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CNOOC strikes oil, gas at S.China Sea exploration well

Source: www.chinamining.org     Citation: Reuters       Date: May 12, 2017

China`s CNOOC Ltd has struck "fairly good oil and gas flows" at a high-pressure exploration well in the Yingqiong basin in the western part of South China Sea, according to a statement posted at an official government website on Wednesday. 

The Yuedong 30-1-1 well strikes mostly gas flows

Its successful completion marks technological breakthrough in high-pressure and high-temperature wells

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 supply reforms driving seaborne thermal coal prices: analyst

Source: www.chinamining.org     Citation: Platts        Date: May 12, 2017

Chinese supply reforms are likely to continue to drive Asian seaborne thermal coal prices, which will have a knock-on effect across the globe, a Wood McKenzie analyst said Thursday.  

The supply reforms "are not finished," Prakash Sharma said during the company`s Global Thermal Coal Market Drivers webinar. "They are kind of a work in progress ... the Chinese coal industry is still a very complex industry and the whole market is in transition, moving away from very significant high demand to lower levels of demand going forward, so industry reforms and the pace of those will be important." 

In an effort to shore up declining domestic coal prices and address environmental concerns, the Chinese government in 2016 committed to a long-term goal of reducing its annual production by 1 billion mt by 2020, said Sharma. 

For the near-term, it also reduced the number of days mines could operate -- from 330/year to 276/year. 

But the resulting supply shortage pushed up domestic prices, along with seaborne prices. 

S&P Global Platts` FOB Newcastle 5,500 kcal/kg GAR assessment rose from its 2016 low of $39.30/mt in mid-February to a peak of $89.75/mt by early November. 

Prices then declined after the Chinese government suspended the operating days policy in November, and decided in late March not to reinstitute it. 

But if prices do climb again, or fall too low, the Chinese government will likely make policy changes to bring them within an acceptable range, said Sharma. 

Sharma said absent additional supply reforms from China, Wood McKenzie expects seaborne prices to decline to close to the marginal cost of roughly $60-$65/mt by the end of 2018. 

Platts on Thursday assessed FOB Newcastle 5,500 kcal/kg GAR at $65/mt, down $2 on day. 

However, should China reinstitute its 276 operating day limit, Sharma said there could be significant upside for seaborne coal prices. 

Longer term, seaborne coal demand is likely to increase, from roughly 900 million mt in 2016 to more than 1 billion mt by 2035, driven mainly by southeast Asian countries such as Malaysia, the Philippines, Thailand and Vietnam. 

Sharma noted that are several risks to the projected growth, including decarbonization, the growth of renewables and the potential for breakthroughs in energy storage technology. 

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.

Sinopec promotes Belt, Road in drive for sustainable development

Source: www.chinamining.org     Citation: Global Times        Date: May 11, 2017

Sinopec Group, China`s oil giant, aims to establish a long-term sustainable development mode with countries and regions along the route of the "One Belt, One Road" (B&R) initiative by outlining a cooperative plan, according to a note Sinopec sent to the Global Times on Tuesday. 

The plan foresees a comprehensive update of industrial cooperation and a win-win sustainable development mode with countries and regions along the B&R route, Chairman Wang Yupu told a company meeting recently. 

Most countries and regions along the B&R route have rich oil and gas resources while Sinopec has advantages in refining and chemical engineering technology, as well as strong engineering service ability. On this basis, a complementary arrangement can be shaped, Wang said. 

The oil giant will further cooperate with these parties to adjust their energy strategies by developing and expanding three strategic zones in the Middle East, Russia and Southeast Asia, and building advanced advantages by creating two innovation centers in North Africa and the Middle East, Wang said. 

"The plan will help countries and regions along the B&R route release the potential of their rich resources and market advantages combined with China`s industrial advantage in petrochemical integration," Wang stressed.  

Sinopec said that it will also take advantage of traditional trade platforms and epec.com, China`s biggest e-commerce platform for industrial products, to enhance multilevel trade cooperation with countries and regions along the B&R route. 

Sinopec has become one of the most important and leading enterprises in cooperation with countries and regions along the B&R route, based on its hundreds of billions of dollars in investment over the past five years. 

In the sector of oil and gas exploration and development, Sinopec has cooperated with 11 countries and regions along the route such as Russia, Kazakhstan and Saudi Arabia, and it was involved in 18 projects worth $20.31 billion as of the end of 2016, the company told the Global Times on Friday. 

Imports of crude oil from 15 sources along the route reached 1.1 billion tons from 2011-16, it noted. 

Sinopec has played a significant role in the economic relationship between China and Saudi Arabia, the oil giant said. For example, Sinopec`s imported crude oil from Saudi Arabia represents the majority of China`s crude oil imports. 

Trade volume in the oil and chemical sector accounted for about half of the total bilateral trade volume over the past five years, according to the company. 

Bilateral trade reached $42.36 billion in 2016, the 13th straight year during which Saudi Arabia was the biggest trade partner of China in West Asia and Africa.

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.

China shut 320,000 mt/year aluminum, 10.96 mil mt/year steel capacity in 2016

Source: www.chinamining.org     Citation: Platts        Date: May 11, 2017

China closed 320,000 mt/year of outdated and obsolete refined aluminum smelting capacity last year, as well as 10.96 million mt/year of steel capacity, the Ministry of Industry and Information Technology said on its website Wednesday. 

The country also shut 6.77 million mt/year of iron capacity and 5.59 million mt/year of cement, shuttering more than 1,500 small coal mines with output capacity of less than 300,000 mt/year, with aggregate coal output capacity of over 100 million mt/year. 

The move is to ease surplus output capacity in the steel, coal and aluminum sectors, promoting energy saving and lowering emissions, the ministry said. 

