China should aim for peak coal use by 2020 : NCSC

Source: www.chinamining.org   Citation: Reuters   Date: June 11, 2015

China needs to bring its coal use to a peak by 2020 and reduce it by 500 million tonnes over the 2020-30 period in order to meet greenhouse gas emission targets and keep climate change under control, researchers said on Wednesday.

China is expected to submit post-2020 national pledges to cut carbon emissions to the United Nations later this month ahead of crucial talks on a new global climate change accord in Paris at the end of the year. It has already promised to bring emissions to a peak by "around 2030".

The National Centre for Climate Change Strategy and International Cooperation (NCSC) said China`s current CO2 trajectory might not allow it to achieve an international goal of limiting global warming to no more than 2 degrees Celsius over the pre-industrial average, and more effort to cut coal use was required.

Coal burning is responsible for around three-quarters of China`s greenhouse emissions, and with carbon capture technologies still far from mature, the country`s only option is to curb coal consumption, the researchers said.

"We know there is a very close connection between restricting coal use and restricting carbon emissions," Liu Qiang, one of the report`s authors, told a briefing on Wednesday.

The report recommended that China, the world`s biggest carbon-emitting nation, should cap consumption at 4 billion tonnes by 2020 but said it would need to cut it to 3.5 billion by 2030.

Chinese production hit 3.87 billion tonnes in 2014, half the global total. That was down 2.5 percent from 2013, raising hopes the country was already close to "peak coal".

A British study this week said China could bring emissions to a peak by 2025.

But the NCSC researchers said that should be brought forward. A 2020 emissions peak represented the best chance of keeping within the 2 degree target, but the goal would be very difficult to achieve, they said.

Tougher emission caps should be imposed on China`s richer coastal regions from next year, they said.

Regions with per capita GDP of more than 80,000 yuan ($12,890) a year should be ordered to bring emissions to a peak by 2025. Poorer western regions with per capita GDP of 40,000 yuan should be given until 2040.

Companies that exceeded a specific regional threshold should be given compulsory emissions targets and aim to cut the volume by 10 percent every five years, the report 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China awakens to protecting the environment

Source: www.chinamining.org   Citation: Xinhua   Date: June 05, 2015

With China`s iron business in trouble and facing losses, Malanzhuang Iron Mine is spending 2.4 million yuan (390,000 U.S. Dollars) planting on slag heaps.

Since 2008, more than 28 million yuan has been spent by the company in Qian`an City, Hebei Province, undoing the damage done by the largest open iron ore mine in Asia. The Malanzhuang mine is a joint venture between the Shougang Group, a leading steelmaker, and Tangshan City, which administers Qian`an.

On the outskirts of Qian`an, some 200 km east of Beijing, 20 hectares of dense shrubbery covering what was once a large tailings reservoir are now home to numerous wild birds.

Liu Zuoli, general manager of Malanzhuang, believes that harmony with the natural world is part of productivity and reflects the value of labor."We don`t simply abandon tailings reservoirs any more like we used to, leaving them barren and a source of sandstorms," Liu said.

In 2007, China`s top leadership pushed ecological agenda up the list of the nation`s priorities, a great advance after nearly three decades of rapid growth that paid no heed to pollution or damage to the ecosystem. In 2012, the greening of society was incorporated into the nation`s overall development plan.

Over the past seven years, Qian`an has spent 2 billion yuan on the treatment and restoration of nearly 200 tailings reservoirs, with 1,500 hectares of mining areas restored to something close to their former glory.

Song Xiaojie, 35, is a graduate in agriculture and forestry. She is chief technical consultant for vegetation restoration at the mine and plants trees with her colleagues every spring."Repairing the ecosystem is an indispensable part of our work," she said.

The city divided itself into three major zones -- eco-agriculture, new industries and residential -- in 2013. Forest coverage in Qian`an reached 40.8 percent last year, nearly double the national average. The city has cut iron and steel capacity by nearly 10 million tonnes.

