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Rare-earth output cap raised

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

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

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

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s natural gas output up 7.5% in H1 at 63.2 bln cu m

Source: www.chinamining.org   Citation:China Knowledge  Date: July 24, 2014

China saw its output of natural gas increase 7.5% year on year to 63.2 billion cubic meters (cu m) in the first half of this year, said the National Development and Reform Commission in a statement published on its website.
   
In the first six months, China`s natural gas imports grew 14.4% year on year to 28.3 billion cu m. There is 15.2% growth in import of pipeline gas and a 13.9% increase in import of liquefied natural gas.
   
From Jan to Jun, the consumption of natural gas amounted to 88.7 billion cu m, 8.9% more than it realized in the same period of 2013.
   
In the month of Jun, China`s natural gas output reached 9.9 billion cu m, while its import of natural gas amounted to 4.9 billion cu m. 

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^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China coal demand to peak by 2020 - Standard & Poor

Source: www.chinamining.org   Citation: www.rtcc.org   Date: July 24, 2014

China`s demand for coal is likely to peak by 2020, according to new analysis from ratings agency Standard & Poor`s.
   
It bases the conclusions on the country`s GDP increasing by 7.4% and 7.2% in 2014 and 2015, with coal demand falling to single figures later this decade.
   
"This is due to the slow shift of the economy toward consumption from capital investments; lower GDP growth; and the Chinese government`s increasing focus on tightening emission standards and moving to more renewable energy sources," it says.
   
"Other tangible factors include the low level of fresh water and lack of long-term quality coal resources."
   
Shale gas could be a "game changer" says the agency, but significant pipeline infrastructure needs to be installed before the country`s reserves can be fully exploited.
   
China is the world`s largest coal consumer and biggest source of greenhouse gas emissions.
   
In a report published on Tuesday with the London-based Carbon Tracker NGO, Standard & Poor also warns coal producers that new green policies aimed at addressing climate change will hit growth.
   
"As governments globally seek to reduce their CO2 emissions, it looks increasingly likely that `King Coal` will lose its crown," says the report.
   
"A significant decline in coal production and consumption globally is becoming a much more realistic concept."
   
Coal companies in Europe are likely to be hit hardest, with the report dismissing any short term impacts on coal mining in Indonesia, Vietnam, and Australia.
   
It says the future of US coal will likely hinge on domestic natural gas prices, boosted by President Obama`s recent move to cap emissions from carbon polluting power stations 30% by 2030 on 2005 levels.
   
And the agency suggests some coal producers may suffer from the "carbon bubble", where shifts in international climate laws make their reserves unburnable.
   
It adds: "The global coal market is in the doldrums, owing to excess supply and fundamental shifts in the US energy mix toward gas and new coal mining projects.
   
"Over the long term, coal miners may experience stranded assets as a result of carbon constraints."
    
In a statement Standard & Poor`s credit analyst Michael Wilkins says "numerous factors and their timing" are likely to affect the future of coal as a major energy source.
   
"Carbon pricing through either taxation or cap and trade emission reduction schemes is among them," he says.
   
"We believe new initiatives, such as those made recently by the US and China may flatten the growth in coal demand over the coming years."
   
Adeline Diab, head of responsible investments at Aviva Investors, says the report should alert potential fund managers over the long term risks linked to coal.
   
"The dynamics and change of the coal market is accelerating. However, markets are currently not pricing these risks even though they are material to long-term capex plans and current market values." 

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^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s gold output up 9.5% in H1 at 211 metric tons

Source: www.chinamining.org   Citation: China Knowledge   Date: July 24, 2014

China saw its gold output increase by 9.47% year on year to 211.07 metric tons (MT) in the first half of this year, according to statistics released by China Gold Association.
   
In the first six months of this year, gold mines in the country produced 169.05 MT of gold, 6.15% more than in the same period of 2013.
   
Meanwhile China`s nonferrous smelters produced 42.02 MT of colored-by-product gold in the first six months, reflecting a year on year increase of 25.22%.
   
In the first half of this year, China`s gold consumption decreased 19.38% year on year to 569.45 MT.
   
426.17 MT of gold were made into jewelry in the first six months, up 11.02% year on year, and 105.58 MT were used for gold bars, a decrease of 62.13% year on year.
   
Meanwhile, a total of 10.95 MT were made into gold coins in the period, declined 44.3% from a year earlier. 

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^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China aluminium surplus likely to cap price rally: Clyde Russell

Source: www.chinamining.org   Citation: Reuters   Date: July 24, 2014

Rising Chinese output is likely to act as a brake on aluminium`s 15 percent rally since May, even as the global outlook for the industrial metal improves.
   
