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Deal for investors to trade gold via FTZ

Source: www.chinamining.org   Citation: Shanghai Daily   Date: January 19, 2015

The Shanghai Gold Exchange and the World Gold Council signed a deal yesterday to boost the trading of gold through the city`s pilot free trade zone.

Under the memorandum of understanding, the two parties will support the development of gold investment products and solutions for the industry and investors both regionally and globally, the WGC, a global gold industry association, said in a statement.

Global investors will be able to trade the bullion on an international board the Shanghai exchange set up in the FTZ last September and use its services such as storage, trusteeship, delivery, leasing and transit, the statement said.

"As the market shifts from West to East, the expansion of strong gold trading hubs in Asia will improve pricing, liquidity, transparency and efficiency, all of which will transform the landscape of the global gold market," said Aram Shishmanian, CEO of the WGC.

The Shanghai exchange has grown into the world`s largest market for physical gold and the partnership will help better integrate the China market with the world, said Shishmanian.

"It is exciting to partner with the world`s leading gold exchange as it allows us to bring our global expertise and insights to this enormous gold market full of potential," he said.

Xu Luode, chairman of the exchange, said he expects the alliance with the WGC to improve the link between China and the global gold industry.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China issues 9.75 million mt of oil export quotas, first lot in 2015

Source: www.chinamining.org   Citation: Platts   Date: January 16, 2015

China this week issued the first round of oil product export quotas for 2015, with volumes totaling 9.75 million mt, industry sources said Wednesday, January 14.

This is significantly more than the roughly 8 million mt of quotas that were awarded in the first quarter of last year.

State-owned companies seek export quotas for some oil products from the government based on their requirements and can also request to have unused volumes from the quota of a particular oil product converted to another product.

Quotas are given out approximately every quarter and unused volumes can be rolled over to the following quarter.

The latest quotas were approved by the Ministry of Commerce and General Administration of Customs late last month, according to sources.

GASOIL QUOTA DROPS

Reflecting a slight improvement in domestic gasoil demand and continued robust domestic production of gasoline and jet fuel/kerosene, the quota for gasoil was the lowest of the three main transport fuels, at 1.36 million mt -- 28.4% lower than the quota awarded in Q1 last year.

This suggests the pace of gasoil exports may not pick up significantly from the fourth quarter of last year, when outflows over October and November averaged 290,000 mt/month. Data for December will be released next week.

The total gasoline export quota of 2.68 million mt was up 22.4% from the first batch last year while jet/kerosene volumes soared 59.4% over the same period to 5.61 million mt.

The surge in jet fuel/kerosene quotas likely reflects expectations that the domestic market will continue to be oversupplied, largely because output by refineries is growing at nearly 20% year on year while demand is rising by roughly 13%.

China National Petroleum Corp. and Sinopec were each awarded total oil product quotas of 4.8 million mt while China National Oil Corp. received 150,000 mt.

Sinopec only received 350,000 mt of gasoil quota in this round, versus the nearly 1 million mt awarded to CNPC.

This is surprising given that Sinopec`s trading arm Unipec is responsible for the bulk of China`s gasoil exports.

A source close to the matter said that export economics for gasoil are not that favorable so it is unlikely that Chinaoil, CNPC`s trading arm, will utilize all its gasoil export quotas.

GASOLINE EXPORTS MORE ATTRACTIVE

CNPC has received the right to export 2.06 million mt of gasoline, while Sinopec has received an export quota of 600,000 mt.

Export-oriented refinery Dalian West Pacific Petrochemical Corp., which is majority held by CNPC, has received a quota to export 700,000 mt of gasoline, 700,000 mt for jet/kerosene, 200,000 mt for gasoil and 100,000 mt for naphtha.

A source at Wepec noted that it is now more profitable to export gasoline than gasoil, mainly because the export price of gasoline is higher than current domestic prices, but the reverse is true for gasoil.

The refinery expects to export slightly more oil products in the current quarter than in Q4 last year.

