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China`s coastal coal freights began rising in week to Tuesday

Source: www.chinamining.org     Citation: Platts      Date: February 22, 2016

Freight rates for shipping coal from northern China`s Qinhuangdao port to the other Chinese ports of Zhangjiagang, Shanghai and Guangzhou in eastern and southern China began to rise in the week to Tuesday, port operator Qinhuangdao Port said.

The freight rate from Qinhuangdao to Zhangjiagang in eastern China`s Jiangsu province for 20,000-30,000 mt capacity vessels rose by Yuan 0.70/mt on the week to Yuan 29.50/mt ($4.28/mt) on Tuesday, Qinhuangdao Port said.

The rate from Qinhuangdao to Shanghai in eastern China for vessels with a capacity of 40,000-50,000 mt edged up Yuan 0.90/mt on the week to Yuan 22.60/mt. The rate from Qinhuangdao to Guangzhou in southern China for 50,000-60,000 mt capacity vessels rose by Yuan 1.40/mt to Yuan 32.60/mt.

A recovery in downstream coal demand after the spring festival holidays, coupled with news that China has stopped importing coal from North Korea since Sunday, has boosted the coastal coal freight market, the report said.

Meanwhile, coal stocks at Qinhuangdao port were 4.41 million mt on Tuesday, up from 4.715 million mt on February 14, port figures showed.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

China`s Shenhua sticking with Australia coal project despite legal challenges

Source: www.chinamining.org         Citation: Platts        Date: February 19, 2016

China coal giant Shenhua remains committed to its sole Australian export coal project despite legal challenges from environmental groups the latest this week in the New South Wales Land and Environment Court, an Australia-based spokesman for the company said Thursday.  

Seven months have passed since Australian federal environment minister Greg Hunt gave his approval last July for Shenhua`s 100%-owned Watermark project in the Liverpool Plains pastoral region of New South Wales, thereby allowing it to proceed to its development phase.  

The project involves the extraction of 133 million mt of metallurgical coal and 26 million mt of thermal coal for shipment through Newcastle port, and has attracted controversy over its potential impact on groundwater supplies including freshwater acquifers and on farmland.  

Conservation group the Upper Mooki Landcare group and Shenhua Watermark Coal is listed for a judgment hearing at the Land and Environment Court in Sydney on Friday, according to the court`s website.  

The legal challenge by the Upper Mooki Landcare group concerns the potential impact on 850 hectares of habitat for koala bears that stands to be cleared for Shenhua`s Watermark mine project in the Gunnedah Basin coal field of New South Wales.  

Shenhua has spent about A$1 billion ($700 million) on its Watermark project since landing an exploration license for the mine site in 2008 for which it paid A$300 million.  

The Chinese company has incurred additional costs since such as A$200 million on acquiring land from local farmers, and A$175 milion of infrastructure spending. 

The Watermark project will have an estimated capital cost of A$780 million when it eventually goes ahead.  

SETBACKS  

Shenhua has suffered a number of setbacks in relation to its Watermark project, including having to resubmit -- along with other coal companies -- its application for a mining license after a new planning approvals process was introduced following the 2011 New South Wales state election.  

Undeterred, Shenhua said via a spokesman Thursday that it intends to see the project through to its completion.  

"The company continues to work on various regulatory requirements since achieving state and Commonwealth government approvals last year," said Shenhua Watermark spokesman Jonathon Moore by telephone from Sydney.  

The New South Wales government`s independent Planning Assessment Commission gave Shenhua approval for the environmental aspects of its Watermark project in 2014.  

This allowed for the extraction of up to 10 million mt/year of coal at the Watermark site until June 2046.  

Thermal and coking coal mined from the project`s three open-cut pits will be transported 282 km (175 miles) via rail to Newcastle port. During the mine`s peak production period, 16 train movements a day will be required, said Shenhua in a submission report to the PAC.

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 oil demand growing, but at a slower pace

Source: www.chinamining.org     Citation: UPI      Date: February 14, 2016

A metric used to gauge oil demand in China, the world`s second-largest economy, show steady gains but at a slower pace than before, S&P Global Platts said.

Platts measured China`s apparent oil demand, which measures the amount moving through domestic refineries against net imports, at 2.3 percent higher in December when compared with last year.

When using official government data, apparent oil demand last year declined 0.8 percent as the economy moved from a quantitative growth phase to a qualitative one. The assessment from Platts, however, said it found an increase because of activity at independent Chinese refineries.