It`s no secret that much of Chinese aluminium smelting capacity operates at a loss and is reliant on subsidies from local and regional governments to survive.
   
But the price gain in the second quarter resulted in capacity that was either idled, or about to be shut, remaining in operation, according to a July 17 report from Beijing-based consultants AZ China.
   
This is despite some 80 percent of Chinese smelters, representing some 20 million tonnes of annual capacity, operating at a theoretical loss, AZ China said.
   
The average cash cost for a Chinese aluminium smelter in the second quarter was 14,161 yuan ($2,282) a tonne, above the Shanghai Futures Exchange (SHFE) spot price of 13,435 yuan, the report said.
   
Still, the average cash cost for Chinese smelters was 2 percent lower in the second quarter than the first as inputs such as electricity and alumina decreased in price, allowing plants to remain in business.
   
AZ China also said that capacity additions since the beginning of the year totalled 2 million tonnes of annual capacity, with a further 1 million tonnes slated to come online in the next few months.
   
This is likely to ensure that the Chinese aluminium market remains over-supplied, putting downward pressure on aluminium imports and upward pressure on exports.
   
China is a large net exporter of semi-finished products such as wire, foil, plates, sheets and strip, as well as aluminium alloy.
   
Exports of semi-finished aluminium rose 3.7 percent in the first six months of 2014 from a year earlier to 1.54 million tonnes, while shipments of alloy rose 20.4 percent to 255,933 tonnes, according to customs data.
   
Chinese aluminium output is also rising, with National Bureau of Statistics data showing June production of 1.95 million tonnes, up 4.8 percent from May, and year-to-date output of 11.54 million tonnes, up 7.4 percent some the same period in 2013.
   
While official statistics may not capture all of China`s aluminium output, they do reveal a rising trend, which shows that even the parlous state of profitability at smelters isn`t resulting in production cutbacks.
   
SHANGHAI PREMIUM TO LONDON NARROWING
   
This is leading to a growing disconnect between Chinese and London aluminium prices.
   
London Metal Exchange benchmark three-month aluminium ended Monday at $2,020 a tonne, the highest since February 2013.
   
The price is being bolstered by an improving demand outlook, led by increasing use of the lightweight metal in vehicle manufacturing, as well as issues surrounding the load-out queues at LME warehouses.
   
With almost 3 million tonnes of aluminium waiting for delivery, physical premiums have soared in the West, increasing costs for manufacturers seeking the metal.
   
In contrast, SHFE three-month futures are down 2.9 percent this year in U.S. dollar terms and are virtually flat in yuan terms.
   
This means the premium of SHFE over LME futures has narrowed from $515.94 a tonne at the end of last year to just $226.81 on Monday.
   
In early 2012, LME futures rallied while SHFE contracts were flat, taking the gap to $219.18 a tonne on March 1 of that year.
   
In the next six months LME futures slid almost 22 percent, while SHFE prices dropped only 6 percent.
   
This doesn`t mean something similar will happen now, but it does suggest that when LME prices gain relative to SHFE futures, it`s more likely that the London contracts will ease if the more normal gap between the two is to be restored.
   
This is especially the case given the pressure on margins at Chinese smelters and the ongoing over-supply situation, which makes it unlikely domestic prices have much upward potential. 

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s MMG cuts its 2014 zinc output forecast on rising prices

Source: www.chinamining.org   Citation: Reuters   Date: July 21, 2014

China`s MMG Ltd cut its 2014 zinc output target and said mounting supply concerns, heightened by the pending closure of its key Century mine in Australia, were driving world prices of the rust-inhibiting material higher.
   
The mine, one of the world`s biggest sources of zinc, is set to run dry next year, removing close to a half-million tons of the metal from the 13 million ton global market.
   
That has helped spark a rush among firms such as Glencore and Nyrstar to find new zinc deposits to feed rising demand from China which is buying the metal to rust-proof new cars and coat steel.
   
London Metal Exchange three-month zinc traded at its highest price in almost three years this week.
   
Prices have climbed 20 percent since late March.
   
MMG, the Hong Kong-listed offshore arm of China`s State-owned Minmetals Corp, cut on Thursday its 2014 output target to between 575,000 and 600,000 tons of zinc in concentrate from 600,000-625,000 tons, following an underperforming second quarter at the Century mine.

The Century mine`s second-quarter output was down 13 percent year-on-year to 110,891 tons. Nyrstar`s refineries in Europe are the main buyers of zinc mined by MMG.
   
"What we are seeing now is a recognition that not only Century but a number of other mines are coming to an end," Andrew Michelmore, managing director of MMG, said in a conference call with media and analysts.
   
