CHINA MINING News

China suspends coal imports from DPRK

Source: www.chinamining.org         Citation: Xinhua      Date: February 20, 2017

BEIJING -- China will suspend coal imports from the Democratic People`s Republic of Korea (DPRK) for the rest of 2017, the Ministry of Commerce said Saturday.

The ministry said in a statement on its website that the suspension, in line with UN Security Council Resolution 2321, will be effective from Feb 19 to Dec 31 this year. 

The UN Security Council adopted the resolution on Nov 30 that tightened sanctions on the DPRK in response to its fifth nuclear test on Sept 9 last year.

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 September 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 backs Australia`s cleaner iron ore project

Source: www.chinamining.org         Citation: Bloomberg      Date: February 20, 2017

A miner holds a lump of iron ore at a mine located in the Pilbara region of Western Australia on Dec 2, 2013. [Photo / Agencies]

Chinese engineers who carved a railway through the Qinghai-Tibet Plateau and built the world`s longest sea-bridge across Hangzhou Bay have a new challenge: developing a $3.4 billion project on Australia`s remote Eyre Peninsula to meet increased demand for cleaner iron ore.

China Railway Group Ltd, the world`s second-largest infrastructure builder, is backing the mine, port and rail-road project that aims to supply high-quality, lower-emission ore to Chinese steel mills facing stricter environmental rules. 

The project would be a major step toward South Australia`s goal of securing A$10 billion ($7.7 billion) of investments to fund a stable of new iron ore mines by 2021. China Railway`s partner Iron Road Ltd aims to bring the 24 million metric ton-a-year mine into production in late 2020 after tests showed its product can help customers meet the tougher standards. 

Yi Zhu, an analyst at Bloomberg Intelligence in Hong Kong, said: "Chinese mainland demand for higher-quality iron ore will increase, driven by stricter environmental protection regulations and improved profitability of steel mills." 

A restructuring of China`s steel sector will also boost demand for premium quality imports, according to researcher CRU Group. 

China plans to invest 2.5 trillion yuan ($365 billion) in renewable energy through 2020 to reduce greenhouse gases and is seeking to curb emissions by iron and steel producers. Mills are being compelled to upgrade their plants or cease operations if they fall short of standards, according to Bloomberg Intelligence.

Iron Road`s iron ore will never solve all of the problems facing Chinese steel mills but "it will certainly help them," Managing Director Andrew Stocks said by phone from Adelaide. 

He said: "We see an increase in productivity, a decrease in fuel use and a decrease in atmospheric emissions-it`s not quite the Holy Grail, but there are three very positive attributes to improve the steel mills." 

Stocks is planning to meet with banks in Beijing and Shanghai this month and expects a final investment decision to be made this year. Under an interim 12-month accord signed last year, China Railway anticipates taking as much as a 15 percent stake in the project, if approved, and will be the prime construction contractor, Iron Road said in a filing. 

China Railway views the Eyre Peninsula as the preferred development location for a large-scale, long-life, high-grade iron concentrate development as opposed to competing locations in Western Australia, Eastern Canada and West Africa, according to an Iron Road filing. Calls to China Railway`s Beijing office weren`t answered and emails to an address on the company`s website received no reply. 

In 2016, China shed more than 65 million tons of excess steel capacity and 290 million tons of inefficient coal mining capacity, Premier Li Keqiang said last month. 

South Australia`s government believes it has the right ore to meet the new demand-about 14 billion tons of untapped magnetite, a higher-quality ore that contains more of the metal and fewer impurities than dominant market rival hematite. While it costs more to process magnetite, the product commands a premium from mills producing high-quality steel. 

The state`s ambition to export 50 million tons of magnetite by 2030 is dwarfed by the predominantly hematite ore production in neighboring Western Australia, which accounts for more than half of global exports and is forecast to ship more than 860 million tons this year. Magnetite currently accounts for only between 15 and 20 percent of the seaborne export market, according to researcher AME Group. 

Iron ore with 62 percent content in Qingdao rose by 0.3 percent to $83.53 a dry ton on Feb 8, according to Metal Bulletin Ltd. The commodity touched a two-year high last month. 

