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                                                          Deputy appeals for greener coal mining policies   
                                                                       Source: www.chinamining.org  Citation: China Daily  Date: Mar.11, 2013

                                                                 [Photo / China Daily]The Liangyungang Coal Wharf in Jiangsu province. A legislator has called for more policies to encourage greener exploration of coal to improve energy efficiency and reduce pollution. A legislator has called for more policies to encourage greener exploration of coal in an attempt to improve energy efficiency and reduce pollution. "Society is now striving to stop extravagance on the dinner table, but what should draw more attention is energy waste," said Bu Changsen, chairman of Shandong Energy Group, the country`s second-largest coal producer. Bu, also a deputy to the country`s top legislature, said energy waste is extremely severe in the coal production process, which also discharges a large amount of solid waste and dust. He said coal burning generates 70 percent of the emissions of suspended particulate matter, a major source of air pollution in China.
 
"Waste on a dinner table may cost money, but energy waste kills. We can grow vegetables and breed cattle, but fossil fuels are non-renewable resources."

He also said coal mining has led to the collapse of as much as 600,000 hectares of land. To reduce such damage, Bu suggested mining should use a method where waste rock is used as filler material during the exploration process. This process could even use sediment from the Yellow River, and such a program is likely to first be rolled out at Heze, in Shandong province, Bu said. Companies should also improve efficiency during the washing and dressing process in coal mining, he said, and advanced technology should be introduced, such as integrated gasification combined cycle technology. This technology uses a gasifier to turn coal and other carbon-based fuels into a gas known as synthesis gas, or syngas. It then removes impurities from the syngas before it is combusted. Some of these pollutants, such as sulfur, can be turned into reusable byproducts. Some of these measures have been adopted by companies, but Bu called in his motion for more government support to widen such operations to the entire industry. Bu suggested the government should offer more financial support to enterprises using the filler method. He said long-distance (more than 500 km) transportation of coal should be banned, along with the direct burning of rough coal. The introduction of new techniques will also improve work efficiency and reduce working hours, he said. According to the National Bureau of Statistics, China`s coal production stood at 3.65 billion tons in 2012, accounting for 50 percent of the world`s total, and 500 million tons more than the combined volume of the other nine countries on the list of the top 10 producers. In 2011, coal contributed to 68.4 percent of China`s total energy consumption. The National Energy Administration estimates the proportion will still be above 50 percent by 2030, when annual coal consumption reaches 4.5 billion tons. "Coal will be a major component in China`s energy structure in the long term," Bu said. Many developed countries no longer explore highly polluting resources but China has to do so to fuel its economic growth. However, "the `golden age` for China`s coal industry in the past 10 years has passed, and it will never come back," Bu 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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

                                                                Chinese miners ready to bulk up
                                                     Source: www.chinamining.org  Citation: www.smh.com.au  Date: Mar.05, 2013