"Concentrate is going to get tighter and tighter."
   
MMG`s Dugald River deposit in Australia is being assessed for future development, but at best will only partially replace lost output from the Century mine.
   
Canada`s big Brunswick and Perseverance mines closed last year, eliminating a combined 335,000 tons of zinc, while aging mines in Europe and Africa are also close to depletion.
   
Zinc is primarily used as an anti-corrosive in the galvanizing process.

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^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s June daily steel output at new high -stats bureau

Source: www.chinamining.org   Citation: Reuters   Date: July 16, 2014

China`s daily crude steel output rose 1.8 percent in June to hit a record 2.31 million tonnes, defying any seasonal downturn in demand, data from the statistics bureau showed on Wednesday.
   
Total output over the month reached 69.3 million tonnes, up 4.5 percent from the same month last year but dipping 1.6 percent from May`s record high.
   
On an annualised basis, output amounted to 828.6 million tonnes, according to Reuters calculations, which would represent a 6.3 increase on last year.
   
Despite soaring environmental costs, persistent overcapacity and widespread cash shortages throughout the Chinese steel sector, output has remained strong, with little indication that mills are adjusting production rates in anticipation of a summer slowdown in demand over summer.
   
"The rise in new export orders together with an improvement in demand have dragged production up," analysts at the Tangshan-based consultancy ChinaTSI.com said in a note.
   
However, the consultancy warned that there were no obvious signs that the increase in steel demand was being reflected by price increases, and more policy support would be needed to keep the momentum going over the next few months.
   
Steel product inventories fell over the course of June, according to the SteelHome consultancy, with rebar stocks SH-TOT-RBARINV dropping more than 11 percent to end the month at 5.98 million tonnes. Rebar stocks had surged to as high as 9.4 million tonnes in February.
   
With domestic demand still relatively weak, the sector has benefited from an improvement in exports. In the first half of the year, China sold 41 million tonnes of steel products overseas, up 33.6 percent compared to the same period of 2013.
   
The China Iron and Steel Association (CISA) warned in a research report earlier this month that apparent steel consumption in China was rising far more slowly than production, and by May had actually declined for four consecutive months.
   
It said 97.2 percent of additional output over the first five months of the year was diverted into exports.

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^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s Tianjin extends carbon deadline again

Source: www.chinamining.org   Citation: Reuters   Date: July 16, 2014

China`s Tianjin has extended the deadline for its biggest carbon producers to comply with the city`s emissions trading scheme a second time, giving companies two more weeks to hand over permits to the government.
   
The delay is the latest in a string of hiccups as governments and company officials in seven regions running emissions schemes gather experience in carbon trading, Beijing`s favoured approach for reducing greenhouse gases.
   
The 114 energy and industrial firms covered by the Tianjin market, were supposed to hand over permits to cover for their 2013 emissions on Thursday.
   
But the deadline has been extended to July 25, the Tianjin Climate Exchange announced, as the government needs more time to make final adjustments to permit allocations to companies whose 2013 emissions varied significantly from what had been expected.
   
Power and heat facilities were given 90 percent of their allocated lots last year. How much of the final 10 percent they will actually receive will be decided by their verified emission reports for 2013.
   
The permits will be issued next week, and could increase overall market supply.
   
Trading in the Tianjin market has increased slightly in recent weeks, but the total volume traded since the market began last December has only reached around 250,000 permits, of around 160 million permits that could be offered, indicating that demand is low.
   
The price rose to its highest level in March, when permits traded at 50 yuan ($8.07), but has since fallen to around half that.
   
"Tianjin gave out permits to manufacturers based on historical emission levels," said one expert involved in the allocation process who wished to remain anonymous.
   
"The government has no plan to take back surplus permits unless they have closed down their business," the expert added.
   
Observers have proposed the government tightens the cap for 2014 to incentivise emission cuts, but the government has yet to announce how many permits will be handed out for this year.
   
Trading of 2014 permits will start on July 28, the Tianjin Climate Exchange said Thursday.
   
LATEST DELAY
   
The extension follows delays elsewhere in the country.
   
The compliance date for the Beijing scheme was June 27, but the municipal government has yet to release any data. However, market sources say some 50 companies have yet to hand over permits to the authorities.
   
In Shenzhen, four companies missed a July 1 deadline, but according to news provider Crystal Carbon, three of those have now bought the permits they needed to meet their targets.
   
Guangdong province has extended its deadline to July 15. The local government has announced that by July 8, 69 percent of scheme participants had surrendered permits.
   
Shanghai is the only region where compliance has gone according to plan, with all emitters meeting the June 30 deadline.

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^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.