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China`s coal-producing province to curb production

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

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

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

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

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

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

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

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

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

About CHINA MINING

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

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

Russia again beats Saudi as China`s top crude supplier

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

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

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

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

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

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

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

About CHINA MINING

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

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

Asia`s largest manganese ore discovered in SW China

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

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

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

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

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

About CHINA MINING

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

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

China 2015 coal imports plunge 30 pct on demand slump

Source: www.chinamining.org     Citation: Reuters    Date: January 14, 2016

China`s coal imports slumped 30 percent to 204.1 million tonnes in 2015, customs data showed on Wednesday, hit by a slowdown in domestic demand and a collapse in the price of locally produced coal.

Imports could fall further this year, analysts said, with overall demand still declining. Coal also faces the twin headwinds of state efforts to cut pollution and a weaker Chinese currency that will further erode the cost advantages once enjoyed by foreign miners.

"Going into 2016, the overall theme will still be there, with demand still weak as China steers away from high energy-intensive industrial growth and the replacement (of coal) by other energy sources continues," said Helen Lau, analyst with Argonaut Securities in Hong Kong.

She expected imports to fall another 10 percent in 2016,

While overseas suppliers could usually rely on lower production costs to undercut their Chinese counterparts during periods of high demand, their advantage has been eroded after a supply glut cut domestic coal prices.

"The decline in coal import volumes has two main causes - the decline in overall demand caused by China`s economic slowdown, and the fall in domestic prices which has undermined the price advantage enjoyed by imported coal," said Zhang Xiaojin, a coal analyst with China`s Everbright Securities.

Chinese coal producers, which suffered widespread losses last year, are desperate to cut production in order to shore up prices. China`s raw coal output is expected to fall 4.2 percent in 2016 to 3.6 billion tonnes, down from an estimated 3.76 billion tonnes in 2015, according to the China Academy of Sciences.

Thermal coal prices at the northern port of Qinhuangdao SH-QHA-TRMCOAL lost nearly 30 percent over the course of last year and have held at 370 yuan ($56.25) per tonne since late November.

Lau said the devaluation of the Chinese yuan could help spur exports, but they were unlikely to exceed 5 million tonnes for the whole of 2016, given weak global demand. ($1 = 6.5783 Chinese yuan)

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 goes underground to expand its strategic oil reserves

Source: www.chinamining.org     Citation: Reuters    Date: January 07, 2016

China is building underground caverns capable of holding up to a quarter of its expanded strategic oil reserves by 2020, as it looks for new storage methods away from expensive and exposed above-ground tanks in crowded coastal regions.

In a move to improve its energy security and take advantage of cheap oil, China is spending billions of dollars to build up strategic petroleum reserves (SPR) to meet up to 90 day`s worth of net import demand in case of a disruption.

While many western countries make SPR data public, China rarely gives detailed information on its oil reserves or locations.

So far, China has built almost all of its SPR tanks above ground, but now at least five underground sites have been identified, with one at Huangdao in Shandong province completed and another four under construction, according to local media and several oil analysts surveyed by Reuters.

"Building facilities all on the ground would be like putting all your eggs in the same basket. That is why the government diversified its stockpile centres," said a senior researcher involved in storage design at the Research Institute of Petroleum Exploration and Development, run by China National Petroleum Corp.

The official declined to be named because he was not authorized to speak to media.

Despite the cost of drilling the caverns, underground storage can be up to two-thirds cheaper than above-ground tanks, especially as the cost of land surges in coastal regions, and are less prone to potential sabotage, experts said.

"While traditional above-surface storage has the advantage of a shorter construction period, the underground caverns generally have the advantages of lower costs, lower environmental risks, as well as greater perceived level of security," said Wendy Yong, a senior analyst with energy consultancy FGE.

Underground sites are slated to hold about 130 million barrels, which would account for nearly a quarter of the 550 million-barrel SPR target set by Beijing for 2020, according to local media and analysts.

Three underground rock cavern sites under construction are at Jinzhou in northeast Liaoning province, and Zhanjiang and Huizhou in southern Guangdong, all expected to be ready to take oil over 2016 or early 2017, according to industry sources and analysts. A salt cavern has been partially completed in Jintan, in eastern Jiangsu province.

TECHNICAL PROBLEMS

Beijing confirmed the completion of its first underground site, a 19 million-barrel facility in Huangdao in Shandong province, in December when it said its reserves had doubled in the eight months to mid-2015 to 190 million barrels.

However, construction of caverns is taking longer than expected as Chinese builders are new to the technology and challenges such as water seepage during excavations and rock disposal can be daunting, experts said.

