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China-Myanmar joint pipeline starts delivering gas

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

An oil pipeline connecting Myanmar`s western coast and China`s southwestern Yunan province has been completed and is expected to begin operating later this year. It is one of two pipelines built by the China-Myanmar Pipeline Project. The other - a gas pipeline that runs parallel to it - began operating last year. The project is expected to benefit more than 100 million people in the two countries.   

Twenty-seven-year-old Kania Aung checks gas pipes to make sure there is no leakage. He is one of six local employees working at the Mandalay off-take station of the project.   

Six companies from China, Myanmar, South Korea, and India have created two joint companies to develop the project. And China National Petroleum Corporation, or CNPC, is the controlling party of the joint venture.   

The two pipelines are expected to provide Myanmar with 2 million tons of crude oil and 2 billion cubic meters of natural gas annually. Thirty years from now, the two pipelines will be transferred to the Myanmar government, becoming part of the country`s national assets.

Xinhua, vice president of South-East Asia Gas and Crude Oil Pipeline Co. Ltd., said that CNPC has invested around US$15 million into local public welfare projects, including power plants, medical treatment, and education. Myanmar is still a relatively poor country, but its economic potential has been enhanced by access to foreign resources, in the form of trade, foreign investment, and multilateral assistance.

Last year, outside firms invest a record-breaking US$3.5 billion into Myanmar. And there was more than US$1 billion in foreign direct investment in the first two months of the current fiscal year.

It will be difficult for Myanmar to quickly establish a business environment in which foreign investors such as CNPC can have immediate and total confidence. But as Myanmar is determined to open up, the country is keen to see foreign investors help lift its economic performance to its full potential.

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.

PetroChina to seal takeover of Athabasca oil sands project by September

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

State oil giant PetroChina plans to pay the more than $1-billion it needs to complete a takeover of the Dover oil sands project from Canadian firm Athabasca Oil Corp. by the end of September, a person with knowledge of the deal told Reuters.
   
PetroChina was supposed to complete the acquisition of Athabasca Oil`s 40 percent stake in the project in June, but delayed the payment while it reassessed the deal amid a government-led corruption probe into the Chinese national oil company, the person said.
   
The internal review showed the geological structure of the project is more complicated than previous estimates, which would increase development costs, but the acquisition will go ahead, the person added.
   
"The next step is to complete the transaction," said the source, who declined to be named as he was not authorized to speak to the media. "PetroChina will pay in August or September."
   
Asked about the deal, PetroChina spokesman Mao Zefeng said: "At the moment, there is not any sign that PetroChina will not proceed with the project." He declined to comment further.
   
Officials at Calgary-based Athabasca Oil declined to comment on the payment.
   
Shares in Athabasca Oil tumbled last week after it said it was still trying to collect the $1.23-billion payment owed to it by a unit of PetroChina, Phoenix Energy Holdings Ltd, for the stake in the Dover project.
   
The delay triggered speculation that the deal may have been scrapped as the Chinese government investigates about a dozen former senior executives at PetroChina and its parent China National Petroleum Corp for alleged graft, including Beijing-based Song Yiwu, deputy head of CNPC`s overseas operations.
   
Song was deeply involved in PetroChina`s Canada businesses.
   
PetroChina, the world`s fourth most valuable oil company, in 2009 signed an agreement to acquire 60 percent stake in the Dover and MacKay River projects owned by Athabasca Oil for $1.9-billion in a major push into Canada`s reserve-rich but capital intensive oil sands industry.
   
Under the agreement, Athabasca Oil holds the option to sell its remaining 40 percent stake in the two projects to PetroChina after receiving relevant Canadian regulatory approvals. PetroChina bought the remaining 40 percent stake in MacKay River in 2012 for $680-million.
   
PetroChina and Athabasca are now negotiating the final sum for the remaining 40 percent stake in Dover, the person said, adding that the amount should be little changed from the $1.23-billion previously agreed upon.
   
