China, Mongolia explore ways to expand bilateral economic ties

Source: www.chinamining.org  Citation: Xinhua  Date: August 21, 2014

Chinese President Xi Jinping is expected, during his upcoming visit to Mongolia, to work with Mongolian leaders to explore effective ways to expand and deepen bilateral economic and trade relations between two countries.

China has been Mongolia`s largest trading partner and a major investor for more than a decade, with the bilateral trade volume reaching nearly 6 billion U.S. dollars in 2013 -- nearly 20 times that of 2002 and more than half of Mongolia`s total foreign trade.

Xi`s visit will largely promote investment, economic and trade cooperation between the two countries, said Sun Weiren, the commercial counselor of the Chinese Embassy in Mongolia.

There are 6,169 Chinese enterprises registered in Mongolia as of June, 2013, accounting for 48.8 percent of foreign enterprises registered in Mongolia, according to statistics released by Mongolia.

Chinese investment totaled 2.56 billion U.S. dollars by the end of 2013, according to statistics released by China.

China and Mongolia share 14 border crossings for exports and imports, with the advantage of less transportation distance and lower cost.

China imports coal, oil, minerals, livestock and other primary products from Mongolia, while the electromechanical products, agricultural products, construction materials, and textiles from China are also popular in Mongolia.

The projects Chinese enterprises have engaged in include construction of roads, thermo-electricity stations, and housing, all of which serve as infrastructure build-up to help improve Mongolian people`s living standard.

China`s Gezhouba Corporation has built roads in western Mongolia, and other Chinese companies have built houses for Mongolian people. The Beijing Construction Engineering Group plans to build residential buildings in Ulan Bator, covering an area of 210 hectares with the support of preferential loans from China.

The financial cooperation between the two countries is also enhanced. The Bank of China (BOC) set up its representative office in Mongolia in 2012. In June 2014, the bank allocated its first loan of 25 million dollars to a local company, TUUSHIN. And more than 40 local companies have applied for loans of more than 3 billion dollars from the bank, covering such fields as energy, manufacture and infrastructure.

BOC will continue to support Chinese enterprises in Mongolia, as well as Mongolia`s construction of infrastructure, energy and resources development, and avoid competition with local banks, the chief representative of BOC to Mongolia, Dai Xingjun, said.

BOC, jointly with other Chinese enterprises, established two funds to help improve Mongolia`s education and the livelihood of the people, and to enhance cultural exchanges between the two.

Experts expect that China and Mongolia will work together to increase bilateral trade volume, improve the structure of foreign trade and investment, promote industrial upgrading, develop interconnection of railways, highways and electricity, as well as support cooperation in key areas and large-scale projects.

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 November 20th-23rd, 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 using more natural gas

Source: www.chinamining.org  Citation: China Daily  Date: August 21, 2014

Workers conduct a gas test at an energy station to ensure safe operation at an industrial part in southeast China`s Jiangxi province in March.

China`s natural gas consumption is on the rise and large investment in domestic gas production will increase that demand significantly in the future, a new report says.

China`s shift from coal to natural gas has led the government to spend more on infrastructure to develop the country`s own gas production, which is "likely to underpin a significantly larger role" in the country`s total energy consumption, said the Energy Information Administration (EIA), an agency under the US Department of Energy.

"China`s natural gas consumption has outstripped domestic supply since 2007, triggering rising imports of both liquefied natural gas (LNG) and pipeline gas," the report issued Monday said. "China`s natural gas consumption rose at an average annual rate of 17 percent from 2003 through 2013."

"What the data are showing is that China is relying a bit more heavily on gas. They`re basically interested in energy security and that comes from different sources," Candace Dunn, an industry economist at the EIA who wrote the article, told China Daily. "For gas, they see that as more of an opportunity, whether it be trying to produce it domestically and also looking at import opportunities."

In 2012, natural gas only made up 4.9 percent of China`s total energy consumption, but the Chinese government said this number will climb to about 8 percent by 2015, and to 10 percent by 2020, the EIA said.

