CHINA MINING News

China cuts excess production capacity

Source: www.chinamining.org  Citation: Xinhua   Date: August 04, 2014

China has seen positive developments in reducing excess production capacity as it works to improve economic structure, according to a report of the National Development and Reform Commission (NDRC) on Sunday.

In the first six months of the year, investment into the steel and electrolytic aluminum sectors dropped by 8.4 percent and 31 percent year on year respectively.   

Major steel companies started to make profits in March. In May, they recorded a combined profit of 2.85 billion yuan (about 462 million US dollars), 2.3 times that of April.   

In the first four months, companies in the cement sector raked in a combined profit of 17.2 billion yuan, up 109.3 percent year on year.   

Companies producing plate glass saw their profit up 78 percent to 1.8 billion yuan during the January-April period.

Shipbuilders received 40.80 million deadweight tonnages of new ship orders in the first six months, up 78.2 percent on a year-on-year basis.

China has been addressing overproduction in the above five sectors through measures such as closing small factories and limiting investment into these industries.   

The NDRC said China will continue with the push to reduce the excess capacity and improve the efficiency of the economy.

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.

CNOOC oil fields start production

Source: www.chinamining.org  Citation:Xinhua   Date: August 04, 2014

China National Offshore Oil Corp. Ltd (CNOOC), the country`s largest offshore oil producer, announced Thursday that Panyu 10-2/5/8 oil fields have started production.

The oil fields are expected to hit a combined peak production of 13,000 barrels per day by the end of 2015, a company press release said.

The project, which consists of oil fields 10-2, 10-5 and 10-8, is located in the Pearl River Estuary Basin in the South China Sea with an average water depth of about 100 meters.

It was designed to share the existing production facilities of Panyu 4-2 oil field.

Nine new wells and a wellhead platform have been drilled. Four of the wells have started production, with a daily output of about 9,000 barrels of crude oil.

CNOOC owns 100 percent of the oil fields.

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 20th-23rd, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China names new general manager for Baosteel Group

Source: www.chinamining.org  Citation:Reuters   Date: August 04, 2014

China`s Baosteel Group, which owns the country`s biggest listed steelmaker, has named Chen Derong as its general manager, replacing He Wenbo, the company said on Saturday.

Chen, 53, used to be the vice general manager of Zhejiang Metallurgical Group and the vice governor of eastern Zhejiang province, Baosteel Group said on its website (www.baosteel.com).

The 59-year-old He Wenbo also resigned as the chairman of Baoshan Iron and Steel Co Ltd, it said.  

He, who has been working in Baosteel since 1982, will be assigned a new job, it said without elaborating.

The official Xinhua news agency cited unidentified sources as saying He could be made the general manager of mining giant China Minmetals Corp.

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.

CSRC approves trade of ferroalloy futures contract

Source: www.chinamining.org  Citation: Xinhua  Date: August 04, 2014

China`s securities watchdog has approved the listing of ferroalloy futures on the Zhengzhou Commodity Exchange (ZCE) in Henan Province.

The exchange will decide on when to list the futures, said a China Securities Regulatory Commission statement on Friday.   

ZCE said it will test the trade next Tuesday, but did not reveal the exact official trading date.   

China ranks first in the world`s ferroalloy production, providing about 40 percent of total global ferroalloy output annually.   

Ferroalloy prices have been volatile in recent years, adding risks for traders. The introduction of the futures is expected to promote the steady growth of the ferroalloy industry.

Posted in: Industries

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.

Global mining sector on the way up, but recovery still slow

Source: www.chinamining.org  Citation: www.mining.com  Date: July 30, 2014

Global mining activity showed steady signs of improvement in the first half of the year, but recover is still expected to be slow, the latest study by SNL Metals Economics Group published Tuesday shows.
   
Its closely watched Pipeline Activity Index (PAI)- one of the most trusted indicators of the global exploration sector`s overall health - recovered a bit in May after an all-time low in April, but still sits at low levels, SNL notes.
   
The good news, said the Charlottesville, Virginia-based research firm, is that the industry`s aggregate market capitalization improved for the sixth month in a row in June, reaching $1.75 trillion. This is a 20% increase over December 2013 and the highest level since January 2013.
   
The recovery was driven mainly by a high number of encouraging milestones, including several new mines coming on stream.
   
The number and value of positive announcements, shows the study, increased significantly in May-June from the lows seen in the first four months of 2014. The in-situ value of advancing gold reports was considerably higher than in the March-April period, including production starting at several mines. 