It said the elimination of outdated and obsolete output capacity is a key component of China`s supply side reforms. 

The ministry said more means must be used to get rid of the outdated output capacity that does not comply with state standards, to allow supply resources and the energy to develop advanced output capacity and emerging industries, boosting quality and efficiency. 

MIIT said problems such as tightening domestic resources, aggravating environment pollution, as well as the weakening ecological system have hindered the building of a well-off society, so China has to eliminate the outdated output capacity in accordance with the law. 

China is forecast to have a small refined aluminum surplus of 230,000 mt in 2017, state-run metals consultancy Beijing Antaike told an industry seminar in April in Beijing, noting that investment in the domestic aluminum smelting sector may alter from the high capacity expansion growth in the past years to more reasonable, stable growth. 

The agency said during the 13th Five Year Plan period (2016-20), the conflict in China`s aluminum smelting capacity growth and stock volume is expected to be reduced, boosting aluminum prices in the long run.

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.

China`s crude oil imports ease from record, fuel exports fall

Source: www.chinamining.org     Citation: Reuters       Date: May 10, 2017

China`s crude oil imports eased in April from March`s record high as refiners processed less oil during a heavy maintenance season, while exports of refined fuel fell by a quarter from a month earlier due to quota reductions. 

China shipped in 34.39 million tonnes of crude oil last month, or about 8.37 million barrels per day (bpd), down nearly 9 percent from March, according to data from China`s General Administration of Customs on Monday. 

April`s level was still up 5.5 percent from a year ago, while imports for the first four months of the year rose 12.5 percent to 139.12 million tonnes, or 8.46 million bpd. 

"April looks more like a return to normal import level. Imports will likely trend down further in the coming few months as refinery maintenance season unfolds and teapots run out of import quotas," said Harry Liu, analyst of consultancy IHS Markit. 

Arrivals in March hit 9.17 million bpd as China`s intake topped the United States for the first time in 2017. 

April`s slower imports came as major refineries kicked off their annual maintenance periods, although lower crude oil prices still supported robust demand from some processors. 

Oil prices have tumbled to five-month lows, with benchmark Brent crude down nearly 15 percent from a mid-April high, hit by the breakneck pace of U.S. oil output that have undermined OPEC efforts to rein in production. 

Many of China`s independent refineries, nicknamed "teapots", have nearly run out of import permits issued at the start of the year, another reason for slowing imports, said IHS`s Liu. 

He expected purchases to pick up from July after Beijing grants the second batch of quotas, although China has started to limit how much crude oil can be imported by private refiners.. 

The state planner said last month it will stop accepting from May 5 new applications from private oil refiners seeking approval to use imported crude oil. 

April imports of oil products fell 7.8 percent to 2.49 million tonnes while exports of oil products [C-FUEXP] fell 25.1 percent to 3.50 million tonnes. 

The fall in exports was partly because of a sharp reduction in quotas, after the second batch of permits issued to the country`s dominant state oil firms for 2017 was down 73 percent from the first round. 

(tonne =7.3 barrels for crude)

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.

Inner Mongolia`s rare earth exports increased by 1.6 times

Source: www.chinamining.org     Citation: chinadaily.com.cn        Date: May 09, 2017

Data released by the Hohhot customs show that in the first quarter of 2017, rare earth exports reached 2602.9 tons from Inner Mongolia autonomous region, a 1.6 times of year-on-year increase, the Inner Mongolia Daily reported on May 5. 

The total exports value is 60 million yuan ($8.72 million), a year-on-year increase of 49.6 percent. 

In March, the exports reached 1105.1 tons, a 1.7 times of year-on-year increase, with a ring growth of 58.9 percent, according to monthly statistics. 

Of all the exporting countries, Japan occupied the largest export market. There was also substantial increase in the exports to Germany, the United States and South Korea.

In the first quarter, rare earth exports to Japan had a year-on-year increase of 3.3 times, Germany, 3.5 times, the United States, 81.1 percent and South Korea, 126 times. 

With relevant measures carried out, the export order of the rare earth industry was regulated, which promoted the rebound of rare earth prices. 

It has been learnt that, on January 1, 2015, China officially ended rare earth export quota system. Enterprises can now apply for exports by merely offering export contracts, without needing anyapproval.

On May 1, 2015, the export tariffs on rare earth were eliminated. China’s Ministry of Industry and Information Technology, China’s Ministry of Public Security, with another six ministries and commissions, jointly carried out actions to combat illegal violations and undocumented mining of rare earth products, and also penalized enterprises for illegal mining and smelting.

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.

Shandong gold discovery

Source: www.chinamining.org     Citation: Global Times       Date: May 04, 2017

There has been a massive gold deposit discovered in Jiaodong district in East China`s Shandong Province since 2011, with newly added gold reserves reaching more than 2,400 tons, said Yu Haifeng, an official with the Ministry of Land and Resources on Wednesday.

The newly added reserves exceed the total resources that Jiaodong found from 1949 to 2010, which stood at 1,932 tons, Yu told a press conference, adding that more than 70 large and medium-sized gold mines have been found since 2011.

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.

China`s steel plants face renewed stock pressure

Source: www.chinamining.org     Citation: Xinhua       Date: May 03, 2017

Chinese steel plants are seeing growing output but falling orders, renewing concerns of excess inventories, an industrial index showed. 

The Purchasing Managers` Index of the steel sector continued to slide to 49.1 in April, according to the China Federation of Logistics & Purchasing (CFLP). 

The sub-index for production rose for the fourth-consecutive month to an almost one-year high while that for new orders and prices fell below the 50 boom-bust line for the first time this year, CFLP data showed.

Slumping steel prices and tight liquidity conditions weighed on steel product users, adding to sale pressure for steel plants. 

Both official and private surveys showed that China`s manufacturing sector eased expansion 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.