Restoration of mining areas is just one aspect of building a better Qian`an. The city signed an agreement with Hollywood China Investment Group in May to build a Paramount theme park there within five years. The core scenic area of the project will cost upwards of 30 billion yuan and the park is expected to host up to 30 million tourists each year.

Environmental protection is now important for evaluating township officials, 20 percent of the full evacuation scores among township officials in Qian`an, for example.

"Qian`an boomed because of mining and became strong through the associated industries. Going forward, Qian`an will be prosperous thanks to its greenery," said Zhang Shuyun, mayor of the city.

RULE OF LAW IN ENVIRONMENT PROTECTION

With World Environment Day celebrated this Friday, it`s a good time to take stock of China`s progress on the environment this year. In January, the new Environmental Protection Law came into effect, with tough measures against polluters and high fines. The new rules allow NGOs to initiate environmental lawsuits.

Record fines have already been imposed this year. In March, Zhangjiakou City in Hebei fined a sewage center 6.74 million yuan for discharging four to five times the national limit of pollutants. Beijing slapped a fine of 3.9 million yuan on a food company for water pollution.

In that time, Qian`an environmental protection bureau handled more than 50 cases of excessive pollution or lack of environmental impact evaluation.In April, Qian`an Intermediate People`s Court sentenced a factory owner to one year in prison for water pollution. Suspects in two other cases are awaiting trial. All three cases came to the attention of the police through tip-offs from the public.

NGOs in China now have the weapon of litigation in their armory to fight the green fight. Last month, a court in Fujian heard an environmental damage lawsuit filed by two NGOs. It was the first filed by NGOs for environmental damage since the new law took effect.

"The rule of law in environmental protection is our basic goal,"said Zhang Boju, executive director of Friends of Nature, one of the organizations which brought the action. "We should use the legal weapon to protect our green mountains and to clean up our rivers."

With obvious smog in many cities and water pollution everywhere, the public has become hyper-aware of environmental problems and wants to see substantial progress.

Much remains to be done. A water resource official from Ya`an, a major refuge for giant pandas in Sichuan Province, recently complained that he has no legal basis to ask small hydropower stations to allow more water downstream in case of drought.

"Public action is far from enough. Of course citizens should play a bigger part in environmental monitoring, but we must also do more to pollute less and adopt energy-saving ways of life," Zhang said, citing this year`s World Environment Day theme - Seven Billion Dreams. One Planet. Consume with Care.

RECYCLE, RE-USE

An industrial park is under construction in Ya`an with recycling at its heart. With forest coverage of 63 percent, the highest in Sichuan, Ya`an was made one of 55 ecological demonstration areas last year.

In the recycling park EMIN Microcrystalline Technology produces microcrystalline stone from leftovers from granite production processes. Ya`an has rich granite resources.

"Our production process has zero emissions of carbon dioxide and other waste," said Wang Ganglin, deputy general manager of the company.

Ya`an is moving polluting plants out of key ecological areas and planning a national giant panda park. The government of under-developed Ya`an has made eco-tourism a key strategy for local development while adopting the strictest regulations to protect its water and forests.

Recycling on an industrial scale is being promoted elsewhere in China, including Qian`an, which boasts a provincial-level recycling demonstration park.

CHINA`S GREEN FUTURE

China is committed to decreasing the share of fossil fuels in primary energy consumption to around 80 percent by 2030 and cutting carbon dioxide emissions 40 to 45 percent from the 2005 level by 2020.

A series of global ecological crises has shown that the Earth is unable to support further industrialization. Developed, capitalist countries suffer from a fundamental conflict between the logic of capital and the natural world, according Zhao Lingyun, an eco-economist and former head of Hubei Academy of Social Sciences.

Zhao said the developed powers have alleviated their own ecological crises by seeking ecological hegemony, exploiting the resources of other countries and transferring their ecological burdens abroad. But socialist China that puts people`s interests first has advantages in building a green society, said Zhao.

