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China has 31.97 mln tonnes of oil reserves

Source: www.chinamining.org         Citation: Xinhua    Date: September 6, 2016

China had 31.97 million tonnes of national oil reserves at the start of 2016, said a statement by National Bureau of Statistics (NBS) Friday.   

The oil was at eight strategic storage bases, including those in Zhoushan, Zhenhai, Dalian, Huangdao, Dushanzi, Lanzhou, Tianjin, as well as some corporate facilities.

Based on oil data released by CNPC Economics & Technology Research Institute, the reserves are equivalent to 36 days of China`s oil imports, far below the standard stockpile level in countries like the United States and Japan.  

China`s state strategic oil reserve base program was launched in 2004 to offset oil supply risks and reduce the impact of fluctuating energy prices worldwide on the domestic market for refined oil.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Chinese July thermal coal imports jump 31% on year to 19-month high

Source: www.chinamining.org         Citation: Platts    Date: August 25, 2016

China imported 9.31 million mt of thermal coal in July, rising 30.7% year on year and up 23.5% from June to the highest level since December 2014, according to data released by the General Administration of Customs Wednesday.

The volume included 7.23 million mt of bituminous material -- also a 19-month high -- and 2.08 million mt of sub-bituminous coal, but excluded imports of lower CV lignite material.

Thermal coal buyers in China have been increasing their intake of imported thermal coal after a policy to restrict domestic coal production was implemented in April, reducing the working days of miners to 276 days, tightening up domestic supply and resulting in higher prices of such material.

During the January-July period, China imported 49.88 million mt of thermal coal, climbing 0.8% from the same period in 2015. This is the first month this year that the year-to-date volume has been higher than the year before.

Australia remained the largest shipper of thermal coal to China in July at 4.61 million mt, rising 16% on the year and up 43% from June to a 15-month high.

Indonesia sent 3.23 million mt to China in July, 54% higher on the year and increasing 11% from the previous month to the highest monthly volume since December 2014.

China`s imports of Russian thermal coal jumped 57% on the year to 1.34 million mt, which was also 4% higher on the month and at a four-month high.

Total lignite imports for July rose 4% on the year to 5.13 million mt, but dropped 17% from June`s 26-month high. Of the total, 4.46 million mt was received from Indonesia, down 4% on the year and falling 13% from the previous month.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China oil giants suffer from dropping crude prices

Source: www.chinamining.org         Citation: Xinhua      Date: August 25, 2016

Despite rising output, China`s major oil producers posted lackluster performance in the first half of the year weighed upon by dropping global crude prices.

China National Petroleum Corporation (CNPC) registered a nearly 97.9 percent decline in its net profit, making only 531 million yuan (almost 80 million US dollars), while China National Offshore Oil Corporation (CNOOC) saw a loss of 7.74 billion yuan.

However, the oil yields of CNPC and CNOOC rose 1.7 percent and 0.6 percent year on year, respectively.

Another oil giant, Sinopec Group has yet to release its half-year financial report.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

CIC leads Vale talks to secure iron ore supplies

Source: www.chinamining.org         Citation: Bloomberg    Date: August 24, 2016

Chinese consortium negotiating buying portion of future production for as long as 30 years

China Investment Corp, the $814 billion sovereign fund, is leading an investor group in talks for a multibillion-dollar iron ore supply deal with indebted Brazilian miner Vale SA, people familiar with the matter said.

The Chinese consortium is negotiating the potential purchase of a portion of Vale`s future iron ore output for as long as 30 years, two of the people said, asking not to be identified as the information is private.

Vale could fetch about $9 billion in upfront cash from the sale, one person said. No agreements have been reached, and the talks may not result in a transaction.

Some Chinese companies and Japanese trading houses have also held discussions with the Rio de Janeiro-based company about possible deals, including acquiring a minority stake in Brazilian iron-ore assets owned by Vale, the people said.

Vale has joined global miners Freeport-McMoRan Inc, Glencore Plc and Anglo American Plc in selling assets after its net debt swelled to about $27 billion as a commodity rout eroded earnings. Chief Executive Officer Murilo Ferreira raised the prospect of selling some of the company`s most prized assets in February, after the miner reported its first year of losses since 1997.

The world`s top iron-ore producer has exited coal mines in Australia and is in talks with US fertilizer producer Mosaic Co to sell its South American potash and phosphate assets, which may fetch about $3 billion, people familiar with the matter said. Vale said it wants to raise about $10 billion through next year.

