CHINA MINING News

Rio Tinto, Sinosteel extend Australian iron ore joint venture

Source: www.chinamining.org  Citation: www.mining.com  Date: November 18, 2014

Mining giant Rio Tinto and China`s Sinosteel have inked a deal that extends a long-term iron ore joint venture in Australia`s Pilbara region, which has provided about 250m tonnes of iron ore to date.

The two companies first signed the Channar Mining JV deal in 1987 to produce 200m tonnes of iron ore, extending it in 2010 for a further 50m tonnes. At the time it was one of the largest Chinese investments in the world as well as the first overseas mineral resource project entered into by a Chinese company.

The operation has become one of Beijing`s longest running and most successful partnerships with Canberra and "a model" for economic cooperation

Rio`s chief executive Sam Walsh noted the operation has become one of Beijing`s longest running and most successful partnerships with Canberra and "a model" for economic cooperation between the two countries.

"The signing demonstrates the commitment by Rio Tinto and Sinosteel to continue exploring opportunities that build on a mutually beneficial partnership that has developed over many years," Walsh said in a statement.

Underlining the significance of the Sino-Australian project, both Chinese president Xi Jinping and Australian Prime Minister Tony Abbott attended the signing.

Rio has a 60% stake in Channar mine, located about 60 km south of the mining town of Tom Price, and acts as the operating company. Sinosteel, in turn, has 100% off-take rights.

The two companies will have to reach mutually acceptable terms on the new extension before the previous one runs out in 2016.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China-Australia trade deal will officially scrap 8% duty on alumina imports

Source: www.chinamining.org  Citation: Platts  Date: November 18, 2014

China will officially drop the 8% duty on Australian alumina imports, which has not been applied in recent years in any case, under the landmark Free Trade Agreement between the two countries announced Monday.

"Tariffs will also be removed on a range of Australian resources and energy products, including the 8% tariff on aluminum oxide [alumina] on the first day of the Agreement," Australian Prime Minster Tony Abbot said in a statement.

China has a Most Favored Nation (MFN) 8% duty on alumina imports, but has not imposed it since 2008, according to the Chinese Ministry of Finance.

At present, imported material into China is subject to a 17% VAT, which is expected to remain, Chinese sources said.

China imported 2.4 million mt of Australian alumina over the January to September period of 2014, out of a total of 3.9 million mt global alumina imports.

The value of the Australian alumina imported over the same period stood at $809 million.

According to the World Trade Organization, the MFN tariff is the normal non-discriminatory tariff charged on imports, excluding preferential tariffs under free trade agreements.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China coal consumption may peak around 2020: expert

Source: www.chinamining.org  Citation: Xinhua  Date: November 18, 2014

China`s coal consumption could peak around 2020 if proactive measures are taken to control carbon emissions, an expert said on Monday.

Zhou Nan, a researcher at the Lawrence Berkeley National Laboratory in the United States, made the remarks at a Beijing seminar on reducing coal consumption.

Zhou predicted that carbon dioxide emissions in China will peak around 2040, but could come a decade earlier if stricter controls are adopted.

China announced its post-2020 goals of coping with climate change last week, vowing to achieve the peaking of carbon dioxide emissions around 2030 and increase the share of non-fossil fuels in primary energy consumption to around 20 percent by 2030, from 9.8 percent in 2013.

The National Development and Reform Commission released a national plan in response to climate change in September, optimizing the energy mix by controlling coal consumption, using clean coal and more green energy.

Coal burning is one of the main sources of air pollutants and China has installed filters at power plants, steel and cement factories.

"By 2020, sulfur dioxide, nitrogen oxide and soot will be reduced by 30 percent, 42 percent and 30 percent respectively from 2012, thanks to these devices," said Wang Jinnan of the environmental protection ministry.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s oil demand growth to slow down around 2030

Source: www.chinamining.org  Citation: Xinhua  Date: November 13, 2014

China`s demand growth for oil will slow down around 2030, although it will overtake the United States as the largest oil consumer by that time, said International Energy Agency (IEA) Wednesday.

IEA released its flagship World Energy Outlook 2014 report in London, and it warned of the longer-term signs of stress that are emerging in the energy system.

World oil supply is expected to rise to 104 million barrels per day (bpd) in 2040, but hinges critically on investments in the Middle East. As tight oil output in the US levels off, and non-OPEC supply falls back in the 2020s, the Middle East will become the major source of supply growth, said IEA.

Meanwhile, growth in world oil demand slows to a near halt by 2040, as demand in many of today`s largest consumers either already being in long-term decline by 2040 (the US, European Union and Japan) or having essentially reached a plateau (China, Russia and Brazil), said the autonomous organization on energy consultancy.