The Dover oil sands project, 95 kilometers (59 miles) northwest of Fort McMurray, Alberta, is expected to eventually produce as much as 250,000 barrels of bitumen per day, according to filings by Athabasca.

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 Shenhua Energy hikes August prices

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

China Shenhua Energy Co Ltd , the country`s top coal miner, has raised its August coal prices after two consecutive months of cuts, trade sources said on Tuesday, in a move that may offer some relief to an industry suffering big losses.
   
The price hike by Shenhua comes as more than 70 percent of China`s coal firms are already making losses in the first half, according to the country`s coal association, with prices eroded by falling demand growth, a worsening supply glut and a war on smog.
   
Shenhua raised prices for benchmark coal with heating value of 5,500 kcal/kg by 4 yuan to 489 yuan ($79.25) for August, while its tier-1 quality coal (5,800 kcal/kg) was unchanged at 535 yuan a tonne, traders said.
   
"We`re about to enter a seasonal demand lull and orders will start to fall by mid-August. If the big boys don`t find ways to support the market, prices will drop further and the outlook will be very, very grim," said a Shanghai-based trader.
   
Hit by persistent oversupply and slackening demand, China`s benchmark thermal coal prices have been steadily falling since the start of the year and are now hovering at their lowest in more than six years, putting more and more miners under duress.
   
Taking the lead from the industry leader, China National Coal Group, the country`s second-largest producer, swiftly followed suit and hiked prices by a similar amount for August delivery, industry website China Coal Transport and Distribution Association (CCTD) reported on Tuesday.
   
Shenhua and China Coal could not be reached for comment.
   
Traders said the brief increase in spot demand from power plants during the searing summer would offer a reprieve for miners, with industry data from CCTD showing that average daily coal consumption by major coastal power plants has risen to about 700,000 tonnes from about 600,000 tonnes in mid-July.
   
Stocks at these major power plants have also fallen to an equivalent of 18 days of consumption, compared to 20 days earlier.
   
"Local prices should increase, or at least stabilise, now that the top miners have started to raise prices. But I`m not expecting any big rebound," said a second coal trader.
   
Analysts said the overall outlook for miners remain bleak unless steps were taken to cut production to allow swollen inventories to be digested.
   
Total coal inventories in China have hovered at around more than 300 million tonnes for 2-1/2 years, while unsold stocks at mines rose to a record high 99 million tonnes at the end of June, according to data from CCTD.
   
To tackle the supply glut, the coal association has proposed a series of plans aimed at cutting output by around 10 percent this year, local media reported.
   
Proposals include having miners register their monthly production, authorities stepping up checks on output and safety, and increased fines on firms that are producing above their approved capacity. ($1 = 6.1705 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.

State Grid buys stake in Italian firm for $2.8b

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

revenue, on Thursday agreed to buy a 35 percent stake in Italian energy grid unit Cassa Depositi e Prestiti (CDP) Reti for 2.1 billion euros ($2.8 billion), in one of the biggest investments in Italy by a Chinese company.
   
The stake in the deal will be sold to State Grid International Development Ltd (SGID), a wholly-owned subsidiary of SGCC. CDP Reti is wholly owned by CDP, a state holding company.
   
Liu Zhenya, chairman of the SGCC, said at the ceremony that the investment in CDP Reti is yet another breakthrough in the company`s overseas strategy and the company`s second-most important investment in Europe after power grid operator REN in Portugal in 2012.
   
The move follows a series of European infrastructure acquisition by Chinese State-owned titans whose investments have spanned across Europe. Among them are the People`s Bank of China`s partial acquisition of Italian energy companies Eni and Enel in March and Shanghai Electric Group`s stake purchase in power engineering firm Ansaldo Energia.
   
Chinese companies and individuals made outbound direct investments worth $43.34 billion from January to June, down by 5 percent from the same period last year, in 146 countries and regions, the Ministry of Commerce said on July 15.
   
