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Chinese coal prices fall as supply rises to quell speculation

Source: www.chinamining.org         Citation: Shanghai Daily     Date: November 25, 2016

Chinese coal prices fell amid the government`s efforts to replenish supply to dampen speculation. 

Coke prices on the Dalian Commodity Exchange lost 1.6 percent yesterday while coking coal prices fell 1.2 percent. The Bohai-Rim Steam-Coal Price Index, which tracks thermal coal prices in north China and is updated on a weekly basis, dived to a three-week low of 601 yuan ($87) per ton this week.  

The plunge came as "the government`s intervention works," Zhao Menglin, an analyst at Qinhuangdao Ocean Shipping Coal Trading Market Co, told Shanghai Daily. 

Shanxi Coking Coal Group signed long-term collaboration contracts with six major state-owned companies including Baosteel and Shougang Group on Tuesday, witnessed by officials from the National Development and Reform Commission.  

Earlier this month, two major coal groups also signed long-term contracts with five power plants to provide fuel at around 535 yuan per ton.  

The NDRC said the government would help stabilize coal prices in coming months. Coal prices had surged since the beginning of this year to way above the normal trend, according to Cui Yu`e, a steam-coal analyst.  

The Bohai-Rim index rose to a 10-month high on November 2 at 607 yuan per ton, 60 percent higher than that at the start of the year.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China reaches preliminary agreement with Peru to expand Toromocho copper mine

Source: www.chinamining.org         Citation: Reuters    Date: November 24, 2016

China`s leading mining company Aluminium Corporation of China has reached a preliminary agreement with Peru`s government to expand the Toromocho copper mine, China`s biggest overseas copper project.

China`s state industry supervisor SASAC, which announced the agreement in a statement on Wednesday, did not give details of the expansion plan for the Chinese-owned mine. 

The mine began operation in 2013 and produced 31,407 tonnes of copper and 5,500 tonnes of zinc in the first quarter of this year, but has also faced problems concerning environmental contamination and strikes by workers demanding higher wages.  

China`s President Xi Jinping signed a series of other cooperation agreements with Peru during his visit last week.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Coal mining curbs reversed as winter approaches, concern about supply deepens

Source: www.chinamining.org         Citation: Reuters     Date: November 18, 2016

China adopted new rules on Thursday to stimulate coal production as it moved to counter surging prices and after Premier Li Keqiang said the country had to balance demand for heating with efforts to tackle pollution.  

Li`s comments came after the National Development and Reform Commission (NDRC) ruled that all coal mines that abide by production safety rules can operate 330 days a year rather than 276 days previously.  

Analysts and traders said the new limit marked a major step from the Chinese central government to help boost coal supplies. The NDRC capped domestic mining earlier this year in a campaign to reduce excess capacity but this triggered a surge in the price of coal.  

Li told a meeting of the National Energy Commission that reports directly to the cabinet that China must increase the clean and efficient use of coal, according to state radio.  

Higher coal prices have been hurting consumers in China and concerns about supply have growing ahead of expected strong demand during winter.  

"This is the biggest policy adjustment to lift coal production so far," Huaan Futures coal analyst Wang Fei said.  

The new limit will be effective until the end of the winter heating season, NDRC said.  

The country faces uncertainty over the weather outlook in the northern regions, it said, which is contributing to coal supply difficulties.  

Also, some producers have not ramped up production as fast as expected as winter approached, the State planner 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China encourages medium, long-term coal contracts to stabilize prices

Source: www.chinamining.org         Citation: Xinhua     Date: November 09, 2016

China is pushing for medium and long-term contracts between coal producers and buyers to stabilize supply and rein in market volatility as surging coal prices have heated concerns about the industry`s ongoing cuts on excessive capacity.  

Major coal miners Shenhua Group and China National Coal Group Corp on Tuesday inked such contracts with China Huadian Corp and State Power Investment Corp, both thermal power conglomerates.  

The two sides specified the amount of coal supply for the contract length and set a basic price of 535 yuan ($78.87) per ton, with clauses to allow for market-oriented price adjustments. No further details were disclosed.  

The cooperation of State-owned coal and power companies is the latest push by the authorities to ease the current coal shortage.  

"It will help maintain the stability of coal prices and the market," Xu Kunlin, deputy secretary general of the National Development and Reform Commission, said at a press conference Wednesday.  

Xu promised policy support and encouraged more mid- and long-term contracts to be inked in the sectors.  

Coal prices are on the rise due to a temporary supply shortage, as well as temperature drops and speculative activities.  

The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China`s major ports, rose to 607 yuan per ton last week, the 18th consecutive rise and about 63.6 percent up on the start of the year.  

Xu described the price hike as "irrational." China`s coal reserves generally remained stable as effective production capacity stood at around 5.4 billion tons after outdated and under-performing mines were shut down.  

"We are completely capable of guaranteeing coal supply," Xu said, citing relaxed daily output limits for efficient coal producers and huge untapped potential of clean energy. 

Xu also dismissed concerns that surging prices will have a negative effect on the overcapacity reduction drive.  