"That said, the pace of growth fell in 2016 from 6.6 percent in 2015, when oil demand had been boosted by a crude oil price drop to levels just over $50 per barrel," Song Yen Ling, a senior analyst with Platts China Oil Analytics, said in an emailed report. 

Ratings agencies Moody`s and Fitch in December reported the Chinese economy could face headwinds this year, with the banking sector facing the brunt of the downturn. Government estimates of the Consumer Price Index, which gauges national inflation, came in well below the official target rate of 3 percent.

By January, the Chinese National Bureau of Statistics said growth was the slowest it`s been in a quarter century, but still likely to top all other major economies.

Economists with the Organization of Petroleum Exporting Countries expect the Chinese economy will grow by 6.2 percent in 2017, against a forecast of 6.7 percent last year. 

China`s central bank on Monday injected $14.5 billion into the financial system, the official Xinhua News Agency reported. A monetary policy for the year was described by Xinhua as "prudent and neutral."

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September 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.

Profit outlook of oil and gas sector weak

Source: www.chinamining.org     Citation: Shanghai Daily      Date: February 08, 2016

More than three quarters of Chinese oil and gas executives do not expect profit growth in the industry this year amid an ongoing restructuring in state-owned giants and low oil prices denting the industry, a survey showed yesterday. 

Only 23 percent of the executives expect profit growth in the industry, a sharp drop from 61 percent last year and also below the global average of 32 percent, DNV GL, a Norwegian maritime and energy consultant, found in the survey. 

The survey covered 723 respondents globally, with 31 of them selected from China`s oil and gas giants such as Sinopec and China National Petroleum Corp, the country`s biggest oil and gas producer. 

The executives predicted slower growth as "they forecast oil prices to take a long time to rebound to US$70 per barrel," the point at which prices started to plunge two years ago, said Wu Yi, DNV`s business development manager for China, South Korea and Japan. 

Over 87 percent of the Chinese oil and gas executives would resort to cost cutting to survive the slowdown, according to DNV`s survey, up from last year`s 75 percent. 

Last month, CNPC predicted a 70-80 percent plunge in its net profit last year from 2015. The company blamed low oil prices, which "dragged down profits globally." 

China National Offshore Oil Corp suffered a 15.2 percent drop in its oil and gas sales in the third quarter of last year from a year earlier. 

The dismal picture has forced domestic oil and gas companies to implement layoffs and salary cuts in a bid to enhance their competitiveness. 

In December, CNPC announced a cut of 20 percent of its administrative employees to streamline its organization and boost efficiency. 

CNOOC "would cut its operational costs in the Bohai area this year," Wu said, quoting a CNOOC employee familiar with the issue.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September 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 2016 oil demand in the red as GDP growth hits 26-year low

Source: www.chinamining.org     Citation: www.platts.com      Date: February 04, 2016

China`s apparent oil demand slipped into the negative territory in 2016, a sharp reversal from the near 7% growth witnessed a year earlier, as the country`s slowest GDP growth in 26 years slashed appetite for industrial and transportation fuels in Asia`s biggest oil consuming nation.

A near 25% growth in LPG demand and close to double-digit growth in naphtha and jet fuel demand failed to offset the impact of sharp falls in gasoil and fuel oil consumption, pulling down overall oil demand in 2016 by 0.8% to 11.11 million b/d, compared with a growth of 6.6% in 2015. 

The world`s second biggest oil consumer saw a sharp slowdown in demand after GDP growth slowed to 6.7% in 2016 from 6.9% in 2015 and 7.3% in 2014. GDP growth was 3.9% in 1990.

Although GDP growth was only 0.2 percentage points lower than in 2015, fixed asset investment growth slowed to 8.1% year on year in 2016 from 10% in 2015. 

Industrial production grew 6% in 2016, also lower than the 6.1% growth seen in 2015, data from the National Bureau of Statistics showed. 

These factors together pulled down gasoil consumption in the transportation and construction sectors, resulting in a 5.4% year-on-year fall in apparent demand for the fuel, which accounts for around 30% of China`s overall oil products consumption. 

Beijing does not release official data on oil demand and stocks. Platts calculates apparent or implied oil demand by taking into account official data on monthly throughput at Chinese refineries and net product imports. But the official data fails to reflect some of the crude throughput increases from the new crude oil consumers — the independent refineries. 

If output from the independent sector is taken into account, apparent demand last year is estimated to be around 11.34 million b/d, representing 1.3% year-on-year growth, according S&P Global Platts` China Oil Analytics. 

