CHINA MINING News

China and Russia to expand energy cooperation

Source: www.chinamining.org   Citation: chinadaily.com.cn   Date: April 22, 2015

Energy cooperation is a key focus of China-Russia cooperation and the countries have made progress, Zhang Gaoli, vice premier of the State Council said on Tuesday.

Zhang, also Chinese co-chair of the China-Russia Energy Cooperation Committee, met with Arkady Dvorkovich, the Russian deputy prime minister and Russian co-chair, preparing for the top leaders` meeting in May, according to the Xinhua News Agency.

President Xi Jinping is expected to visit Moscow on May 9 to join commemorations of the 70th anniversary of the end of World War II in Europe.

Both parties have achieved results in a host of big projects in oil, gas, coal and power industries. The two sides should implement long-term crude oil trade cooperation and the China-Russia east natural gas line project as planned, said Zhang.

He added that negotiating the west natural gas line project in an active way, expanding cooperation in upstream oil projects and promoting the refinery joint venture in Tianjin as a pilot downstream project were other priorities.

Efforts should also be expanded to cooperate in coal, power trade, renewable energies, energy equipment and technologies.

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.

Steel demand in China forecast to decline through 2016

Source: www.chinamining.org   Citation: Bloomberg   Date: April 21, 2015

China`s government is battling a property slump, excess capacity and capital outflows. （Bloomberg）

Steel demand in China will shrink this year and next to extend the first annual contraction since 1995 as economic growth in the world`s biggest producer slows, according to the World Steel Association.

China`s steel use will drop 0.5 per cent to 707.2 million metric tons in 2015 and fall to 703.7 million tons next year, the group said in a statement. In 2014, demand declined 3.3 per cent to 710.8 million tons, according to the Brussels-based body, whose members account for 85 per cent of global output.

China`s government is battling a property slump, excess capacity and capital outflows, with the economy expanding last year at the slowest pace since 1990. To shore up the expansion, the central bank relaxed rules on home purchasing, cut interest rates and reduced the amount of cash banks must set aside as reserves. Asia`s largest economy, which accounts for about half of global steel output, is the largest iron ore buyer.

"Steel demand in 2014 saw negative growth for the first time since 1995 due to the government`s rebalancing efforts that had a major impact on the real-estate market," the association said in its short-range outlook on Monday. "In the medium term, no strong rebound is expected."

Global use will rise 0.5 per cent to 1.54 billion tons this year and a further 1.4 per cent to 1.57 billion tons next year, the association said. The group`s projections refer to so-called apparent steel use, which reflects deliveries to the market from local producers as well as importers.

China`s crude-steel output fell 1.7 per cent to 200.1 million tons in the three months through March from a year earlier, according to statistics bureau data last week. The economy expanded 7 per cent, the weakest pace since 2009.

Steel production in China will drop 1.2 per cent to 813 million tons this year, before rebounding to 825 million tons in 2016, according to Goldman Sachs Group Inc. From then on, output will shrink through 2019 to 752 million tons, the bank said in a report on Thursday, which cut forecasts for iron ore.

Iron ore lost 28 per cent this year on slowing demand in China and surging low-cost supply from Australia that spurred a global glut. Ore with 62 per cent content at Qingdao was at $51.57 a dry ton on Monday, according to Metal Bulletin Ltd. It fell to $47.08 on April 2, the lowest since 2005, based on daily and weekly data from Metal Bulletin and annual benchmarks for ore delivered to China from Clarkson Plc.

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.

Chinese premier urges stronger clean energy cooperation with US

Source: www.chinamining.org   Citation: Xinhua   Date: April 14, 2015

Chinese Premier Li Keqiang met with a US presidential trade mission in Beijing on Monday, urging stronger cooperation with the United States in clean energy, environmental protection and other areas.

"China is accelerating a new type of `people-oriented` urbanization plan, which offers a huge market for the advanced technology and management experience of the United States," Li told the delegation led by US Secretary of Commerce Penny Pritzker.

The delegation, consisting of 24 US business leaders in the clean technology field, is the first-ever presidential trade mission sent to China by the Obama administration.

Pritzker told Li that the mission shows how important the US government considers its trade ties with China.

