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BP seeks buyers for petrochem JV stake

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

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

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

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

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

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

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

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

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

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

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

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

About CHINA MINING

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

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

Venezuela, China join efforts to produce oil

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

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

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

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

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

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

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

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

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

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

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

About CHINA MINING

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

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

Low oil prices drive up China`s crude oil imports

Source: www.chinamining.org      Citation: Xinhua     Date: August 1, 2016

China`s crude oil imports hit a record high in the first half of 2016 despite an economic slowdown, and analysts largely attributed the surge to low prices, not strategic maneuvering.  

The country imported 186.5 million tonnes of crude oil in the first half of the year, 23.15 million tonnes more than the same period last year, although imports in June slowed to 30.62 million tonnes from a peak of 32 million tonnes per month in March, April and May.  

"Enterprises increased crude oil imports in the first half year as they believe global oil prices have bottomed out," said Zhu Fang, deputy head of the information and market department of China Petroleum and Chemical Industry Federation.  

The oil import jump was also strengthened by policy decisions, as China`s top economic planner set a floor for domestic retail fuel prices in January, said Zhu.  

At the beginning of the year, the National Development and Reform Commission (NDRC) declared that domestic retail prices should not be cut if global oil prices fell below 40 US dollars a barrel.  

The NDRC said the move was to buffer the negative effects of volatile fluctuations in international oil prices. Previously, it set a ceiling that domestic retail fuel prices would not rise if international oil prices rose above 130 US dollars per barrel.  

China also approved more private firms to work in the oil refinery business, which also increased oil imports, said an industry insider at PetroChina, China`s biggest oil producer.  

So far, 15 enterprises have gained approval on crude oil imports, with their aggregate quota exceeding 60 million tonnes, according to the NDRC.  

NDRC official Zhao Gongzheng echoed Zhu`s opinion, saying that it was the market, including low oil prices, that was causing the growth of crude oil imports.  

Zhao dismissed foreign media claims that China was taking advantage of low oil prices to build up its strategic petroleum reserves (SPR).  

"China`s SPR has limited influence, so far, on global oil prices in light of its reserve ability and capacity," said Zhao, adding that it is a long process for China to expand its SPR.

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.

World`s first coal-based lubricating oil

Source: www.chinamining.org      Citation: chinadaily.com.cn     Date: July 27, 2016

Products of Lu`An Taihang Lubricating Oil Corp. [Photo/sxrb.com]

The Lu`An Taihang Lubricating Oil Corp of Shanxi province has developed a special lubricating oil, as the world`s first oil to use coal as the raw material, for a low cost, high added-value, environmentally friendly lubricating oil.

The company’s oil can be widely used in the iron and steel, electric power generation and chemical industries and has a quality that equals that of the world’s leading lubricating oil, Shell. The chairman of Lu`An Taihang says the coal-based lubricating oil marks a significant step in domestic innovation. Lu`An has 180 different coal-based chemical products, including several national and international breakthroughs.

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 June iron ore imports from Australia rise 4% on year to 51.4 mil mt

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

China imported 51.4 million mt of iron ore from Australia in June, up 3.78% year on year but down 6.12% month on month, according to data released Friday by the General Administration of Customs.

Imports from Brazil, China`s second-largest iron ore supplier, jumped 14.98% year on year to 15.22 million mt in June, but fell 9.38% from the previous month.

"Seasonally, demand is weak for seaborne iron ore during the month of June. There were also mandatory sintering restrictions that reduced demand," said an international trader.

Iron ore supply from Australia and Brazil represented 81.59% of China`s total imports in June, down only 0.86 percentage points from May.

China received a total of 81.63 million mt of iron ore in June, down 5.90% from the previous month but up 8.9% from June 2015.

China, the world`s largest iron ore consumer, imported 493.88 million mt of iron ore in the first half of 2016, up 9% from 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 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 crude oil output drops in H1

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

China`s crude oil output dropped 4.8 percent year on year to 100.45 million tons in H1, according to the National Development and Reform Commission (NDRC).  

The drop came as China`s oil companies plan to reduce output due to low crude prices. Sinopec, the largest refiner, plans to cut production by 7.5 percent this year, while PetroChina, the largest producer, aims to reduce output by 4.8 percent. 