For 2017, analysts expect GDP growth to further soften to 6.5%. The country`s think tank, the State Information Center, forecasts international trade will soften amid global protectionism and this will lead to slower growth in the consumption of transportation fuels. 

But oil demand will find some support in infrastructure investment, which according to HSBC will remain a key pillar of growth in 2017. 

COA forecasts China`s apparent demand will reach 11.57 million b/d in 2017, a 2% increase against the adjusted numbers for 2016. 

GASOIL FEELS THE PINCH 

Although gasoil demand recovered to a 24-month high of 3.76 million b/d in November, driven by busy transportation activity for raw materials, it failed to lift apparent demand growth for gasoil into positive territory in 2016. 

The transportation sector accounts for around 65% of gasoil demand, while agriculture and construction account for the rest. 

"Gasoil demand has been retreating since late November, with stocks building up," said a Shandong independent refinery source. 

 In 2016, apparent demand for gasoil was 3.35 million b/d, a 5.4% decrease year on year, compared with only a 0.4% decline in 2015, Platts` calculations showed. With an adjustment in output data, COA estimates demand at around 3.52 million b/d in 2016, a 0.6% fall year on year. 

The decrease would narrow further if the incremental supply from the blending pool was taken into account. Blended barrels, with imported light cycle oil and domestic kerosene as the main components, are not included in gasoil apparent demand calculations. 

China`s imports of light cycle oil surged 135% year on year to 4.46 million mt in 2016, data from the General Administration of Customs showed. Blending with 1 mt of LCO could get 2-2.5 mt of off-spec gasoil, which is used mainly in the construction and fishing sectors. 

"Gasoil demand, including adjusted refinery output, could fall to 3.45 million b/d in 2017 as the economy restructures further and developed provinces along the eastern coast continue to move away from gasoil intensive activity," said Song Yen Ling, a senior analyst with COA. 

GASOLINE GROWTH MODERATES 

Apparent demand for gasoline was at 2.78 million b/d in 2016, representing slower year-on-year growth of 3.2%, compared with the 9.6% growth registered in 2015. But COA estimates that adjusted demand would be at 2.91 million b/d, a 7.8% increase from 2015 levels. 

Similar to gasoil, blending pools also played a role in overall gasoline supplies. Sales of imported mixed aromatics, which are used mainly as a blending material for gasoline, provide an indication of demand. 

Data from the GAC showed that imports of mixed aromatics surged 81.4% year on year to 11.7 million mt in 2016, suggesting a significant rise in blending activity. About 3 mt of mixed aromatics are needed to blend 10 mt of gasoline. This means that up to 39 million mt, or 906,000 b/d, could have been added to the supply pool in 2016. 

 Gasoline demand also found support in a 14% year-on-year rise in gasoline-fueled vehicle sales in 2016, data from the China Association of Automobile Manufacturers showed, with sales of gasoline-guzzling sport utility vehicles surging 43% year on year. 

This year, COA expects growth in adjusted gasoline demand growth to slow to around 6% to 3.08 million b/d. "It is likely that the growth of car sales in 2017 would be softer than 2016," Song added. 

LPG, NAPHTHA 

LPG demand surged to 1.57 million b/d in 2016, up 24.8% year on year, compared with 20% growth in 2015. Market sources attributed last year`s strong growth to increasing demand from petrochemical plants, industrial and residential users. 

China launched two new PDH units, with a total capacity of 1.16 million mt/year, in the fourth quarter of 2016, adding to the six existing PDH plants with a total capacity of 4.74 million mt/year. As a result, China`s LPG imports jumped 33.4% on year to 505,000 b/d in 2016. 

This year, LPG demand is expected to continue growing but the year-on-year increase could slow to around 8.3% or 1.7 million b/d because downstream demand is likely to be limited. In addition, no new PDH plant is expected to come online, according to COA. 

Apparent demand for naphtha rose 9.8% year on year to 969,000 b/d in 2016. It was slightly higher than the 9% growth registered in 2015.

China`s ethylene production rose 3.9% year on year in 2016, stronger than the growth of 1.6% in the previous year. Around 65% naphtha is estimated to be used as feedstock to produce ethylene, while 30% go to reformers.

In 2017, as more reformers are expected to come on stream, naphtha imports are expected to grow sharply, while output from refineries is expected to remain stable. As a result, COA estimates growth to slow to 5.6% this year to 1.02 million b/d. 

