CHINA MINING News

China plan to cut wholesale power price may help coal producers

Source: www.chinamining.org  Citation: Bloomberg  Date: August 18, 2014

China will cut wholesale prices that distributors pay for electricity from coal-fired plants, two government officials said, a move that may allow it to compensate struggling coal suppliers.
    
The National Development and Reform Commission told provinces to impose cuts at an average rate of about 0.0093 yuan a kilowatt-hour, according to the officials, who asked not to be identified because they weren`t allowed to discuss the matter publicly. Some cuts took effect on Aug. 15, while power companies` regional branches may adopt different dates for implementation, they said. The retail price won`t change.
    
China last adjusted on-grid power tariffs in September 2013, cutting it by as much as 0.025 yuan a kilowatt-hour. The nation uses a coal-tariff linkage system where tariffs are subject to change when coal prices fluctuate more than 5 percent. The mechanism, introduced in 2004, wasn`t strictly followed. The country`s benchmark coal price fell 21 percent this year, trading from 470 yuan to 480 yuan a metric ton as of Aug. 17.
    
"There`s a possibility that the government will conversely use the extra money to compensate coal producers since they are barely making money," Tian Miao, a Beijing-based analyst with researcher North Square Blue Oak in London, said by phone. More than 70 percent of Chinese coal companies are losing money and 50 percent aren`t paying wages on time, according to China National Coal Association.
    
The tariff cuts are relatively small and will have "limited impact" on power companies` profits, according to Tian. It will remove more than 5 billion yuan ($813 million) of profit for the top five state-owned power companies, including China Huaneng Group and China Guodian Corp., in the second half of the year. These companies will still have "double digit" growth in their 2014 earnings because the cost of coal is at a seven-year low, Tian 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Government micro stimulus lifts steel demand in China

Source: www.chinamining.org  Citation: CCTV.com  Date: August 13, 2014

China`s iron ore import surged 18 percent in the first 7 months from a year ago to a total of 540 million tons,turning around from the beginning of this year. This came as China`s manufacturing industries expanded at a mild pace, and international iron ore prices dropped.
    
Rizhao, China`s largest port for iron ore imports, is much busier now than the first quarter of this year.
    
Trucks comes and go, picking up stocks for steel mills that suddenly saw a surge in demand from the 2nd quarter.
    
"A state owned steel firm will come to negotiate with us next week and will increase 2 million yuan worth of orders. They have seen profits rising from Q2, their production is recovering too." Xin Weihua, Director of A Iron Ore Trade Firm, Said.
    
Official statistics show a steady rise of crude steel output each month in the first six months of the year. It even reached a record high of nearly 2.3 million tons in June.
    
Analysts say micros policy adjustments by the governments has boosted demand for steel.
    
"We`ve seen a rise of activities in industrial infrastructure building, railway construction, and projects to improve people`s livelihood, and auto manufacturing. These all pushed up demand for steel , and in turn boost demand for iron ore." Xin Weihua, Director of A Iron Ore Trade Firm, Said.
    
Meanwhile international iron ore prices have fallen to about 90 U.S. dollars from its peak of 130 U.S dollars per tonne. Steel mills have turned to imported materials for higher quality.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s demand for overseas crude to expand this year

Source: China Daily  Citation: China Daily  Date: August.13, 2014

China`s dependency on foreign crude will continue to increase this year despite the ongoing strife in major oil-producing nations like Iraq, a leading industry think tank said on Tuesday.

According to a report published by China National Petroleum Corp, the country`s largest oil and gas producer, China is expected to import 298 million metric tons of crude this year, accounting for about 58.66 percent of the total crude consumption in the country. The company`s research institute estimated that full year crude demand in China would be around 508 million tons and domestic output around 210 million tons. However, some analysts feel that the reliance on overseas crude supplies may be much higher than the levels estimated by CNPC. Gao Jian, a crude analyst at domestic commodities consultancy Sublime China Information Co Ltd, said foreign crude may account for about 60 percent of China`s total crude supplies this year because of the higher imports in the second half.
	CNPC sees to invest at least $2b in Peru
	Board changes to drive CNPC

PNG nickel mine reopens after rioting

Source: www.chinamining.org  Citation: China Daily  Date: August 11, 2014

A Chinese-owned nickel mine in Papua New Guinea has resumed production three days after an attack by armed villagers forced work to halt, a Chinese embassy official in the South Pacific country said on Thursday.
    
