Related News

China`s crude oil output sees sharp drop

Source: www.chinamining.org    Citation: Xinhua    Date: September 19, 2016

China`s crude oil output fell 9.9 percent year on year in August, the biggest monthly drop since 2003 as refineries slashed production amid sluggish global oil prices, data from the National Bureau of Statistics showed Monday.

Imports, on the other hand, have trended upward after private refineries were given permission to import crude last year.

In the first eight months, China`s crude oil imports rose 13.5 percent compared with the same period last year, while refined oil output gained 2.1 percent.

China`s oil giants plan to reduce oil output due to flagging prices. Sinopec, the largest oil refiner in China, and PetroChina, the largest oil and gas producer, have both lowered their oil production targets for 2016.

On Sunday, the National Development and Reform Commission (NDRC) decided to lower retail prices of gasoline and diesel, tracking subdued global crude oil prices due to market worries about an agreement on freezing production, rising yields in countries including Iran and weak U.S. demand.

"The prices will likely remain low in the short term, fluctuating between 40 to 50 U.S. dollars per barrel," said NDRC researcher Zhao Gongzheng.

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 Crude Oil Output Drops to 6-Year Low as Giants Shut Fields

Source: www.chinamining.org         Citation: Bloomberg     Date: September 14, 2016

China`s crude oil output dropped to the lowest in more than six years as the country`s state-run energy giants continued to pump less from aging, high-cost fields.

Production during August in the world`s largest energy consumer dropped 9.9 percent from a year ago to 16.45 million tons, according to data from the National Bureau of Statistics on Tuesday. That`s about 3.89 million barrels a day, the lowest since December 2009, according to Bloomberg calculations. Output is down 5.7 percent during the first eight months of the year.

"As crude prices fluctuate at a relatively lower level, there is no incentive for China`s high-cost producers to raise output any time soon," Tian Miao, an analyst with policy researcher North Square Blue Oak Ltd., said by phone before the data were released. Production will continue to decline through the rest of the year, Tian said.

Output from China, which was the world`s fifth-biggest producer last year, has been sliding as state-run companies shut fields too expensive to operate after prices fell earlier this year to the lowest since 2003. The country is forecast to lead production declines across Asia, helping tighten the global market as the world`s largest-consuming region relies more on overseas supplies.

Supply Destruction

"The global oil market rebalancing is progressing," said Gordon Kwan, head of Asia oil and gas research at Nomura Holdings Inc. in Hong Kong. "Massive capital expenditure cuts have translated to more oil supply destruction."

China`s crude oil imports increased to the highest in four months in August to about 7.77 million barrels a day, according to data by the General Administration of Customs released last week.

"Falling crude production supports rising imports through the rest of this year, coupled with strategic oil stockpiling and increased demand from refiners coming out of maintenance season," Amy Sun, analyst with Shanghai-based commodities researcher ICIS-China said by phone.

Production declines will accelerate in the final four months of the year, Sun said, with monthly crude production averaging 16.25 million tons, while oil imports average 32 million tons.

PetroChina, Sinopec

The country`s biggest producer, PetroChina Co. cut its 2016 domestic crude output target to 103 million tons (about 2.06 million barrels a day), a drop of about 6 percent from the previous year, as it shuts some high-cost fields. Production from China Chemical & Petroleum Corp., known as Sinopec, is on track to shrink by a similar amount to about 763,000 barrels a day, company forecasts show.

"China`s crude output won`t see an apparent rebound unless Brent recovers to $60 a barrel level, as most of China`s aging oilfields can`t make a profit below this price," Tian said. Brent crude, the global benchmark, has lost about half its value in the past two years. Prices have averaged almost $43 a barrel this year, compared with $99 in 2014.

While coal production in August rose 3 percent from the previous month to 278.09 million metric tons, production was down 11 percent from the same period last year, according to the statistics bureau. Coal mining in the first eight months slowed 10.2 percent to 2.18 billion tons.