As of June 2014, SGCC`s overseas assets amounted to over $23 billion, the company said in its statement. The profit yielded from its overseas investment grew from less than 800 million yuan ($128.08 million) in 2009 to 3.2 billion yuan in 2013, an increase of 309 percent, the company said.
   
SGID will appoint two board directors for the five-member board of CDP Reti and dispatch two finance officers to the company, according to a statement of the company e-mailed to the Global Times.
   
SGID will also nominate one board member for both gas transport group Snam and power grid Terna. The two firms are partly owned by CDP Reti.
   
"Against the backdrop of economic globalization, companies should not be satisfied in being a successful regional player. They must walk out of their national border and mingle with the world," Liu Zhenya said in the statement.
   
"We position ourselves as a long-term strategic investor in the overseas market, and our starting point is the stable operation of business and rewards over the long term," the statement said, citing a manager of SGID.
   
Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, said this is a milestone in State Grid`s "go out" strategy.
   
"Top Chinese companies will in the future become top multinational companies in the world, and overseas mergers and acquisitions like this one are necessary steps to that status," Lin told  the Global Times.
   
But Lin warned of the risks from the operation of the assets. "No one will sell an infrastructure project if it is a cash cow," Lin said.
   
SGCC invests, builds and operates a grid that covers over 88 percent of China`s territory, serving over 1.1 billion people. It ranked 7th among Fortune Global 500 companies in 2014 with revenue of $333.38 billion.
   
In 2013, SGCC acquired SP AusNet, a power company in Australia formerly owned by Singapore Power International. The company also bought 60 percent of SPI (Australia) Assets Pty Ltd, another Australian power company.

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 chemical industry`s output up 11.1% in H1

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

The value-added output of China`s chemical industry rose 11.1% year on year in the first half of this year, according to figures released by the National Development and Reform Commission.
   
The growth rate for the six-month period was 0.7% lower than it realized in the same period of 2013.
   
During the period from Jan to Jun 2014, the output of ethylene grew 5.3% year on year to 8.47 million tons, and those of plastics in primary form rose 11.5% to 33.71 million tons.
   
The country`s synthetic rubber output increased 9.9% to 2.49 million tons during the period and its synthetic fiber output increased 7.6% to 19.37 million tons.
   
In the first half of this year, China produced a total of 15.8 million tons of caustic soda, reflecting a year on year increase of 10.9%, while the output of soda ash, calcium carbide and pesticide reached 12.7 million tons, 11.81 million tons and 1.83 million tons, up 6.9%, 8% and 0.8% from a year earlier, respectively.

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 cement output up 3.6% in H1 to 1.14 bln tons

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

China`s cement output grew 3.6% year on year to 1.14 billion tons in the first half of this year, according to statistics released by the National Development and Reform Commission.
   
From Jan to Jun 2014, China`s flat glass output rose 4.7% year on year to 411.18 million weight boxes. The growth rate was 6.1% lower than that in the same period of 2013.
   
The average ex-factory price at major cement enterprises decreased RMB 6.4 per ton from May to RMB 348 per ton in Jun. At the end of Jun, the cement inventory of these major cement enterprises had increased 1.1% year on year to 19.27 million tons.
   
The price of flat glass stood at RMB 61.1 per weight box, remained flat from a month earlier.
   
The building material industry realized RMB 159.7 billion in profit in the first five months of this year, reflecting an increase of 20.7% year on year. The profit of the cement sector surged 69.5% to RMB 26 billion. The flat glass sector saw profit increase 46.7% year on year to RMB 1.79 billion.

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.

Gold deposits worth 6.46 billion USD discovered in Xinjiang

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

Geologists have discovered a large gold deposit worth a potential 6.46 billion U.S. dollars in northwest China`s Xinjiang Uygur Autonomous Region, local officials said on Tuesday.
   
