Face the Challenges, Seize the Opportunities, Analyze the Situations, and Focus on the services

------Take you To CHINA MINING Congress and Expo 2013

 

Abstract

 

On the first Saturday of November, CHINA MINING Congress and Expo 2013 will meet with you again in Tianjin on schedule. Perhaps this is the last time to meet you in November. Starting from next year, this event will be advanced to October 20 to 23 every year.

 

Each mining event exerts an edifying influence on people from the mining industry. What’s the future development of the global mining industry? What is the role of China in world mining pattern, and how will China develop? What are the highlights of this event? What forums will arouse your interest?

  

Therefore, in combination with the agenda, through analyzing the key words such as “opportunity, challenge and development", "minerals situation",  “private corporations going abroad", "building the service platform", "prospecting new technology and new method", “the harmonious development of green mining", the reporters reviewed and forecasted what you might be concerned and introduced the background of the reform and development of China’s mining industry in recent years, which they hope are helpful and useful to you.

 

Key words: Opportunity, Challenge, Development

According to the institutional analysis, the pattern of the international mining industry has entered a stage of the deep adjustment with the deep influence of international financial crisis.

In terms of the current situation, the development of the global mining industry has slowed down and appeared a certain degree of adjustment and contraction, which has become a reality.

 

 “Strengthen international cooperation and accelerate prospecting breakthrough” has always been the theme of CHINA MINING Congress and Expo. The theme of CHINA MINING 2011 was “strengthen international cooperation and speed up the prospecting breakthrough”.  Li Keqiang, politburo member and vice premier, emphasized in the congratulatory letter. that China would adhere to domestic efforts, rely on technological progress and institutional innovation, strengthen geological prospecting and comprehensive utilization of resources, raise efficiency of utilization of minerals support capability and promote a long-term, stable and rapid economic development. At the same time, China would actively participate in international mining mutual benefit cooperation, and take advantage of "two markets and two resources" to play a constructive role for the development and prosperity of the global mining industry. Xu Shaoshi, the Minister of Land and Resources, put forward the cultural concept of "HE (meaning harmony in Chinese and it leads to symbiosis, and difference” which was refreshing.

 

The theme of CHINA MINING 2012 was "joint hands to promote mutual development" which fully reflected the desire of the international mining industry to promote cooperation in form of unity and promote development in form of cooperation according to Xu Shaoshi.

 

The theme of CHINA MINING 2013 is “Opportunity, Challenge, and Development". The word "Challenge" was included into the theme only in 2008 when the international mining industry was under financial crisis. The word “Opportunity” only appeared in the theme of CHINA MINING 2009. At that time, MINING Congress and Expo called on the mining industry from all countries to seize the opportunity to promote stability and prosperity of international mining industry, the recovery and development of world economy.

The combination of “Opportunity, Challenge, Development" reflects the grasp of the whole mining industry by China’s mining industry under the current international situation and also utters “Chinese good voice” to the world’s mining industry.

What have to be mentioned are the opening ceremony and the keynote sessions on November 3. Then, government senior officials, business executives and industry experts at home and abroad will deliver speeches on the topic. During the themed events on the morning of November 4, ministers and deputy ministers from mining industry, global mining officials will discuss the global mining development opportunities and mining in the future. The content would make you think more on global mining development opportunity and the future development strategies.

Key words: Private Mining Companies “go abroad”

In recent years, various types of enterprises in China have achieved significant achievements in international cooperation such as mineral resources exploration and development, and processing trade.

 

However, the overseas exploration and development of mineral resources are not satisfactory because our enterprises are not familiar with the rules of the international mining industry, weak in international market development capability, short of experience in international cooperation, and so on.

 

In 2012, the ministry of land and resources focused on the information service, strengthened the international guidance and support in geology and mineral resources, and compiled the mining investment guide, important national mining law, and world mining consultancy list, etc, for dozens of countries and regions.

