CHINA MINING News

China Coal set to post its biggest profit fall in a decade in 2014

Source: www.chinamining.org   Citation: Reuters  Date: February 2, 2015

China Coal, the country`s second-largest coal producer, expects its net profit to fall by as much as 85 percent, which would be its biggest earnings drop in 10 years as the sector is hit by persistent oversupply exacerbated by a slowing Chinese economy.

China Coal Energy Co Ltd`s 2014 net profit is expected to drop 75-85 percent as a continued downturn of the sector pushes prices lower, it said in a statement to the Hong Kong stock exchange on Friday.

In 2013, the coal producer posted a net profit of 3.58 billion yuan ($572.85 million).

The fall marks the steepest since 2005, according to Thomson Reuters data. The company first went public in Hong Kong in 2006 and has issued profit growth figures dated back to 2005.

China Coal`s profit warning follows a slew of smaller rivals expecting sharp earnings falls in 2014, they said this week.

Zhengzhou Coal Mining Machinery Group Co Ltd , Henan Dayou Energy Co Ltd, Shaanxi Coal Industry Co Ltd and Shanxi Xishan Coal and Electricity Power all expect profit for 2014 to fall by at least 70 percent.

Shanxi Coal International Energy Group Co Ltd, Taiyuan Coal Gasification Co Ltd and Henan Shenhuo Coal & Power Co Ltd expect to swing into the red, blaming weak prices due to the supply glut.

"The trend of coal oversupply and falling prices has not changed due to easing economic growth," Henan Dayou said in a Chinese-language filing to the Shanghai stock exchange.

Spot coal prices from Qinhuangdao port have dropped further to 518 yuan a tonne, after falling by about 15 percent in 2014.

China`s coal production is estimated to have fallen 2.5 percent in 2014, the first annual drop in more than a decade due to the fight against pollution and government efforts to tackle a supply glut as demand from industry and the power sector weakens.

The China Coal Industry Association also estimated that profits of coal mines fell 44 pct in first 11 months of last year, and that 70 percent of them made losses over the period. ($1 = 6.2495 Chinese yuan renminbi)

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.

Sino-Myanmar crude oil pipeline enters trial operation

Source: www.chinamining.org   Citation: Xinhua   Date: January 29, 2015

Myanmar Vice President U Nyan Tun (2nd, L), Myanmar Energy Minister U Zay Ya Aung(L), General Manager of the China National Petroleum Corporation (CNPC) Liao Yongyuan (R) and Chinese Ambassador to Myanmar Yang Houlan (2nd, R) attend the soft opening ceremony of commissioning of Ma-De crude oil unloading terminal and pre-commissioning of South-East Asia crude oil pipeline in Yangon, Myanmar, Jan. 28, 2015. (Xinhua/U Aung)

China-Myanmar crude oil pipeline ( Myanmar section) was put into trial operation Wednesday after the project was announced basically completed through five years` efforts by the two sides.

Myanmar Vice President U Nyan Tun, Chinese Ambassador to Myanmar Yang Houlan, Myanmar Energy Minister U Zay Ya Aung and General Manager of the China National Petroleum Corporation (CNPC) Liao Yongyuan jointly inaugurated the opening ceremony in Yangon.

Made Island Port, the starting point of China-Myanmar Crude Oil Pipeline, where the first large oil tanker of 300,000 tons` capacity has been in place, will be ceremonially opened on Friday.

The China-Myanmar Crude Oil Pipeline (Myanmar section), which was started in June 2010 and completed on May 30. 2014, was jointly invested and built by the CNPC and Myanmar`s state-run Oil and Gas Enterprise (MOGE) with 50.9 percent and 49.1 percent share respectively.

The pipeline extends as 771 km with designed transmission capacity of 22 million tons per year.

The Made Island lies southeast of Kyaukphyu town in Myanmar`s Rakhine state with some main projects being implemented including 300,000-ton crude oil wharf, working vessel wharf, 650,000 cubic- meter water tank, 38 km port channel and 1.2 million cubic-meter crude oil reserver.

The China-Myanmar oil and gas pipeline project, which comprises of a crude oil pipeline and a gas pipeline, is a state-operated project of China and Myanmar with the collaboration of international partners on commercial basis.

The China-Myanmar natural gas pipeline, co-invested and cooperated by four countries -- China, Myanmar, South Korea and India, and six parties, had been inaugurated on July 28, 2013 and put into operation. As of January 25, 2015 at 6 p.m. local time, the pipeline had transmitted 3.92 billion cubic-meters gas to China, offloading 147 million cubic-meters gas for Myanmar.

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 rare earth groups to accelerate restructuring

Source: www.chinamining.org   Citation: Xinhua  Date: January 29, 2015

China`s six major rare earth groups will complete substantial integration of small mines and smelting companies by the end of 2015, an official said on Wednesday.