Engineers are encountering technical problems in adapting to local geological conditions, resulting in construction delays and the abandonment of one small, pilot underground facility due to oil leakage and high maintenance costs.

"China had a late start on research related to underground oil. In practice we borrowed foreign technologies that don`t apply to China`s scenario," said Zhuang Duanyang, a researcher at Dalian University of Technology.

Unlike the United States, which stores its vast oil supplies in hollowed-out underground salt domes, China`s different geology means it mainly has to excavate hard rock caverns up to 200 metres (220 yards) below the surface, similar to South Korea.

Once the caverns are filled with oil, pressure from water naturally present in surrounding rock prevents it from seeping away, and Chinese officials say the caverns are relatively cheap, long-lasting and require little maintenance.

China has still identified two salt mines, the Jintan site and Qianjiang in central Hubei province that could be suitable for oil storage.

Work is also being carried out at Jintan by companies including PetroChina and Hong Kong`s Towngas for gas storage.

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 2015 zinc concs output to post first
annual decline of 4% to 4.8 mil mt: CNIA

Source: www.chinamining.org         Citation: Platts      Date: December 25, 2015

China is expected to post its first ever annual decline in zinc concentrate output this year, as miners produced 4.22% less at 4.8 million mt on the back of weak domestic prices, stringent environmental requirements and ore degradation, China Nonferrous Metals Industry Association said late Wednesday.

In a report reviewing the country`s nonferrous industry performance, CNIA said the drop in domestic production would be offset by zinc concentrate imports, which is estimated to reach 3.2 million mt in 2015.

Chinese smelters have been able to maintain operating rates at a relatively high level so far this year, with large producers running at an average 86.55% and mid-tier ones at 73.92%.

China is expected to see the addition of 590,000 mt/year of new smelting capacity over 2015-2016.

In the first nine months of this year, the country already saw the startup of 290,000 mt/year of new capacity, and the remaining 300,000 mt/year capacity is likely to be ready for commissioning next year.

Inventory of zinc ingot in the Shanghai, Tianjin and Guangdong districts has reached 365,200 mt by year end, a 83% jump year on year.

Looking into 2016, CNIA has cited that continuing excess in existing and incremental zinc production capacity, slowing Chinese economic growth and closure of inefficient steel producers would suppress zinc prices further.

However, concerted efforts of leading Chinese zinc smelters to cut production, the drop in treatment charges of zinc concentrate to $160-170/mt recently -- from around $190/mt in November -- and suggestions within the industry of establishing commercial stockpile might help support domestic prices, which CNIA tipped to be rangebound within Yuan 10,000-15,000 ($1,544-2,316)/mt.

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 2015 magnesium output seen at 44% of 1.6 mil mt/year capacity

Source: www.chinamining.org         Citation: Platts      Date: December 24, 2015

China`s magnesium ingot output is seen at 701,005 mt, equating to 44% of the country`s total capacity of 1.6034 million mt/year and down 20% from 2014, trade platform Northeast Asia Magnesia Material Trading Center said Tuesday. It forecast output in December at 58,000 mt, in line with November. However, demand has not increased in December, with producers facing the twin pressures of falling ingot prices and "hardships in selling," the center said. China`s domestic magnesium ingot stood at Yuan 12,100/mt ($1,936/mt) mid-December, down from Yuan 12,300/mt a month earlier, its data showed.

Cutting output or halting production would intensify a funding shortage this close to year end, so magnesium producers will likely delay such moves until the Lunar New Year holiday in February, the center 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`s Silk Road Fund to buy into Russian LNG project

Source: www.chinamining.org         Citation: Xinhua        Date: December 21, 2015

China`s Silk Road Fund, a medium- to long-term investment fund, will buy 9.9 percent of a Russian liquefied natural gas (LNG) project.

The Silk Road Fund said Friday that it entered into a set of binding agreements with Russia-based natural gas producer Novatek on Thursday in the presence of Premier Li Keqiang and Russian Prime Minister Dmitry Medvedev.

The Fund will buy 9.9 percent stake in Novatek`s Yamal LNG project and provide a 15-year loan of around 730 million euros ($790 million) to finance the project. The deal will not go ahead until an intergovernmental agreement comes into force.

Located on the Yamal Peninsula, the Yamal project is the world`s largest natural gas development, liquefaction, transportation and sale project, with a designed annual output of 28 billion cubic meters.

The Silk Road Fund was set up in December 2014 to promote investment and financing cooperation between China and other countries, serving the China-proposed "Belt and Road" initiative, which encompasses the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

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.