To meet growing demand, the country has more than tripled natural gas production in the last decade, producing 3.8 trillion cubic feet in 2012, with aims to reach 5.5 trillion cubic feet a year by the end of 2015, according to the EIA.

"Most of the anticipated production growth is from large onshore fields in the western and north central regions of China as well as from the offshore deepwater regions in the South China Sea," Dunn said.

China`s natural gas imports have increased from 0.6 trillion cubic feet in 2010 to 1.8 trillion cubic feet in 2013, according to EIA data. The majority of its imports come from Qatar and Australia, two top sources of natural gas for Asian countries.

In 2012, China was the third-largest liquefied natural gas importer in the world, outranked by Japan and South Korea.

China has rich reserves of natural gas, but their extraction technologies may not be as sophisticated as those found in the US and it`s not easy to get at, according to Dunn.

"The geography there is a bit more complex and challenging. Water resources are another issue. That`s just more challenging in that environment. Plus, they have issues with land rights and mineral rights that are different in the US. There are various reasons why it seems to be taking longer there," she said.

Compared to the US, China`s consumption of natural gas is small: natural gas consumption made up 4.9 percent of total energy consumption in China, compared to the 27 percent of total energy consumption in the US, but that`s to be expected, Dunn said.

"We do have a very sophisticated gas industry here with infrastructure and trading systems," she said. "With China, I think it`s fair to say they`re working towards building a better system, more pipelines, more infrastructure."

"Overall, they would like to develop their gas industry much more, and they`re also looking at their pricing regime and reforming that. That`s been a process, just to make their prices more market-oriented," Dunn 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 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 allows 3 more banks including StanChart to import gold -sources

Source: www.chinamining.org  Citation: Reuters  Date: August 20, 2014

China has allowed three more banks, including a foreign lender, to import gold, sources with direct knowledge of the matter said, as the world`s top gold buyer gears up for its strongest effort yet to gain pricing power of the metal.
    
The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the launch in September of a new international bullion exchange in Shanghai with which China hopes to become a price-discovery centre.
    
China and other Asian gold trading centres such as Singapore are calling for more localised pricing of the precious metal as they seek alternatives to the so-called London fix, the global benchmark for spot gold prices, which is being investigated by regulators on suspicion that it may have been manipulated.
    
Standard Chartered (STAN.L), Shanghai Pudong Development Bank and China Merchants Bank were given regulatory approval recently to import gold, five sources with direct knowledge of the matter told Reuters.
    
"We were given the license earlier this month. We haven`t started importing yet but we will soon," said a source at one of the three banks, speaking on condition of anonymity as the news has not yet been publicly announced.
    
Standard Chartered, only the third foreign bank to be allowed to import gold into China, declined to comment. The other two banks did not immediately reply to requests for comment.
    
Trading data from the Shanghai Gold Exchange (SGE) - the platform for all physical trades in China - show Shanghai Pudong Development Bank was ranked among the top 10 trading members every month from January to July, while China Merchants was among the top 10 for five out of seven months.
    
"We are active traders on the SGE and have been waiting for the gold import license for more than a year now," said a source at China Merchants Bank.
    
Allowing more banks to import is a sign of willingness by regulators to open up the market, especially to foreign firms, but the move does not necessarily mean import volumes into China would increase significantly in the near term given current weak demand.
    
China has increased the pace of liberalisation of the gold market over the past year, with the approval last year of the country`s first gold-backed exchange-traded funds, extended trading hours and the granting of import licenses to foreign players.
    
ANZ and HSBC were granted import licenses late last year.
    
    
PRICE-DISCOVERY CENTRE
    
China approached foreign banks, gold producers and refiners to participate in SGE`s international bourse, sources told Reuters earlier in the year, to boost its position as a price-discovery centre for gold. It plans to launch three physically-backed gold contracts.
    
The chairman of the exchange said in June that China should have its own pricing benchmark as it is the biggest consumer and producer of gold.
    
"The new import licenses seem to be well-timed. Along with their upcoming new exchange, they are clearly showing that they want to make the market more accessible, and easier for foreign players," said one precious metals trader in Hong Kong.
    