This month, it will likely export 100,000 mt of gasoline, 108,000 mt of jet fuel and 40,000 mt of gasoil.

CNOOC, which only started exporting from its 240,000 b/d Huizhou refinery in southern Guangdong province in the second half of last year, received the go-ahead to export 20,000 mt of gasoline, 30,000 mt of gasoil and 100,000 mt of jet/kerosene.

The quotas this year cover 20 refineries.

Besides Huizhou, CNPC`s eight refineries are unchanged from last year while Sinopec has only awarded quotas to 11 refineries instead of 12 -- its 280,000 b/d Fujian joint venture refinery with Saudi Aramco and ExxonMobil is no longer on the list of facilities awarded export quotas.

Fujian was awarded 90,000 mt of jet/kerosene export quota last year but did not utilize any volumes.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Sinopec releases report on its shale gas development

Source: www.chinamining.org   Citation: China Daily   Date: January 9, 2015

Development of clean fuel should itself be green and low-carbon

Sinopec Group, Asia`s largest oil and gas refiner, has released an environmental, social and governance report on its shale gas development, the first of its kind in China.

Jiao Fangzheng, Sinopec`s vice-president, said its shale gas exploration program is being developed based on three principles: operation security, water protection and community communication.

"The shale gas industry is being developed to ensure that the country`s energy consumption becomes cleaner and more sustainable. Thus, its development should be green and low-carbon," Jiao said.

According to the report, Sinopec`s major project is the Fuling shale gas block in southwestern Sichuan province, which uses water from the Wujiang River for hydraulic fracturing, also known as fracking. Officials insist that it has no effect on residential water use.

Fracturing is a technique by which rock is fractured by pressurized liquid to produce shale gas from shale formations.

"The fracturing fluid developed by Sinopec can also be reused," Jiao said.

The Fuling project, fully owned by Sinopec, started commercialized production in March last year. The company has built 2 billion cubic meters of production capacity at the site, enough to meet the natural gas consumption needs of 8 million residents for a year.

By Dec 22 the company had drilled 75 wells in the block and produced more than 1.14 billion cum of gas.

Officials say the project will reduce carbon emissions by 12 million metric tons annually, which equates to the planting of some 110million trees.

Jiao said the development not only offers environmental benefits but also contributes to the local economy.

"Fuling`s shale gas output has been created first and foremost for local residential use, with an expected daily supply of 3.6 million cubic meters of gas," he said.

Lyu Dapeng, a spokesman for Sinopec, said the company has established three joint ventures with local companies, and employed 25 local subcontractors on infrastructure construction and production contracts.

"We have tried our best to reduce the negative impact on local people`s lives," he said. "The operational hours are strictly controlled to cut noise, and the timetable for transporting water, for instance, is also scheduled to avoid raising dust."

To improve what the company claims were local mis-understandings about shale gas development, Sinopec has run an awareness campaign as well as created a system for handling any questions or worries people might have.

Long Shaobin, a local official from the nearest township, said: "We used to be the poorest township in the region with total fiscal revenue of 200,000 yuan ($32,000) in 2013. Because of the shale gas project, Sinopec has built a road to the township, which has offered us the chance to sell our produce to a wider market."

He said local people are selling ducks and oranges, for instance, while in the past many of the agricultural products were left to rot as it was difficult to transport them.

In addition to the 30-km road, Sinopec has built water-storage cellars for local people, Lyu said.

"Trust needs to be earned, and all these efforts are important in maintaining what has become a harmonious, mutual development."

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Chinese ferrochrome market under pressure as import tax is scrapped

Source: www.chinamining.org   Citation: Platts   Date: January 4, 2015

The Chinese domestic ferrochrome market is expected to remain under pressure after the 1% import tax on ferrochrome with more than 4% carbon was scrapped.

Exporters lauded Beijing`s decision in December. The 1% import tax was factored into the selling prices quoted to Chinese buyers, they said previously.

Removal of the 1% import tax will give sellers higher price realization, they added.