Coal Deal

Major miners in the world`s largest consumer and producer of the fuel agreed last week to manage supply to stabilize prices in a deal with regulators that will see them increase output when the market is tight and cut production when there is oversupply. Qinhuangdao coal, one of the country`s benchmarks, has jumped more than 50 percent this year,

   The impact of the new policy "could be seen almost immediately" as the country`s biggest miners including China Shenhua Group Corp. and China National Coal Group Corp. "can increase output almost overnight as some of their idled capacities have been in a ready-to-go status," North Square Blue Oak`s Tian said.

About CHINA MINING

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

CHINA MINING Congress and Expo 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 National Gold Group`s purchase of 82 pct stake in Jinfeng completes

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

China National Gold Group, the country`s leading gold producer, said that its purchase of a 82 percent stake in a gold mine in Guizhou from Canada`s Eldorado Gold was completed on Wednesday.

It is the group`s biggest cross-border takeover. In April, the group signed an agreement to buy 82 percent interest in the Jinfeng gold mine in southern Guizhou province from Eldorado Gold, the world`s fourth largest gold producer.

"The successful takeover brings not only quality assets, but also intangible assets including advanced methods of management and operation models to us," said Song Xin, general manager of China National Gold Group.

Jinfeng processes 4,500 tons of ore daily, and produces 4 tons of gold annually.

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 has 31.97 mln tonnes of oil reserves

Source: www.chinamining.org         Citation: Xinhua    Date: September 6, 2016

China had 31.97 million tonnes of national oil reserves at the start of 2016, said a statement by National Bureau of Statistics (NBS) Friday.   

The oil was at eight strategic storage bases, including those in Zhoushan, Zhenhai, Dalian, Huangdao, Dushanzi, Lanzhou, Tianjin, as well as some corporate facilities.

Based on oil data released by CNPC Economics & Technology Research Institute, the reserves are equivalent to 36 days of China`s oil imports, far below the standard stockpile level in countries like the United States and Japan.  

China`s state strategic oil reserve base program was launched in 2004 to offset oil supply risks and reduce the impact of fluctuating energy prices worldwide on the domestic market for refined oil.

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.

Chinese July thermal coal imports jump 31% on year to 19-month high

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

China imported 9.31 million mt of thermal coal in July, rising 30.7% year on year and up 23.5% from June to the highest level since December 2014, according to data released by the General Administration of Customs Wednesday.

The volume included 7.23 million mt of bituminous material -- also a 19-month high -- and 2.08 million mt of sub-bituminous coal, but excluded imports of lower CV lignite material.

Thermal coal buyers in China have been increasing their intake of imported thermal coal after a policy to restrict domestic coal production was implemented in April, reducing the working days of miners to 276 days, tightening up domestic supply and resulting in higher prices of such material.

During the January-July period, China imported 49.88 million mt of thermal coal, climbing 0.8% from the same period in 2015. This is the first month this year that the year-to-date volume has been higher than the year before.

Australia remained the largest shipper of thermal coal to China in July at 4.61 million mt, rising 16% on the year and up 43% from June to a 15-month high.

Indonesia sent 3.23 million mt to China in July, 54% higher on the year and increasing 11% from the previous month to the highest monthly volume since December 2014.

China`s imports of Russian thermal coal jumped 57% on the year to 1.34 million mt, which was also 4% higher on the month and at a four-month high.

Total lignite imports for July rose 4% on the year to 5.13 million mt, but dropped 17% from June`s 26-month high. Of the total, 4.46 million mt was received from Indonesia, down 4% on the year and falling 13% from the previous 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.

China oil giants suffer from dropping crude prices

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

Despite rising output, China`s major oil producers posted lackluster performance in the first half of the year weighed upon by dropping global crude prices.

China National Petroleum Corporation (CNPC) registered a nearly 97.9 percent decline in its net profit, making only 531 million yuan (almost 80 million US dollars), while China National Offshore Oil Corporation (CNOOC) saw a loss of 7.74 billion yuan.