CIC is also part of a group alongside Brookfield Asset Management Inc and Singapore sovereign wealth fund GIC Pte that is close to buying a stake in a Brazilian natural gas pipeline network from state oil company Petrobras for nearly $6 billion, people familiar with the matter said in June.

Vale`s Samarco mining joint venture with BHP Billiton Ltd, whose operations were halted last year after a dam spill, is seeking a standstill agreement on about $1.6 billion in bank loans as its owners refuse to cover debt payments until mining resumes, people with knowledge of the matter said this month.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

China`s steel, coal capacity cuts shouldn`t be left to year`s end: NDRC

Source: www.chinamining.org      Citation: Platts     Date: August 23, 2016

Targets for capacity cuts in the steel and coal industries should be worked towards evenly over the rest of the year, and shouldn`t be left to the eleventh hour, an official at China`s top economic planner said Friday.

Monthly updates will be compiled to monitor progress.

"Either arising from a misunderstanding or reasons related to self interest, some companies had thought it was fine as long as they met the year`s targets by the end of the year," Lian Weiliang, deputy head at the National Development and Reform Commission said at a press briefing.

"And so many companies have timed the cuts for the fourth quarter, or simply in December."

The briefing by the NDRC, jointly held with officials from the State Council and the ministries of industry and commerce, follows a meeting chaired by Premier Li Keqiang last Tuesday, announcing that nationwide audits will be made to ensure targets set for this year are adhered to and achieved.

"We have now provided guidance that the capacity cuts cannot all be concentrated at the end of the year, because the work is very complicated and there is a lot to be done, especially in terms of the reassignment of workers and in dealing with debt," Lian said. "And closing capacity involves dismantling equipment, shutting mines, all of which need time, so we`re requesting that companies do their best to move things forward."

The audits will be conducted first through self-appraisal by local authorities, who have been asked to identify issues, sum up their experiences and suggest areas for improvement.

Then, officials from the central government will conduct on-the-ground checks. Inspectors, split into 10 teams, will begin audits from this week to September 10, and will focus on eight areas including the implementation of capacity cuts, the use of funds intended to cope with the fallout and the reallocation of displaced workers.

As of the end of July, 21.3 million mt/year of crude steel capacity cuts have been achieved, or 47% of the 45 million mt/year set as this year`s target.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Rare earths firms go high tech to tap world market

Source: www.chinamining.org         Citation: China Daily    Date: August 11, 2016

The rare earths industry in Baotou, the Inner Mongolia autonomous region, is seeking more technology-intensive deep processing to further tap into the international market, said officials in the city.

Wang Zhonghe, Party chief of Baotou, said that the city has set the goal of upgrading its rare earths industry from just exploiting raw materials to developing more comprehensive deep processing technologies with higher added value.

"By the end of 2017, the value of the annual rare earths output in Baotou is expected to reach more than 40 billion yuan ($6 billion). The city will become the biggest rare earths hydrogen storage and technological research and development base," said Wang at the China Baotou International Rare Earths Industry Forum on Monday.

The revenue of the rare earths industry in Baotou was 14.4 billion yuan in 2015, up 12 percent from the same period of the previous year.

China has the largest rare earths reserve and output in the world. Yet its rare earths products have been exported at very low prices.

"Illegal exploitation and export, plus low technological content, are the reasons for the low prices of China`s rare earths products," said Wei Renpeng, a researcher at Zero Power Intelligence Group, an industrial research institute based in Shenzhen, Guangdong province.

In 2015, the central government designated Baotou as the pilot city for rare earths reform. The structure of the rare earths industry in Baotou has changed noticeably, said Zhou Changyi, director of the raw materials industry department of the Ministry of Industry and Information Technology.

Zhou said that, compared with 2014, Baotou`s current output of rare earth magnets has increased by 1.2 times, 2.3 times for rare earth alloys, 23 percent for rare earth catalysts, and 1.2 times for the number of patents.

A 6.66 billion yuan rare earths industrial transformation fund was founded at the forum. The fund has so far participated in 22 projects, with planned investment of 900 million yuan. The projects include: industrialization of high-performance rare-earth permanent magnets, rare earth hydrogen storage, rare earth polishing powder, rare earths for magnetic resonance imaging device, high-power wind turbine, magnetic refrigeration, batteries for new-energy vehicles, among other sectors.

