CHINA MINING News

China industrial companies post rapid profit growth

Source: www.chinamining.org         Citation: Xinhua         Date: March 28, 2017

BEIJING - China`s major industrial companies registered robust profit growth in the first two months of the year, fresh evidence of a stabilizing economy. 

In January and February, industrial enterprises reported a 31.5 percent profit increase year on year, to the value of 1.02 trillion yuan ($148.5 billion), according to a National Bureau of Statistics (NBS) statement Monday. 

The growth outpaced that in December 2016 by 29.2 percentage points, and that in 2016 by 23 percentage points. 

China`s major industrial firms ended their profit losses in 2015, reaping good returns in 2016 on the back of a construction boom. 

NBS statistician He Ping attributed the recovery of industrial company profit in January and February to increased industrial production, raw material price increases and an uptick in profitability. 

The earnings recovery was uneven across sectors, with coal mines, oil refineries and chemicals witnessing increased profits, boosted by soaring raw material prices, according to He.

The profitability of the main business of industrial companies edged up 0.8 percentage points year on year to 5.92 percent in January and February. 

China`s economy grew 6.7 percent year on year in 2016, slowing from 6.9 percent in 2015.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Nuclear companies take a step closer to joining forces

Source: www.chinamining.org     Citation: China Daily      Date: March 21, 2017

Technicians control an automatic welding operation of a nuclear reactor at the Ningde nuclear power plant in Fujian province. [Photo/Xinhua]

China moved one step closer to merging two of its nuclear power developers, as the country drives through consolidation in many of its State-owned enterprises, including the railways, shipping, nonferrous metals, construction materials and steel sectors.

The Shanghai-listed units of China National Nuclear Corp, a holding company for reactor design and technology, and China Nuclear Engineering Corporation Group, a company that focuses on construction, said in regulatory filings on Monday that a strategic reorganization of the two nuclear giants is underway. 

The units said the reorganization requires regulatory approval, but does not involve major assets of the listed companies and would not affect normal operations. 

Joseph Jacobelli, a senior analyst of Asian utilities and infrastructure at Bloomberg Intelligence, said the nuclear sector plays a significant role in the country`s advanced manufacturing exports, and the merger means not only streamlining the SOEs, but also helping China`s nuclear companies better export their technology to the global market. 

He said the combination would be a joint force with a better share of the international market. 

Jacobelli added that the plan is to boost internal efficiencies in the country`s nuclear sector and external competitiveness. 

China suspended approving new nuclear power plants after Japan`s Fukushima nuclear disaster in 2011. However, nuclear power generation in recent years, especially in the first two months of the year, continued to see sharp growth. 

Jacobelli said China`s nuclear energy developers are believed to be commissioning many more reactors during the 13th Five-Year Plan (2016-20), because nuclear power is a key source of clean energy along with hydropower. 

Installed nuclear capacity more than doubled to 27.17 gigawatts in the 12th Five-Year Plan (2011-15) and is expected to double again by 2020 to 58 GW. 

Being the world`s fastest-growing nuclear market, China said it would further cut industrial overcapacity and introduce market-based reform, in an attempt to accelerate restructuring of the nation`s bloated SOE sector. 

It also vowed to further expand its nuclear sector to reduce its reliance on coal and help achieve its climate-change commitments. 

China will develop nuclear power in a safe and highly efficient way, Premier Li Keqiang said in the Government Work Report delivered during the fifth session of the 12th National People`s Congress on March 5. 

Wang Shoujun, former chairman of China Nuclear Engineering Corporation Group, has taken over as CNNC chairman, after former chairman Sun Qin stepped down on reaching retirement age last year. 

CNNC is principally engaged in the development, investment, construction, operation and management of nuclear power projects. It is also involved in the research of technology, for nuclear power operational safety and related technical services and the consultation business.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Beijing, Saudi Arabia agree to more oil cooperation, exports to China

Source: www.chinamining.org     Citation: Reuters     Date: March 20, 2017

China and Saudi Arabia will increase their cooperation in the oil sector, including in Saudi oil exports to China, the two countries said in a joint communique issued on Saturday at the end of Saudi Arabian King Salman’s visit to Beijing.

The world’s largest oil exporter has been looking to cement ties with the world’s second-largest economy. 

After losing market share to Russia last year, Saudi Arabia has sought to boost oil sales to China, the world’s second-largest oil market, by working mostly with China’s top three state oil firms. 

“Both countries are willing to raise their level of cooperation in the oil sector, including supplying Saudi oil to the continuously growing Chinese market,” the two said in a statement issued by China’s official Xinhua news agency. 

“Both sides stress the importance of stability in world oil markets to the global economy … China appreciates Saudi Arabia being a safe and dependable oil supplier to the world market, and the role it plays in ensuring the stability of the global oil market,” it said. 

Salman oversaw the signing of deals worth as much as $65 billion on the first full day of his visit to Beijing on Thursday. 

China has traditionally played little role in Middle East conflicts or diplomacy, despite its reliance on the region for oil. However, it has been trying to get more involved in efforts to end Syria’s six-year-old civil war, where Riyadh supports rebels battling President Bashar Al Assad. 

