News

China promotes oil trade in new free trade zones

Source: www.chinamining.org     Citation: Reuters      Date: April 01, 2017

China has issued a flurry of measures on Friday aimed at promoting oil and commodities trading in seven new free trade zones, including granting more crude import quotas and establish trading platforms according to statements regarding two of them.

The new free trade zones will be in Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan and Shaanxi, where free trade in commodities, especially in oil products will be promoted, according to a document issued ahead of a press conference in Beijing. In a statement regarding the new trade zone in eastern Zhejiang province, the government said two to three companies will be allowed to apply for crude oil import quotas and plans for setting up a spot oil trading platform will be expedited. 

The Zhejiang trade zone is located in the coastal archipelago city of Zhoushan, already one of the country`s largest storage bases for petroleum. Privately-run Rongsheng Holding Group is planning a mega greenfield refinery in Zhoushan. A Zhoushan-based industry executive involved in oil storage said the local commodity exchange will first trade fuel oil and liquefied natural gas, but added that oil firms remained sceptical over efforts to attract liquidity. 

Fuel blending and tax-bonded trade of marine bunker fuel will be encouraged in the 120 square-kilometre Zhoushan zone, according to a statement posted on the website of the State Council. Oil products futures may also be explored when the conditions are ripe, said the statement. 

A long-planned Shanghai crude oil contract, on the other hand, has been quietly shelved due to market resistance and Beijing`s concerns over capital outflows. Zhejiang will improve infrastructure including ports, pipelines, storage facilities, logistics and shipping, and encourage major oil-producing countries to invest in storage facilities as China aims to lift both strategic and commercial reserves held in the trade zone. 

Oil-producing nations and foreign energy companies are also encouraged to invest in refining projects in Zhejiang, China`s cabinet said. 

In a separate statement, Liaoning province in the northeast will also allow refiners in its new trade zone, spread across the cities of Dalian, Shenyang and Yingkou, to apply for crude oil import quotas, China`s cabinet 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us. For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Top coal producer Shenhua denies knowledge of Datang merger

Source: www.chinamining.org     Citation: chinadaily.com.cn      Date: March 31, 2017

Logo of Shenhua Group Corp is pictured in Tianjin, May 17, 2015 .[Photo/VCG]

China`s biggest coal producer Shenhua Group said it has no information on possible merger with Datang and the company will issue a statement if there is any development, China Economic Net reported. 

China`s State-owned enterprise regulator the State-owned Assets Supervision and Administration Commission (SASAC) has asked coal mining giant Shenhua Group Corp and power generator China Datang Corp to discuss a possible merger, Bloomberg reported Wednesday. 

The talks are at an early stage and there`s no guarantee of a deal, Bloomberg said, citing people familiar with the matter. 

If successful, the merger would combine China`s biggest coal producer with one of its largest power generators to create a utility giant with about 1.66 trillion yuan ($241 billion) of assets, Bloomberg reported. 

China Shenhua Energy Co, Shenhua`s Hong Kong-listed company, said earlier that its 2016 net profit rose 40.7 percent and expected first-quarter net profit to climb at least 50 percent. 

The company also surprised markets by announcing a generous special dividend, a total of 59 billion yuan in cash, thanks to a surge in coal prices last year. 

Furthermore, Shenhua`s recent management reshuffle also raised expectation that the company may be involved in a possible merger. 

Datang`s assets totaled 729.5 billion yuan and its power-generation capacity totaled 127.17 gigawatts in 2015, according to its websites. 

China will prioritize and accelerate the restructuring of steel, coal and power businesses in its major State-owned enterprises to improve operational efficiency and enhance the profitability of State assets, head of the SASAC Xiao Yaqing earlier said. 

The central government reorganized 22 central SOEs, including China Ocean Shipping (Group) Co and China Shipping Group, CNR Corp and CSR Corp, over the past three years.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Chinese investors move in, take large slice of Latin American pie

Source: www.chinamining.org     Citation: China Daily     Date: March 28, 2017

Chinese companies are forming the mainstay of foreign direct investment in Latin American and African markets as globalization suffers setbacks elsewhere, an international law firm has said.

In an interview with China Daily, Juan Picón, global co-chairman of DLA Piper, said he still thought the trend would continue, based on feedback from his clients. 

He said: "A growing percentage of our clients who are investing directly in Latin America are from the Chinese mainland, from sectors including energy, infrastructure and technology and so on." 

A similar situation could also be seen in Africa, he said. 

According to Reuters, the United Nations trade and development agency UNCTAD, reported that global foreign direct investment fell by 13 percent to an estimated $1.52 trillion in 2016. 

The report stated that the US was the top destination with $385 billion, rising by 11 percent year-on-year, followed by the UK ($179 billion) and China ($139 billion).  

Europe saw a fall of 29 percent, followed by Latin America and Africa in overall terms. 