 

China Mining Association set up a private mining branch, which meant private mining finally had his own "home". One of the three important tasks was to create conditions to help private enterprises “go abroad”.

 

Since this year, China Mining Association has centered on how to “go abroad” and, how we can go further to do a lot of work. They also put forward China`s mining industry "go abroad" plan: “The private enterprises are the first to go abroad with the support of geological exploration enterprises and finances, followed by big mining companies. Private and exploration companies form new productivity through the development of holdings and meanwhile leave some shares to secure benefit. Large listed companies make development, which results in win-win situation. “

 

Like the previous, there will be an important sector to introduce our private enterprises "go out" financing and investment as well as how to avoid risks in outbound investment; the introduction on "go out" policy support, the social responsibility and self-discipline, and the cases analysis on outbound investment success and failure. On November 2, there will be the forum on “Investment and Financing of China`s Private companies” the whole afternoon. I hope you don`t miss it.

Key Words:  the Situation of Minerals

The analysis on the situation of minerals was the focus of the past MINING Congress and Expo.

 

CHINA MINING 2013 is no exception. What is the supply and demand situation of Iron ore? What are the price trends of gold, platinum and other precious metals? What are the prospects of other metals, nonmetals and uranium products? The themed event on minerals, the essential part of the past MINING Congress and Expo will be held on time.

 

Coal situation, which was rarely talked about during the past annual congress, becomes the hot topic. The themed event on coal is included.

 

As is known to all, the price of coal fell sharply since the downlink channel was opened last year. In the first half of this year, the coal industry fell to the bottom after several rounds of big adjustment, and came to the most difficult period in history.

 

Out of the depth of misfortune comes bliss. Ups and downs coexist. The coal industry began to improve after a year’s depression in the second half of the year. Now, with continuous good policy and downward pressure, what will be the trend of coal price? What is the supply and demand status at present and in the future? The above will be discussed during the stream.

 

Except coal, there are oil and natural gas. The development and reserve status of oil and natural gas and the forecast of prices will be discussed during the stream on oil and natural gas.

 

From the forum on coal, oil, natural gas on the afternoon of November 2, to the forum on iron ore and gold on the afternoon of November 3, from the forum on precious metals such as silver, platinum and other base metals to the forum on uranium, other metals and nonmetals on November 5, you will have a comprehensive and in-depth understanding of the price trends of the main minerals now and in the future, the supply and demand situation and the development of new projects.

 

Key Words: Build Platforms

Mining cooperation project promotion at home and abroad becomes beautiful scenery every year during CHINA MINING.

The mining cooperation projects and investment opportunities will be focused on such countries and regions as central Asia, Chile, Canada, Australia, Greenland, Peru, Argentina and Africa, which builds a platform for the domestic and foreign mining companies to promote mining cooperation projects.

 

In addition, “Asia investment forum” will be held, which focuses on the mining cooperation opportunities among the Asian countries, the investment policies of mineral exploration development, and the case analysis of foreign direct investment in Asia. The above will be the first time in recent successive mining conference.

It should be mentioned that “focus on service” will be given greater prominence.

Except the policy introduction on project promotion according to regions, streams on China international mining investment, overseas investment policy and risk interpretation, the methods and channels of mining financing, the performance and future trend analysis of mineral assets, mining company`s demand for capital and financing, the global exploration development trend and opportunity are also held. Among them, the present status of the mining enterprise overseas investment during China international mining investment stream will be fully introduced with the deep analysis of relevant risks, and full coverage of overseas investment trends. “The social responsibility guidelines of China overseas mining corporate" will be released, which guides the healthy and orderly development of overseas investment. This stream, guided by Ministry of Commerce, PRC, will be one of the highlights of greatest concern.

For those companies which want to “go abroad”, the above will be very usef

In addition to the opening ceremony and the keynote session on the morning of November 3 and 4, streams on Policies & Financing will run through the entire CHINA MINING.