Li urged combining US technology, regulation and experience with competitive Chinese equipment and industries to jointly explore third markets.

"This will help boost balanced growth of our two-way trade," he added.

Chinese President Xi Jinping will pay a state visit to the United States in September this year.

Li said China is willing to enhance strategic trust and substantial cooperation with the United States, properly manage differences and jointly cope with regional and global challenges.

Calling trade ties a "ballast" in China-US ties, Li said the two economies are highly compatible, and both countries enjoy huge cooperation prospects in such areas as infrastructure, energy, information and environmental protection.

Premier Li called on both sides to facilitate negotiations on a bilateral investment treaty (BIT) to reach a "high-level and balanced" agreement at an early date.

China`s reform and opening-up policy and its commitment to World Trade Organization regulations will remain unchanged, he said.

"China will continue to open wider to the world and will have a more transparent and predictable market," said the premier.

He welcomed companies from various countries to enter the Chinese market and enjoy fair play.

Li pledged to treat Chinese and foreign companies equally and better protect intellectual property rights.

The Chinese premier called on the US side to ease high-tech exports to China and take effective measures to make Chinese investment in the United States more convenient.

Pritzker told Li the US side is ready to boost cooperation with China in areas such as clean technology, energy conservation and environmental protection.

She welcomed US-China joint cooperation in developing third markets, and welcomed more Chinese companies to invest in the United States.

The United States will elevate BIT negotiations with China in a constructive manner in an effort to reach a list acceptable to both as soon as possible, Pritzker said.

Earlier on Monday, Chinese Vice Premier Wang Yang also met with the delegation.

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 energy technology may strengthen LatinAm ties

Source: www.chinamining.org   Citation: China Daily Latin America   Date: April 13, 2015

Focusing on exporting its world-class technology in renewable energy to Latin America would enable China to add a new front to its relationship with the region and become a role model in the effort to combat climate change, according to a US-based academic and environmental scientist.

The economic ties between China and Latin America have been dominated by commodities. Latin America has resources like oil and copper that China needs to keep its economy humming. "Climate change will not change the (commodity) relationship, but instead offer an opportunity for China and Latin America to add an interesting component to their trading," Guy, Edwards, a research fellow at the Center for Environmental Studies at Brown University in Providence, Rhode Island, told China Daily in an interview.

Edwards and his Brown colleague, J. Timmons Roberts, last month published a paper for the Brookings Institute A High-Carbon Partnership? Chinese-Latin American Relations in a Carbon-Constrained World.

Edwards said the leaders of China and several Latin American nations, including Brazil, Chile and Mexico, are ready to elevate the importance of climate change.

"In January at the first China-CELAC (Community of Latin American and Caribbean States) Forum, climate change was important enough to be mentioned," said Edwards. "China and Latin American countries could launch a climate change initiative through CELAC that could focus on financing the reduction of greenhouse gas emissions from agriculture, forestry, energy and transportation, as well as sharing technology."

Climate change is emerging as a major topic for both China and Latin America, said Edwards.

"China has a very serious air pollution problem and Latin American countries are vulnerable to things like drought and glaciers melting. So there is certainly an environmental reason for both to unite on this," he said.

Together, China and CELAC account for roughly 36 percent (China 27 percent / CELAC 9 percent) of the world`s total global greenhouse gas emissions. "China has developed impressive technology in wind and solar and they are eager to find outside markets for it," Edwards said.

Earlier this month, the Chinese Hanergy Group said it would invest $1 billion to construct a 400-megawatt solar power plant in the African nation of Ghana.

"The political conditions are ripe for China and Latin America to cooperate on low-carbon projects," said Edwards. "Both are committed to a multilateral solution for climate change working within the framework of the United Nations Climate Conference in Paris later this year."

According to a report released on April 1 by the Global Wind Energy Council, the growth of wind power in 2014 was spurred largely by China and Brazil, followed by Mexico and South Africa.

"China installed an astonishing 23 Gigawatt (GW) of new wind power last year, bringing its cumulative total to more than 114 GW, and Brazil was the world`s 4th largest market in 2014, entering the top 10 in cumulative rankings for the first time," the council said.

"Nobody predicted that China would install 23 GW of new wind power alone," the report said, noting it set another record for the country.