From January to June, China refined 256 million tons of crude oil, up 8.9 percent year on year. Output of refined oil products rose 7.1 percent to 159 million tons, while consumption of refined products rose 4.4 percent to 141 million tons.  

In the same period, natural gas output rose 2.9 percent to 67.5 billion cubic meters, while imports surged 21.2 percent to 35.6 billion cubic meters.  

Consumption of natural gas rose 9.8 percent year on year to 99.5 billion cubic meters, according to the NDRC.

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 magnesium export offers rise further on stronger domestic prices 

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

Spot export offers of Chinese magnesium ingot, basis FOB, rose further this week, supported by a firm domestic market seeing steady demand but tight supply as plants shut for scheduled maintenance, industry sources said Friday.

Export trades, however, remained thin as overseas buyers viewed current prices as too high, they also said.

Platts raised its weekly acid-washed magnesium ingot (minimum 99.8%) export price assessment to $2,200-$2,230/mt FOB China Friday, from $2,150-$2,180/mt FOB China a week ago.

The assessment included the compulsory Chinese 17% value-added tax and acid washing cost at Yuan 100-Yuan 150/mt ($15-$22/mt).

The Chinese magnesium die-cast alloy price assessment was also increased to $2,480-$2,510/mt FOB China, up from $2,430-$2,460/mt last Friday.

A north China-based producer said: "The domestic magnesium price has gone up to Yuan 15,000/mt ex-works for acid-washed material with VAT early this week. The spot supply is tight, while the domestic demand is steady. FOB offers are probably at $2,230-$2,240/mt, but overseas buyers have rejected the level, saying it is too high."

Another north China-based producer agreed, saying: "The domestic price has jumped sharply on Monday-Tuesday as the spot supply is tight. Domestic offers in Fugu (Shaanxi) are at Yuan 14,500/mt ex-works for non-acid-washed material but with VAT. Shanxi`s offers are at Yuan 14,800/mt ex works (for non-acid washed material but with VAT). FOB offers for acid washed material with VAT are probably around $2,310/mt on Tuesday."

"Domestic offers are at Yuan 14,500/mt (non-acid washed material but with VAT), up from Yuan 14,000/mt last week. Based on the current domestic price, FOB offers should be around $2,250/mt. However, the overseas demand is still lacking," a northwestern Chinese producer said.

A south China-based trader agreed overseas demand had been very weak.

"Nobody is asking for magnesium ingots but I heard FOB offers have been rising due to higher Chinese domestic price on tight supply and steady domestic demand. I heard someone indicated at $2,250/mt FOB, up from $2,150/mt last week. The market is weak due to the summer holiday and traded volume is thin," the trader said.

A Japanese trader said: "I heard many Chinese traders are delaying their deliveries as available spot material is very limited in the market due to maintenance shutdown."

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.

Shanxi to cut coal capacity by 20 million tons this year

Source: www.chinamining.org         Citation: chinadaily.com.cn    Date: July 19, 2016

Shanxi province announced plans to reduce its coal overcapacity by 20 million tons by the end of this year, and the amount is expected to reach 100 million tons by 2020.

Coal production will be limited to 1 billion tons and coal mines will be reduced from 1,078 to around 900.

Data from the Coal Industry Department of Shanxi show that the province had closed 16 coal mines by the end of June, which should lead to a reduction of 1,230 tons of coal capacity per year.

The effort made to cut overcapacity and carry out coal supply-side structural reform has had some initial success, said Hu Wansheng, deputy director of the province`s Coal Industry Department.

In the first half of this year, the province reduced coal output by 6,827 tons, a decrease of 15 percent over last year achieved reduction.

A package of reform measures was carried out from July to regulate the business and competitive nature of the coal industry.

Hu also pointed out that technological innovation on non-pollution mining and cleaning, low-carbon, and efficient use of coal is the only way forward for the coal industry.

Shanxi province is one of the major coal producers in China, and the coal industry is the pillar of its economy. Local government has controlled the growth of coal production in recent years to lessen reliance on coal resources.

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.