But Picón noted a rising interest from the Chinese government and corporations in fostering relations with countries in Latin America and Africa. 

China`s investment in those regions is expected to gain greater momentum with China`s Belt and Road Initiative. 

DLA Piper was formed in 2005 by a merger between three law firms, two based in the US and one in UK. 

Picón said there were still many large projects to develop in Latin America, requiring massive funding programs, such as various national infrastructure projects. 

He added that Latin America had always been very investor friendly with fewer limitations on foreign direct investment. 

DLA Piper currently has represented more than 30 Chinese mainland companies, easing their clients` entry to industries including financial services, infrastructure, telecoms, engineering and agriculture. 

Transportation and energy-related infrastructure projects have proven more attractive to his Chinese clients in countries such as Mexico, Peru, Chile and Cuba. 

In foreign direct investment in Latin America, Picón said, the US used to dominate the market. But as time goes by, Latin America`s relationship with China is building to "a more mature stage".

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China industrial companies post rapid profit growth

Source: www.chinamining.org         Citation: Xinhua         Date: March 28, 2017

BEIJING - China`s major industrial companies registered robust profit growth in the first two months of the year, fresh evidence of a stabilizing economy. 

In January and February, industrial enterprises reported a 31.5 percent profit increase year on year, to the value of 1.02 trillion yuan ($148.5 billion), according to a National Bureau of Statistics (NBS) statement Monday. 

The growth outpaced that in December 2016 by 29.2 percentage points, and that in 2016 by 23 percentage points. 

China`s major industrial firms ended their profit losses in 2015, reaping good returns in 2016 on the back of a construction boom. 

NBS statistician He Ping attributed the recovery of industrial company profit in January and February to increased industrial production, raw material price increases and an uptick in profitability. 

The earnings recovery was uneven across sectors, with coal mines, oil refineries and chemicals witnessing increased profits, boosted by soaring raw material prices, according to He.

The profitability of the main business of industrial companies edged up 0.8 percentage points year on year to 5.92 percent in January and February. 

China`s economy grew 6.7 percent year on year in 2016, slowing from 6.9 percent in 2015.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Nuclear companies take a step closer to joining forces

Source: www.chinamining.org     Citation: China Daily      Date: March 21, 2017

Technicians control an automatic welding operation of a nuclear reactor at the Ningde nuclear power plant in Fujian province. [Photo/Xinhua]

China moved one step closer to merging two of its nuclear power developers, as the country drives through consolidation in many of its State-owned enterprises, including the railways, shipping, nonferrous metals, construction materials and steel sectors.

The Shanghai-listed units of China National Nuclear Corp, a holding company for reactor design and technology, and China Nuclear Engineering Corporation Group, a company that focuses on construction, said in regulatory filings on Monday that a strategic reorganization of the two nuclear giants is underway. 

The units said the reorganization requires regulatory approval, but does not involve major assets of the listed companies and would not affect normal operations. 

Joseph Jacobelli, a senior analyst of Asian utilities and infrastructure at Bloomberg Intelligence, said the nuclear sector plays a significant role in the country`s advanced manufacturing exports, and the merger means not only streamlining the SOEs, but also helping China`s nuclear companies better export their technology to the global market. 

He said the combination would be a joint force with a better share of the international market. 

Jacobelli added that the plan is to boost internal efficiencies in the country`s nuclear sector and external competitiveness. 

China suspended approving new nuclear power plants after Japan`s Fukushima nuclear disaster in 2011. However, nuclear power generation in recent years, especially in the first two months of the year, continued to see sharp growth. 

Jacobelli said China`s nuclear energy developers are believed to be commissioning many more reactors during the 13th Five-Year Plan (2016-20), because nuclear power is a key source of clean energy along with hydropower. 

Installed nuclear capacity more than doubled to 27.17 gigawatts in the 12th Five-Year Plan (2011-15) and is expected to double again by 2020 to 58 GW. 

Being the world`s fastest-growing nuclear market, China said it would further cut industrial overcapacity and introduce market-based reform, in an attempt to accelerate restructuring of the nation`s bloated SOE sector. 

It also vowed to further expand its nuclear sector to reduce its reliance on coal and help achieve its climate-change commitments. 

China will develop nuclear power in a safe and highly efficient way, Premier Li Keqiang said in the Government Work Report delivered during the fifth session of the 12th National People`s Congress on March 5. 

Wang Shoujun, former chairman of China Nuclear Engineering Corporation Group, has taken over as CNNC chairman, after former chairman Sun Qin stepped down on reaching retirement age last year. 

CNNC is principally engaged in the development, investment, construction, operation and management of nuclear power projects. It is also involved in the research of technology, for nuclear power operational safety and related technical services and the consultation business.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Beijing, Saudi Arabia agree to more oil cooperation, exports to China

Source: www.chinamining.org     Citation: Reuters     Date: March 20, 2017

China and Saudi Arabia will increase their cooperation in the oil sector, including in Saudi oil exports to China, the two countries said in a joint communique issued on Saturday at the end of Saudi Arabian King Salman’s visit to Beijing.

