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Indonesia`s export ban to curb China aluminium expansion

Source: www.chinamining.org Citation: Reuters Date: Feb.10, 2014

China has found an inadvertent ally in its efforts to slim down a bloated aluminium sector, with Indonesia`s ban on exporting metal ores set to boost costs of the raw material bauxite and pile more pressure on struggling smelters. Beijing has been issuing broadbrush rules aimed at reining in overcapacity in sectors such as aluminium and steel for about a decade, but plans have usually been thwarted by resistance from local governments anxious to boost growth. In the aluminium sector, ageing and inefficient smelters are already grappling with rising power prices, but now face potential bauxite shortages after Indonesia halted ore shipments on Jan. 12, as part of efforts to make miners process minerals at home. China is the world`s biggest aluminium producer and curbing expansion could ease a global surplus of the metal and even lead to the country resuming sizeable imports of refined aluminium. It is also likely to provide support to the price of a metal that has been depressed for years. "(Indonesia`s ban) will have a huge impact on the Chinese aluminium industry in the medium term," said Citi China commodities analyst Ivan Szpakowski. Despite building up big stockpiles ahead of the export ban, Chinese aluminium makers may struggle to find alternative supplies at similar prices. It takes roughly five tonnes of bauxite to produce one tonne of aluminium. Analysts estimate China has around 10 months supply of bauxite stockpiled after importing 48 million tonnes from Indonesia alone last year, up 79 percent from a year earlier. "China`s bauxite stocks may be used up around the end of this year and refineries would need to import," said a manager at a big Chinese aluminium smelter. But bauxite prices are likely to be higher by then and drive up alumina and aluminium prices, added the manager, who declined to be identified as he was not authorised to speak to media. China`s production of aluminium is expected to grow 8 percent to 26.5 million tonnes in 2014, accounting for half of global output, according to Beijing consultancy AZ China. AUSTRALIA
China could get some bauxite from Australia, where Rio Tinto is closing its loss-making alumina refinery Gove in northern Australia. The firm will continue mining and expects to be able to export 7-8 million tonnes a year. But Macquarie estimates that Pacific basin suppliers will not be able to make up for the drop in Indonesian shipments, leaving China short of about 10 million tonnes that would have to be filled by mines in Brazil, Guinea, Ghana and Jamaica. Sourcing imports from further afield could add $80-$100 a tonne, or 5 percent, to the all-in aluminium price which includes LME futures prices plus physical surcharge for delivery, given extra logistics costs, it said. "This will put pressure on Eastern seaboard Chinese smelters, and if China`s clamp down on inefficient capacity means closures ... China could start to import refined material again - if the price is right," Macquarie said in a report. The Western world is still working through an overhang of around 10-12 million tonnes of aluminium built up in the wake of the global financial crisis which has kept a lid on prices. INDONESIAN SMELTER PLANS
Indonesia`s export ban was set down in 2009, but has been ignored by many miners in the hope the government will give ground, as it has with other controversial policies in the past. China Hongqiao Group Ltd is one firm building an Indonesian alumina refinery that is due to be completed by end-2014. It expects to resume bauxite exports in the second half of 2014, after getting a break from the Indonesian government because it is building a refinery. But other firms, faced with high costs and regulatory uncertainty, are not rushing in. Paul Adkins of AZ China said China may be able to secure enough bauxite to scrape by before smelters are built to allow Indonesia to export alumina, which could be within two years, depending on how much infrastructure is in place. But with London Metal Exchange prices stubbornly mired at 4-1/2 year lows around $1,720 a tonne, some believe markets appear to be underestimating the impact on supply. "(The ban) doesn`t just question the expansions in China, it actually threatens the existing industry as well," said London-based BNP Paribas analyst Stephen Briggs, warning that expectations the Indonesian government will retreat could backfire. "To me, the market is putting too low a probability on it."

About CHINA MINING

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

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

China`s gold demand surges, tops 1,000 tonnes for first time

Source: www.chinamining.org Citation: Reuters Date: Feb.10, 2014

China`s gold consumption jumped 41 percent in 2013 to exceed 1,000 tonnes for the first time, an industry body said on Monday, as a sharp slide in prices attracted buyers for jewellery and bullion.

The demand surge has helped China become the No. 1 gold consumer and should support prices, which took a hit last year from expectations of a tapering of commodities-friendly economic stimulus by the U.S. Federal Reserve and a drop in demand in the other major buyer India.