Key words: Mining Green Development

Mining green development is the inevitable choice of ecological civilization construction, and an important way in promoting the transformation of the development mode.

 

Ten days ago, the experience exchange on recycling economy of China’s mining industry (green and harmonious mine) was held in Luoyang, Henan, with the theme "Change the Way of Development through Green Harmony".

 

In recent years, according to the relevant requirements of “Guidance on the implementation of national natural resources plan to develop and construct green mining”, the Ministry of Land and Resources gives full play to the functions of departments, transforms the green mine construction as the mode of mining development, promotes the intensive and efficient utilization of resources, promotes the overall image of mining, and strengthens the construction of ecological civilization, improves the livelihood of the people, safeguards the rights and interests of the masses to promote social harmony, which has achieved obvious results together with all relevant aspects and areas.  

 

So far, 459 mining enterprises have been identified in three batches as the national green pilot units, covering oil, coal, nonferrous metal, metallurgy, gold, chemical industry, building materials and non-metallic mining industry and etc, which has played a leading role in the efficient use of resources, innovative technology, energy conservation and emissions reduction, reforming environment, the promotion of local economic and social development. At present, the declaration of the fourth batch of national green mine construction is in steady progress.

 

According to sources, China will strive for the number of national pilot mining to more than 600 by the end of “twelfth five-year” plan.

 

What is the development trend of the green mine construction? How are the principles of sustainable development and responsible modern mining implemented in China? On the afternoon of November 3, the above will be discussed during the stream on mining sustainable development. On the afternoon of November 4, there will be case studies during the stream on mining sustainable development, e.g., how to establish interactive relationship with the local community? How to realize the harmonious coexistence of mining and community? , How to make use of mine construction to promote the new rural development?

Key words: New technologies and methods to prospect and explore mining

If you are an expert from geological exploration units, you will have a lot to concern.

On the afternoon of January 3, during the stream on the Progress and achievements in geological survey, there will be introductions on progress and development of China’s basic geological survey, evaluation progress of China’s mining reserves, new examples of national prospecting & exploration of mining, and the important role of geological exploration fund to China`s geological prospecting.

   

On the afternoon of November 2, during the stream on mining technology and equipment, you will have an opportunity to hear the experts from different mining companies and research institutions present their latest technical innovations and equipments in exploration and mining. At the same time, you can have a general idea of how the international giants procure equipment in China.

 

On the morning of November 5th, during the stream on geological prospecting and technological innovation, the related experts will discuss and exchange on such topics as geological survey new technology and method of mineral exploration at home and abroad.

 

For overseas primary exploration companies, this year`s conferences have more surprises. On the afternoon of November 4, there will be themed sessions which provide more advice on how to attract investment for these companies, and introduce more opportunities for exploration, mining project, and seeking listings, etc.

 

 

At that time, Chinese investors will have an opportunity to see a large number of high-quality overseas exploration projects, which builds a high-end platform towards internationalization. (Zhang Li) (translated by TLRHVC)

 

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Jiang Daming Meets with the Minister of Ministry of Energy & Mines of Peru

Source:www.mlr.gov.cn  Citation:www.mlr.gov.cn  Date:Nov.03, 2013

Minister Jiang Daming met with The Hon. Jorge Merino Tafur, Minister, Ministry of Energy & Mines, Peru on Nov.03, 2013, and the two sides had a friendly conversation. The Ministry of Energy & Mines Ministry is the central administrative authority in Peru, specifically in charge of energy, mineral resources. The main function is to evaluate the sustainable development policy of government on energy and mining activities; to promote the all-round development of energy and mining activities; to audit and supervise the activities in energy mining field; to pay attention to the exploitation and harmonious environment of natural resources. (translated by TLRHVC)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Jiang Daming Meets with the Minister of Minerals of Sudan

Source:www.mlr.gov.cn  Citation:www.mlr.gov.cn  Date:Nov.03, 2013

Jiang Daming Meet Kamal Abdel Latif, Minister of Minerals of the Sudan on Nov.03, 2013, and the two sides had a friendly conversation.