Su Bo, vice minister of industry and information technology, said as China has removed controls on rare earth export quotas, export companies will vie for market share amid hostile competition, which makes the fostering of an orderly market an arduous task.

China is the world`s largest rare earth producer and exporter, but the industry is beset by problems including illegal mining, smuggling and a lack of competitiveness due to weak research and development.

To consolidate the industry, China approved a plan in January 2014 to encourage the six rare earth companies to take the lead in integrating regional resources to improve industrial concentration.

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.

Ghana, China to collaborate in mining sector

Source: www.chinamining.org   Citation: www.ghanaweb.com   Date: January 26, 2015

The Chinese Ambassador, Ms Sun Baohong on Friday interacted with officials of the Minerals Commission to exchange views on China-Ghana relations in the mining sector.

Briefing the media after the closed-door session Ms Sun said the meeting was fruitful and she looked forward to expanding the cooperation between the two countries in the area of mining.

She said there is the need for concerted efforts in educating Chinese investors on the rules in investing in the mining sector.

Ms Sun expressed concern about a small group of Chinese operating in the sector illegally and called for collaboration with the Ghanaian authorities to nip such practices in the bud.

Dr Toni Aubynn, Chief Executive Officer of the Commission, said the visit of the Ambassador reinforces the very strong bond of friendship between the two countries.

He said it was heartwarming that the Chinese Ambassador was concerned about a small group of their citizens involved in illegal mining and welcomed the call for the two countries to cooperate to ensure that mining is done properly to ensure a win-win situation.

He said the cooperation would be to ensure that illegality is stemmed at all sites.

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.

Crude imports hit record in Dec

Source: www.chinamining.org   Citation: China Daily   Date: January 26, 2015

Crude oil imports surged to their highest level in December as China purchased record quantities from its trading partners, cashing in on the rapidly falling prices in the global market.

The country`s crude oil imports rose 13 percent to 30.37 million metric tons in December, the highest growth rate during the year, while refined oil imports reached 3.2 million metric tons, according to data released by the General Administration of Customs on Friday.

Jing Yongping, a professor who specializes in energy and commodity trade at the Beijing Institute of PetroChemical Technology, said the global oil price slump caused by the continued exploitation of shale oil and gas in the United States, political conflict between Russia and Ukraine, and fluctuation in global commodity prices were the main factors that prompted China to increase its oil imports last month.

China`s crude imports from Iran, its main import source, rose 19 percent year-on-year in December to 2.57 million metric tons. Jing said crude imports from Saudi Arabia, Russia, Venezuela and Angola rose by 40 percent to 70 percent, on a year-on-year basis last year.

China imported 308.38 million metric tons of crude from the global market in 2014, up 9.5 percent from a year earlier. That is about 665,000 barrels a day, even as import prices fell 7 percent compared with 2013.

Fuel oil prices dropped to $471 per metric ton in December, about 30 percent lower than the average price charged in 2014. China`s import volume jumped 53.5 percent on a year-on-year basis to 1.9 million metric tons in December, another high growth rate for the whole year.

Zhao Zhongxiu, a trade professor at the University of International Business and Economics in Beijing said: "China`s ability to provide for its own needs is limited by the fact that its proven oil reserves are small in relation to its consumption."

Zhao said China`s oil imports are expected to clock a year-on-year growth rate of about 5 percent this year, with the proportion of imported oil likely to reach 58 percent this year.

According to a report published by the Beijing-based Chinese Academy of Social Sciences in November, imports will account for about 64.5 percent of China`s total oil consumption by 2020, aided by the huge gap between domestic consumption and production.

Statistics from CASS showed that China`s oil production is expected to reach 182 to 200 million tons in 2015. The country`s oil production will see a gradual decline after 2020, according to CASS.

However, China`s imports of other major commodities such as corn and wheat dropped by 20 and 46 percent to 2.6 million metric tons and 3 million metric tons respectively in 2014, a sign that the market has been bolstered by higher domestic grain output and abundant reserves.

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 giant willing to cooperate in Arctic resources extraction

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

China`s energy giant PetroChina is willing to engage in cooperation in extracting oil and gas as well as other natural resources in the Arctic region, said a high-ranking official of the company on Monday.

Sun Xiansheng, president of the CNPC Economics and Technology Research Institute, made a presentation on Monday afternoon at the 2015 Arctic Frontiers conference, which runs from last Sunday to Friday.

PetroChina, which has oil and gas investment in 35 countries, has already involved itself in the Arctic through holding a 20 percent share in the Yamal LNG project, a joint venture with Russia.