Hurdles from securing finances to displacing China`s homegrown magnetite supplies also present challenges to South Australia`s dream of reviving its iron ore sector. The state saw the nation`s first mining of the material in the late 19th century and sent cargoes to markets including the United States, the Netherlands and Japan. 

The existing market for magnetite exports is well supplied and hasn`t shown major growth, though higher-quality material is likely to be required in the future, according to Fortescue Metals Group Ltd.

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, Russia discuss energy cooperation

Source: www.chinamining.org         Citation: Xinhua      Date: February 17, 2017

Chinese Vice Premier Zhang Gaoli met with Russian natural gas company Gazprom CEO Alexei Miller Wednesday, calling for steady development of bilateral engery cooperation.

Zhang said China and Russia should conduct further research on the west-route gas pipeline and the Far East gas supply projects adhering to the principle of shared benefits and risks, and expand cooperation in natural-gas-burning power generation, underground gas storage, engine fuel and other areas. 

He called on both sides to ensure the success of major projects like the China-Russia crude oil trade and increased crude supply, east-route gas pipeline project and the Yamal liquefied natural gas (LNG) project. 

Recent years have witnessed continuous achievements in energy cooperation including in natural gas field between China and Russia under the strategic guidance of the two countries` top leaders, said Zhang. 

For his part, Miller said Russia viewed China as an important energy cooperation partner. 

Russia is willing to work with China on the current projects and explore new areas of cooperation so as to jointly lift the energy cooperation partnership to a new high, he 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 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 capable of achieving steady GDP growth in 2017: Standard Chartered

Source: www.chinamining.org         Citation: Xinhua      Date: February 16, 2017

China is capable of achieving steady GDP growth this year despite global uncertainties, according to Standard Chartered Bank.

"We expect China to continue to set its GDP growth target at about 6.5 percent for 2017 and the world`s second largest economy could grow 6.6 percent this year," Ding Shuang, chief Greater China economist with Standard Chartered, told Xinhua in a recent interview.

Ding pointed out that U.S. policies towards China and elections in post-Brexit Europe might complicate the international environment for the Chinese economy, while domestic slowdowns in the property and automobile markets might drag on consumption growth. 

China`s real estate market will see slower sales pace as tightened regulations began to bite, while the sales of passenger cars showed signs of contraction by dropping 1.1 percent year on year in January.

However, Ding said that other engines of economic growth were gaining steam in China. 

He said that the service sector would grow faster in 2017 as Chinese would demand better entertainment, health care, education and travel experiences, which could contribute to about 60 percent of GDP. 

Meanwhile, China`s exports seem to be restoring momentum after a subdued performance last year. The country`s foreign trade volume beat market expectations to grow 19.6 percent year on year in January. 

In addition to a lower comparison base and Spring Festival effects, the global economy is showing positive signs as the latest PMI figures in the United States and some European countries showed growing factory and service activities, according to Ding. 

He added that the yuan`s previous depreciation would gradually help lift export performance. 

Ding pointed out that to sustain steady growth at about 6.5 percent, China would still have to combine effective policy tools. 

 "While China decided to take a prudent and neutral monetary stance, the government needs to take more proactive fiscal policies to help prop up growth," Ding said. "China`s debt level is still controllable and the government can lift the fiscal deficit-to-GDP ratio from 3 percent in 2016 to 3.5 percent this year.

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-Venezuela commission oversees refinery expansion project

Source: www.chinamining.org         Citation: Xinhua      Date: February 15, 2017

The China-Venezuela Joint Commission on Tuesday is reviewing the expansion of the Puerto La Cruz refinery, according to Venezuelan Vice-President of Planning and Knowledge Ricardo Menendez.

This plant, which was located in the northeastern state of Anzoategui and near the Caribbean Sea, has a current capacity of 129,000 barrels of oil per day for internal and external distribution.

"This alliance will raise (capacity) to 210,000 barrels of oil per day, following the vision that (former president) Hugo Chavez had for the Orinoco Oil Belt as the country`s main reserve," Menendez told a press conference, who was accompanied by Ning Jizhe, vice director of the National Development and Reform Commission of China.