The largest positive announcement was from Newcrest Mining`s Cadia East gold mine in New South Wales, which was officially opened in May. At full capacity, Cadia East will produce 250,000 oz/y of gold and 15,000 mt/y of copper.
    
The leading negative news came from First Quantum`s Kansanshi copper mine in Zambia, where the company will reportedly slow or postpone additional spending on an in-progress expansion due to uncertainty over the country`s fiscal regime.

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 steel, iron ore at one-week highs on recovery bets

Source: www.chinamining.org  Citation: Reuters  Date: July 30, 2014

Chinese steel and iron ore futures rose to their highest in more than a week on Tuesday on hopes that a brightening economic outlook would spur demand for the two commodities, although property sector risks kept advances in check.
   
Stocks in Hong Kong edged up to more than 3-1/2-year highs and those in the mainland held to Monday`s sharp gains. The rally was fuelled by optimism that the world`s second-largest economy has turned a corner and that more growth-friendly policies are ahead.
   
The most-traded iron ore contract for January 2015 delivery on the Dalian Commodity Exchange hit a session high of 690 yuan ($110) a tonne, its loftiest since July 18. It closed up 1 percent at 684 yuan.
  
Rebar for January 2015 rose 1.3 percent to end at 3,105 yuan per tonne on the Shanghai Futures Exchange, after peaking at 3,115 yuan, also its highest since July 18.
   
"The sentiment towards the second half for China has really improved but we still believe that the stimulus we have seen is minuscule and the property market remains tough," said Helen Lau, senior mining analyst at UOB-Kay Hian Securities in Hong Kong.
   
Optimism over China`s economy rose after HSBC`s preliminary survey showed manufacturing activity there quickened to an 18-month high in July, suggesting that government measures to stimulate the economy had been effective.
   
Some analysts say more stimulus may be needed to counter a cooling property market and increasing risks in the financial system, such as deteriorating credit quality.
   
China will release its official purchasing managers` index for the manufacturing sector on Friday.
   
Gains in steel prices came as Chinese traders` inventories of steel products fell further to 13 million tonnes on Friday, based on data tracked by industry consultancy Mysteel.
   
That is the lowest stockpiles of steel held by traders since the last week of 2012, when they stood at 11.88 million tonnes, said Lau.
   
Inventories could fall further in the second half of 2014, as stockpiles did in 2012. If supported by strong end-user demand, that could sustain a rally in steel prices through early next year as it did in 2012 through early 2013, said Lau.
   
Another scenario would be that Chinese steel traders would restock from August, but then the price gains would be milder as it would not be backed by end-user demand, which is what happened in 2011, she said.
   
"I think what we might see is a watered down version of 2012, but we`re not as pessimistic that it would be like 2011 again," said Lau.
   
THREAT TO IRON ORE
   
A 170,000-tonne cargo of 62-percent grade Australian Pilbara iron ore fines for delivery to China in September was sold on the Singapore-based globalORE platform at $96.50 a tonne on Tuesday, according to globalORE`s website. That was up from the sale of a same-grade cargo at $95 on Friday.
   
The threat for iron ore prices remains the excess supply that has kept spot prices below $100 a tonne since May 19.
   
A faster-than-expected increase in iron ore production by the world`s biggest miners in Australia and Brazil this year is pushing less efficient smaller suppliers from Europe to Australia to the Middle East to cut output or shut altogether.
   
By 2015, major producers in Brazil and Australia will account for 1.15 billion tonnes or 83 percent of world seaborne ore trade, according to Australian government data, up from 71 percent in 2012.
   
Exports from Iran - the world`s eighth-biggest supplier on the seaborne market - fell by a third in June from a year ago to just 1.2 million tonnes, according to Iranian industry data, a figure largely in line with numbers later released by China`s customs.
    
Iron ore for immediate delivery to China .IO62-CNI=SI stood at $94.30 a tonne on Friday, according to data compiled by Steel Index. There was no pricing reference published on Monday due to a public holiday in Singapore.
   
Iron ore is down nearly 30 percent this year, having fallen to a 21-month low of $89 in mid-June.
   
Rebar and iron ore prices at 0706 GMT Contract Last Change Pct Change SHFE REBAR JAN5 3105 +40.00 +1.31 DALIAN IRON ORE DCE DCIO SEP4 695 +6.00 +0.87 METAL BULLETIN INDEX 94.65 +0.63 +0.67 Dalian iron ore and Shanghai rebar in yuan/tonne Index in dollars/tonne, show close for the previous trading day ($1 = 6.1811 Chinese yuan)

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 showing interest in $20 billion nuclear energy deal with Westinghouse

Source: www.chinamining.org  Citation:powersource.post-gazette.com  Date: July 30, 2014

A containment building under construction at Sanmen on China’s eastern coast, the site of Westinghouse`s first AP1000 reactor. It is now expected to be online by the end of next year.