Gold consumption in China grew to 1,176.40 tonnes last year, with jewellery demand climbing 43 percent to 716.50 tonnes and bullion demand soaring 57 percent to 375.73 tonnes, the China Gold Association said on its website.

Chinese demand hit a record as gold prices fell for the first time in 13 years amid an improving global economy and a rally in equities. Prices tumbled 28 percent in 2013.

"The sharply lower prices attracted a lot of Chinese consumers looking for bargains," said Chen Min, an analyst at Jinrui Futures in Shenzhen.

"Gold will continue to be an attractive investment in China in the near term as prices look steady near $1,200 an ounce," Chen said.

Data last month showed that China`s 2013 gold imports from Hong Kong more than doubled from the previous year to reach a record 1,158.162 tonnes.

Data from the industry association also showed that China`s gold output in 2013 rose 6.2 percent from the previous year to a record high 428.163 tonnes, making the country the world`s biggest producer for a seventh straight year.

China`s gold consumption figures do not include demand from the central bank, whose gold reserves stand at 33.89 million ounces (1,054 tonnes), unchanged since April 2009, according to the latest figures on the central bank`s website.

China last announced a rise in its gold reserves in April 2009 and has not revised the figure since, though there had been recent market speculation that the bank had been accumulating gold reserves and would announce a new figure.

China`s foreign exchange reserves, the world`s largest, rose to $3.82 trillion at the end of 2013.

About CHINA MINING

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

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

China Minmetals near US$5b deal to acquire
Glencore copper mine in Peru

Source: www.chinamining.org Citation: Bloomberg Date: Feb.10, 2014

                                           An open pit copper mine in Peru, where China Minmetals is expected to close on the mainland`s
                                           second largest mine deal.

A group led by China Minmetals is nearing an agreement to purchase Glencore Xstrata`s Las Bambas copper project in Peru for more than US$5 billion, according to people with knowledge of the matter.

A deal between Minmetals, China`s biggest state-owned metals trader, and Switzerland-based commodities producer and marketer Glencore could be announced as early as this month, subject to Beijing`s approval, said the people, who asked not to be identified because the process is private. The asset could fetch closer to US$6 billion, one of the people said.

The Chinese group includes Citic Metal, a unit of state-controlled conglomerate Citic Group, and China Reform Holding, an investment company backed by the country`s state assets regulator, the people said.

Glencore is selling Las Bambas as part of an agreement to win Chinese regulatory authorisation for its US$29 billion takeover of Anglo-Swiss coal and metals miner Xstrata last year.

China is the world`s biggest copper consumer, accounting for around 44 per cent of the world`s copper consumption.

The mainland imported around 61 per cent of its unrefined copper ore needs last year, according to a Barclays research report.

Las Bambas had over 10.5 million tonnes of copper resources, Glencore Xstrata said last July. The firm estimated the project will cost US$5.2 billion by the time it starts production next year.

It is set to produce 400,000 tonnes of copper per year for the first five years, with a mine life of over 20 years. Its cash production cost will rank among the lowest 25 per cent of global copper mining projects.

A spokesman for Glencore declined to comment. Glencore`s shares extended gains, closing in London 3.3 per cent higher.

The Minmetals group was the sole Chinese bidder left after another consortium led by Aluminum Corp of China (Chinalco) abandoned its offer in November.

Chinalco, which has a Hong Kong-listed unit that operates the US$3.5 billion Toromocho copper mine in Peru with annual output capacity of 300,000 tonnes, decided to withdraw after rejecting a proposal by Beijing that it be a minority partner in a combined bid led by Minmetals.

China required Glencore to sell Las Bambas to limit its power over the global copper market.

A deal valued at US$5 billion would be the second largest mining-related acquisition by a Chinese buyer, according to data compiled by Bloomberg, behind the US$12 billion purchase of a stake in Rio Tinto Group completed by Chinalco in partnership with Alcoa in 2008.

About CHINA MINING

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

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

China`s imported iron ore stockpiles decline
Source: www.chinamining.org Citation: Xinhua Date: Feb.11, 2014

Stockpiles of imported iron ore at 25 major Chinese ports dropped slightly during the previous two weeks, which included the weeklong Spring Festival holiday, new data showed Tuesday.

At the end of the Jan. 28 to Feb. 10 period, inventories of imported iron ore stood at 92.37 million tonnes, down 0.47 percent over the previous period (Jan. 21-27), according to a Xinhua-China Iron Ore Index report.