A record wave of consolidation in China`s mining industry is creating bigger companies that will have the muscle to compete with the likes of BHP Billiton for overseas acquisitions. Even after Chinese domestic mining mergers reached $US19.6 billion last year, double the tally for 2011, the government wants to see more. Easier access to capital and less Chinese competition for assets may make companies including China Minmetals and Aluminum Corp of China more robust overseas buyers, said Deloitte & Touche. That`ll help reverse a slump in acquisitions of mining assets outside of China, which fell to a five-year low of $US2.9 billion in 2012, data compiled by Bloomberg show. As the world`s biggest importer of iron ore and coal, China relies on foreign sources of the raw materials. ``With stronger and bigger Chinese players emerging, we could see a significant pickup in the volume of overseas acquisitions,`` said Richard Tory, head of natural resources for the Asia-Pacific region at Morgan Stanley. China`s mining industry, while one of the world`s largest producers of minerals including gold and tin, is now peppered with thousands of smaller companies. Minmetals, its largest miner by revenue, had assets of $US36.6 billion at the end of 2011 - dwarfed by BHP`s $US122.1 billion. ``China`s mining sector is too fragmented right now,`` said Eugene Qian, head of global banking for China at Citigroup. ``It needs a lot of consolidation to create majors.`` In January, the government said it would promote mergers in nine industries including steel, aluminum and rare earths to create ``globally competitive`` enterprises, according to a statement by the Ministry of Industry and Information Technology. The announcement reinforced what`s already begun. Excluding deals between parent companies and their subsidiaries, the largest domestic acquisition last year was Hunan Jiangnan Red Arrow`s $US623 million takeover of Zhongnan Diamond. ``Creating national champions makes sense because mining is very capital-intensive, said Jeremy South, who oversees global mining advisory at Deloitte & Touche. ``It also makes no sense for Chinese companies to be competing with each other for overseas deals.`` Shenhua Group bought China State Grid Corp.`s electric-generation unit for $US8.2 billion last year. The Chinese state-owned miner is now studying an investment in Whitehaven Coal, two people with knowledge of the matter said.
Whitehaven, part owned by Nathan Tinkler, has a market value of $2.64 billion. The stock is trading at its lowest level since May 2009. An official at Shenhua Group`s press department in Beijing declined to comment. Whitehaven Chairman Mark Vaile said February 21 that the company hasn`t had any recent dialogue with Shenhua
.
Citic Group, China`s largest state-owned investment company, last month agreed to pay about $452 million for a 13 per cent stake in Alumina, partner in the world`s biggest alumina business. Other Chinese miners are also searching for deals. Chinalco Mining Corporation International may seek assets in South America, Africa and Asia, chief executive Peng Huaisheng said in Hong Kong on January 17. Parent Aluminum Corp of China was the most active overseas acquirer among Chinese miners in the past decade with $US14 billion of deals, data compiled by Bloomberg show. Minmetals could become one of the main Chinese buyers abroad, according to Deloitte`s South. Both Chinalco and Minmetals are state-controlled. Zhaojin Mining Industry, China`s fourth-biggest gold producer, is studying takeovers in South America and other regions and may announce a deal ``in the near future,`` Chen He, assistant to the company`s president, said in November. Two gold companies that could attract Chinese interest are Saracen Mineral Holdings of Perth and  Colorado-based Alacer Gold, which has assets in Australia and Turkey, according to Troy Irvin, a Perth-based analyst at Argonaut Securities. Their large reserves and production assets typically appeal to Chinese companies, Irvin said. Officials at Saracen and Alacer declined to comment or weren`t immediately available. ``The Chinese see the value of building bigger companies to compete with major mining companies in the world,`` said Deloitte`s South. 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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

                                                     China`s aluminum stockpiles reach new high: expert   
                                                                    Source: www.chinamining.org  Citation: China Daily  Date: Feb.25, 2013 China`s aluminum inventories reached a record high this week, caused by rapidly growing supply and weak demand in the country, resulting in sharp price drops, an expert said.

The country`s overall aluminum stockpiles climbed to 1.25 million metric tons on Monday, almost double the level during the same period late year, according to Myyouse.com, a Shanghai-based commodities information consultancy.

On January 10 last year, the nation`s aluminum stockpiles stood at about 700,000 tons, said Li Xun, an analyst at the consultancy.

He told China Daily the excessive supply in China`s aluminum industry will continue at least for the first half of the year.

"The aluminum price will fall by 200 yuan ($32) to 300 yuan a ton during this week," he said. "That is considered a dramatic price drop in the market."

Domestically produced aluminum was listed at 14,530 yuan a ton in trading in Shanghai on Thursday, 160 yuan down from Wednesday, according to Myyouse.com. The price decline in Wuxi, another major aluminum trading center, was even sharper - 180 yuan a ton over one day.

Li said there are many reasons for the increasing stockpiles, but the major one is the new production capacity in western areas of China.

Facing a gloomy economy, many international aluminum companies decided to reduce capacities in recent years to survive amid shrinking demand and falling prices.

However, many Chinese companies continued to increase their capacities and output, leading to even fiercer competition in the market.

About 90 percent of the new electrolytic aluminum production capacity has come from western China since 2009. In 2011, China`s 3.4 million tons of new production capacity for electrolytic aluminum was mainly centered on the Xinjiang Uygur autonomous region and Qinghai province in Northwest China, according to the China Nonferrous Metals Industry Association.

Li said the new projects approved in Xinjiang began production, which could not be absorbed by the market, leading to the current situation.

Also, before Spring Festival, transport links from west to east were affected by bad weather, adding more difficulties to easing aluminum stockpiles.

"If aluminum producers in eastern China don`t reduce their output, the oversupply will continue even if consumption rises," said Li. "The supply increase is far greater than consumption growth in China."

He said the government had not taken effective measures to eliminate small-scale aluminum producers that lack advanced technology.

"It might be a good time for the processing companies to purchase aluminum as their raw material," he said.

He predicted the aluminum price would stay at about 14,500 yuan to 15,000 yuan a ton during the first half of the year.

However, an insider from a leading domestic aluminum processing company said a price fall cannot contribute much because processing companies usually have long-term price contracts with material suppliers.

"The aluminum cost is not a key factor for profits. The processing cost is," the insider said.

Profits of China`s nonferrous metal industry dropped 34 percent year-on-year to 39.3 billion yuan in 2012, according to figures from the Ministry of Industry and Information Technology.