JET FUEL, FUEL OIL

Apparent demand for jet fuel in 2016 rose 8.7% year on year to 754,000 b/d, slowing from 15.9% growth in 2015 when new production units came on stream. 

Latest data from the Civil Aviation Administration of China showed that aviation traffic turnover rose 12.7% year on year in the first 11 months of 2016, down from the 13.8% growth in the whole year of 2015. 

In 2017, COA expects apparent demand for jet fuel to grow at 12.3% to 847,000 b/d because of higher production yields of 8.6%, compared to 7.9% last year. 

Apparent demand for fuel oil in 2016 fell 23.9% year on year to 716,000 b/d, compared with an increase of 14.9% in 2015. The sharp fall in 2016 was mainly because independent refineries reduced fuel oil use, including bitumen blend, after they were granted crude oil import quotas. 

Independent refineries in Shandong province cracked only 1.9 million mt of fuel oil in 2016, down 76.8% from the previous year, data from Beijing-based information supplier JYD showed. COA expects consumption to decline only 1.4% year on year in 2017 to 704,000 b/d. 

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September 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 coal-producing province to curb production

Source: www.chinamining.org         Citation: Xinhua        Date: January 28, 2016

North China`s Shanxi Province, one of the country`s major coal-producing provinces, plans to maintain its coal production within 1 billion tonnes in next five years, the provincial government said on Thursday.

Speaking at the annual meeting of the provincial legislature which opened Wednesday, the government proposed a five-year development plan to curb overall production, adjust structures for coal products and boost the transformation of coal to more efficient forms like electricity or chemicals.

In addition, the province will continue to boost the integration of coal resources and mergers of mining enterprises, and reduce the number of coal mines so as to improve the efficiency of the industry, it said.

Coal production in Shanxi decreased to 944 million tonnes in 2015 from 976 million tonnes in 2014. Shanxi`s coal industry lost 9.425 billion yuan (1.43 billion U.S. dollars) last year as government curbs on the polluting sector took their toll, official statistics indicated on Thursday.

The industry had suffered losses for 18 consecutive months by the end of 2015, beginning in July 2014.

Statistics also shows that the price for each ton of coal dropped 431.8 yuan, down 66 percent from its peak in May 2011 to December, 2015.

Shanxi has produced more than 14 billion tonnes of coal since 1949, accounting for about one fourth of China`s coal production.

The Shanxi government has controlled the growth of production in recent years in the hope of shaking off heavy economic reliance on coal resources. The provincial government is approving no new coal mines for the next five years to tackle overcapacity.

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.

Russia again beats Saudi as China`s top crude supplier

Source: www.chinamining.org         Citation: Reuters        Date: January 27, 2016

Russia beat Saudi Arabia as China`s top crude oil supplier in December 2015 for the fourth month in a row due to robust demand from independent Chinese refiners, which prefer shipments from the Far East over high-sulfur oil from the Middle East.

Russia strengthened its position in Asia by supplying nearly one-quarter more crude to the region in 2015, shifting the balance of power in one of the few bright spots in the global market and blunting the Organization of the Petroleum Exporting Countries` high-profile drive as to win customers.

China is one of the top targets for Russian oil after small, independent oil plants known as "teapots" won the right to import crude for the first time just several months ago. These plants were busy placing orders toward the end of 2015.

"These new plants were in a rush to use new quotas. But logistically they are not equipped to buy larger shipments from the Middle East or West Africa," said a Beijing-based official involved in marketing Middle Eastern oil. "Russian cargoes ¡­ suit them."

China`s December imports from Russia hit a record of 4.81 million tons, or 1.13 million barrels per day (bpd), up 29 percent over a year earlier, according to Chinese customs data.

Imports from Saudi Arabia, the world`s top exporter, were down 1.2 percent year-on-year during December at 1.05 million bpd.

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.

Asia`s largest manganese ore discovered in SW China

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

A reserve of more than 192 million tonnes of manganese ore, believed to the the largest in Asia, has been discovered in southwest China`s Guizhou Province, it was announced Friday.

Pujue manganese ore was discovered in mountains between Songtao Miao Autonomous County and Jiangkou County by the No. 103 Geology Group under the Guizhou Provincial Geology and Mineral Exploration Bureau, according to Songtao government.

The mine will help poverty alleviation in Guizhou, one of China`s least developed provinces, local officials said.

Manganese is used to make metal alloys, particularly stainless steel.

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.