"The development of Arctic resources requires joint efforts of all countries," Sun told a packed conference hall. "PetroChina is willing and able to participate in Arctic oil and gas cooperation to better promote the development of Arctic resources," said Sun.

It was the first time in many years that a Chinese company of this size was represented at the Arctic Frontiers conference, a meeting place for policymakers, researchers and businessmen from the Arctic Council member countries and observer nations to discuss the Arctic-related issues.

The theme of this year`s conference, the ninth one, was climate and energy.

The Arctic region is abundant with oil and gas resources.

The US Geological Survey came out with an evaluation in 2008，showing that the oil and gas resources in the Arctic amounts to 56.4 billion tons of oil equivalent, or about 22 percent of the global oil and gas resources awaiting development.

PetroChina is China`s largest oil and gas producer and supplier with assets worth 2.342 trillion yuan ($378.4 billion) at the end of 2013, ranked No 3 in the World`s Top 50 Oil companies in 2014 by the Petroleum Intelligence Weekly.

With a goal for zero accidents zero pollution and zero casualties, the Chinese oil company always puts an emphasis on safety, environment and health and tries its best helping the local communities where it is present, Sun said.

Apart from being a job creator for the local people, PetroChina also builds road, hospitals and schools in the countries where it operates.

China, over the years, has strengthened cooperation with Arctic countries in various fields.

On April 20, 2012, China and Iceland signed a framework agreement on Arctic cooperation.

During the APEC meeting in Beijing last year, China and Russia signed a number of cooperation agreements.

All these provide PetroChina with a good foundation for forging cooperation ties with partners from other countries, Sun 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 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 raises consumption tax on oil products

Source: www.chinamining.org   Citation: Xinhua   Date: January 13, 2015

Drivers fuel their vehicles at a gas station in Changchun, capital of northeast China`s Jilin Province, Jan. 12, 2015. (Xinhua/Xu Chang)

China`s finance and taxation authorities on Monday announced that consumption tax on oil products would be raised from Tuesday.

The tax on gasoline, naphtha, solvent oil and lubricating oil will be increased to 1.52 Yuan (about 25 U.S. cents) per liter from 1.4 Yuan. The levy on diesel, jet fuel and fuel oil will be increased from 1.1 Yuan per liter to 1.2 Yuan, according to the Ministry of Finance (MOF) and the State Administration of Taxation (SAT).

This will be the third increase in as many months, following one on Nov. 29 and another on Dec. 13.

The retail prices of gasoline and diesel will be cut by 180 Yuan and 230 Yuan per tonne after taking the higher tax into consideration, the National Development and Reform Commission announced in a separate statement.

This the 12th retail fuel prices cut since July 2014, as the government reacts to lower global crude oil prices.

Proceeds from the higher taxes will mainly be allocated to counter-pollution initiatives and the new energy sector, according to the MOF and the SAT.

However, experts warn that the drop in oil prices is bad news for the new energy sector. For example, new-energy cars will see reduced sales, said Liu Shangxi, director of the research institute for fiscal science at the MOF.

China`s energy consumption accounted for about 22.4 percent of the world`s total in 2013, but its energy consumption per gross domestic product (GDP) was 3.5 times of that of the United States and seven times of that of Japan, according to Liu.

Fuel tax and pricing reform measures began five years ago, and have featured consumption tax hikes and the introduction of a pricing system more closely linked to the international market.

Consumption tax was first imposed in 1994 on consumer goods with a high energy cost and high pollution to make production and consumption more environmentally-friendly and promote sustainable growth.

Over ten countries including Russia, Australia, New Zealand and France have raised their oil product consumption tax since 2012 to ensure green development.

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, Venezuela financing cooperation proceeding "smoothly": spokesman

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

China said on Wednesday that financing cooperation with Venezuela is going smoothly, following reports that Venezuela is seeking more loans from China to overcome economic recession.

"China understands that falling oil prices have had an impact on Venezuela`s economy," Foreign Ministry spokesman Hong Lei said at a daily briefing.

"Financing cooperation has been a powerful backup for large project cooperation between the two countries. Relevant financing cooperation is going smoothly," Hong said, adding that China is willing to work with Venezuela to advance practical cooperation to benefit the people.

Venezuelan president Nicolas Maduro is in Beijing for the ministerial meeting of the Forum of China and the Community of Latin American and Caribbean States (CELAC).

Meeting with Maduro on Wednesday, Chinese President Xi Jinping said he hopes Venezuela will make good use of bilateral financing mechanisms and channel more funds to the areas of energy, mining, agriculture and industry. 

Venezuela is an OPEC member and the world`s fifth-largest exporter of oil. The country depends on oil for over 90 percent of its export income. Oil export prices per barrel in Venezuela have plummeted from 95 dollars in September to the current 48 dollars.

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.