The cancellation of the import tax, along with the cut in Q1 European ferrochrome term price announced in December, does not bode well for the Chinese domestic market in the near term, said an official with the raw material department of an east China stainless mill.

Chinese domestic ferrochrome prices have been trending downward since July 2013 amid ample supply and low demand.

By November 2014, domestic spot prices of high carbon ferrochrome (50% Cr) had fallen to Yuan 6,200-6,400/mt (equivalent to 76-79 cents/lb), down 10-11% since July 2013.

Sentiment turned bullish in late November and domestic prices rebounded to Yuan 6,350-6,500/mt in early December following production cuts in the country, which saw major Chinese stainless steelmakers lift their monthly purchase prices in December.

The bullishness proved short-lived, however, and steelmakers rolled over their January purchase prices from December.

"The overall weakness in the market will continue. Some tightness may continue in the market till March. But not many buyers are bullish now," a Hong Kong-based trader said.

The cancellation of the 1% import tax on imported ferrochrome indicated that Beijing was not supportive of further expansion of the domestic ferrochrome industry, market watchers said.

"China is moving towards decreasing ferrochrome manufacturing. The import tax cut is the first step towards that. China is not encouraging expansion and production in the ferroalloy industry," an official with an Indian ferrochrome producer said.

Other market participants agreed, noting that China had discouraged the export of ferroalloys as early as a decade ago when it lifted export taxes on various ferroalloys because the industry was considered to be adding to the pollution and was energy and resource intensive.

China imposes a 20% export tax on ferrochrome, though it has always been a net importer.

An official with the raw material department of another east China mill said that other than strict environmental standards in the ferrochrome industry, Beijing was also strict when it came to the approval of new projects.

China`s ferrochrome output and production capacity has increased over the years but other than stricter environmental standards, which is also faced by the rest of the ferroalloy sectors and the steel industry, the government was unlikely to introduce more policies to specifically curb expansion of the ferrochrome industry, Liu Yujing, a ferrochrome analyst with Beijing Antaike, said.

"There is no need for more macro policies to check the sector. The market is adjusting on its own," she said.

She noted that while China`s ferrochrome production capacity was around 7.5 million mt/year, only 4.5 million mt/year was estimated to be operating as at December.

The ferrochrome industry was essential to the steel industry, however, sources pointed out.

"The Chinese stainless steel industry is huge. Ferrochrome is still needed in the country," a Shanghai-based trader 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s natural gas output up 8.3% in Jan-Nov to 115.2 bln cbm

Source: www.chinamining.org   Citation: China Knowledge   Date: December 29, 2014

China saw its output of natural gas increase 8.3% year on year to 115.2 billion cubic meters in the first eleven months of this year, said the National Development and Reform Commission in a statement published on its website.

In the first eleven months, China`s natural gas imports grew 9.5% year on year to 51.9 billion cu m.

From Jan to Nov 2014, the consumption of natural gas amounted to 159.2 billion cu m, 7.4% more than it realized in the same period of 2013.

Last month, China is natural gas output hit 11.4 billion cu m, grew 9.3% from a year earlier, and its imports of natural gas grew 11.4% to 5.3 billion cu m.

The country consumed 16.5 billion cu m of natural gas in Nov, reflecting a year on year increase of 9.4%

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s crude oil output up 0.5% in Jan-Nov to 191.31 mln ton

Source: www.chinamining.org   Citation: China Knowledge   Date: December 29, 2014

China, the world`s second largest oil consumer, saw its crude oil output edge up 0.5% year on year to 191.31 million tons in the first eleven months of this year, according to recent figures released by the National Development and Reform Commission.

From Jan to Nov, the country processed 418.15 million ton of crude oil, 3.5% more than in the same period of 2013.

The country saw its output of oil products grow 4.9% year on year to 260.89 million ton in the first eleven months.

China`s consumption of oil products rose 2.6% year on year to 247.06 million ton in the first eleven months. There was 8.2% growth in the consumption of gasoline and 0.8% decrease in the consumption of diesel.

