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China iron ore slides to 7-month low on surplus

Source: www.chinamining.org Citation: Reuters Date: June 15, 2017

China`s iron ore futures tumbled to their weakest level in almost seven months on Wednesday, underlining concerns over surplus supply that has pulled down spot prices to their lowest in a year.

Stockpiles of imported iron ore at China`s ports reached 140.05 million tonnes on June 9, the most since 2004, according to data tracked by SteelHome consultancy. "Rising seaborne supply and high port stockpiles continue to weigh on prices," Commonwealth Bank of Australia analyst Vivek Dhar said in a note. 

"Demand has also weakened as Chinese steel mills look to use more scrap steel in their blast furnaces," said Dhar, adding that scrap steel prices have fallen sharply following Beijing`s crackdown on induction furnaces. 

China has vowed to shut by the end of June all producers of highly polluting low-quality steel that use induction furnaces which consume steel scrap as raw material. The most-traded iron ore contract for September delivery on the Dalian Commodity Exchange was down 2.5 percent at 416.50 yuan ($61) a tonne by 0200 GMT. It earlier fell as far as 412.50 yuan, the lowest since Nov. 21. 

Weaker futures dampened bids in the spot iron ore market, traders said, dragging the spot benchmark by nearly 3 percent. 

Iron ore for delivery to China`s Qingdao port fell 2.8 percent to $53.36 a tonne on Tuesday, the lowest since June last year, according to Metal Bulletin. 

Iron ore has lost nearly a third of its value this year, underperforming other commodities such as nickel and oil . 

Softer steel prices also weighed on iron ore, with rebar futures in Shanghai down for a second straight day. The most-active rebar on the Shanghai Futures Exchange slipped 1.2 percent to 2,959 yuan per tonne. 

ANZ analysts said the weakness in steel prices was driven by a new directive from China`s top state planner that there would be no approval of new entities investing in vehicles powered by fossil fuels. 

The policy issued by the National Development and Reform Commission this week extends to the automotive sector Beijing`s fight against overcapacity and "zombie" firms that is already underway in the coal and steel sector. Zombie firms are economically unviable enterprises that often survive with the support of local governments and banks.

($1 = 6.7973 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 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 trucks to ports will be banned

Source: www.chinamining.org Citation: China Daily Date: June 14, 2017

An environmental inspector tests the exhaust emissions of a truck at a logistics park in Beijing`s Tongzhou district in November.Guo Qian / For China Daily

Only trains will be allowed as part of effort to reduce air pollution 

Authorities have put the brakes on diesel trucks transporting coal to and from seaports in northern China. It`s one of a series of new measures to cut vehicle exhaust emissions, a senior environmental official said on Tuesday. 

Since April, only trains are allowed to carry coal to Tianjin Port. Other ports, including Cangzhou and Tangshan ports in Hebei province, will follow suit in September, under an air pollution action plan for the Beijing-Tianjin-Hebei region. 

Before the ban, diesel trucks were making 6,000 to 7,000 journeys a day to Tianjin Port, Liu Bingjiang, head of air pollution control at the Ministry of Environmental Protection, said on Tuesday at the Environmental Protection Industry Innovation and Development Conference.

Emissions from a heavy diesel truck are equal to those of 200 gasoline-powered cars, he said, adding that the move will significantly lower the concentration of PM2.5, fine particulate matter in the air that can harm health. 

Diesel trucks make about 2 million trips to deliver around 60 million metric tons of coal a year to Tianjin Port, according to the ministry. 

The coal usually comes from Shanxi and Hebei provinces and the Inner Mongolia autonomous region, via Beijing, making the trucks significant polluters of the Beijing-Tianjin-Hebei regions. 

"It wasn`t an easy decision, but we have to push forward despite the huge economic loss if we want to combat air pollution," Yuan Yi, manager of the port`s logistics company, was quoted as saying by Tianjin Daily.

In April, 16 shipments came to the port by train, up from 10 shipments in March.

In addition to the truck ban, the ministry "will take tougher measures to control vehicle exhaust emissions, which have contributed more pollutants in recent years," Yuan said. 

Last year, China had 295 million registered vehicles; and in 15 major cities, including Beijing, Tianjin and Shanghai, exhaust emissions contributed between 13.5 percent and 41 percent of all airborne pollutants, according to ministry figures. 

About 33 percent of all registered vehicles in China, including trucks and cars, are in the Beijing-Tianjin-Hebei region. 

The ministry plans to halt all truck transportation for companies whenever the region issues an emergency warning for air pollution next winter. 

It also issued the National VI standard for exhaust emissions - the strictest in the world - which could cut emissions by 90 percent from the National I standard, Liu said.