The $2.1 billion mine, forecast to produce 22,000 metric tons of nickel in 2014, is operated by Ramu NiCo, which is majority owned and run by Metallurgical Corp of China Ltd (MCC).
    
Equipment including nine excavators, a fuel truck and a lighting vehicle were burned, and five Chinese workers were injured in Monday`s attack, the embassy said, confirming earlier media reports.
    
"The embassy strongly condemns these brutal attacks and makes an urgent request to the PNG government to take immediate and effective measures to prevent the violence from recurring and ensure the safety of the personnel and properties, and to bring the attackers to justice," an embassy official said in an emailed response on Thursday.
    
"With the assistance of the police force, the situation is under control, and mining production has resumed," the official said.
    
Mining and energy projects are a major source of income for Papua New Guinea, but outbreaks of violence sparked by landowner disputes and environmental concerns are not uncommon.
    
At least four people were killed in 2009, when anti-Chinese sentiment erupted into violence and looting in the capital of Port Moresby and a second city, Lae.
    
The riots were sparked by a fight between local and Chinese workers during the construction of the Ramu project, according to media reports at the time.
    
Preliminary investigations were said to show that the latest attacks were spurred by concerns about the company`s hiring policies for mine workers. Ramu NiCo has been training locals so they can work at the mine.
    
The development of the Ramu mine was delayed by more than two years amid concerns about the dumping of mine waste in the ocean.
    
MMC, Ramu NiCo and minority owner Highlands Pacific did not respond to requests for comment on the situation.
    
Shares in Highlands Pacific fell 8.3 percent in a flat Australian share market.
    
LME nickel prices edged up about 1 percent after the shutdown was initially reported. Prices for the metal, used in stainless steel production, soared to their highest in more than two years in May, above $21,000 a metric ton, after a ban on ore exports from major producer Indonesia was enacted in January.
    
Earlier this year, a chemical spill sparked riots in New Caledonia, which closed Vale`s Goro nickel mine for about a month, adding to supply concerns.
    
Prices have since eased, to about $18,700 on Thursday, after Indonesia`s new government took a softer stance on export taxes for copper, turning investors cautious that it might also relax restrictions on nickel.
    
"Given that the Ramu mine is not very big, we don`t think the shutdown will have a large impact in the international market right now," said an executive at a large Chinese trading firm that imports nickel.
    
"LME nickel stocks are at a record level, and more hidden stocks in bonded warehouses in Shanghai are continuing to go to LME warehouses in Asia because of weak demand in China."

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Nation on minerals buying spree

Source: www.chinamining.org  Citation: China Daily Europe   Date: August 08, 2014

China bought 10,000 metric tons of rare earths in one week earlier this month, said two people familiar with the matter, as the country continues to stockpile the metals used in batteries and magnets amid international pressure to ease export quotas.

The State Reserve Bureau paid above-market prices, according to the sources, who asked not to be identified because they weren`t authorized to speak publicly about the purchases.

China`s move may be an effort to reverse a decline, as the price of at least one kind of rare earth tumbled 76 percent from its 2011 high, according to Peng Bo, an analyst at China Merchants Securities Co.

Prices of praseodymium-neodymium oxide tumbled 76 percent to 307,500 yuan ($49,597) a ton after reaching a record in mid-2011, according to data from the Shanghai Steelhome Information Technology Co.

In March, the World Trade Organization sided with the United States, Japan and Europe in ruling that China had not adequately justified imposing export duties and quotas on rare earths and other resources.

"China is facing imminent pressure to abolish the export quota, so stockpiling is part of the policy reaction to help prop up prices and keep more of the resources at home for future use," Peng said by phone from Shenzhen on Aug 5.

Two calls to the National Development and Reform Commission, which oversees the State Reserve Bureau, went unanswered on Aug 5.

The country cut mining permits and imposed production and export quotas in 2007 to reduce pollution and conserve supplies. China also has encouraged consolidation among rare-earth miners and promoted domestic trading.

Rare earths are a group of 17 chemically similar elements used to make products from wind turbines to magnets for cars and weapons.

In June, China set mining quotas for heavy rare earths and tungsten at the same levels as last year, while raising the quota on more abundant light rare earths.

This year, China may stockpile more medium-to-heavy rare earths, such as terbium, lutetium and yttrium, which are used in applications ranging from lasers to nuclear reactors, said China Merchants` Peng.