Last year, China also offered support for Yemen’s government, which is backed by a Saudi-led Gulf Arab coalition in a war against the Iranian-aligned Houthi movement that controls much of the country. 

China has had to tread a careful line, though, as it also has close relations with Iran. Xi visited both Saudi Arabia and Iran in January last year. 

The joint statement said both China and Saudi Arabia stressed their support for Yemen’s legal government. 

China’s renewed diplomatic push with the Middle East continues next week when Israeli Prime Minister Benjamin Netanyahu visits China. 

Diplomatic sources say China is trying to play the role of “honest broker” in the Middle East, as it lacks the historical baggage of the Americans or the Europeans.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China ramping up controls on imports of low-quality coal: official

Source: www.chinamining.org     Citation: www.reuters.com      Date: March 16, 2017

China is ramping up controls on imports of low-quality coal due to concerns about smog and overcapacity in the world`s top coal consumer, a government official said on Wednesday, as traders report some cargoes have been delayed by customs checks.

"As long as coal meets standards, we don`t forbid imports, but we are imposing controls on low-quality coal imports," said Zhi Shuping, head of the Administration of Quality Supervision, Inspection and Quarantine which oversees imports safety. 

The official was speaking on the sidelines of the annual meeting of China`s parliament. 

"If we let all kinds of coal import into domestic market, it will hit the domestic market," Zhi said. Last year, the agency rejected 1.5 million tonnes of imported coal, he said. 

 His comments come as some international traders have complained about delays of weeks in getting some cargoes cleared through customs in China due to tougher inspections at ports. 

It`s not clear how widespread the checks are. One official at a global merchant, speaking on condition of anonymity, said his company`s shipments into Jiangsu province took longer than usual to get customs clearance.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Coal down, clean energy up in China

Source: www.chinamining.org         Citation: chinadaily.com.cn      Date: March 14, 2017

China`s coal consumption has fallen for the third year in a row as part of its broader effort to develop the nonfossil fuel sector, according to Haibing Ma, China program manager at the Worldwatch Institute, a Washington-based climate think tank.

"China has experienced a lot of development of its nonfossil fuel energy capacity during the past 10 to 15 years," Ma says. 

"According to the latest numbers I`ve seen, by the end of last year nonfossil fuel energy consumption in China accounted for 19.7 percent of its total energy consumption. The country has almost reached its goal of 20 percent in the Paris Agreement." 

He says this gives China even more space to keep increasing its nonfossil fuel energy consumption, which is aided by its decrease in coal use. 

Coal consumption dropped to 62 percent of total energy consumption in 2016 from 64 percent the year before. The levels are the lowest they`ve been in China since 1990. 

China also has phased out "inefficient or energy-intensive industrial capacity", which used to be a main contributing factor for emissions, says Ma, who studies green economy initiatives and effects in China at the institute. 

"A related story is that China became the global leading clean product producer" — procucts such as solar panels and wind turbines, he says. 

"If you look at the top 10 solar PV manufacturers in the world, Chinese manufacturers account for at least half of them, and the wind turbine manufacturer list is a similar story. In fact, building up such a strong and global influence in the clean-product industry is a reason that China wants to boost renewable energy." 

Ma also gave credit to the speed of China`s emissions mitigation. The country`s total carbon dioxide emissions per unit of GDP decreased 38.6 percent in the 10 years between 2005 and 2015. 

China pledged in the Paris Agreement that carbon emissions would peak around 2030. It also says it will reduce its emissions per unit of GDP by 60 to 65 percent from 2005 levels, increase its non-fossil fuel share of energy consumption to approximately 20 percent and increase forest stock volume by around 4.5 billion cubic meters from 2005 levels.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Govt to further push restructuring of SOEs

Source: www.chinamining.org     Citation: chinadaily.com.cn      Date: March 10, 2017

China will push forward the restructuring of State-owned enterprises (SOEs), while expanding the scope and depth of mixed ownership reform, top State-owned assets regulator said on Thursday.

The SOEs have been taking the lead in restructuring the production capacity of coal, steel and thermal power, said Xiao Yaqing, minister of the State-Owned Assets Supervision and Administration Commission (SASAC), at a press conference on the sidelines of the two sessions. 

Xiao said: "SOEs under central government control will be further slimmed down to streamline management and improve administrative penetration and continue with supply-side reform."

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Chinese companies urged to take measured approach to Canada mining investment

Source: www.chinamining.org         Citation: chinadaily.com.cn      Date: March 09, 2017

Perhaps Chinese mining companies in Canada should consider taking minority stakes in Canadian companies instead of acquiring them. That was the takeaway at a mining forum on Monday in Toronto.

"Acquisition of interests in a Canadian public mining company is often a key step to acquiring mining interests throughout the world," said Fred Pletcher, chairman of National Mining Group, Borden Ladner Gervais LLP. 

Pletcher spoke to delegates of Chinese mining industry at the 2017 Chinese Mining Investment Forum. The forum coincided with the first day of the Prospectors & Developers Association of Canada (PDAC) convention, the premier international event for the mineral industry in Toronto, where optimism was voiced that the industry would rebound after a couple years` slump.