The aluminum sector saw the biggest profit drop - a 92.7 percent decline to 930 million yuan in the past year.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.  

                                                                 China to introduce carbon tax: official    
                                                                        Source: www.chinamining.org  Citation: Xinhua  Date: Feb.20, 2013 China will proactively introduce a set of new taxation policies designed to preserve the environment, including a tax on carbon dioxide emissions, according to a senior official with the Ministry of Finance.

The government will collect the environmental protection tax instead of pollutant discharge fees, as well as levy a tax on carbon dioxide emissions, Jia Chen, head of the ministry`s tax policy division, wrote in an article published on the MOF`s website.

It will be the local taxation authority, rather than the environmental protection department, that will collect the taxes.

The government is also looking into the possibility of taxing energy-intensive products such as batteries, as well as luxury goods such as aircraft that are not used for public transportation, according to Jia.

To conserve natural resources, the government will push forward resource tax reforms by taxing coal based on prices instead of sales volume, as well as raising coal taxes. A resource tax will also be levied on water.

The article did not specify when the new measures will be implemented.

In 2010, MOF experts suggested levying a carbon tax in 2012 at 10 yuan per ton of carbon dioxide, as well as recommended increasing the tax to 50 yuan per ton by 2020.

China is among the world`s largest emitters of greenhouse gas and has set goals for cutting emissions. The government has vowed to reduce carbon intensity, or the amount of carbon dioxide emitted per unit of economic output, by 40 to 45 percent by 2020 in comparison to 2005 levels.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.  

China sees need to deepen cooperation with Africa in mining sector: Ministry
Source: www.chinamining.org Citation: Platts Date: Feb.06, 2013

China has identified a need to further develop practical cooperation with Africa in the mining sector, Wang Min, vice minister of land and resources, said at an industry conference Tuesday.

(Photo by www.chinamining.org)
Wang Min, the Vice Minister of Land and Resources of China is giving a speech at 2013 Mining Indaba
in Cape Town, South Africa on February，2013.

"We need to deepen mining cooperation with more international partners, and [within this] is an important agenda to establish stronger mining ties with Africa," Wang said.

"We welcome African mining companies to come and invest in China, and also encourage Chinese companies to expand mining businesses in Africa, to bring about better cooperation between our two countries in the mining sector."

China`s mining projects in Africa currently account for 34% of its total mining investment projects and 22% of its total overseas mining investment value. Africa also ranks fourth in terms of China`s overseas investments.

Wang said there are increasingly more Chinese companies investing in Africa, seeing the value of the mining business there. Chinese companies that "have made headway in Africa" include state-owned trading enterprises China Minmetals Corp. and the CITIC Group.

"With African countries seeing robust development, recording an average growth rate of 5.5-6%, there is a lot of potential for investment by Chinese companies and joint implementation of mining cooperation between the two countries," Wang added.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.

                            China`s 2012 copper imports hit record high of 3.4 mil mt on strong demand in H1     
                                                                 Source: www.chinamining.org  Citation: Platts  Date:Jan.25, 2013 China`s 2012 refined copper imports hit a record high of 3.4 million mt, crossing the previous record seen for 2009 at 3.19 million mt, the latest figures from the General Administration of Customs of China showed Tuesday.

The 2012 import volume was 20% higher than the 2011 volume.

"The higher import volume last year is mainly due to strong demand in the first half of last year from companies [which sought the material as collateral against loans]," He Xiaohui, a copper analyst with Antaike said.

"In the second-half of 2012, however, the [import volume] gradually returned to reasonable levels," he said.

Antaike forecast that China will import 2.8 million-2.9 million mt of refined copper in 2013, down from the 3.4 million in 2012, amid higher domestic production expected this year.

Unless companies try to get loans from banks using copper imports as collateral, "this year`s import volume will be less than last year," the Antaike analyst said.

A Hong Kong-based copper trader said: "Besides high domestic inventories, difficulty in getting LCs is another reason for discouraging imports ... it`s getting harder to [import nowadays] as the Chinese government [has tightened rules requiring buyers to provide] relevant [documents regarding] environment protection and country of origin [of the copper imports]."

Copper stocks at bonded warehouses in Shanghai hit 1 million mt as of end-December, double the March 2012 levels of 500,000 mt, Chinese media reported last Friday.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.  

                                   Hanlong courts Chinese steel majors to help develop African iron ore project      
                                                                      Source: www.chinamining.org  Citation: Platts  Date:Jan.25, 2013 China`s Hanlong Group has approached Hebei Iron & Steel and Wuhan Iron & Steel about investing in the $4.7 billion Mbalam iron ore project in central Africa, which Hanlong is set to acquire through its takeover of Australia`s Sundance Resources, a company official said Thursday.