Sudan is located in Northeast Africa, the West Bank of the red sea with the population of 33420000. Sudan is rich in mineral resources, such as iron, silver, chromium, copper, manganese, aluminum, gold, lead, zinc, tungsten, uranium, asbestos, mica, gypsum, talc, diamonds, petroleum and natural gas. Among them, the oil and gold are the most important minerals.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Jiang Daming Meets with the Minister of Natural Resources, Mining and Spatial Planning of Serbia

Source: www.mlr.gov.cn  Citation:www.mlr.gov.cn  Date:Nov.03, 2013

 
 
 
 
 (Photo by Tao Wei Xu Xiaojing)

Minister Jiang Daming Met Milan Bacevic, Minister of Natural Resources, Mining and Spatial Planning, Serbia on Nov.03, 2013, and signed two memorandums of understanding on cooperation. The two sides had a friendly conversation. (translated by TLRHVC)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Jiang Daming Respectively Meets with Five Countries (Regions) Mining Ministers

Source: www.mlr.gov.cn  Citation:www.mlr.gov.cn  Date:Nov.03, 2013

Jiang Daming, minister of Ministry of land and Resources, respectively met with Ian Macfarlane, MP, Minister Ministry of Industry, Australia; Milan Bacevic, Minister of Natural Resources, Mining and Spatial Planning, Serbia; The Hon. Jorge Merino Tafur, Minister, Ministry of Energy & Mines, Peru; Jens-Erik Kierkegaard, Minister, Ministry of Industry and Mineral Resources, Danish Overseas Territory of Greenland Autonomous Government; Kamal Abdel Latif, Minister of Minerals of the Sudan from Nov. 2nd ~ 3rd, 2013 in Tianjin. The host and the guest had an in-depth communication on establishing a stable and long-term cooperation, promoting the realization of mutual benefit from complementary advantages exchanges. Xu Deming, Vice Minister of Land and Resources, director of the State Bureau of Surveying and mapping geographic information, attended the meeting.

Jiang Daming expressed the welcome to the mining minister from the five countries(regions) for attending CHINA MINING 2013. Jiang Daming said, the Ministry of land and resources of China had a good communication and cooperation with the five countries (regions). China would deepen the opening up policy, and was willing to further deepen exchanges and cooperation on the existing basis. The first thing was to maintain the high- level exchanges , make the signed agreements be in enforcement in the relevant framework, and the unsigned to be duly signed properly; The second thing was to strengthen information sharing, simplify examination and approval procedures, promote the cooperation of mining enterprises for establishing more fair mining investment environment for the market; The third thing was to strengthen the mining technological exchanges and cooperation, strengthen coordination and cooperation in the field of geological survey; The fourth thing was to strengthen personnel exchanges, training etc.

Every mining minister of the five countries (regions) expressed his pleasure to attend the CHINA MINING 2013, and said it had become an important platform for the international mining industry to strengthen cooperation and exchanges, and meanwhile hoping to spread the welcome information of mining industry investment through the conference. They also said that the local government (area) was very concerned about the investment cooperation between the enterprises of the two sides, and would support more foreign investment enterprises including China. They hoped that the two mining departments would continue to deepen pragmatic cooperation, expand exchanges and cooperation in the field of the geological survey, exploration and development of mineral resources, and infrastructure construction.

During the meeting, Jiang Daming and Milan Bacevic, representing their mining departments, signed a memorandum of understanding on cooperation, and witnessed the China geological survey and Sudan signed the project agreement.