The Puerto La Cruz refinery has seen investment and assistance from a number of countries, including China, which leads the Joint Commission to explore its development. 

In 2014, China`s Wison Engineering Company signed up to help build the refinery`s basic processing units, in a joint venture with Hyundai Engineering and Construction. 

Eulogio del Pino, president of Venezuela`s national oil company, PDVSA, added that the expansion included an investment of around 10.5 billion U.S. dollars.

According to Del Pino, the expansion will be completed in a year and a half, as the work was not stopped even during "the cycle of the lowest oil prices." 

On Monday, during the 15th Meeting of the Joint Commission, the governments of China and Venezuela signed over 20 new cooperation agreements in various fields, including economy, energy, finance, trade, education, culture, and science and technology.

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.

CEO of Australia`s Fortescue mining group predicts China to continue to grow

Source: www.chinamining.org         Citation: Xinhua      Date: February 13, 2017

With uncertainty surrounding a number of political and financial risk events during 2017, the world`s economy appears precariously placed. 

Upcoming elections in the Eurozone, along with Brexit negotiations, ongoing war in the Middle East and the unpredictability of the Trump White House, make 2017 seem like difficult waters to navigate for anyone involved in trade. 

But the chief executive officer of Australia`s Fortescue Metals, the fourth largest Iron ore producer in the world, sees things differently and expects China`s economy to continue to grow. 

"I leave politics for the politicians, I`m a simple businessman," Nev Power told Xinhua. "China has very important trade relationships and ultimately I think those are the things that are going to prevail."

"From a business perspective, our relationship with China has been a very successful bilateral relationship over many years and has continued to develop and is important to both countries," he added. 

China`s need for steel is remains high, particularly in the central and western provinces where urbanization and industrialization is rapidly growing. 

"We`ve seen continued steel demand in China at around 800 million tons per year, which is a very strong market. 50 percent of world steel production comes from China," Power said. 

But over the past few years, the government has cracked down on the steel manufacturing industry, as a part of China`s "war on pollution." 

It`s estimated that around 4-5 percent of the industry will be affected, however this tighter regulation has been welcomed by Fortescue. 

"I believe the recent crackdown has been on very small and in most cases illegal production which is impacting on the steel industry because they are highly polluting and highly inefficient, so by removing those production sources there will be extra volume for the large integrated steel mills and that will provide greater levels of efficiency and of course cleaner production," Power said. 

As the lowest cost iron ore producer in the world, Fortescue spends around 12.5 Australian dollars (9.5 U.S. dollars) in generating a ton of the commodity and with the help of China Development Bank in 2016, that number is expected to further decrease after the company obtained a 473-million-U.S. dollar loan in order to finance a new fleet of eight iron ore carrier ships. 

The groundbreaking deal was the largest ever issued to a foreign company by a Chinese Bank. 

"The first ship is running better than expected. It`s very fuel efficient which is the most important thing because we want to be able to provide the most efficient supply chain and pass that low cost onto our customers, so that they in turn are more efficient in their production," Power said. 

"We are very pleased to be able to do business with Chinese shipyards, particularly in a time when business is very tough for them, so we`ve been able to provide some increased demand for them. So it`s a good two-way relationship."

 This is not the first time Chinese financial support has buoyed the exporter. 

"We have very strong Chinese investment in Fortescue with the Hunan Valin Group holding around 15 percent of our stock. That has been one of the most successful investments by a Chinese steel company," Power said. 

Power is a big believer in foreign investment and encourages China and Australia to seek further connections in business and relations. 

"In addition to raw material, increasingly there are opportunities in agriculture, tourism and there are a lot of families travelling back and forward between Australia and China," he said. 

"We are seeing increased air links and communication links which I see as a very strong positive."

The changing tides of politics around the world at the moment has appeared to unsettle those looking to invest, but politics aside, the volatility of iron ore prices alone have been enough to rattle the industry in recent years. 

 During Australia`s mining boom in 2011 the price of iron ore reached a high of 187 U.S. dollars per ton, but as growth in China`s construction sector began to stabilise, the cost of the commodity had fallen to just 38 U.S. dollars per ton in 2015. 