However, the granting of the new licenses would not mean China`s gold imports would surge as buyers have taken a pause after record consumption last year. Total gold demand halved in the second-quarter, according to the World Gold Council.
    
China imported over 1,000 tonnes of gold last year as gold prices slumped after a 12-year rally.

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 November 20th-23rd, 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.

Xi`s upcoming visit to further ties: Mongolian lawmaker

Source: www.chinamining.org  Citation: Xinhua  Date: August 18, 2014

Chinese President Xi Jinping`s upcoming state visit to Mongolia will significantly promote the economic relations between the two countries, a Mongolian lawmaker said.
    
Mongolia and China are enhancing their economic relationship and Mongolia`s hard currency revenue has increased as most of its exports, especially coal and copper concentrate, go to China, Dulamsuren Oyunkhorol, from the opposition Mongolian People`s Party, was quoted by Mongolian news website www.news.mn as saying.
    
The lawmaker urged Mongolia to learn from the experiences of China`s Inner Mongolia Autonomous Region in supplying solar and power energy, increasing the productivity of livestock animals and improving herders` quality of life.
    
In 2011, China`s Inner Mongolia Autonomous Region and Mongolia started a cooperative project designed to reduce pastureland overgrazing, increase output of cashmere and meat, as well as supply solar power to herder households to meet their demand in both production and life.
    
"It is important for Mongolia to work with the Chinese side, especially the Inner Mongolian Autonomous Region`s academic and research institutions and herders to improve the livelihood of our herders," said Oyunkhorol.
    
President Xi will pay a state visit to Mongolia at the invitation of Mongolian President Tsakhiagiin Elbegdorj from Aug. 21-22.

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 November 20th-23rd, 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 plan to cut wholesale power price may help coal producers

Source: www.chinamining.org  Citation: Bloomberg  Date: August 18, 2014

 

China will cut wholesale prices that distributors pay for electricity from coal-fired plants, two government officials said, a move that may allow it to compensate struggling coal suppliers.
    
The National Development and Reform Commission told provinces to impose cuts at an average rate of about 0.0093 yuan a kilowatt-hour, according to the officials, who asked not to be identified because they weren`t allowed to discuss the matter publicly. Some cuts took effect on Aug. 15, while power companies` regional branches may adopt different dates for implementation, they said. The retail price won`t change.
    
China last adjusted on-grid power tariffs in September 2013, cutting it by as much as 0.025 yuan a kilowatt-hour. The nation uses a coal-tariff linkage system where tariffs are subject to change when coal prices fluctuate more than 5 percent. The mechanism, introduced in 2004, wasn`t strictly followed. The country`s benchmark coal price fell 21 percent this year, trading from 470 yuan to 480 yuan a metric ton as of Aug. 17.
    
"There`s a possibility that the government will conversely use the extra money to compensate coal producers since they are barely making money," Tian Miao, a Beijing-based analyst with researcher North Square Blue Oak in London, said by phone. More than 70 percent of Chinese coal companies are losing money and 50 percent aren`t paying wages on time, according to China National Coal Association.
    
The tariff cuts are relatively small and will have "limited impact" on power companies` profits, according to Tian. It will remove more than 5 billion yuan ($813 million) of profit for the top five state-owned power companies, including China Huaneng Group and China Guodian Corp., in the second half of the year. These companies will still have "double digit" growth in their 2014 earnings because the cost of coal is at a seven-year low, Tian 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 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.

Government micro stimulus lifts steel demand in China

Source: www.chinamining.org  Citation: CCTV.com  Date: August 13, 2014

China`s iron ore import surged 18 percent in the first 7 months from a year ago to a total of 540 million tons,turning around from the beginning of this year. This came as China`s manufacturing industries expanded at a mild pace, and international iron ore prices dropped.
    
Rizhao, China`s largest port for iron ore imports, is much busier now than the first quarter of this year.
    
Trucks comes and go, picking up stocks for steel mills that suddenly saw a surge in demand from the 2nd quarter.
    
"A state owned steel firm will come to negotiate with us next week and will increase 2 million yuan worth of orders. They have seen profits rising from Q2, their production is recovering too." Xin Weihua, Director of A Iron Ore Trade Firm, Said.
    
