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China urges power firms to sign long term contracts with coal miners

Source: www.chinamining.org      Citation: Reuters   Date: April 08, 2016

China has asked state-owned power plants to negotiate long-term supply contracts with coal producers in a bid to stabilise the market and ease pressure on the country`s loss-making miners, according to a draft document seen by Reuters.  

The document was sent to major coal buyers in the power sector and coal producers by State-Owned Asset Supervision and Administration Commission (SASAC) in advance of a meeting due to take place on Thursday between both sides.  

The government is trying to manage the decline in its huge coal sector, which is suffering from falling demand and a concerted state effort to cut pollution and greenhouse gas emissions. 

With an annual capacity surplus of around 2 billion tonnes, China plans to shut down around 500 million tonnes of coal production in the coming three to five years. The government has held regular meetings with miners urging them to maintain "discipline", curb production and avoid price wars.  

According to a draft document the big five state power groups and major state coal suppliers like the Shenhua Group and the China Coal Group have been asked to agree to a plan boosting "long-term stable cooperation" between the sectors.  

SASAC has urged state coal and power firms to sign long-term supply contracts as well as maintain "market discipline" as part of the plan.  

A mechanism to allow upstream coal suppliers and downstream coal consumers to share market risks more fairly should be established, it said.  

Coal and power firms traditionally meet at the end of each year to agree prices and supply volumes for the following year, leading to tense negotiations and frequent stand-offs between the two sides.  

New guidelines were introduced by regulators in 2014 to allow them to set volumes only and give the market a greater say in pricing.  

Chronic oversupply and a collapse in prices, has resulted in power firms buying more from the spot market in recent years.  

Tensions have recently been rising between the two sectors, with one coal firm complaining last year that power plants had been playing suppliers off against one another in order to force prices down further.  

Huadian Power International Corporation, the listed unit of the Huadian Group, one of big five state utilities, posted a 21-percent rise in net profit last year, while the Chinese coal sector was struggling with heavy losses and widespread closures.

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.

Gold demand declines 7% during 2015: report

Source: www.chinamining.org         Citation: Global Times     Date: April 01, 2016

China`s total gold demand (including jewelery fabrication, industrial fabrication and retail investment, but excluding central bank purchases) fell 7 percent in 2015 to 867 tons, according to a survey Thomson Reuters sent to the Global Times on Thursday.  

Last year`s decline was largely due to weaker demand in the first half of the year, when total demand fell 15 percent, with demand for gold bars and jewelery fabrication down 17 percent and 16 percent, respectively, according to the survey.  

A sharp correction in domestic equities in the second half of the year saw market sentiment switch in favor of gold, propelling a 5 percent year-on-year recovery in demand, driven by increased concerns about the softening economy and the desire to diversify yuan-denominated assets.

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.

Gold demand declines 7% during 2015: report

Source: www.chinamining.org         Citation: Global Times        Date: April 1, 2016

China`s total gold demand (including jewelery fabrication, industrial fabrication and retail investment, but excluding central bank purchases) fell 7 percent in 2015 to 867 tons, according to a survey Thomson Reuters sent to the Global Times on Thursday.

Last year`s decline was largely due to weaker demand in the first half of the year, when total demand fell 15 percent, with demand for gold bars and jewelery fabrication down 17 percent and 16 percent, respectively, according to the survey.

 A sharp correction in domestic equities in the second half of the year saw market sentiment switch in favor of gold, propelling a 5 percent year-on-year recovery in demand, driven by increased concerns about the softening economy and the desire to diversify yuan-denominated assets.

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.

Gas price cuts lure customers away from coal

Source: www.chinamining.org         Citation: Bloomberg        Date: March 30, 2016

Workers conduct a gas test at an energy station to ensure safe operation at an industrial park in East China`s Jiangxi province in March, 2014. [Photo / Xinhua]

China`s natural gas demand has been boosted by price cuts aimed at switching users from coal to the cleaner fuel, according to one of the country`s biggest gas distributors.

ENN Energy Holdings Ltd has seen its sales rise more than 15 percent in January and February as lower prices encouraged customers to switch, Vice-Chairman Cheung Yip-sang said in Hong Kong. ENN expects full-year sales to rise 15 percent, following last year`s 11.5 percent jump to 11.3 billion cubic meters.

"The movement really picked up a lot of momentum," Cheung said. "The higher burning efficiency of gas and government pressure for better emission standards will help convert more industrial users from coal to gas."

The government adjusted gas prices twice last year to stimulate demand and shift consumption from coal, which makes up 64 percent of the country`s energy mix. The share of natural gas may rise from its current 6 percent, the company said last week, adding that users switching from coal made up 39 percent of new commercial and industrial customers last year.

China`s gas demand expanded 3.3 percent in 2015, while coal consumption dropped 3.7 percent, declining for the second year, according to the National Bureau of Statistics.

Coal use will slip further this year amid tepid demand from industrial users, according to the China Coal Industry Association.

The country`s liquefied natural gas imports in the first two months of 2016 jumped more than 14 percent and shipments by pipeline rose 15 percent to a record.

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 discovers first 10-million-ton porphyry copper deposit

Source: www.chinamining.org      Citation: People`s Daily Online    Date: March 30, 2016

According to the exploration and evaluation of China`s first ten million tons of porphyry copper deposit which was finished recently, the long-term copper resources in the Southern Tiegelong deposit are predicted to surpass 15 million tons.

From 2013 to 2015, a total of 10.98 million tons of copper were discovered at the Southern Tiegelong deposit in Gaize county, Tibet, which makes it China`s largest single million-ton copper deposit. 