Chinese President Xi Jinping last week said coordinated regional growth and green development must be carried out fully, and green development will be prominent in the 13th five-year plan (2016-2020) for social and economic development.

In its first report on public awareness of ecological civilization, by the Ministry of Environmental Protection last year, 78 percent of those surveyed agreed it was a matter for everyone and 99.5 percent promised to actively work toward the goal of a society in balance with itself and with nature.

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 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Gold fund set up for nations along Silk Road

Source: www.chinamining.org   Citation: China Daily Africa   Date: June 01, 2015

China has launched a fund that is expected to raise around $16 billion for gold-related investments, including developing gold mining projects, as part of the "Belt and Road Initiative".

The fund, expected to raise the target amount in three phrases, will be managed by Xi`an Silk Road Fund Management, a joint venture led by two large gold producers, Shandong Gold Group and Shaanxi Gold Group, according to Shanghai Securities News.

Shandong Gold will be the largest shareholder with 35 percent. Shaanxi Gold will have a quarter share in the new business, with the rest taken up by financial companies including Western Securities and Industrial Bank.

Proposed by President Xi Jinping in 2013, the "Belt and Road Initiative" is likely to involve major investment in infrastructure, and growing levels of trade along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

The report said the fund will become the largest to focus solely on gold-related businesses, including mining and other activities involved throughout the gold sector supply chain, and is expected to look at investment opportunities in countries likely to be included in the "Belt and Road Initiative".

"One of the most likely areas to attract investment will be gold mine projects in the northwestern route of the `Belt and Road Initiative`, through mergers and acquisitions of listed gold companies and mining firms," a source who preferred to be anonymous was quoted as saying.

The move is also a reflection of robust demand for gold in India and Thailand in the next couple of years, the source said.

Officials estimate "Belt and Road" countries account for more than half of the world`s gold production and 80 percent of total gold consumption, with China and India the two largest nation consumers.

China is the world`s largest producer and consumer of the precious metal. The country`s gold demand fell by 7 percent to 273 metric tons on a year-on-year basis between January and March, with jewelry demand falling by 10 percent during the period, according to the World Gold Council.

Roland Wang, managing director of the World Gold Council China, said there are believed to be 16 gold-producing regions and countries along the "Belt and Road" concentrated in Central Asia. Annual gold production in Uzbekistan, for instance, is the world`s seventh largest with 102 metric tons in 2014, he said.

"The initiative will help the Chinese gold mining companies jointly explore the precious metal industry in those countries since they can offer technological, financial and operational advantages over other countries," he said.

"Trade in gold will play an important role in transactions by `Belt and Road` countries."

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 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s first oil futures likely to start trading at year-end

Source: www.chinamining.org   Citation: Xinhua   Date: June 01, 2015

China`s first oil futures contract is likely to start trading by the end of this year, said the Shanghai Futures Exchange (SFE) chairman Song Anping on Thursday.

"As an important consumer of crude oil, a crude oil futures contract in Shanghai will complement and perfect the existing global oil-pricing system," said Song.

The blueprint of the contract has been completed and supporting policies will be launched soon, said Chu Juehai, general manager of the Shanghai International Energy Exchange (SIEE), the unit of SFE that will oversee the contract.

"To establish an authoritative international pricing benchmark, one needs to have an advanced financial system, healthy supervision, a thorough oil industry chain and a large consumer market," said Wang Zhen, of the China University of Petroleum.

China`s oil consumption and imports, along with Shanghai`s position as an international financial and shipping center, provide the chance for China to introduce a regional oil future with global influence, said Wang.

China is one of the world`s largest oil buyers, and nearly 60 percent of its oil consumption comes from imports.

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 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s Zijin buys stakes in gold, copper projects

Source: www.chinamining.org   Citation: Reuters   Date: May 28, 2015

China`s Zijin Mining Group , which announced two acquisitions on Tuesday for more than $700 million, believes now is the good time to buy overseas assets as the mining sector is weak, a senior executive said on Wednesday.

"In terms of acquisitions, now is the low level (of prices), good opportunity," the Zijin executive told Reuters.