Some directors of the relevant departments of the Ministry of Land and Resources and its subordinate units, some heads of mining enterprises, and responsible persons from provincial bureau of geology and mineral resources attended the meeting. (Liu Zhenguo, Wu Gang)  (translated by TLRHVC)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Jiang Daming Meets with the Minister of Ministry of Mines and Mining Development of Zimbabwe

Source:www.mlr.gov.cn  Citation:www.mlr.gov.cn  Date:Nov.03, 2013

Minister Jiang Daming met with Walter K.Chidhakwa, Minister, Ministry of Mines and Mining Development, Zimbabwe on Nov.04, 2013, and the two sides had a friendly conversation. (translated by TLRHVC)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Jiang Daming Meets with the Minister Ministry of Industry of Australia

Source: www.mlr.gov.cn  Citation:www.mlr.gov.cn  Date:Nov.03, 2013

(Photo by Tao Wei Xu Xiaojing)

Minister Jiang Daming met with Ian Macfarlane, MP, Minister Ministry of Industry, Australia in Nov, and the two sides had a friendly conversation. (translated by TLRHVC)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

Chinese investments with Canadian mining examined

Source: chinadailyusa.com Citation: chinadailyusa.com Date: Mar.08, 2014

                                          The exhibition booth of the Ministry of Land and Resources of China at the PDAC 2014 in Toronto.
                                          LI NA / CHINA DAILY

The growth of investment from China in Canadian industry may not be as strong as in the past few years, but Chinese investment in Canada’s mining sector should pick up momentum in the long run, according to Yu Benlin, minister-counselor for economic and commercial affairs at the Chinese Embassy in Canada.

Yu made the comments at the China Mining Investment Symposium 2014 hosted by the Canada China Chamber of Commerce on March 3 in Toronto. The forum was held during the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, where advisors from government, investors from the mining sector and experts and senior lawyers gathered to exchange views on the challenges and opportunities in the global mining industry, particularly in Canada.

                                                                                                                                          LI NA / CHINA DAILY
                                                                       Yu Benlin, minister-counselor for Economic Commercial Affairs
                                                                       of Chinese Embassy in Canada, speaks at the China Mining
                                                                       Investment Symposium 2014 in Toronto.

“Although there are many favorable conditions for foreign investors in the mining sector in Canada, Chinese mining companies are facing various challenges and distinctive issues in the Canadian investment environment,” Yu noted.

Along with the global mining market’s drop last year, Chinese mining industries showed lackluster performance as well. Investment in China’s mining sector maintained growth but was 7.8 percentage points slower than that of the overall fixed asset investment in the first ten months of 2013. In the first half of 2013, investment in mineral exploration was o4 24 percent year-on-year. Stock prices of Chinese mineral companies overall declined.

“The relatively weak performance of mining industries and markets both globally and domestically in turn impacted the enthusiasm of Chinese enterprises to invest overseas,” Yu said.

According to the China Mining Association (CMA), Chinese mining companies invested in 103 projects overseas in the first three quarters of 2013, 8 percent fewer than the same period of 2012.

In terms of a business environment, Canada has highly developed science and technology, a robust financial system and easily accessible legal, financial and intermediary services, all of which makes potential investors feel welcome and confident.

However, Yu added, “I heard some Chinese mining companies in Canada complaining that they had invested heavily in infrastructure development,labor and meeting all sorts of standards, while their financial returns have been marginal.”

The top consideration for Chinese investors in Canada is certainly the environment for investment. But there may not always be ready infrastructure on the ground, and could possibly be labor shortages, high environmental standards and the challenge of properly managing relations with different social groups, especially the First Nations, Canada’s Aboriginal peoples.

“I advise investors to plan carefully after comprehensively studying these potential concerns and adapt your business well to local conditions,” Yu told the gathering.

“We are looking for a resolution in the critical moment of a market downturn and underestimations and will try to seize potential opportunities,” said Jin Wenhong, president of Huakan International Mining Inc, a TSX-V exchange-listed company focused on gold and silver.

According to Jin, Huakan has been focusing on high-technology cooperation with the Canadian mining industry to maintain long-term development. “The competition is fierce,” he said, “and it’s not only about the money. Actually, the really good enterprises in Canada are never at a lack for investment funding.”