The Hanlong official confirmed the company had spoken to the Chinese steel giants about helping to develop Mbalam, which straddles the border between the Republic of Congo and Cameroon, and requires significant new mine, port and rail infrastructure. It is expected to eventually produce 35 million mt/year of direct shipping ore.

But Hanlong has to firstly complete the A$1.4 billion ($1.5 billion) acquisition of Western Australia-based Sundance, a deal which is being funded by China Development Bank.

Sundance head of investor relations Jill Thomas would not comment specifically on the prospective involvement of the Chinese mills, other than to say it was "a matter for Hanlong."

The Perth-based official said Sundance was still working towards the completion of the takeover, which "should be wrapped up by the end of February or March 1."

Wuhan already owns iron ore assets in Liberia and Madagascar, as well as in Australia, Canada and Brazil. An official in Wuhan`s investment department would not confirm the mill`s interest in the Mbalam project.

Last month China`s National Development and Reform Commission said the country must continue to invest in overseas iron ore projects to meet growing demand for the steelmaking material over the next decade.

A Beijing-based steel analyst was skeptical that Wuhan would be in a position to invest in the Mbalam project, saying its other African projects and prospective 10 million mt/year greenfield integrated steel project in China`s Guangxi province would be highly capital intensive.

He also pointed to unsuccessful investments by Chinese companies in overseas iron ore projects, most notably CITIC`s Sino Iron magnetite project in Western Australia.

"Such investments may have scared off Chinese investors; plus Africa is also troubled by political instability, which will not guarantee a good investment environment," he said.

A Melbourne-based mining source said it was "difficult to think of a single successful Chinese iron ore project outside of China."

Hebei and Wuhan were ranked number two and five respectively in the World Steel Association`s list of top global steel producers in 2011.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.  

                                                     Iron ore seen weak on lean Chinese demand    
                                                               Source: www.chinamining.org  Citation: Reuters  Date:Jan.21, 2013 Spot iron ore prices may be headed for more weakness this week amid lean demand from top buyer China, although expectations of tight supplies during the first quarter should keep losses in check.

Iron ore prices fell for the first time in seven weeks last week after a surge that pushed them to 15-month highs prompted Chinese mills to step back after aggressively replenishing stocks since December.

"Mills are not in the mood to buy anything at the moment.

They are probably waiting for prices to fall further before they go back to the market," said a physical iron ore trader in Shanghai.

A 165,000-tonne cargo of 61-percent grade Australian Pilbara iron ore fines was sold on Monday on the trading platform run by China Beijing International Mining Exchange at $146 a tonne, up about a dollar from a previous tender for the same grade, the trader said.

It was not clear if a Chinese steel mill bought the cargo, but the modest price increase may not necessarily be repeated in other physical deals, traders said.

"We see strong support for prices at $140. Some traders are also not willing to sell if prices drop so much, especially if the cargo is not for immediate delivery. They have time to wait for a better bid," said another trader in Shanghai.

Miner BHP Billiton is selling 50,000 tonnes of 58.5-percent grade iron ore fines at a tender closing on Tuesday, traders said.

Iron ore with 62 percent iron content , the industry benchmark, slipped 0.2 percent to $145.10 a tonne on Friday, the lowest since Jan. 2, according to data provider Steel Index.

The price fell 6.3 percent last week, but remains 67 percent higher than the three-year lows touched in September.

Weaker steel prices in China, the world`s No. 1 consumer and producer, also curbed appetite for iron ore.

The price of steel billet in China`s key Tangshan area fell by 50-70 yuan ($8-$11) a tonne last week amid slower sales, traders said.

On Monday, the most-traded rebar contract for May delivery on the Shanghai Futures Exchange fell nearly 1 percent to close at 3,965 yuan a tonne, pulling further away from a six-month peak of 4,047 yuan hit on Jan. 7.

But tight iron ore supplies, partly due to weather risks in top exporter Australia and a likely spike in China`s crude steel output to tap into a strong construction season in March should support iron ore prices, said bulk-commodity sales executive Melinda Moore at Standard Bank.

"While a number of mills are trying to downplay their recent restocking panic, suggesting they have 30-40 days supply on hand, we would argue that with March output rates likely to be up by 6-10 percent versus January, they are far from overstocked.

"Given the additional threat of future weather woes, particularly the eye of the Australian cyclone season hitting in February, most mills need to be carrying additional stocks for protection. This is certainly not the time of the year to initiate a destock," Moore said in a note.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: www.chinaminingtj.org.