The long-term copper deposit is estimated to exceed 15 million tons, marking a breakthrough in mine exploration in the region.

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 COSCO, Vale sign agreement on iron ore shipping

Source: www.chinamining.org         Citation: Xinhua     Date: March 21, 2016

China COSCO Shipping Corp Ltd and Brazilian miner Vale on Friday signed an agreement on iron ore shipping, the latest cooperation between the two companies.

COSCO`s subsidiary China Ore Shipping will ship around 16 million tons of iron ore for Vale annually for the next 27 years.

 China COSCO Shipping Corporation is a new company formed by the restructuring of China`s top two shipping firms, officially established in February.

By amalgamating COSCO and China Shipping, the new conglomerate has the world`s largest total shipping capacity and the fourth biggest container fleet.

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 copper: CIF import premium slips further on high stocks

Source: www.chinamining.org      Citation: Platts    Date: March 17, 2016

The spot import premium for London Metal Exchange-registered brands of copper cathode on a CIF China basis has fallen further, pressured by high stocks in Shanghai Futures Exchange warehouses and little import interest on the lack of arbitrage opportunity, industry sources said Wednesday.  

Platts lowered its CFR China copper premium assessment to $60-$75/mt Wednesday, down from $70-$85/mt last week on lower indications heard.  

A Southeast Asian trader indicated the CIF China premium for copper at $65-$75/mt, down from $80-$85/mt last week, while an east China-based trader heard around $70, down $15-$20/mt on the week.  

"Yes, the CIF China premium is down mainly due to rising stocks in the country. When the Chinese yuan devalued in November-December 2015, there was a good profit margin from buying LME copper at cash price and selling it at the SHFE. China`s copper imports were up, resulting in the high stocks volume in SHFE warehouses. In addition, Chinese domestic demand is still weak as it is not the buying season yet," the eastern Chinese trader added.   

Several Chinese sources also heard of the further fall in the CIF China premium for copper as copper stocks continued to rise in the country.  

A north China-based analyst heard it at $60-$70/mt, compared with $70/mt last week; an east China-based industry source heard at $60-$70/mt, down from $85-$90/mt the previous week; and a north China-based industry source heard an average of $65/mt, down about $5/mt week-on-week.  

"There`s no arbitrage opportunity at the moment. In fact, there`s an import-related loss of Yuan 800-1,000/mt," added the northern Chinese analyst.  

The eastern Chinese industry source and the northern Chinese industry source noted that current copper prices had generally stayed on the high side but were rather rangebound. 

"China`s recent weak industrial output statistics have dampened copper prices. But a weaker dollar has given copper prices some support. The dollar has weakened last night, pending on the announcement from the US Federal Open Market Committee`s meeting due to end later today," the eastern Chinese industry source added.  

China`s value-added industrial output gained 5.4% on the year in the first two months of 2016, the lowest monthly growth since November 2008, official data showed Saturday.  

The 5.4% growth retreated from the 6.8% increase in the Jan-Feb period of 2015 and the 5.9% in December 2015. It was also lower than the 6.1% annual gain seen in 2015, according to the National Bureau of Statistics.  

The weekly SHFE stocks totaled 350,138 mt on Friday, up 14.8% on the week, while LME copper stocks were 174,175 mt, down 6.7%.  

Front-month April 2016 copper futures closed at Yuan 37,390/mt ($5,736/mt) on the Shanghai Futures Exchange Wednesday, up from Yuan 37,170/mt last Wednesday and up from Yuan 37,130/mt Tuesday. 

LMESelect`s three-month copper price was around $4,941-$4,943/mt Wednesday afternoon, while the LME official three-month price was $4,902.50-$4,903/mt Tuesday.  

Chinese spot copper concentrate treatment and refining charges (TC/RCs) continued to be heard steady this week, sources said.

TC/RCs for the clean ore were mostly at $75-$85/mt and 7.5-8.5 cents/lb, while mixed ore stayed above $100/mt and 10 cents/lb. 

TC/RCs are fees charged to miners by smelters to treat and refine copper concentrate to produce copper metal. They typically rise when concentrate supply is ample and fall when supply is tight.

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 should set up gold logistics center in the east

Source: www.chinamining.org         Citation: People`s Daily        Date: March 11, 2016

Thanks the massive inflow of gold from foreign countries and regions in recent years, China`s gold processing industry has been ranked first in the world. According to a recently issued blue book, China should now follow the trend and set up a gold logistics center, China News Service reports on Thursday.

In 2014, China processed 886.09 tons of gold, leading the world and accounting for 30 percent of the world`s total, despite a 24.68 percent decline from the previous year. This information comes from the blue book, which was published by the Ping An Bank funds operations center.

In recent years, a large amount of gold from Switzerland, the United Kingdom, North America, South Africa, plus other Asian countries and regions has been flown into China. Although Europe is still the biggest gold trading center, accounting for 80 percent of the global share, the distribution of China`s gold has already shown a significant "west to east" trend, according to the blue book.

In 2014, the supply of gold in the Chinese gold market amounted to 2,106 tons. Although that number is lower than that of Switzerland, the world leader in gold transactions at 2,208.1 tons, China`s gold exports only accounted for 13.17 percent of its supply this year, which means more than 80 percent of the gold has not been traded ¡ª 3.94 times that of Switzerland. So it is realistic for China to become a new gold logistics center.

 In addition, the blue book pointed out China`s other advantages, such as strong demand and a convenient, nearly completed logistics system.

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.