Westinghouse Electric Co. may be close to a $20 billion deal with China, according to its president and CEO Danny Roderick.
   
Following a meeting July 21 with Chinese government nuclear leaders, Mr. Roderick walked away "with a really clear message" - China wants to commission 26 more plants using Westinghouse technology.
   
The company estimates that each new AP1000 reactor comes with 20,000 direct and indirect jobs, many in the Pittsburgh region, which the Cranberry-based nuclear company calls home.
   
Discussions about the new plants were still preliminary, cautioned Westinghouse spokeswoman Sheila Holt, but Mr. Roderick said China would be ready to pull the trigger "as soon as we can show the final plan for how to finish Sanmen."
   
Westinghouse is building two of its first four AP1000 reactors in Sanmen, on China`s eastern coast. The units originally were scheduled to go online in late 2013 but have been delayed twice, partly because of post-Fukushima safety inspections and partly for technical reasons. The Fukushima Daiichi nuclear accident that followed a devastating earthquake and tsunami in Japan in March 2011 put on pause many nuclear ventures, forcing governments and companies to re-examine their safety protocols.
   
Westinghouse wouldn`t comment on the specifics of the delays but noted these were "first of a kind" reactors, the lessons of which would be applied to all current and future AP1000 projects around the world.
   
A two-year delay is more the norm than not in the nuclear industry, where construction times can take up to a decade.
   
"Fukushima has disrupted a lot of schedules," said Bob Percopo, an energy finance consultant who advises nuclear companies on risk.
   
"Every time there`s a hiccup on a nuclear project around the world, you`re going to wind up with time delays," he said. "It`s a natural reaction. But the one thing about the Chinese is when they decide they`re going to move from point A to point B, they`re going to get there."
   
Mr. Roderick said Westinghouse will be able to finish Sanmen Unit 1 by the end of 2015. That`s what he shared with a group of nearly 20 Chinese dignitaries that visited Westinghouse July 21, including the chief administrator for China`s National Energy Administration and the chairman of the State Nuclear Power Technology Corp., which is building the Westinghouse plants.
   
"We`re at the cusp of having a big wave of units authorized," Mr. Roderick said. "What they wanted to share with us is they really want to accelerate these programs. The premier wants to accelerate nuclear to reduce coal."
   
The 26 new plants, which would be slated for inland sites, would be in addition to eight coastal plants currently being negotiated between Westinghouse and China.
   
In May, experts cast doubt on those negotiations after a group of Chinese government officials were charged by the U.S. government with hacking into Westinghouse computers, stealing product specifications and intercepting correspondence between senior executives about how to negotiate with China.
   
Westinghouse was one of six companies targeted by the hackers, but the only one that had agreed to transfer its technology to its Chinese business partners.
   
Mr. Roderick said the allegations haven`t soured Westinghouse`s relationship with its single biggest customer.
   
"We`ve had a lot of very serious discussions with them about intellectual property," Mr. Roderick said. "This is new for China." The traditional attitude toward intellectual property in the country has been that "if someone has it, everyone should have it."
   
Westinghouse was notified of the charges the night before the FBI publicly announced them to the world, he said.
   
"China did exactly what we thought they would," Mr. Roderick said. That is, the country`s officials denied the charges then launched an internal investigation.
   
"We got a lot of confirmation from the companies we work with that it wasn`t them," Mr. Roderick said. "I don`t know that it has distracted our business."

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 10 nonferrous metal output up 5.4% in H1

Source: www.chinamining.org  Citation: China Knowledge  Date: July 29, 2014

The combined output of the ten nonferrous metals rose 5.4% year on year to 20.89 million tons in the first half of this year, according to the latest statistics released by the National Development and Reform Commission.
   
The output of aluminum electrolytic rose 7.4% year on year to 11.54 million tons in the six-month period. The output of copper and alumina oxide see a growth of 8.1% and 6.5%, respectively.
   
The output of lead dropped 2.8% year on year in the period, and the output of zinc went up 1.2% from a year earlier in the first six months.
   
In Jun, the prices of major nonferrous metals reflect a growth from May 2014. The average prices of copper and zinc futures on the Shanghai Futures Exchange stood at RMB 49,475 and RMB 15,277 per ton, up 2.3% and 1.1% from a month earlier, respectively. The average price of aluminum electrolytic was stood at RMB 13,322 per ton, up 0.7% from May or declined 9.5% from a year earlier.

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.