During the forum, 31 contracts were signed, valued at nearly 10 billion yuan, encompassing electric vehicle high-performance magnets, electrical system control development, abrasive substances for rare earths and nickel-metal hydride batteries.

Tianhe Advanced Tech Magnet Co Ltd, a company specialized in permanent magnet research and development has signed a memorandum with Electron Energy Corp, a rare earth magnet producer in the United States.

Chen Ya, vice-president of Tianhe, said that the company`s core competence is its own patents in rare earth processing.

"We mainly export to the European market. This is the first time that we have ventured into North America. EEC will help us in localization and sales channels.

"The world economic slowdown has indeed affected the rare earth industry. Yet in the long run, high-tech products are going to grow fast.

"New-energy vehicles alone will be able to drive up the demand for rare earths," said Chen

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

BP seeks buyers for petrochem JV stake

Source: www.chinamining.org         Citation: China Daily     Date: August 11, 2016

British oil major BP Plc is seeking buyers for its 50 percent stake in a Chinese petrochemicals joint venture, its single largest investment in China, in a deal that would fetch $2 billion to $3 billion, people familiar with the matter said.  

BP has hired an investment bank to sell its shareholding in Shanghai SECCO Petrochemical Co Ltd as part of a drive to cash out of businesses where it lacks control, the sources added.  

A successful deal would mark BP`s first significant exit from a business in China.  

Situated in Caojing near Shanghai, SECCO is China`s largest petrochemicals refinery and was built at a cost of $2.7 billion, according to BP`s website.  

State-owned China Petroleum & Chemical Corp, known as Sinopec, and one of its units hold the other half of SECCO, according to the website.  

A London-based BP spokesman declined to comment, and Sinopec did not offer immediate comment. 

SECCO, a venture formed in 2001, produces ethylene and propylene, which are used to make resins, plastics and synthetic rubbers.  

While Sinopec has the right of first refusal on the potential sale, bankers said Chinese State-owned enterprises are unlikely to step in to buy the stake.  

BP`s stake has been marketed to existing refinery operators in China, including companies from Japan, South Korea and Europe, the sources added.  

BP, like other global oil and gas companies, has been sharpening its focus on costs and core businesses as it reels from lower oil prices.  

It has sold more than $50 billion of assets since the deadly 2010 Gulf of Mexico oil spill in order to pay for cleanup costs and legal bills. This year, it plans to offload between $3 billion and $5 billion worth of assets, of which $1.9 billion has been agreed, it said when releasing second-quarter earnings last month.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.

Venezuela, China join efforts to produce oil

Source: www.chinamining.org         Citation: Xinhua      Date: August 8, 2016

State-run oil companies of Venezuela and China are joining hands to boost oil output from the Orinoco oil belt in southeastern Venezuela, which boasts one of the world`s largest oil reserves.  

The Venezuelan government is seeking to export up to 1 million barrels of oil a day to China. Venezuela`s PDVSA and China National Petroleum Corporation (CNPC) are working together on an expansion plan to raise the export from the current 600,000 barrels per day (bpd), turning the South American country into a reliable oil exporter. 

"We want to ensure a steady supply regardless of oil prices," Venezuela`s Oil Minister Eulogio del Pino told Chinese media after a recent visit to the oil belt.  

The expansion plan involves improving infrastructure for the joint venture Sinovensa running in the oil belt between the two countries, in the hope of raising its oil output to 275,000 bpd from the current level of some 170,000 bpd.  

The two state-run oil companies are also planned to improve Venezuela`s capacity for oil processing, by building a new dehydration and desalination plant and doubling the capacity of the Jose Processing Plant, based in the state of Anzoategui, to at least 330,000 bpd of extra-heavy crude oil in 2017.  

"We also have approved loans of $5 billion from the China Development Bank for other sides," including inputs in other joint ventures, said del Pino.  

Meanwhile, China and Venezuela are trying to make the transportation of crude oil from the Orinoco oil belt to China faster and more efficient.  

"Currently, a super oil tanker leaves Venezuela every three days for China and it takes 45 days to reach China. We will be able to shorten the voyage by traveling via the newly expanded Panama Canal," said del Pino.  

To this end, a new terminal for oil tankers will be built this year on the Araya peninsula in the state of Sucre.  

Furthermore, the southern Chinese city of Jieyang in Guangdong province is building an oil refinery aimed at processing up to 400,000 bpd of oil coming from Venezuela.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2016, please visit: www.chinaminingtj.org.