But India will emerge as a key driver of growth, as do sub-Saharan Africa, the Middle East and Southeast Asia, it noted.

Fatih Biro, IEA`s chief economist, said in the press conference that: "A well-supplied oil market in the short-term should not disguise the challenge that lie ahead, as the world is set to rely more heavily on a relatively small number of producing countries."

"The apparent breathing space provided by rising output in the Americas over the next decade provides little reassurance, given the long lead time of new upstream projects," he said.

In the central scenario of the report, however, IEA reckons that world primary energy demand is 37 percent higher in 2040, putting more pressure on the global energy system.

The scenario shows that world demand for two out of the three fossil fuels - coal and oil - essentially reaches a plateau by 2040, and the world`s energy supply is divided into four almost equal parts: low-carbon sources, including nuclear power and renewable, oil, natural gas and coal.

Maria van der Hoeven, Executive Director of IEA, said in a press conference: "As our global energy system grows and transforms, signs of stress continue to emerge, but renewable are expected to go from strength to strength, and it is incredible that we can now see a point where they become the world`s number one source of electricity generation."

In the report, IEA also sees installed capacity will grow by 60 percent to 2040 in its central scenario.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Jin Ruoshi: The next ten years will be a key period for nuclear power development

Source: www.mlr.gov.cn  Citation:www.chinamining.com.cn  Date: Oct. 28, 2014

During the “Geological Prospecting, Scientific and Technical Innovation “forum of CHINAMINING 2014, Mr. Jin Ruoshi, Director of Tianjin Center of China Geological Survey said that the next ten years will be an important period for nuclear power development and the structure of the world energy and resources will undergo great changes. But, in general, there is a lack of uranium resources in China. Considering that nuclear power will play a major role in the future development, China is facing a severe challenge from the guarantee of the nuclear power.

Mr. Jin Ruoshi said that the developed countries’ nuclear power accounts for more than 20% of their national power structure, such as France over 76%. In 2020, the U.S., Japan and France will have another round of investment in nuclear power. However, with structural differences, China’s nuclear power proportion is under 2%. Therefore, China has great potential to develop nuclear power. Technologically, at present, China mainly generates nuclear energy power by water reactors. In 2025, India will have five fast reactors to come into use. Although China has made progress in the fast reactor technology, in short terms, the cost is still a major problem.

Mr. Jin Ruoshi said, at present, China has discovered some uranium deposits in the Kunlun Mountains, the Qinling Mountains, and the basin of the Dabie Mountains. Besides, some new deposits have been found in newly-chosen exploration areas, which changes our view on the previous geological regulations. The discovery of the sandstone-type uranium deposit in the Ordos Basin makes China rocket to the ranks of countries with large uranium resources. Jin also said that the large- scale fluid process of the large basin and the large sandstone can direct the prospecting of large deposits. Therefore, if we want to make breakthrough, we need to focus on the Junggar Basin, Tarim> Basin, Ordos Basin and the Songliao Basin and implement the work systematically. For the next step, research work need to be done in the aspect of the basin’s sedimentary and wet sequence, the sedimentary facies series and the mineralization process including the function of ore fluid and time, space and material composition as well as the physio-chemical conditions. (reported by Liu Xiaohu)  (translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Song Xin: Technology innovation is the new engine for the development of the gold mining industry

Source: www.mlr.gov.cn  Citation：www.chinamining.com.cn  Date: Oct.27, 2014

“Nowadays, China’s gold mining industry is facing unprecedented challenges.”On Oct.22, 2014, Mr. Song Xin, General Manager of China National Gold Group Corporation and President of China Gold Association pointed out in his speech on the 2014 CHINA MINING Mining Development Forum.

Mr. Song Xin said, confronted with serious market situation and fierce market competition, the gold mining industry needs to vigorously implement innovation-driven strategies and realize effective, scientific and low-cost resource exploration through technology innovation, technique improvement and equipment updates.

He emphasized that the scientific work should overcome the major difficulties existing in prospecting, exploration, metallurgy, processing, security and environmental protection. All these problems are in urgent need to be solved.

Seven Ways to Get Out of the Dilemma

In the current situation, the price of gold and other nonferrous metals is very low and the cost of geological survey, exploration and processing is continuously rising, which decreases the profits of the gold industry.

The gradual implementation of the new fiscal policy, including levying the gold resource tax, changing the business tax to value-added tax and changing the environmental conservation fee to tax, has hit the gold mining enterprises. In addition, the increasing financing difficulties and costs trap the enterprises in a tense financing climate.