The two acquisitions are shares in Barrick Gold`s unit and Ivanhoe Mines` copper project.

The executive said gold and copper were the focus of the company`s overseas assets. It bought the projects now because weak prices provided "good" prices for acquisitions, which also was in line with China`s "One Belt, One Road" policy on overseas investment, he added.

Zijin did not consider consolidating overseas assets for an IPO currently, though that was possible in the future, he said.

When asked whether Zijin would continue to seek buying opportunities in overseas copper and gold mining assets, the executive said "depending on the opportunity."

Barrick Gold Corp said on Tuesday it has forged a strategic tie-up with Zijin Mining Group Co and agreed to sell the Chinese miner a stake in a mine in Papua New Guinea as a first step toward further collaboration.

Toronto-based Barrick, under the stewardship of Executive Chair John Thornton, has since 2013 vowed closer ties with the Chinese, as it attempts to reduce its debt load and cut capital expenditure risks around the development of large new projects.

The tie-up with Zijin may take some of the heat off Barrick and Thornton, who since joining the board in 2012 has twice come under fire from investors for receiving large bonuses at a time when Barrick`s share price languished around all-time lows.

"It will be interesting to see if the partnership with Zijin as that company tiptoes out into international mining, can create additional value," said J.P. Morgan analyst John Bridges in a research note.

Barrick, the world`s largest gold producer, said Tuesday it would sell 50 percent stake in its unit that manages the Porgera gold mine in Papua New Guinea to Zijin for $298 million in cash. The unit, Barrick Niugini, owns 95 percent in the Porgera mine and the Papua New Guinea government owns the rest.

The deal, a part of Barrick`s plan to reduce net debt by at least $3 billion by the end of the year, comes a day after it sold its Cowal gold mine in Australia to Evolution Mining for $550 million.

Zijin and Barrick will jointly control Barrick Niugini after the sale, which is expected to be completed in the third quarter, the Canadian miner said on Tuesday.

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 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China sets up largest gold fund in Xi`an

Source: www.chinamining.org   Citation: Xinhua   Date: May 25, 2015

A gold sector fund involving countries along the ancient Silk Road has been set up in Xi`an, capital of Northwest China`s Shaanxi Province, during a forum on investment and trade held over the weekend.

The fund, led by the Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan ($16.1 billion).

China is the world`s largest gold producer, and also a major importer and consumer of gold. Among the 65 countries along the routes of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, there are numerous Asian countries identified as important reserve bases and consumers of gold.

About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal, according to the SGE.

"China does not have a big say in gold pricing because it accounts for a small share of international gold trade," said Tang Xisheng of the Industrial Fund Management Co.

"Therefore, the Chinese government seeks to increase the influence of renminbi in gold pricing by opening the domestic gold market to international investors," Tang 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Exhibition to shine light on Chenzhou`s resources

Source: www.chinamining.org   Citation: China Daily   Date: May 21, 2015

City is center of Hunan province`s abundance of geological reserves, Hao Nan and Feng Zhiwei report.

Chenzhou, Hunan province, is attracting a lot of attention from stone and gem collectors worldwide as the host of Asia`s largest mineral exhibition from May 21 to 25.

Organized by the Hunan provincial government and the Ministry of Land and Resources, the China (Chenzhou) Mineral and Gem Show will provide a "visual feast" of minerals and gems for exhibitors and enthusiasts from more than 10 countries and regions, said Yi Pengfei, Chenzhou Party chief.

Chenzhou is an ideal host for the exhibition, Yi said, because most of the province`s geological resources are located near the city, including mineral deposits such as nonferrous metals and crystal mines.

Gems that have been discovered in the region include Tongtian jade, Huanglong jade and Qicai stone. There is a total gem reserve of 20 million metric tons worth over 600 billion yuan ($96.7 billion) in and around Chenzhou.

Industrial insiders said jade and gems from Chenzhou are affordable but have the potential to appreciate in value.