In addition, along major expressways in the region, new stationary remote-sensing equipment will test moving cars` emission levels by the end of this year, he 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 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 to set up combustible ice bases for industrial development

Source: www.chinamining.org     Citation: AFP        Date: June 08, 2017

An indirect coal-to-oil project operated by Inner Mongolia Yitai Group Co has started operations in Erdos, North China`s Inner Mongolia Autonomous Region, the Economic Information Daily reported Monday. 

As a model project in the industry, its cost exceeded 29 billion yuan ($4.2 billion). 

Its annual output is forecast at 2.15 million tons of oil products and liquefied natural gas, the report said. The project will use domestic industrial technology. 

The project will be specifically operated by Inner Mongolia Yitai CTO Co, an advanced technology company that is 9.5 percent owned by Inner Mongolia Yitai Group Co. 

Intended to promote the clean use of coal and help the structural adjustment of the local economy, the opening of the project was approved by the National Development and Reform Commission at the end of last year, according to a statement on the company`s website.  

The company operated a coal-to-oil project with annual output of 160,000 tons in 2006, at which the first qualified barrel of oil was produced, according to the company.

The implementation of the Yitai project will enhance the transformation of traditional coal enterprises and accelerate the upgrading of China`s product oil quality, according to industry insiders, the report said. 

China`s coal-to-oil capacity utilization reached 58.6 percent in 2016, up 20 percentage points year-on-year, according to a report released by the China Petroleum and Chemical Industry Federation in April.

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 in September 23-25, 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.

New resource seen boosting energy

Source: www.chinamining.org     Citation: China Daily     Date: June 05, 2017

Workers celebrate successful trial extraction of natural gas hydrate in South China Sea last
month.[Photo provided to China Daily]

Combustible ice exploration may see industry role on policy backing

China`s reserves of combustible ice, a natural gas hydrate, are estimated at 80 billion metric tons of oil equivalent, which suggests massive resource potential, the Ministry of Land and Resources said in Beijing on Friday.

Li Jinfa, deputy director of the ministry`s China Geological Survey, told a news conference that the natural gas hydrate, which is flammable like solid ethanol, could well be China`s next big opportunity in energy.

"So far, trial mining of combustible ice in the Shenhu sea, about 320 kilometers southeast of Zhuhai in Guangdong, has made smooth progress with an average of 8,350 cubic meters of gas with high purity extracted each day," Li said.

So, the ministry has approved the gas hydrate as a new mineral, 173rd for the country, having recognized shale gas as a separate mineral in 2011.

This would mean relevant policies will likely be formulated to encourage explorers to participate in the exploration of various types of combustible ice, he said.

Li further said aspects like exploration, block delineation, granting of licenses for mining, mining registration and development will be accorded priority.

Last month, China announced it succeeded in mining combustible ice at sea after nearly two decades of research and exploration.

A Xinhua report said combustible ice usually exists in seabed or tundra areas, which have the strong pressure and low temperature necessary for its stability.

One cubic meter of combustible ice is equal to 164 cubic meters of regular natural gas.

Experts have predicted that the natural gas hydrate is the best replacement for oil and natural gas, and could prove to be a major breakthrough that may revolutionize the global energy industry.

Li said test drilling and production last month by China International Marine Containers Group and China National Petroleum Corp have laid a solid foundation for possible commercial use of the resource before 2030.

So, China would accelerate the exploration of potential combustible ice reserves, launch trial mining of different types of combustible ice, and continue to strengthen marine science and technology innovation, he said.

Yu Haifeng, a senior official of the Ministry of Land and Resources, said China will strengthen its mineral resources management to promote development of the natural gas hydrate.

The ministry said it has so far delineated two mineral deposits, one of 123.1 billion cubic meters and the other of 150 billion cu m.

Analysts believe extraction of combustible ice is technically feasible but will take some time to become economically feasible.

The next step for China`s combustible ice exploration is to reduce exploration and transportation costs, lower its impact on environment, particularly the mine`s neighborhood, said Li Naisheng, head of the National Marine Science Research Center in Qingdao.

China should further come up with a technical standard and system for the natural gas hydrate exploration while enhancing its independent research and development capacity, he said.

Xinhua contributed to this story.

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 in September 23-25, 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.

CNPC, Chalco sign strategic cooperation agreement

Source: www.chinamining.org     Citation: Xinhua       Date: May 31, 2017

China National Petroleum Corporation (CNPC)and the Aluminum Corporation of China Limited (Chalco) have signed a strategic cooperation agreement to expand the areas in which they work together.

In March, the two companies formed a joint venture, which has recently gained its business license, according to CNPC.

The two sides will cooperate on fuel supply, the application of non-ferrous metals and international trade.

CNPC is China`s largest oil and gas producer and supplier, while Chalco is the country`s top aluminum producer.