Official statistics show a steady rise of crude steel output each month in the first six months of the year. It even reached a record high of nearly 2.3 million tons in June.
    
Analysts say micros policy adjustments by the governments has boosted demand for steel.
    
"We`ve seen a rise of activities in industrial infrastructure building, railway construction, and projects to improve people`s livelihood, and auto manufacturing. These all pushed up demand for steel , and in turn boost demand for iron ore." Xin Weihua, Director of A Iron Ore Trade Firm, Said.
    
Meanwhile international iron ore prices have fallen to about 90 U.S. dollars from its peak of 130 U.S dollars per tonne. Steel mills have turned to imported materials for higher quality.

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 November 20th-23rd, 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 demand for overseas crude to expand this year

Source: China Daily  Citation: China Daily  Date: August.13, 2014

China`s dependency on foreign crude will continue to increase this year despite the ongoing strife in major oil-producing nations like Iraq, a leading industry think tank said on Tuesday.

According to a report published by China National Petroleum Corp, the country`s largest oil and gas producer, China is expected to import 298 million metric tons of crude this year, accounting for about 58.66 percent of the total crude consumption in the country.

The company`s research institute estimated that full year crude demand in China would be around 508 million tons and domestic output around 210 million tons.

However, some analysts feel that the reliance on overseas crude supplies may be much higher than the levels estimated by CNPC.

Gao Jian, a crude analyst at domestic commodities consultancy Sublime China Information Co Ltd, said foreign crude may account for about 60 percent of China`s total crude supplies this year because of the higher imports in the second half.

CNPC sees to invest at least $2b in Peru
Board changes to drive CNPC

"International crude prices have been falling in the first half and are at relatively low levels now. It is a good time for Chinese companies to bolster crude imports for commercial or strategic reserves," he said. According to Gao, China`s crude imports during the second half will register a 10 percent year-on-year growth.

China imported 129 million tons of crude during the first five months, up 10.9 percent year-on-year, according to CNPC. Foreign dependency for the first five months reached 59.87 percent.

The CNPC report, however, indicated that the ongoing strife in Iraq could have a potential impact on global crude supplies and oil prices.

Gao from Sublime, however, feels that the situation in Iraq will not imperil China`s oil security, especially if the strife is restricted to northern Iraq.

Oil product demand in China grew at relatively low levels during the first six months of the year.

Diesel consumption in China has declined for 14 successive months due to the sluggish economy.

Diesel consumption in the manufacturing industry dropped 13.5 percent year-on-year.

The power sector`s consumption of diesel declined by 16.8 percent year-on-year while the construction industry consumed 18.3 percent less diesel compared with the same period last year, according to data provided by the CNPC.

Gao said the main reason for the lower diesel consumption is the government`s policy on eliminating outdated production capacity.

"Many companies in high-energy consuming industries were forced to shut down, which resulted in less diesel consumption," Gao said. "The diesel use is also falling due to the increasing natural gas consumption in the transportation sector."

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 November 20th-23rd, 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.

 

PNG nickel mine reopens after rioting

Source: www.chinamining.org  Citation: China Daily  Date: August 11, 2014

A Chinese-owned nickel mine in Papua New Guinea has resumed production three days after an attack by armed villagers forced work to halt, a Chinese embassy official in the South Pacific country said on Thursday.
    
The $2.1 billion mine, forecast to produce 22,000 metric tons of nickel in 2014, is operated by Ramu NiCo, which is majority owned and run by Metallurgical Corp of China Ltd (MCC).
    
Equipment including nine excavators, a fuel truck and a lighting vehicle were burned, and five Chinese workers were injured in Monday`s attack, the embassy said, confirming earlier media reports.
    
"The embassy strongly condemns these brutal attacks and makes an urgent request to the PNG government to take immediate and effective measures to prevent the violence from recurring and ensure the safety of the personnel and properties, and to bring the attackers to justice," an embassy official said in an emailed response on Thursday.
    
"With the assistance of the police force, the situation is under control, and mining production has resumed," the official said.
    
Mining and energy projects are a major source of income for Papua New Guinea, but outbreaks of violence sparked by landowner disputes and environmental concerns are not uncommon.
    