"China in 2014 crossed the 100,000 megawatt (MW) mark, adding another milestone to its already exceptional history of renewable energy development since 2005," the report added.

In Latin America in 2014, the wind energy market tripled in size compared with 2013, for cumulative installed capacity growth of nearly 80 percent, the report said, with Brazil leading the market at No 4 in the world with nearly 2,500 MW installed last year, and moving into 10th place in the global cumulative rankings.

Mexico installed 633.7 MW of new capacity to reach a total of 2, 551 MW by the end of 2014, and aims to generate 35 percent of its electricity from renewable energy by 2024, with up to half of that target coming from wind.

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 lowers iron ore resource tax to 40 percent

Source: www.chinamining.org   Citation: Xinhua   Date: April 9, 2015

China will reduce resource taxes on iron ore to aid industrial upgrades and ensure sufficient supply, the State Council said Wednesday.

Resource tax on iron ore will be reduced from 80 percent of the taxation payment base to 40 percent, effective on May 1 this year, said a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

China`s iron ore faces a low tenor and a high smelting cost and insufficient production. About 78 percent of iron ore was imported last year.

Iron ore firms have been suffering sluggish prices and production since 2014. Now only about 60 percent of iron ore firms are in production.

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 to regulate gold import, export

Source: www.chinamining.org   Citation: Xinhua   Date: March 20, 2015

China`s central bank is entitled to impose restrictive examinations on gold and gold production, according to a guideline issued Thursday.

In accordance with macro control, the People`s Bank of China (PBOC) demands that all the gold and gold production listed in the guideline has a certificate issued by the PBOC or its branches for customs clearance.

Only a legal person or organization with no illegal records in the last two years can apply for gold import and export permits, except for charitable donations, according to the PBOC.

The guideline will come into effect on April 1.

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 to further streamline energy layout amid `new normal`

Source: www.chinamining.org   Citation: Xinhua   Date: March 6, 2015

China will spare no effort to further optimize the country`s energy structure as the world`s largest producer and consumer of energy enters a "new normal", a senior energy official said.

Nur Bekri, deputy head of the National Development and Reform Commission (NDRC) and head of the National Energy Administration (NEA), vowed to take steps to implement an action plan on energy development for 2014-2020, which was released last November by the State Council, in an interview published on the NEA`s official website on Thursday.

In the plan, the State Council promised more efficient, self-sufficient, green and innovative energy production and consumption.

It also set a cap on annual primary energy consumption to 4.8 billion tonnes of the standard coal equivalent by 2020.

"As the Chinese economy has phased into a `new normal`, the energy consumption growth rate should also shift gears," said Nur, forecasting annual growth of China`s primary energy consumption will slow to around 3.4 percent by 2020.

China has to strike a balance between growth and structural optimization as it is now in a "new normal" state, featuring a moderate economic growth rate. The world`s second largest economy finished 2014 with a 7.4 percent GDP growth rate, the weakest annual expansion in 24 years. Its growth target this year was further lowered to 7 percent.

Primary energy refers to the energy embodied in natural resources, prior to undergoing any human-made conversions or transformations.

Coal consumption accounts for about 66 percent of China`s primary energy consumption for the time being, 35 percentage points higher than the world average, according to Nur.

Chinese energy consumption has had an average annual growth of 7.9 percent since 2000, 3.4 percentage points higher than that of the last 20 years of the 20th century.

In order to cut the share of coal in energy consumption, China will increase construction of natural gas pipelines in order to reach a total length of 120,000 kilometers, said Nur.

He reiterated the goal of nuclear power expansion to 58 gigawatts by 2020, with 30 gigawatts or more expected from power stations under construction. Installed capacity of hydropower, wind and solar power are expected to stand at 350 gigawatts, 200 gigawatts and 100 gigawatts, respectively.

"Geothermal energy consumption in China will hit a scale of 50 million tons of standard coal equivalent." He 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 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.

PDAC 2015: Lawyers still look to China for mining deals

Source: www.chinamining.org   Citation: Financial Post   Date: March 4, 2015

China’s demand for metals has been a big part of the mining story over the past decade.

China’s economy grew an average of 9.6% between 1990 and 2010. The country needed basic materials that fueled huge demand for commodities and mining investments.