The world’s largest oil exporter has been looking to cement ties with the world’s second-largest economy. 

After losing market share to Russia last year, Saudi Arabia has sought to boost oil sales to China, the world’s second-largest oil market, by working mostly with China’s top three state oil firms. 

“Both countries are willing to raise their level of cooperation in the oil sector, including supplying Saudi oil to the continuously growing Chinese market,” the two said in a statement issued by China’s official Xinhua news agency. 

“Both sides stress the importance of stability in world oil markets to the global economy … China appreciates Saudi Arabia being a safe and dependable oil supplier to the world market, and the role it plays in ensuring the stability of the global oil market,” it said. 

Salman oversaw the signing of deals worth as much as $65 billion on the first full day of his visit to Beijing on Thursday. 

China has traditionally played little role in Middle East conflicts or diplomacy, despite its reliance on the region for oil. However, it has been trying to get more involved in efforts to end Syria’s six-year-old civil war, where Riyadh supports rebels battling President Bashar Al Assad. 

Last year, China also offered support for Yemen’s government, which is backed by a Saudi-led Gulf Arab coalition in a war against the Iranian-aligned Houthi movement that controls much of the country. 

China has had to tread a careful line, though, as it also has close relations with Iran. Xi visited both Saudi Arabia and Iran in January last year. 

The joint statement said both China and Saudi Arabia stressed their support for Yemen’s legal government. 

China’s renewed diplomatic push with the Middle East continues next week when Israeli Prime Minister Benjamin Netanyahu visits China. 

Diplomatic sources say China is trying to play the role of “honest broker” in the Middle East, as it lacks the historical baggage of the Americans or the Europeans.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China ramping up controls on imports of low-quality coal: official

Source: www.chinamining.org     Citation: www.reuters.com      Date: March 16, 2017

China is ramping up controls on imports of low-quality coal due to concerns about smog and overcapacity in the world`s top coal consumer, a government official said on Wednesday, as traders report some cargoes have been delayed by customs checks.

"As long as coal meets standards, we don`t forbid imports, but we are imposing controls on low-quality coal imports," said Zhi Shuping, head of the Administration of Quality Supervision, Inspection and Quarantine which oversees imports safety. 

The official was speaking on the sidelines of the annual meeting of China`s parliament. 

"If we let all kinds of coal import into domestic market, it will hit the domestic market," Zhi said. Last year, the agency rejected 1.5 million tonnes of imported coal, he said. 

 His comments come as some international traders have complained about delays of weeks in getting some cargoes cleared through customs in China due to tougher inspections at ports. 

It`s not clear how widespread the checks are. One official at a global merchant, speaking on condition of anonymity, said his company`s shipments into Jiangsu province took longer than usual to get customs clearance.

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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Coal down, clean energy up in China

Source: www.chinamining.org         Citation: chinadaily.com.cn      Date: March 14, 2017

China`s coal consumption has fallen for the third year in a row as part of its broader effort to develop the nonfossil fuel sector, according to Haibing Ma, China program manager at the Worldwatch Institute, a Washington-based climate think tank.

"China has experienced a lot of development of its nonfossil fuel energy capacity during the past 10 to 15 years," Ma says. 

"According to the latest numbers I`ve seen, by the end of last year nonfossil fuel energy consumption in China accounted for 19.7 percent of its total energy consumption. The country has almost reached its goal of 20 percent in the Paris Agreement." 

He says this gives China even more space to keep increasing its nonfossil fuel energy consumption, which is aided by its decrease in coal use. 

Coal consumption dropped to 62 percent of total energy consumption in 2016 from 64 percent the year before. The levels are the lowest they`ve been in China since 1990. 

China also has phased out "inefficient or energy-intensive industrial capacity", which used to be a main contributing factor for emissions, says Ma, who studies green economy initiatives and effects in China at the institute. 

"A related story is that China became the global leading clean product producer" — procucts such as solar panels and wind turbines, he says. 

"If you look at the top 10 solar PV manufacturers in the world, Chinese manufacturers account for at least half of them, and the wind turbine manufacturer list is a similar story. In fact, building up such a strong and global influence in the clean-product industry is a reason that China wants to boost renewable energy." 

Ma also gave credit to the speed of China`s emissions mitigation. The country`s total carbon dioxide emissions per unit of GDP decreased 38.6 percent in the 10 years between 2005 and 2015. 

China pledged in the Paris Agreement that carbon emissions would peak around 2030. It also says it will reduce its emissions per unit of GDP by 60 to 65 percent from 2005 levels, increase its non-fossil fuel share of energy consumption to approximately 20 percent and increase forest stock volume by around 4.5 billion cubic meters from 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.