How to solve the current difficulties and realize healthy development in the future?

Mr. Song Xin pointed out that technology innovation is the essential path to increase competitive strengths, resist market risks and realize sustainable development. He said that we are in urgent need to accelerate the progress of technology innovation, improve core competitiveness and realize sustainable development.”

In the aspect of prospecting, the gold mining industry needs to have the awareness of rights protection, scientific research promotion and cost control. The enterprises should protect both rights and interests, promote technology’s leading role and explore largest amount of resources with lowest cost.

In the aspect of mining, the gold mining industry needs to optimize the mining system, reduce the loss and dilution and improve the mechanization and intelligence of the devices. In addition, the enterprises should also promote the comprehensive technology research on deep mining and effectively cope with the risks and challenges from rock-burst, earth temperature and cost.

In the aspect of dressing, the gold mining industry needs to make continuous progress of the dressing technology and process. The enterprises should do research on poly-metallic deposits metallurgy and cyanide-free gold extraction technique and apply these technology into practice. Also, efforts should be made to overcome the difficulties in gold extraction and low-quality resources extraction as well as by-products recycling.

In the aspect of security, centering on grass-roots construction, basic work and basic skill training, the gold mining enterprises should continuously strengthen the security management foundation, improve the construction of “six systems”, get rid of out-of-date techniques and equipment, do more research on observing the regulation of deep mine ground pressure, rock-burst and ventilating and improve the intrinsic safety.

In the aspect of environmental protection, measures including developing circular economy and pollution-free mines, strengthening technology research on groundwater discharge and the utilization of deep mine earth temperature, should be taken to improve the energy-saving and emission-reducing and restore the mine ecology.

In the aspect of equipment, the gold mining industry needs to update the devices used in the process of mining. New mines should promote the application of new technology, new technique, new equipment and new material. The enterprises should build new mines with modern technology.

In the aspect of digital mining, new mines should develop towards informatization, digitization and intelligence through building geological and mining 3D models, polularizing practical software and comprehensively transforming and promoting the management of traditional mining enterprises.

Six Features Showing the New Trend of the Mining Industry

Facing the fierce market competition and fluctuating prices, China’s gold mining industry has achieved stable, healthy and rapid development by combining measures to promote endogenous growth.

China Gold Association’s statistics showed that in 2013, the output of China’s gold mining industry reached 428.16 tons, ranking the first in the world for the seventh consecutive year. Gold consumption reached 1,176.40 tons, surpassing India for the first time and ranking first in the world. Prominent achievements have been made in gold geological survey with 8,974 tons of gold reserve which makes China rank second in the world. The technology of the gold mining made a major breakthrough and ranked top in the world’s metallurgy technology. China’s top ten gold mining corporations’ output and profits accounted for 50% of the whole industry. Now China’s gold mining industry has changed its role from a follower to a leader with increasing competitive force and comprehensive strengths.

In his speech, Mr. Song Xin introduced the new features of the rapid development of the China’s mining industry. 

Mr. Song Xin said that, China’s gold mining enterprises are actively coping with the market changes and taking initiative to transform the development mode. Go through the sluggish situation by promoting “the five leading roles”, improving effectiveness and reducing the cost, strengthening management and digging up the potentials. Enterprises are generally increasing technology and applying new techniques and equipment to overcome the difficulties. Integration of mechanization, intelligence and informatization has been achieved to transform the traditional mining and management. All the enterprises are sticking to the idea of “building with upgrading” and reducing the project capital to win in the starting line in the aspect of project building, geological survey and technology transformation.

Besides, all enterprises have further strengthened their concept of green and secure development and improve the mining industry’s sustainable development. They have gone global to explore overseas resources and accelerated the integration with the world’s mining industry. They have improved their cooperation to cope with the situation and implemented wide cooperation in regional mining rights integration, overcoming difficulties in the process of technology updating and building the platform for equipment bidding and gradually formed a new picture of cooperative, harmonious and win-win development.

Mr. Song Xin said that in the current situation, only by strengthening technology innovation can the industry realize the updating and transformation, achieve sustainable and healthy development and honor the mission of safeguarding the national economy and financial security.(reported by Li Ping) (translated by TLRHVC)

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Wang Min met with deputy minister of energy and mines of Peru

In the morning of Oct. 24^th, Mr. Wang Min, Vice Minister of Ministry of Land and Resources of P.R.C, met with the Hon. Mr. Gullermo Shinno Huamani, Deputy Minister of Ministry of Energy and Mines of Peru, and his staff in Beijing. The two sides deepened the communication and reached consensus on enhancing cooperation in geologic and mining areas.