However, the oil yields of CNPC and CNOOC rose 1.7 percent and 0.6 percent year on year, respectively.

Another oil giant, Sinopec Group has yet to release its half-year financial report.

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.

CIC leads Vale talks to secure iron ore supplies

Source: www.chinamining.org         Citation: Bloomberg    Date: August 24, 2016

Chinese consortium negotiating buying portion of future production for as long as 30 years

China Investment Corp, the $814 billion sovereign fund, is leading an investor group in talks for a multibillion-dollar iron ore supply deal with indebted Brazilian miner Vale SA, people familiar with the matter said.

The Chinese consortium is negotiating the potential purchase of a portion of Vale`s future iron ore output for as long as 30 years, two of the people said, asking not to be identified as the information is private.

Vale could fetch about $9 billion in upfront cash from the sale, one person said. No agreements have been reached, and the talks may not result in a transaction.

Some Chinese companies and Japanese trading houses have also held discussions with the Rio de Janeiro-based company about possible deals, including acquiring a minority stake in Brazilian iron-ore assets owned by Vale, the people said.

Vale has joined global miners Freeport-McMoRan Inc, Glencore Plc and Anglo American Plc in selling assets after its net debt swelled to about $27 billion as a commodity rout eroded earnings. Chief Executive Officer Murilo Ferreira raised the prospect of selling some of the company`s most prized assets in February, after the miner reported its first year of losses since 1997.

The world`s top iron-ore producer has exited coal mines in Australia and is in talks with US fertilizer producer Mosaic Co to sell its South American potash and phosphate assets, which may fetch about $3 billion, people familiar with the matter said. Vale said it wants to raise about $10 billion through next year.

CIC is also part of a group alongside Brookfield Asset Management Inc and Singapore sovereign wealth fund GIC Pte that is close to buying a stake in a Brazilian natural gas pipeline network from state oil company Petrobras for nearly $6 billion, people familiar with the matter said in June.

Vale`s Samarco mining joint venture with BHP Billiton Ltd, whose operations were halted last year after a dam spill, is seeking a standstill agreement on about $1.6 billion in bank loans as its owners refuse to cover debt payments until mining resumes, people with knowledge of the matter said this 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.

China`s steel, coal capacity cuts shouldn`t be left to year`s end: NDRC

Source: www.chinamining.org      Citation: Platts     Date: August 23, 2016

Targets for capacity cuts in the steel and coal industries should be worked towards evenly over the rest of the year, and shouldn`t be left to the eleventh hour, an official at China`s top economic planner said Friday.

Monthly updates will be compiled to monitor progress.

"Either arising from a misunderstanding or reasons related to self interest, some companies had thought it was fine as long as they met the year`s targets by the end of the year," Lian Weiliang, deputy head at the National Development and Reform Commission said at a press briefing.

"And so many companies have timed the cuts for the fourth quarter, or simply in December."

The briefing by the NDRC, jointly held with officials from the State Council and the ministries of industry and commerce, follows a meeting chaired by Premier Li Keqiang last Tuesday, announcing that nationwide audits will be made to ensure targets set for this year are adhered to and achieved.

"We have now provided guidance that the capacity cuts cannot all be concentrated at the end of the year, because the work is very complicated and there is a lot to be done, especially in terms of the reassignment of workers and in dealing with debt," Lian said. "And closing capacity involves dismantling equipment, shutting mines, all of which need time, so we`re requesting that companies do their best to move things forward."

The audits will be conducted first through self-appraisal by local authorities, who have been asked to identify issues, sum up their experiences and suggest areas for improvement.

Then, officials from the central government will conduct on-the-ground checks. Inspectors, split into 10 teams, will begin audits from this week to September 10, and will focus on eight areas including the implementation of capacity cuts, the use of funds intended to cope with the fallout and the reallocation of displaced workers.

As of the end of July, 21.3 million mt/year of crude steel capacity cuts have been achieved, or 47% of the 45 million mt/year set as this year`s target.

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.