilongjiang province, is the armed police troop`s oversize gold mine exploration base and key research base. In the end of the 20th century, one gold team of armed police entered the mining area and had currently detected out 23 ore bodies of commercial value, 4 mineralized bodies, ascertained more than 80 tons of gold reserves. Experts` research results showed that deep inside the old factory copper gold deposits there still has good ore prospects, deposit reserve scale can be further expanded.
Comments: The discover of gold in siegenite is the first time in the world scope, filling a blank in the field of the gold prospecting. siegenite, as a carrier of gold ore body, is mainly seen in deep porphyry orebodies. Its average package of natural gold purity is generally higher than that of other gold carrier material. This theory research confirms that gold is metallogenic under the environment of high temperature and deep setting, which provided strong theoretical and practical significance for for broadening the thinking of golden prospecting.
Iron ore is formally listed on futures trading in our country
On October 18, iron ore futures traded officially. According to a notice issued by the Dalian Commodity Exchange, in initial stage, trading deposit iron ore futures contracts was temporarily set at 5% of the value of the contract, the contract`s limits of up and down 4% of the settlement price in the previous session, and the new contract would have its debut range of 8% of hang dish benchmark price.
Comments: Our country is the world`s largest iron ore importer, consumer, has the world`s most active spot iron ore trade market, and also has the unique advantages of listed physical delivery iron ore futures. As the world`s largest iron ore importer, this move will help us to improve iron ore pricing power. At present, the iron ore price in international trade is gradually realizing its marketing and Short-termism, fluctuation in price is frequent and fierce. The launch of iron ore futures can provide a safety function, as a result, the domestic enterprises can better manage price risk.
China`s first "shale gas industry policy" released
On October 30, the national energy administration in our country released the first "shale gas industry policy" (hereinafter referred to as the "policy"). It clearly incorporated shale gas development into national strategic emerging industries. The country would increase financial support to the development of shale gas exploration, and encourage all kinds of investment subjects to enter shale gas sales market, let the market decide the producer price of shale gas.
Comments: Having tasted the benefits of shale gas and then experienced the confusion and concern in the process of "tasting", the next phase, the development of shale gas commercialization in China will go to where? At the present stage, the government`s current attitude of developing shale gas has been very clear, supporting policies rolled out, localization of equipment and technology has also made a big breakthrough. The key to the next step is to reduce the cost of development continuously through various means. The shale gas industry policy, intended to remove the worry and open a new page for shale gas development.
The 15th China international mining conference
November 2-5, with "challenges, opportunities, development" as the theme, 2013 China international mining conference (15th) in Tianjin was held on time, a total of nearly 7000 representatives from all over the world presented.
Comments: With 15 years of development, China international conference on mining has become an important platform for the international mining industry to deepen exchange, enhance cooperation and embrace future development. Facing the "winter" of the mining industry, this conference is a bit like a gathering of global mining industry practitioners "talking to each other"," huddle for warmth".
China stopped approving new construction of coal mine whose annual output is less than 300,000 tons
On November 18, the general office of state council issued" opinions on the smooth operation of the coal industry". It provided strict standards for admittance criterion into new coal mine and stopped the approval of new coal below 300000 tons/year, coal and gas outburst mines less than 900000 tons/year. New mines must strictly fulfill the basic construction procedures, investigated the behavior of building before being approved, building a large mine with the permission of a small one. Mines should start from improving management of safe production, gradually phase out coal mines below 90000 tons/year, and close the mines without safe production conditions, accelerate the pace of closing coal mines with serious hidden dangers, like coal and gas outburst.
Comments: After nearly 10 years of rapid development, coal industry gradually get over the long-term losses, greatly changed the situation. But since 2012, the supply and demand situation of coal changed, the coal production declined, inventory kept high, prices dropped, corporate profits declined and accounts receivable increased. The new situation and new problems made it more difficult for the business operation and the risks were higher for smooth running. The economic slowed down and coal supply and demand situation became loose, the "opinions" was put forward. it would make positive effects on the restraint of disorganized development, improvement of supply and demand relationship, as well as a smooth operation of market.
"The sustainable development planning of national resource-based cities” came out
On November 12, the state council issued "the sustainable development planning of national resource-based cities (2013-2020)". It for the first time defined 262 resource-based cities in the country, and according to the difference in resource guarantee capacity and sustainable development ability, the resource cities were divided into four types: growth type, maturity type, recession type and regeneration type, which made development direction and key tasks clear for different types of cities.
Comments: This is the first time in China to put forward specialized planning in national level about sustainable development of resource-based cities, which was a great event in the field of sustainable development in China. it had great significance to safeguard national energy resources security, promote transformation of economic development mode, promote the new industrialization and new type urbanization and construct resource saving and environmental-friendly society. The planning meant the new stage of transformation of resources cities development.
China`s iron ore imports set a new record in November
Customs data showed that China`s iron ore imports in November 2013 is 77.84 million tons, rose 10.01 million tons from October, increased about 14.75%, rose 18.33% on year-on-year basis, refreshed September`s record of 74.58 million tons. Since 2013, China`s iron ore imports overall changed along with our country`s economy fluctuation. But in July 2013, China`s imported iron ore reached 73.14 million tons, a big increase from 10.84 million tons in June, leaped 26.4% from a year earlier, created the first "monthly imports hit a record high" in 2013. In August, imports of iron ore had dropped from last july, but there were still 69.01 million tons of imports.
Comments: The update rate of "record" was comparable with that of 2009, 2010 when iron ore negotiations were in the most intense moment. Iron ore import`s new high records showed that steel production enthusiasm remained high, the drop of raw material prices would not easily come. Therefore, this "high records" pushed international iron ore suppliers to increase prices, which for China`s steelmaking industry may not be a good thing.
For the first time china drilled out high purity "combustible ice" in offshore
On December 17, the ministry of land and resources announced to the media that marine geological science and technology personnel in our country for the first time, in Guangdong pearl river mouth basin in the eastern ocean, drilled out high purity natural gas hydrate samples (also called "combustible ice ").The occurrence of the natural gas hydrate drilled out this time were in the depth of 600 meters to 1100 meters below the sea floor, and it was located within 220 meters of two ledges, thickness of the upper layer was 15 meters, the lower layer 30 meters, controlled distribution area of 55 square kilometers. converted into gas, controlled reserve was 100 billion ~ 150 billion cubic meters.
Comments: The natural gas hydrates discovered this time had a variety of types and layers in one mining area, in addition to the thick ledge, high mineral content and high purity methane, it was rare in the world. With the rapid development of economy, energy competition has become the focus issue of the global political and economic. Exploration, development and the use of new energy is getting more and more attention of governments around the world. As a replacement of energy, "combustible ice" reserve in the global resources is very rich, equaling two times the amount of the total quantity of conventional fossil fuels that have now been ascertained in the world, such as coal, oil, natural gas carbon. To achieve the commercial development of combustible ice is to improve our environment. (Li Ping) （translated by TLRHVC）
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