The forum hosted by the Canada China Chamber of Commerce (CCCC) and the China Mining Association (CMA) focused on the Belt and Road strategy and Chinese mining investment opportunities. 

Keith Spence, president of Global Mining Capital Corp and chairman of PDAC International, suggested that Chinese investors in Canada could learn from Japan`s 1970s approach in which he said it was "not necessary" to take majority ownership of the Canadian companies. 

The Japanese model that was developed to invest in Canadian resources companies started was involved not only in taking controlling interests, but smaller stakes, ranging from 15 percent to 30 percent. 

"But still having contracted a lot of Canadian companies to sell off-take commodities to the Japanese companies, many Japanese investors have been remained 20-plus years with successful operations," Spence said. 

Here is how Investopedia.com describes off-take commodities: "An off-take agreement is an agreement between a producer of a resource and a buyer of a resource to purchase or sell portions of the producer`s future production." 

 "Canada is rich in mineral resources, has an open and transparent policy and a prosperous mining capital market," said Cao Jie, managing director of CMA. 

 "There are complementary advantages in mining resources and the stock market between Canada and China," said Li Aihua, president of CCCC. 

 China has vast market potential due to its great demand for mining resources, while Canada has one of the largest stock markets in the world, which plays a leading role in international prospecting and exploration of mining resources. 

 However, many deals by Chinese companies in mining and energy projects are losing money, running into unexpected costs or generating significantly less output than expected. 

 "China`s mining companies need mining projects with high grades," said Luan Zhengming, a committee member of the CMA.

Spence offered three suggestions to Chinese investors: Focus on projects with lower risk; the financing structure should reflect the risk appetite; and manage and mitigate the soft risks. 

"You certainly have to give up something which means you don`t control it and you have to trust your partners," said Pletcher, of National Mining Group. "We started to see more Chinese investors approach it this way, like with Western Potash. He said CNOOC`s (China National Offshore Oil Corporation) initial investment was restructured with minority interests and off-take.

 Canada`s strong financial markets also help ease investment in the country. 

 Pletcher said Canada is the leading global centre for mining finance. The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSX-V) were home to 1,207 public mining companies as of 2017. 

"Canada`s government welcomes Chinese investors; what we value as much as the investment is the partnership that Chinese companies bring to Canada," said Canadian Senator David Wells, who represents Newfoundland and Labrador provinces.  

"The field of energy minerals is the focus of China`s investment in Canada, with the gradual rebounding of the mining industry," said Xia Xiang, minister-counsellor for economic & commercial affairs at the Chinese embassy in Canada.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

China promises further cuts to steel, coal capacity

Source: www.chinamining.org     Citation: Xinhua     Date: March 06, 2017

Chinese Premier Li Keqiang delivers a government work report during the opening meeting
of the fifth session of China`s 12th National People`s Congress (NPC) in
Beijing, capital of China, March 5, 2017. (Xinhua/Pang Xinglei)

BEIJING -- Numerical targets to reduce coal and steel production capacity have, for the first time, been set in the annual Chinese government work report. 

China will reduce steel production capacity this year by around 50 million metric tons and shut down at least 150 million metric tons of coal production facilities, Premier Li Keqiang said Sunday in a government work report to the fifth session of the 12th National People`s Congress.  

Last year`s government work report promised capacity-cutting in the two industries, but did not specify targets.  

In 2016, the country reduced coal capacity by 290 million metric tons and steel capacity by 65 million metric tons for steel, said the premier.  

Continued capacity reduction is in line with market expectations. 

DIFFICULT CUTS  

China is the world`s largest producer and consumer of steel and coal, but gluts can have implications such as depressed commodity and materials prices, reduced profits of debt-ridden firms, and increased non-performing loans that jeopardize financial stability.  

While capacity cuts are necessary and have long-term benefits for the economy, the process has not been without challenges.  

Capital-intensive industries present potential investment, taxation and jobs for local governments, which in at least two cases broke capacity-cutting rules set by the central government.  

Huada Steel in eastern China`s Jiangsu Province and Anfeng Steel in northern China`s Hebei Province were identified by authorities in December for violating capacity reduction efforts in the sector with "extremely bad influence."  

Thanks in part to the efforts, China`s broader economic growth has showed increasing signs of stabilizing since the latter half of last year, with indicators such as factory prices and industrial profits seeing significant improvements. 

"Overall, the negative impact on growth and employment is manageable," wrote UBS economist Wang Tao in a note on excess capacity. 

ZOMBIE ENTERPRISES NEXT  

One key initiative in excess capacity reductions is to shut down "zombie companies," which are loss-making, debt-laden, and dependent on government subsidies or bank loans.  

"We will strictly enforce all laws, regulations and standards on environmental protection, energy consumption, quality, and safety and make more use of market- and law-based methods as we work to address the problems of `zombie enterprises`," said the premier in the government work report.  

For workers laid off because of capacity cuts, the central and local governments will allocate special funds and take measures to ensure they find new jobs, Li said.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.