The index, compiled through research and analysis of 25 sea ports, showed that the price index for iron ore imports with a 62 percent purity grade dropped 1 point from the previous week to 123. The index for imports of 58 percent purity grade dropped 1 point to 112.

Despite the slight drop in inventory, iron ore stockpiles at ports remained at a relatively high level as sales were curtailed by the seven-day holiday for the Spring Festival, or China`s lunar new year, which began on Jan. 31.

The report forecast that inventory at ports will continue to drop after Lantern`s Day on Friday, a time after which most factories will resume production.

About CHINA MINING

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

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

China`s coal output hit 3.7 billion tons in 2013
Source: www.chinamining.org Citation: China Knowledge Date: Jan.17, 2014

China saw its coal output amount to nearly 3.7 billion tons in 2013, 50 million tons more than it realized in 2012, according to data from the China National Coal Association.

Last year, the country`s coal consumption reached about 3.61 billion tons, reflecting a year on year increase of 2.6%.

By the end of 2013, China`s coal inventory hit 84 million tons, 700,000 tons more than a year earlier.

According to an earlier statistic from the General Administration of Customs, China imported 330 million tons of coal in 2013, up 13.4% year on year, while its coal export for last year hit 7.51 million tons, 19.1% less than in the previous year, China Knowledge reported earlier.

About CHINA MINING

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

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

Rare earth firms `encouraged` to form themselves into 6 groups
Source: www.chinamining.org   Citation: China Daily   Date: Jan.06, 2014

                                             Rare earth minerals being loaded at Lianyungang harbor, Jiangsu province. In China, which
                                             produces more than 90 percent of the world`s rare earth metals, industry consolidation is
                                             underway

Rare earth producers nationwide are being encouraged by the government`s economic authorities to consolidate into six groups, according to industry leaders.

Chen Zhanheng, deputy secretary-general of the China Rare Earths Industry Association, said the plan, formulated by the Ministry of Industry and Information Technology, has been approved by the State Council.

The six
would-be
industrial
groups are:
Rare earth
firms
`encouraged`
to form
themselves

 into 6 groups

The North Rare Earth Group;

China Minmetals Corp;

Aluminum Corp of China;

Ganzhou Rare Earth Group Co Ltd;

China National Nonferrous Metals Industry Guangzhou Corp; and

Xiamen Tungsten Co Ltd.

The North Rare Earth Group mainly comprises Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co Ltd.

The six groups are mainly based in major manufacturing areas in Baotou in the Inner Mongolia autonomous region, Ganzhou in Jiangxi province, Guangdong province and Fujian province.

Inner Mongolia Baotou, the country`s largest rare earth producer, said on Friday that it has acquired nine rare earth mining companies in the Inner Mongolia autonomous region.

Industry and Information Technology Minister Miao Wei said previously that it is important to avoid consolidations that go against the will enterprises by forcing companies into alliances.

The minister also called for fairness during the process of acquisition and mergers.

China produces more than 90 percent of the world`s rare earth metals. The government has said the industry is fragmented and plagued by smuggling.

Rare earths are a group of 17 elements used in a wide range of applications in sectors such as renewable energy, telecommunications and defense.

According to the government, large groups will consolidate the sector`s resources and restructure industrial chains. Government policies regarding production quotas and mining permits will favor large groups.

The Ministry of Commerce has released the first batch of export quotas for 2014.

The 2014 export quota of 15,110 metric tons, which is slightly lower than last year, includes 13,314 metric tons of light rare earths and 1,796 metric tons of medium and heavy rare earths.

As of October, Chinese producers had used only 57.8 percent of the 2013 export quota, because of sluggish global demand for the minerals.

Industry experts said the export quota system might be dropped or modified in the future.

Du Shuaibing, an analyst with Baichuan Information, said China might end export quotas on light rare earths but keep those for medium and heavy rare earths, which have smaller production volumes.

He said the opening up of the market will have a positive effect on rare earth pricing in China, where prices have been heavily affected by government policies.

China began to dominate the rare earth trade about two decades ago.

Experts believe China has about 36 percent of the world`s reserves.

Because it costs a lot of money to initiate a rare earth mine, China possesses substantial advantages in terms of prices.

About CHINA MINING

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

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

Steel firms should go abroad
Source: www.chinamining.org Citation: Global Times Date: Dec.25, 2013

China will encourage Chinese steel enterprises suffering from overcapacity to transfer their businesses to overseas markets where the steel market is still very big, a top official was quoted in a statement published on the website of the Ministry of Land and Resources Tuesday.