At least four people were killed in 2009, when anti-Chinese sentiment erupted into violence and looting in the capital of Port Moresby and a second city, Lae.
    
The riots were sparked by a fight between local and Chinese workers during the construction of the Ramu project, according to media reports at the time.
    
Preliminary investigations were said to show that the latest attacks were spurred by concerns about the company`s hiring policies for mine workers. Ramu NiCo has been training locals so they can work at the mine.
    
The development of the Ramu mine was delayed by more than two years amid concerns about the dumping of mine waste in the ocean.
    
MMC, Ramu NiCo and minority owner Highlands Pacific did not respond to requests for comment on the situation.
    
Shares in Highlands Pacific fell 8.3 percent in a flat Australian share market.
    
LME nickel prices edged up about 1 percent after the shutdown was initially reported. Prices for the metal, used in stainless steel production, soared to their highest in more than two years in May, above $21,000 a metric ton, after a ban on ore exports from major producer Indonesia was enacted in January.
    
Earlier this year, a chemical spill sparked riots in New Caledonia, which closed Vale`s Goro nickel mine for about a month, adding to supply concerns.
    
Prices have since eased, to about $18,700 on Thursday, after Indonesia`s new government took a softer stance on export taxes for copper, turning investors cautious that it might also relax restrictions on nickel.
    
"Given that the Ramu mine is not very big, we don`t think the shutdown will have a large impact in the international market right now," said an executive at a large Chinese trading firm that imports nickel.
    
"LME nickel stocks are at a record level, and more hidden stocks in bonded warehouses in Shanghai are continuing to go to LME warehouses in Asia because of weak demand in China."

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 November 20th-23rd, 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.

Nation on minerals buying spree

Source: www.chinamining.org  Citation: China Daily Europe   Date: August 08, 2014

China bought 10,000 metric tons of rare earths in one week earlier this month, said two people familiar with the matter, as the country continues to stockpile the metals used in batteries and magnets amid international pressure to ease export quotas.

The State Reserve Bureau paid above-market prices, according to the sources, who asked not to be identified because they weren`t authorized to speak publicly about the purchases.

China`s move may be an effort to reverse a decline, as the price of at least one kind of rare earth tumbled 76 percent from its 2011 high, according to Peng Bo, an analyst at China Merchants Securities Co.

Prices of praseodymium-neodymium oxide tumbled 76 percent to 307,500 yuan ($49,597) a ton after reaching a record in mid-2011, according to data from the Shanghai Steelhome Information Technology Co.

In March, the World Trade Organization sided with the United States, Japan and Europe in ruling that China had not adequately justified imposing export duties and quotas on rare earths and other resources.

"China is facing imminent pressure to abolish the export quota, so stockpiling is part of the policy reaction to help prop up prices and keep more of the resources at home for future use," Peng said by phone from Shenzhen on Aug 5.

Two calls to the National Development and Reform Commission, which oversees the State Reserve Bureau, went unanswered on Aug 5.

The country cut mining permits and imposed production and export quotas in 2007 to reduce pollution and conserve supplies. China also has encouraged consolidation among rare-earth miners and promoted domestic trading.

Rare earths are a group of 17 chemically similar elements used to make products from wind turbines to magnets for cars and weapons.

In June, China set mining quotas for heavy rare earths and tungsten at the same levels as last year, while raising the quota on more abundant light rare earths.

This year, China may stockpile more medium-to-heavy rare earths, such as terbium, lutetium and yttrium, which are used in applications ranging from lasers to nuclear reactors, said China Merchants` Peng.

China`s own rudimentary industrial sector is not yet able to make full use of the country`s output, Peng said. Thus, the government may hoard these elements for future use, she said.

"The mining and refining industry, hampered by a drastic slump in prices, sees the purchase as a life-saver," said Chen Huan, an analyst at Beijing Antaike Information Development Co. "Prices the government agreed to pay are much higher than the prevailing market price."

The move by the government is mainly to build a strategic stockpile in anticipation of rising demand from the domestic industry in the future, Chen 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 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.

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