The May exhibition will offer 2,600 booths on 100,000 square meters of floor space for exhibitors to showcase their minerals, jewelry, meteorites and root carvings.

About 300 booths will be provided for overseas exhibitors, including 10 booths for a delegation from South Africa, its first time attending the event.

Morocco will be exhibiting trilobite and while Australia is slated to display its native gold and plesiosaur fossils.

Rare mineral products from Hunan and other provinces in China will be shown, organizers said.

Yi Pengfei said he hopes the city will promote environmentally safe methods of extracting minerals during the show.

Mineral resources

Attendees of the May exhibition who have time to explore Hunan province will find that there is a diversity of natural habitats.

The province has 17 UNESCO World Heritage Sites, including the internationally renowned Wulingyuan and Langshan mountains.

Experts said it is rare for so many picturesque tourist spots to be concentrated in one place. Hunan province and the surroundings provinces of Jiangxi, Hubei, Sichuan, Guizhou and Guangdong form China`s most important cluster of geological zones.

In the tungsten-mining area of Yaogangxian in Chenzhou`s Yizhang county, experts have found 308 different types of minerals, some of which were never before been found elsewhere in the world.

The Yaogangxian tungsten mine is also China`s largest production base for wolframite, which in 1982 was featured on one of four mineral-themed stamps issued that year in China.

Shizhuyuan is another town in Chenzhou with rich mineral resources.

Wang Yuquan, deputy head of the Hunan Shizhuyuan Nonferrous Metals Co, said there are 143 kinds of minerals in the company`s 35 square kilometers of mining that make up 360 million tons of proven mineral reserves.

There are also 1.62 million tons of metal reserves.

The area also boasts the province`s largest national mine park that has been under construction since 2012.

With a total investment of 630 million yuan, the park is scheduled to cover an area of nearly 87 sq km, including a mine culture expo zone, a sports park, a water park and a museum of minerals.

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 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China issues 105,000 tons of rare earth quota

Source: www.chinamining.org   Citation: China Knowledge   Date: May 18, 2015

China, the world`s largest rare-earth producer, has released the rare earth exploitation quota for 2015 at 105,000 tons, according to a statement released by the Ministry of Land and Resources.

The ministry said in a statement that the quota comprised 87,100 tons for light rare earths and 17,900 tons for medium and heavy rare earths.

Six rare-earth companies comprising China Minmetals Corporation, Aluminum Corporation of China, Baogang Group, etc. were in the list of allocation of the rare earth quota.

From Jan to Apr this year, China exported 8,044 tons of rare earth, down 20.8% from a year earlier, with the export value of RMB 590 million, down 30.3% than the previous 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China reduces oil product export quotas in Q2

Source: www.chinamining.org   Citation: Reuters   Date: May 15, 2015

China has cut the pace at which it is allowing Chinese refiners to ship out oil products this year by more than 40 percent, traders familiar with China`s oil markets said Wednesday.

China controls oil product exports through quotas for State-run refiners, which it issues after assessing domestic needs. Authorities made the latest change after their second quarter review of annual export volumes.

Sinopec Corp, CNOOC Ltd and China National Petroleum Corp were given an additional oil product export quota of 5.6 million tons for the year, down from the 9.75 million tons initially awarded for the year in the first quarter.

The State refiners could not be reached for official comment on the matter.

The refiners can usually apply for more allowances once initial quotas are used up. The quotas are typically given every quarter after a review of domestic supply and demand balances.

The drop in the volumes issued this quarter are likely due to expectations of lower operating rates, high domestic prices and high inventory, traders said.

"Stronger domestic gasoline prices, which had tripled in the last two months, and a cut in refining capacities could have prompted the quotas to be revised down," one of the traders said.

Through April, Chinese refineries have been running at near-record levels of around 10.5 million barrels per day, according to data from the National Bureau of Statistics, but traders are expecting a heavy refinery maintenance season this month.

The largest drop in the quarterly quota issue was in gasoline, with the allowance cut by nearly half to 1.4 million tons.

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 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

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