In the month of Nov, China¡¯s crude oil output grew 1.5% year on year to 17.59 million ton, and its output of oil products increased 4.6% year on year to 24.26 million ton.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China`s coal imports down 9.4% in Jan-Nov to 264 mln tons

Source: www.chinamining.org   Citation: China Knowledge   Date: December 29, 2014

China saw its coal imports decline 9.4% year on year to 264.01 million tons in the first eleven months of this year, according to statistics released by the General Administration of Customs.

According to the statistics, the import value of coal decreased 22% year on year to US$ 20.34 billion in the eleven-month period.

Meanwhile, China saw its coal exports amount to 5.31 million tons in the first eleven months, 23.5% less than in the same period of 2013.

The export value of coal totaled US$ 644.93 million, down 34.5% year on year. Last month, China`s coal imports reached 21.03 million tons with import value of US$ 1.5 billion, while its coal exports hit 0.94 million tons with export value of US$ 169.42 million.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Iron ore demand forecast to stay steady in 2015

Source: www.chinamining.org   Citation: China Daily   Date: December 4, 2014

Iron ore imports are expected to grow 6.4 percent year-on-year to around 1 billion metric tons in China during 2015, driven largely by lower commodity prices and growth in domestic demand, industry experts said on Wednesday.

The growth rate is significantly lower than the estimated 14.7 percent increase in 2014, according to a report released by the China Metallurgical Industry Planning and Research Institute.

Although the GDP growth rate of the world`s second-largest economy will decline as the country restructures its growth mode, domestic steel output and demand will increase next year, which will lead to higher iron ore imports, said Li Xinchuang, deputy secretary-general of China Iron and Steel Association and president of the institute.

"The falling iron ore price is another incentive for rising imports," Li said.

He said iron ore prices will stay low at around $70 to $80 a metric ton next year and are unlikely to fall below $60 a ton.

According to a report released by the institute, iron ore imports by China during 2014 are estimated to be around 940 million tons, a 14.7 percent growth over the levels in 2013.

Li said the world`s top four miners-Rio Tinto Plc, BHP Billiton Ltd, Fortescue Metals Group Ltd and Vale SA-can still make profits when even iron ore prices fall to $60 a ton, while the same could put a number of Chinese iron ore mines into bankruptcy.

Rio Tinto, which has charted a capacity expansion plan from its current 290 million tons to 360 million tons by mid-2015, has low iron ore costs of around $40 a ton, according to Andrew Harding, chief executive of the company`s iron ore business.

The National Development and Reform Commission, the country`s economic planner, has approved several railway and airport construction projects, with a total investment of 700 billion yuan ($114.2 billion), since October, which will keep steel demand robust in the long term, said Zhou Wei, an analyst with the Beijing-based Lange Steel Information Research Center.

According to the institute`s report, steel demand in China will reach 720 million tons in 2015, representing an annual growth of 1.41 percent, and the country`s crude steel output will be 834 million tons, a year-on-year increase of 1.71 percent.

"Real estate and infrastructure construction investments will see slower growth next year as the nation takes steps to ease the overcapacity problem in many industries and trim inventories, which will lead to a slower growth in steel demand," said the report.

Demand for steel in the construction sector is estimated to be about 395 million tons next year, up 1.28 percent year-on-year. Steel demand for machinery manufacturing is estimated to be 144 million tons, a 3 percent rise over 2014.

Boosted by more natural gas pipeline construction, the energy sector will have steel demand of 33 million tons, an annual growth of 3.1 percent. The shipbuilding market will remain gloomy in 2015, creating steel demand of 13.5 million tons with year-on-year growth of 3.8 percent.

Most Chinese companies have been actively tapping overseas markets in recent years with high-end steel products. Hebei Iron and Steel Group Co Ltd signed an agreement with Switzerland-based Duferco International Trading Holding to acquire 51 percent of the latter`s shares in mid-November.

Yu Yong, president of HBIS, said the "going out" strategy is a better way out of the current domestic market and competition in the global market would prove beneficial for the company`s development.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.