"It (the price rise) will not last in the long run and the coal industry is still plagued by overcapacity. The government`s resolution (on excess capacity cut) is unwavering," Xu said.  

China is downsizing its coal industry, planning to cut coal capacity by half a billion tons in the next few years.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China October iron-ore imports lowest since Feb - customs

Source: www.chinamining.org         Citation: Reuters     Date: November 08, 2016

China imported 80.8-million tonnes of iron-ore in October, the lowest since February and down 13% from the previous month, official data from China`s customs showed, as steel mills curtailed output amid tightening profits and soaring costs.  

Compared with a year ago, shipments of the steelmaking ingredient were still up 7%.  

Imports of steel products fell 4.4% to 1.08-million tonnes while exports fell 12.5% to 7.70-million tonnes, data from the General Administration of Customs showed.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China links gold market with Dubai

Source: www.chinamining.org         Citation: China Daily     Date: November 01, 2016

SGE, world largest physical bullion exchange, says in other talks about similar cooperation

Shanghai Gold Exchange and Dubai Gold and Commodities Exchange signed an agreement on Friday in Shanghai which makes the DGCX the first foreign exchange to use the SGE`s renminbi-denominated gold benchmark.  

The SGE is in talks with other exchanges about similar cooperation, according to an SGE circular.  

SGE is the world`s largest physical bullion exchange. The renminbi-denominated gold benchmark, also known as Shanghai Gold was launched in April this year. It is one of China`s efforts to earn more say over pricing of the precious metal and increase its influence in the global gold market. 

China is among the world`s largest producers, consumers and importers of gold, and it deserves pricing power that matches its position. It should have more say in an industry long dominated by London, which sets global spot prices, said analysts.  

In an industry meeting last week in Singapore, Jiao Jinpu, president of SGE, said the exchange would collaborate with various exchanges and authorities so that external exchanges will start using the Shanghai Gold benchmark as a basis for developing derivatives.  

"The world is looking to the East and we are looking to the future," Jiao said.  

By the end of September, SGE`s international bourse has had transactions of 7,838 metric tons of gold with a combined value of 1.96 trillion yuan ($289 billion).  

Although the number of SGE`s current international members is not big, just 67, the best of the members have already gained significant yields from the opening up of China`s gold market, said Jiao.  

The agreement between SGE and DGCE also marks a milestone for Shanghai Gold to become a truly inclusive and globally-used tool in the world gold market, said analysts. 

"There is a quite obvious trend that the focus of the gold market has been shifting from the West to the East, with increasing demands for investment gold products and increasingly active trading of gold futures and other derivatives in Asia, particularly in China. More use of the Shanghai Gold benchmark globally means that China has a better say in pricing," said Yang Fei, an analyst with Seawonder Precious Metal Investment Co.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China sets limit on annual rare earth mining volume by 2020

Source: www.chinamining.org         Citation: Xinhua     Date: October 19, 2016

China announced Tuesday that it will limit its annual mining of rare earth within 140,000 tonnes by 2020 in its latest attempt to overhaul the sector and ensure its sound development.   

The government will continue to investigate and apprehend anyone involved in illegal mining, processing or trade in rare earth metals and better manage market access, according to a rare earth development plan for the 2016-2020 period, released by the Ministry of Industry and Information Technology (MIIT).  

Rare earth comprises a class of 17 mineral elements which are some of the most sought-after metals due to their vital role in green technologies like wind turbines and car batteries. They are also used for military purposes.   

China is the world`s largest rare earth producer and exporter, but the industry is beset by myriad problems, such as illegal mining, smuggling and a lack of competitiveness due to weak research and development. Excessive exploration has also caused environmental damage.   

To upgrade the industry, the MIIT plans to improve efficiency across resource management and technological innovation by 2020.   

During the 12th Five-Year Plan period (2011-2015), 14 illegal rare earth mines and 28 companies were closed. More than 36,000 tonnes of illegal rare earth products were seized, and 230 million yuan in fines was imposed, according to statistics from the MIIT.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

SinoChem, ChemChina subsidiaries deny reports of talks for $100b merger

Source: www.chinamining.org         Citation: Global Times     Date: October 17, 2016

Multiple subsidiaries under SinoChem Group and China National Chemical Corp (ChemChina) denied media reports claiming that the two groups are in merger talks, financial news portal ifeng.com reported on Sunday.  

State-owned chemical companies SinoChem Group and ChemChina are in discussions about a tie-up to create a global chemical, oil and agricultural giant with almost $100 billion in annual revenue, Reuters reported Friday, citing three sources familiar with the matter. 

Measured by revenue and profits, Sinochem is much larger than its rival ChemChina, which is finalizing a $43 billion takeover of Swiss pesticides and seed group Syngenta. That deal would be China`s largest-ever foreign investment.   

The domestic merger was proposed by China`s central government as part of its effort to slash the number of State-owned companies and create larger, more competitive global industry players.   

Five listed units of ChemChina, including Shanghai-listed Aeolus Tyre Co, said in stock filings that after contacting the group company and stakeholders, they had found no government information in written or oral form about a reported merger between SinoChem and ChemChina as of Sunday.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.