"The global steel industry is developing unevenly with some regions like Southeast Asia and Africa still having a big space to develop, and some nations such as China confronting overcapacity," said Miao Changxing, deputy director of the industrial policy division of the Ministry of Industry and Information Technology (MIIT).

Miao suggested that the Chinese enterprises push forward development of the steel industry in Central Asia, Southeast Asia and Africa through ways such as supporting these regions` infrastructure construction, setting up joint venture enterprises and distribution centers overseas.

"For the Chinese steel companies, there will be big business opportunities in emerging markets such as some countries in Southeast Asia," Wang Guoqing, a senior analyst with Beijing Lange Steel Information Research Center, told the Global Times Tuesday.

Leading Chinese steel enterprises have already entered into foreign markets. Baosteel Howa Trading Co under Baosteel Co, China`s leading iron and steel complex, and South Korean GNS Co signed a foreign investment introduction memorandum in April 2012, to invest and build a new steel processing and distribution center in South Korea`s Gyeonggi Province.

Wuhan Iron and Steel Co, China`s largest flat-rolled alloy steel producer, announced in April this year that it will set up a joint venture with an India-based energy company, and also invest in an India-based silicon steel processing and delivery center, according to a Reuters report.

"Expanding our businesses overseas has become one of the development strategies for our company," Sun Jin, director of the publicity office at Wuhan Iron and Steel, told the Global Times Tuesday.

To meet the environmental protection standards set up by the foreign countries, only Chinese companies with high technological capabilities and strong capital strength could enter into the foreign markets, said Wang of Lange Steel.

Meanwhile those domestic companies with backward technological levels will be shut down or consolidated according to the central government`s measures of combating steel overcapacity, Wang noted.

Miao from the MIIT also said that the Chinese government will raise the standards for pollutant emission and energy consumption for the steel industry, and severely punish those companies which violate the environmental protection law, so as to eliminate the backward production capacity.

The growth of China`s total output of crude steel in November slowed down, with the growth rate declining by 9.5 percentage points to 4.2 percent year-on-year, official data showed Tuesday.

About CHINA MINING

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

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

Chinese Nov copper ore, concentrate imports rise 11% on year to 920,000 mt
Source: www.chinamining.org Citation: Platts Date: Dec.24, 2013

China will encourage Chinese steel enterprises suffering from overcapacity to transfer their businesses to overseas markets where the steel market is still very big, a top official was quoted in a statement published on the website of the Ministry of Land and Resources Tuesday.

"The global steel industry is developing unevenly with some regions like Southeast Asia and Africa still having a big space to develop, and some nations such as China confronting overcapacity," said Miao Changxing, deputy director of the industrial policy division of the Ministry of Industry and Information Technology (MIIT).

Miao suggested that the Chinese enterprises push forward development of the steel industry in Central Asia, Southeast Asia and Africa through ways such as supporting these regions` infrastructure construction, setting up joint venture enterprises and distribution centers overseas.

"For the Chinese steel companies, there will be big business opportunities in emerging markets such as some countries in Southeast Asia," Wang Guoqing, a senior analyst with Beijing Lange Steel Information Research Center, told the Global Times Tuesday.

Leading Chinese steel enterprises have already entered into foreign markets. Baosteel Howa Trading Co under Baosteel Co, China`s leading iron and steel complex, and South Korean GNS Co signed a foreign investment introduction memorandum in April 2012, to invest and build a new steel processing and distribution center in South Korea`s Gyeonggi Province.

Wuhan Iron and Steel Co, China`s largest flat-rolled alloy steel producer, announced in April this year that it will set up a joint venture with an India-based energy company, and also invest in an India-based silicon steel processing and delivery center, according to a Reuters report.

"Expanding our businesses overseas has become one of the development strategies for our company," Sun Jin, director of the publicity office at Wuhan Iron and Steel, told the Global Times Tuesday.

To meet the environmental protection standards set up by the foreign countries, only Chinese companies with high technological capabilities and strong capital strength could enter into the foreign markets, said Wang of Lange Steel.

Meanwhile those domestic companies with backward technological levels will be shut down or consolidated according to the central government`s measures of combating steel overcapacity, Wang noted.

Miao from the MIIT also said that the Chinese government will raise the standards for pollutant emission and energy consumption for the steel industry, and severely punish those companies which violate the environmental protection law, so as to eliminate the backward production capacity.

The growth of China`s total output of crude steel in November slowed down, with the growth rate declining by 9.5 percentage points to 4.2 percent year-on-year, official data showed Tuesday.

About CHINA MINING

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

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