Metal markets are less robust these days. There are many reasons for that, among them a cooling Chinese economy. Lawyers go where the deals are, so you’d expect China to be less of a hot topic in legal circles. That’s not the case at all. China remains an important focus for mining lawyers and executives. In fact, China is at the epicenter of the biggest legal story of the year so far.

 "From exploration to production, the mining industry is still focused on China as a significant source of capital and as the biggest consumer of metals in the world," says Alan Hutchison, a partner in the Vancouver office of Dacheng Dentons.

Take note of that name, Dacheng Dentons. In January, China’s biggest law firm, Dacheng Law Offices, merged with Dentons, a global firm that was created two years ago through the three-way merger of Anglo-American firm SNR Denton, Canadian national firm Fraser Milner Casgrain and French firm Salans. Dacheng Dentons is now the world’s largest law firm by head count with about 6,500 lawyers at 120 offices in more than 50 countries.

The merger reflects a shift in the Chinese story. For a long time, Canadian mining lawyers have been chasing business from the big Chinese state-owned enterprises working out of Beijing and Shanghai. But there is a rising number of private sector players, some from other cities that might be off the radar for Western law firms. The Dentons deal plugs that firm into Dacheng’s network of 41 offices within China.

"There are a number of other centers in China that are rising in prominence relative to Beijing and Shanghai and that are sources of China-outbound work," Mr. Hutchison says.

That’s not to say it’s easy. China transactions tend to be rather fee sensitive, Mr. Hutchison explains. Chinese investors are looking for cost certainty in their legal services. "Law firms have to respond to that. We can’t just count on our Dacheng colleagues to do all that for us."

Norton Rose Fulbright, another global law firm with a strong Canadian component, has offices in Beijing, Shanghai and Hong Kong.

David McIntyre, a lawyer in Norton Rose Fulbright’s Toronto office with extensive mining experience, says there are a few important things to keep in mind about the Chinese market right now.

He said Chinese investors are regrouping. They had mixed success with their first mining deals, and are proceeding cautiously with their next transactions. "They’re trying to make sure the next investment is more successful than the last."

China’s business people are still getting used to how new political leader Xi Jinping aims to manage the world’s second largest economy. "There’s been a big pause while people are trying to understand what the new leader wants," Mr. McIntyre says. "It’s really no different than when there’s a new CEO at a company. Decision-making grinds to a halt for a while at the lower levels while people try to understand the new direction from the top."

There’s also been a change in China’s investment focus. During the boom, China needed raw materials, such as iron ore and met coal, to supply its domestic steel firms. But now Chinese investors are diversifying their assets, their commodity mix, and their geographic focus, Mr. McIntyre says.

"I think mining itself was overweighed in China’s initial outbound investments, and Canada itself was overweighed in its initial outbound investments because Canada satisfied China’s immediate needs," Mr. McIntyre says. Canada and mining will continue to be an important part of Chinese investment strategies, but the amount of money destined for Canada and mining will be more in line with a more diversified focus, he says.

Put another way, you could say China is maturing into more of a normal player in the market place, says Steven McKoen, a partner in the Vancouver office of Blake, Cassels & Graydon LLP.

China remains the world’s largest consumer of metals, and lawyers need to keep their Chinese contacts in place. "This stuff is cyclical. If you don’t stay in the game during the downtimes, no one’s going to remember who you are in the up times," Mr. McKoen says.

As important as China is, lawyers recognize that the broader story is actually Asia. For example, even though it’s had tough times of late, Japan remains one of the most important economies in the world.

Canadian firm Davis LLP has long had a strong connection with Japanese clients such as Mitsubishi Corp. and Sumitomo Corp. It has a sizeable office in Tokyo known locally as Davis & Takahashi. "In Japan, there has been a growing interest in doing deals with China and other parts of southeast Asia. Our group there has been very focused on that," says David Reid, a senior partner in the Vancouver office of Davis LLP.

In April, Davis LLP will spread its reach even further by merging with global firm DLA Piper, which has offices in Beijing, Hong Kong and Shanghai.

The Chinese story might not be as novel as it once was, but it’s still a important source of business for Canadian mining lawyers.

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.