China`s own rudimentary industrial sector is not yet able to make full use of the country`s output, Peng said. Thus, the government may hoard these elements for future use, she said.

"The mining and refining industry, hampered by a drastic slump in prices, sees the purchase as a life-saver," said Chen Huan, an analyst at Beijing Antaike Information Development Co. "Prices the government agreed to pay are much higher than the prevailing market price."

The move by the government is mainly to build a strategic stockpile in anticipation of rising demand from the domestic industry in the future, Chen 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China bans high-ash coal

Source: www.chinamining.org  Citation:Xinhua  Date:August 07, 2014

China`s top economic planner has banned the sale and import of high-ash and high-sulfur coal from September 1, it announced on Wednesday.
   
 It is also forbidden to sell sub-standard coal to individuals and organizations in areas where the burning of highly polluting fuels is not allowed, the National Development and Reform Commission (NDRC) said in a statement.
   
Those who break the regulations will be asked to stop doing so, and any who refuse will be placed on a publicly available blacklist, it added.
   
All coal businesses have been asked to report details of their corporate social responsibility to specialist agencies as part of efforts to strengthen the integrity of the coal industry.
   
The NDRC also plans to establish a uniform supervision and management information system for coal businesses to better regulate them.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Government approves rare earth conglomerates

Source: www.chinamining.org  Citation: China Daily   Date: August 06, 2014

A worker at the site of a rare earthmetals mine in Nancheng county, Jiangxi province.Two major rare earthproducers have been approved by the central government tobecome conglomerates by the end of this year in order to further consolidate the rare resources, combat smuggling and alleviate overcapacityin production.

The government has approved two major rare earth producers to become conglomerates by the end of this year in order to further consolidate the rare resources, combat smuggling and alleviate overcapacity in production.
   
Xiamen Tungsten Co Ltd and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co have been approved by the Ministry of Industry and Information Technology to form the two rare earth groups.
   
Xiamen Tungsten will integrate rare earth mining, separating and manufacturing within Fujian province in the south, excluding what is owned by China Minmetals Corp by the end of 2014.
   
Baotou Steel will set up China North Rare Earth High Tech Co Ltd, consolidating rare earth mining, separating and processing within the Inner Mongolia autonomous region and Gansu Rare Earth Group Co Ltd in the north.
   
These two companies are among six groups encouraged to consolidate earlier this year. The other four groups are: China Minmetals Corp, Aluminum Corp of China, Ganzhou Rare Earth Group Co Ltd and China National Nonferrous Metals Industry Guangzhou Corp.
   
The founding of big groups is only the first step toward consolidation of the rare earth industry in China. Various companies face challenges in breaking regional protectionism and speeding up clearance of illegal practices and mining operations.
   
Rare earths are a group of minerals that have many uses in high-technology sectors such as defense and renewable energy. China supplies 90 percent of the global demand.
   
Du Shuaibing, an analyst at natural resources consultancy Baichuan Information, said "the move toward conglomerates signals a positive trend in the industry, as smaller enterprises have welcomed consolidation into major players to have more access to export quotas or production permits".
   
The result of China`s appeal to the World Trade Organization over its March ruling that China had acted inconsistently with regard to export measures imposed on rare earths will be announced on Thursday.
   
Industry experts consider it likely that China will lose its appeal but also expect China to raise its export quota and lower tariffs by 2015.
   
The Baotou China Rare Earth Industry Forum is due to run from Thursday through Saturday, in Baotou, the Inner Mongolia autonomous region.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org

China orders factory safety overhaul

Source: www.chinamining.org  Citation: Xinhua   Date: August 06, 2014

China on Monday announced a nationwide safety overhaul on explosive materials following a deadly factory explosion in an eastern province.
    
The campaign will target factories that process aluminum, magnesium, coal, wood, paper, tobacco, cotton and plastic, among other materials, and have potential ignition sources, the State Council Work Safety Commission said.
    
A blast in a wheel-polishing workshop of an auto parts plant owned by Kunshan Zhongrong Metal Products in the city of Kunshan, Jiangsu Province, on Saturday morning left 75 people dead and 185 others injured.
    
Government investigation has found that "very serious dereliction of duty" was to blame, with poor management by the factory and inadequate implementation of supervision regulations by local government departments, according to the State Administration of Work Safety.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.