With at least 127 tons of proven reserves, it is the largest gold deposit ever discovered in resource-rich Xinjiang.
   
It is located in Uqar County, which borders Kyrgyzstan in west Xinjiang, according to the regional bureau of geology and mineral exploration and development.
   
"It`s expected the total reserves will exceed 200 tons," said Cui Hongbin, head of the exploration team.
   
The discovery will not only increase China`s gold output, which totaled 211.07 tons in the first half of this year, but will also benefit local revenue and employment, said Cui.
   
The bureau spent two decades exploring the area, where geological workers found more than 20 belts of gold ore in the 20-square-km Sawayaerdun deposit, he said.
   
The discovery has attracted the attention of several major mine developers in China who have expressed interest in co-development.
   
In 2013, the bureau also discovered two gold deposits with proven reserves of more than 50 tons each in the counties of Xinyuan and Hejing. 

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 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.

Rare-earth output cap raised

Source: www.chinamining.org  Citation: Global Times  Date: July 28, 2014

A worker drives across a rare-earth mine in Shanghai in an excavator.

China plans to produce 10 percent more rare-earth metals in 2014 than that in the previous year, an official with the Ministry of Industry and Information Technology (MIIT) said on Thursday, noting that the government will keep its policy of export duties and quotas in place.
  
The country`s rare-earth metals extraction and production limit in 2014 is 10 percent higher than that of 2013, Huang Libin, an official at the MIIT, told a press conference on Thursday.
  
"The output cap was set after studying and analyzing the situation of the domestic and overseas market in recent years, and is jointly decided with the related government organs including the Ministry of Land and Resources," Huang said.
  
"The rapid development of China`s strategic and emerging industries, especially the new material and energy-saving and environmental protection sectors, drove the demand for rare-earth metals, making it necessary to raise the growth target," Huang said.
  
The industry-wide consolidation campaign was aimed at creating six major rare-earth metal companies, said the official, noting the campaign has been going on since January resulting in rising demand.
  
"The country`s economic growth in 2014 is forecast to be around 7.5 percent. That means overall demand still exists and the 10 percent growth target for the industry is within a reasonable range," Wu Chenhui, a nonferrous metal analyst with chinaiol.com, told the Global Times Thursday.
  
Rare-earth elements are a group of highly valued rare minerals used to make high-tech products from smartphones to hybrid cars and airplane equipment.
  
Wu said encouraging news about new-energy vehicles also stimulated the market of rare-earth metals.
  
President Xi Jinping said on May 24 that the new-energy vehicle sector should be given more importance in the future during a visit to Shanghai-based automaker SAIC Motor.
  
On July 13, five government agencies including the National Government Office Administration and the National Development and Reform Commission announced that new-energy vehicles must account for no less than 30 percent of all cars purchased by central government agencies and some city governments each year from 2014 to 2016.
  
Meanwhile, the State Council, China`s cabinet, announced on July 9 that new-energy cars will be exempted from a 10 percent purchase tax starting from September in a bid to save energy and combat pollution.
  
"One type of rare-earth metal is used as material to make motors for electric cars," Wu said. "A growth in electric car consumption will augment the rare-earth market."
  
"The industry has been going through a process of consolidation, and the strategy to establish large industry players will naturally lead to greater demand for exploration of the resources," Xu Haibin, a metal analyst with Ji`nan-based commodity consultancy Sublime China Information, told the Global Times Thursday.
  
However, the consolidation process has been less smooth than expected, according to Wu.
  
"The process is not without setbacks. Local governments at provincial level tend to resist nationwide consolidation and prefer to create local giants," Wu noted.
  
Coupled with strong growth in the domestic market, exports of rare-earth metals have also expanded rapidly.
  
Customs data shows that China exported 14,101 tons of rare-earth metals in the first half of 2014, rising 49.9 percent from the same period in 2013.
  
China exported 22,493 tons of rare earth in 2013, or about 73 percent of the export quota allowed.

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.