Over-production and stockpiling of the resource were to blame and although the price of iron ore has rebounded and stabilized at just over 80 U.S. dollars, pitfalls for producers wait at every turn. 

But the mining group has worked to keep their Pilbara operations protected from upheaval in the market. 

 "The iron ore market is very difficult to predict in terms of price, but if we look at the underlying supply and demand it`s been pretty much in balance for the last 18 months of so," Power said. 

"Fortescue is in very good shape financially and we have been focused on improving the productivity and efficiency of our business." 

The company have positioned themselves strongly in 2017 and despite global uncertainty, Power predicts the world will follow suit. 

"The world economy has been slowed to recover from the global financial crisis, in Europe we are starting to see signs of growth, Asia is continuing to grow strongly and going forward this year there seems to be signs that economic growth is starting to become stronger right across the world," he 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 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 urges US to correct unfair anti-dumping duties on steel products

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

China urged the United States to correct its unfair decision to impose high anti-dumping and countervailing duties on imports of Chinese stainless steel sheet and strip, according to a statement released Saturday by the Ministry of Commerce (MOC). 

The US Department of Commerce said Thursday that it had determined that imports of Chinese stainless steel sheet and strip should be subject to anti-dumping duties from 63.86 percent to 76.64 percent and anti-subsidy duties from 75.6 percent to 190.71 percent. 

China is disappointed by a series of decisions by the US related to high anti-dumping andanti-subsidy duties on Chinese steel products and questions its unfair investigation methods, said Wang Hejun, head of the MOC trade remedy and investigation bureau. 

The United States has violated World Trade Organization rules by neglecting the abundant proof offered by Chinese companies and has treated them unfairly simply because of their state-owned-enterprise status, Wang said. 

The root cause for current challenges facing the steel sector is the sluggish world economy and shrinking demand, which calls for global cooperation instead of protectionism, according to Wang. 

The US should abide by WTO rules and correct their unfair practices and China will take the necessary steps to protect due rights of Chinese enterprises, Wang added.

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 investment in Middle East win-win partnership: Crescent Petroleum CEO

Source: www.chinamining.org         Citation: Xinhua      Date: January 22, 2017

Chinese investment in the Middle East can produce a win-win result, said Majid Jafar, chief executive officer (CEO) of Crescent Petroleum. 

Hailing China`s policies in the region as "positive and necessary," Jafar, in a recent interview with Xinhua on the sidelines of an annual meeting of the World Economic Forum, said that "Chinese capital can partner well with Middle Eastern companies" in implementing major infrastructure projects. 

The CEO of the oldest and largest private upstream oil and gas company in the Middle East described what he considered to be a win-win partnership, with large infrastructure projects providing stable economic returns over time for Chinese investors, and with the Middle East benefiting from rejuvenated economies, more jobs and competitiveness. 

Noting that "many of the Western companies are leaving or reducing their investment," and that "many Western governments don`t have the capacity for investments in the area," Jafar said he saw a different approach from China.

"Chinese entities have more of a long-term view," he said. "They`re not so worried about what`s in the news today in the Middle East. They take a longer-term perspective and partner with us in a longer-term manner, and that`s very positive." 

Stable relationship and strong partnership matter to a businessman who specializes in a volatile industry, where "the oil price is now double what it was this time last year, but also half what it was this time two years ago," he said. 

Jafar has more reasons to prioritize partnerships with Chinese entities: the importance of China`s energy market in demand, which affects oil prices. 

"In terms of the demand, the most important thing is what`s going to happen, I think, economically in China," he said. "China is the key market in terms of energy demand growth." 

For Jafar, the presence of Chinese President Xi Jinping -- the first Chinese head of state to address the World Economic Forum -- in Davos was in itself a strong message. 

"China`s growing and positive role on the world stage, not only in terms of investment, but in terms of communication and engagement," meant people around the world were eager to hear the president`s message, he said. 

There are also reasons, according to Jafar, to hold a positive outlook for the Chinese economy and future growth. 

"Of course the Chinese economy is changing," he said. "You`re now starting to see a more mature economy with more of a focus on domestic demands." 

"That means that the Chinese economy is also becoming more resilient and less dependent on the outside," said the CEO.

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.