Firstly, on behalf of the Ministry of Land and Resources of P.R.C, Mr. Wang Min showed welcome to Mr. Gullermo Shinno Huamani and his staff. He said that China and Peru are continuously keeping good partnership in geologic and mining areas. Two countries have frequent contacts between the mining management departments. He hoped that the bilateral sides can further deepen the communication and cooperation in mining area under the framework of friendly cooperation. The first step is to renew the cooperation memorandum which was signed by Ministry of Land and Resources of P.R.C and Ministry of Energy and Mines of Peru in 2009. The second step is to deepen the cooperation between geological survey institutions of two countries. On the basis of implementing the already existing projects, two countries should strive for new cooperation and renew the cooperation memorandum between geological survey institutions of two countries. The third step is to unfold the investment cooperation of both sides in mining industry. The Chinese government will strictly require the Chinese companies to obey the local laws and rules and protect the environment. At the same time, China welcomes Peruvian companies to invest in China and make cooperation.

Mr. Gullermo Shinno Huamani indicated that in recent years, China and Peru constantly deepen the cooperation in mining industry and the both sides has established some large-scaled collaborative projects. For Peru, these collaborative projects are very important and the Peruvian government will always support Chinese enterprises to conduct business in Peru. 

The other participants were officials from related departments and institutions of Ministry of Land and Resources of P.R.C, and personnel from China Aluminum Corporation and China Minmetals Corporation. (Edited by Li Xiang)

（translated by TLRHVC）

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Outbound mining projects on the rise

Source: www.chinamining.org  Citation: China Daily  Date: October 24, 2014

Some participants in the 2014 CHINA MINING Congress and Expo, which opened on Oct 21 in Tianjin, take snapshots of the minerals on display.

Increasing demand, market realities pushing Chinese companies abroad

China`s outbound investment in mining assets rose 83 percent to $24.8 billion last year on the back of the nation`s growing appetite for commodities, industry experts said on Monday.

Ban Yongzhi, an official with the foreign investment and cooperation department of the Ministry of Commerce, said China`s outbound investment in the mining sector reached $106 billion by the end of 2013 and accounted for 16 percent of China`s overall outbound investment. 

During the first nine months of this year, China`s outbound non-financial investment reached $74.9 billion, up 21.8 percent year-on-year, according to the ministry.    

"At present, 1,397 Chinese companies have invested in foreign mining assets like oil and gas exploration, ferrous and non-ferrous metals exploration and refining," Ban said. "Chinese mining companies are accelerating their steps in overseas markets."
    
 Under the new foreign investment management guidelines that were implemented from this month, companies only need to maintain records for outbound investments projects rather than having to get official approvals.
    
"Up to 99 percent of the projects require only records and a few ones involving sensitive countries or industries still need to go through the approval process," Ban said. "The new guidelines will boost Chinese companies` outbound investment, especially in the mining sector."
    
China has reduced the approval process for domestic companies that want to invest overseas from 15 days to about three days.
    
He said many companies chose to invest abroad because they need to improve their production techniques and to be a part of the global supply chain for raw material sourcing.
    
The Zhejiang-based and privately held mining firm Huayou Cobalt Co Ltd decided to invest in cobalt and copper mining, processing and refining plants in Africa in 2006.
    
Huayou Cobalt was initially a trading company.
    
 But as China`s demand for cobalt, an important raw material for batteries, grew, and with about 90 percent of the demand coming through imports, the company decided to invest in the cobalt mines of Africa, Li Xiaodong, vice-president of the company, said.
    
Although Chinese mining companies have been investing in countries such as Australia, Canada, Africa, Russia, Peru and Chile, there are still obstacles hampering further growth.
    
 Zhou Yongmei, senior manager of the mining sector with the World Bank, said most of the Chinese companies invest in low-and middle-income countries.
    
"These countries have a vulnerable political system that often poses risks to investment."
    
She said Chinese companies take huge risks when they invest in countries where there are not enough jobs for locals. Civil wars can also cause huge capital losses.
    
"The government is working on steps to improve and increase overseas investments by promoting the green-credit policy," she said.
    
The Ministry of Environmental Protection will soon submit a list of companies that have violated environmental protection regulations to the China Banking Regulatory Commission. The commission will limit, suspend or withdraw loans to the companies in the list.
    
Bie Tao, deputy head of the policies and regulations department with the environmental protection ministry, said mining companies must take steps to control the environmental impact from their operations. "Environmental risks are the main criteria that banks weigh before approving loans," he said.
    
The government would use the loans and other financial measures to limit overseas investments and ensure that the companies work in an orderly fashion.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.