Earlier data showed net profits made by PetroChina, the listed arm of CNPC, totalled 5.7 billion yuan (about 828.5 million U.S. dollars) in the first quarter.

Chalco made 920 million yuan in net profit in the first three months, nearly four times the amount in the same period last 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 in September 23-25, 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.

Chinese exports have little impact on U.S. steel industry: ministry

Source: www.chinamining.org     Citation: Xinhua     Date: May 31, 2017

The Ministry of Commerce (MOC) Thursday rejected U.S. claims that China is behind the global steel overcapacity, saying its exports have little impact on the U.S. steel industry.

China understands that the United States is concerned about the closure of U.S. steel companies and the resultant unemployment of blue-collar workers, but the root cause of this wave of global steel overcapacity is shrinking demand due to economic downturn since the global financial crisis, the MOC said in a research report on China-U.S. economic and trade relations.

The report said it is untenable that the United States, while acknowledging the current steel overcapacity is a global issue that requires collective responses, blamed the Chinese government support for the steel sector as an important reason for the excess capacity.

China`s steel industry is positioned to meet domestic demand, and the Chinese government does not encourage the export of iron and steel products, but has adopted a series of measures to control exports, according to the report.

It said the proportion of China`s steel exports within the United States total steel imports is small, citing a year-on-year decrease of 51.5 percent in the volume of Chinese steel exports to the United States and a 40.1-percent decline in the value in 2016.

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 in September 23-25, 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.

UDM shows China is backing Russian energy industry 

Source: www.chinamining.org     Citation: China Daily     Date: May 23, 2017

A ship carrying one of Sinopec`s modules for a project in Russia is about to leave a port in China. PROVIDED TO CHINA DAILY

The world`s largest refiner, China Petroleum & Chemical Corp, also known as Sinopec, and Russia`s Rosneft Oil said they will deepen cooperation to stengthen their joint venture Udmurtia Petroleum Corp. 

The joint venture, simply known as UDM, was bought out by the two oil and gas giants in August 2006. Rosneft took a 51 percent stake in UDM and Sinopec 49 percent.

UDM is in Udmurtia, a Denmark-sized republic within the Volga Federal District in western Russia.

UDM has increased production by 7.7 percent and its reserves are up 9.5 percent since it was kicked off 11 years ago.

The average annual profit has been more than $450 million with annual net cash flow exceeding $400 million. By the end of 2015, the cumulative net profit reached $4.58 billion, it said.

UDM discovered two new oil fields totaling 800,000 metric tons of reserves in Udmurtia this year.

Wang Jun, general manager of Sinopec`s Russian unit, said China`s Belt and Road Initiative provides a wonderful opportunity for cooperation with Russia in the oil and gas sector, and Chinese companies should seize it to make new breakthroughs.

Russia has abundant energy resources, and Chinese oil and gas companies can provide the necessary technology for exploration and development, he said.

Chinese companies should look at Russia as a key strategic region, considering its political stability and low risk to resources, Wang said.

Analysts said China has always viewed Russia as its top-priority partner for investment cooperation and is ready to take an active part in the development of Russia`s Far East region.

According to Li Li, energy research director at ICIS China, a consulting company that provides analysis of China`s energy market, China and Russia have forged a variety of oil and gas ventures and investments in recent years, including the Yamal LNG project located in the Arctic region of Russia and Sinopec`s purchase of a 10 percent share in Sibur, Russia`s largest gas processing and petrochemicals company.

The Yamal project, the world`s first integrated project for polar natural gas exploration, development, liquefaction and transportation, is expected to begin operations this year, and much of Yamal`s output will be supplied to China and other Asian countries.

"China is a top buyer of Russia`s abundant oil and gas resources, as well as a strategic partner of international cooperation for joint exploration," said Li.

"In addition, China`s financial support from institutions like the China Development Bank also deepens bilateral cooperation."

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 in September 23-25, 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.

visit: www.chinaminingtj.org.

China receives first oil from Myanmar pipeline

Source: www.chinamining.org     Citation: Xinhua       Date: May 22, 2017

The first crude oil from Myanmar has reached China via the China-Myanmar crude oil pipeline, China National Petroleum Corporation (CNPC) announced on Friday. 

The oil reached Ruili, a city of Yunnan Province bordering Myanmar, at 4 p.m., according to the CNPC.

It will continue to flow through the pipe at a speed of about 50 kilometers per day for 650 km before reaching the city of Anning where the CNPC`s Yunnan petrochemical branch is located.

The branch has a designed processing capacity of 13 million tons per year.

The 1,420-km long cross-border pipeline is a part of the China-Myanmar oil and gas pipeline project.

The project, which comprises a crude oil pipeline and a gas pipeline, is a state-operated collaboration between China, Myanmar and international commercial partners.

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 in September 23-25, 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.