“Don’t be anxious to achieve quick success and get instant benefits,” Jin said. “As a responsible investor, you need to grow together with the enterprise.”

Following Yu, John Gravelle, partner of PricewaterhouseCoopers LLP, said that Chinese investors will continue to dominate the industry’s prospects.

“Although the market has lost confidence in mining industries, I think we see some good signs to start the year off,” Gravelle said.

Balance sheets remain healthy and there are lots of opportunities in a mining industry downturn, Gravelle pointed out. “Especially the potential market in China is great,” he said. “China will continue to consume nearly 40 percent of the world’s mineral products.”

“There’s no doubt that urbanization will be an important driving force in the sustained demand for resources,” Gravelle added.

Currently, the urbanization rate in China is at 52.57 percent; the number is expected to reach 60 percent by 2020. 1 at means more than 90 million current rural Chinese residents will become urban residents, which represents a great demographic shift and opportunities.

“China’s economic structure is undergoing a positive change,” said Zhong Ziran, chief engineer of the Ministry of Land and Resources of China. “The momentum of growth in energy and mineral demands provides a good opportunity for Chinese and global mining investors.”

According to Zhong, further cooperation between the two countries in the mining sector will help China gain a long-term and stable source of supply.

(By LI NA in Toronto This email address is being protected from spambots. You need JavaScript enabled to view it.)

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 October 20-23, 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 factor` continues to determine future of commodities outlook

Source: www.chinamining.org Citation: miningweekly.com Date: Mar.06, 201

Chinese demand for metals and minerals remains robust, although the pace of uptake is moving towards a plateau as the country enters a more mature economic phase, delegates at the Prospectors and Developers Association of Canada were told on Sunday. "There is a very clear correlation between Chinese gross domestic product [GDP] growth and commodity prices," BCA Research chief strategist of the China Investment Strategy Yan Wang said. "When Chinese growth accelerates that`s good news for commodity prices, and when Chinese growth slows that`s bad news for commodity prices." Reviewing the past ten years, Yang highlighted the double-digit growth levels and a growing drive by Chinese companies to invest in production around the world, with the greatest investment flowing into Africa, Australia and Canada. CRU Strategies CEO Phil Newman also considered China`s GDP, noting that the country recorded 7.7% growth for 2013. He added that the slowdown from the fast pace of previous years was not a bad thing. "At CRU, we believe the slowdown is good news. It is good news for longevity and good news for sustainability," he said. In terms of uptake, Yang noted that commodities tied to energy can expect a bullish outlook when considering the `China factor`. "Energy consumption is still extremely low compared with higher-income countries. As China continues to grow, the energy demand will almost inevitably continue to rise," he said. "[And] the net increase of Chinese energy demand going forward will be entirely dependent on the external supply of energy." Meanwhile, Newman evaluated Chinese iron-ore uptake and forecast a 10% rise in foreign-sourced material, climbing from 80% to 90% by 2018. However, Chinese steelmaking output is expected to slow, he added. "When you look at the Chinese business costs curve you will see that there is a significant amount of production at and around the $100/t level. As [we slide] towards that level, we are going to see some of Chinese production disappearing [and] that will remove a pretty significant price support at $100/t," he said. "[We] hold the belief that the price of iron-ore 62% FOB benchmark price will fall below $100/t by the end of this decade," he added. Yang considered a broad basket of metals and then compared China to other nations in East Asia, noting the country still had catching up to do. "If we follow the roadmap set down by South Korea, we can see that Chinese demand for some base metals will continue to increase," he said. However, the margin for catch up was steadily shrinking as China`s economy matured. "[Examine] the per capita consumption for a lot of base metals and we can see that China is already very advanced and comparable to countries like Japan," he said. "The room for catching up is now limited. At least, I think the pace of growth will downshift going forward."

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 October 20-23, 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.

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