News

Government approves rare earth conglomerates

Source: www.chinamining.org  Citation: China Daily   Date: August 06, 2014

A worker at the site of a rare earthmetals mine in Nancheng county, Jiangxi province.Two major rare earthproducers have been approved by the central government tobecome conglomerates by the end of this year in order to further consolidate the rare resources, combat smuggling and alleviate overcapacityin production.

The government has approved two major rare earth producers to become conglomerates by the end of this year in order to further consolidate the rare resources, combat smuggling and alleviate overcapacity in production.
   
Xiamen Tungsten Co Ltd and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co have been approved by the Ministry of Industry and Information Technology to form the two rare earth groups.
   
Xiamen Tungsten will integrate rare earth mining, separating and manufacturing within Fujian province in the south, excluding what is owned by China Minmetals Corp by the end of 2014.
   
Baotou Steel will set up China North Rare Earth High Tech Co Ltd, consolidating rare earth mining, separating and processing within the Inner Mongolia autonomous region and Gansu Rare Earth Group Co Ltd in the north.
   
These two companies are among six groups encouraged to consolidate earlier this year. The other four groups are: China Minmetals Corp, Aluminum Corp of China, Ganzhou Rare Earth Group Co Ltd and China National Nonferrous Metals Industry Guangzhou Corp.
   
The founding of big groups is only the first step toward consolidation of the rare earth industry in China. Various companies face challenges in breaking regional protectionism and speeding up clearance of illegal practices and mining operations.
   
Rare earths are a group of minerals that have many uses in high-technology sectors such as defense and renewable energy. China supplies 90 percent of the global demand.
   
Du Shuaibing, an analyst at natural resources consultancy Baichuan Information, said "the move toward conglomerates signals a positive trend in the industry, as smaller enterprises have welcomed consolidation into major players to have more access to export quotas or production permits".
   
The result of China`s appeal to the World Trade Organization over its March ruling that China had acted inconsistently with regard to export measures imposed on rare earths will be announced on Thursday.
   
Industry experts consider it likely that China will lose its appeal but also expect China to raise its export quota and lower tariffs by 2015.
   
The Baotou China Rare Earth Industry Forum is due to run from Thursday through Saturday, in Baotou, the Inner Mongolia autonomous region.

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 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 orders factory safety overhaul

Source: www.chinamining.org  Citation: Xinhua   Date: August 06, 2014

China on Monday announced a nationwide safety overhaul on explosive materials following a deadly factory explosion in an eastern province.
    
The campaign will target factories that process aluminum, magnesium, coal, wood, paper, tobacco, cotton and plastic, among other materials, and have potential ignition sources, the State Council Work Safety Commission said.
    
A blast in a wheel-polishing workshop of an auto parts plant owned by Kunshan Zhongrong Metal Products in the city of Kunshan, Jiangsu Province, on Saturday morning left 75 people dead and 185 others injured.
    
Government investigation has found that "very serious dereliction of duty" was to blame, with poor management by the factory and inadequate implementation of supervision regulations by local government departments, according to the State Administration of Work Safety.

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 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 cuts excess production capacity

Source: www.chinamining.org  Citation: Xinhua   Date: August 04, 2014

China has seen positive developments in reducing excess production capacity as it works to improve economic structure, according to a report of the National Development and Reform Commission (NDRC) on Sunday.

In the first six months of the year, investment into the steel and electrolytic aluminum sectors dropped by 8.4 percent and 31 percent year on year respectively.   

Major steel companies started to make profits in March. In May, they recorded a combined profit of 2.85 billion yuan (about 462 million US dollars), 2.3 times that of April.   

In the first four months, companies in the cement sector raked in a combined profit of 17.2 billion yuan, up 109.3 percent year on year.   

Companies producing plate glass saw their profit up 78 percent to 1.8 billion yuan during the January-April period.

Shipbuilders received 40.80 million deadweight tonnages of new ship orders in the first six months, up 78.2 percent on a year-on-year basis.

China has been addressing overproduction in the above five sectors through measures such as closing small factories and limiting investment into these industries.   

The NDRC said China will continue with the push to reduce the excess capacity and improve the efficiency of the economy.

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 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.

CNOOC oil fields start production

Source: www.chinamining.org  Citation:Xinhua   Date: August 04, 2014

China National Offshore Oil Corp. Ltd (CNOOC), the country`s largest offshore oil producer, announced Thursday that Panyu 10-2/5/8 oil fields have started production.

The oil fields are expected to hit a combined peak production of 13,000 barrels per day by the end of 2015, a company press release said.

The project, which consists of oil fields 10-2, 10-5 and 10-8, is located in the Pearl River Estuary Basin in the South China Sea with an average water depth of about 100 meters.

It was designed to share the existing production facilities of Panyu 4-2 oil field.

Nine new wells and a wellhead platform have been drilled. Four of the wells have started production, with a daily output of about 9,000 barrels of crude oil.

CNOOC owns 100 percent of the oil fields.

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 names new general manager for Baosteel Group

Source: www.chinamining.org  Citation:Reuters   Date: August 04, 2014

China`s Baosteel Group, which owns the country`s biggest listed steelmaker, has named Chen Derong as its general manager, replacing He Wenbo, the company said on Saturday.

Chen, 53, used to be the vice general manager of Zhejiang Metallurgical Group and the vice governor of eastern Zhejiang province, Baosteel Group said on its website (www.baosteel.com).

The 59-year-old He Wenbo also resigned as the chairman of Baoshan Iron and Steel Co Ltd, it said.  

He, who has been working in Baosteel since 1982, will be assigned a new job, it said without elaborating.

The official Xinhua news agency cited unidentified sources as saying He could be made the general manager of mining giant China Minmetals Corp.

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 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.

CSRC approves trade of ferroalloy futures contract

Source: www.chinamining.org  Citation: Xinhua  Date: August 04, 2014

China`s securities watchdog has approved the listing of ferroalloy futures on the Zhengzhou Commodity Exchange (ZCE) in Henan Province.

The exchange will decide on when to list the futures, said a China Securities Regulatory Commission statement on Friday.   

ZCE said it will test the trade next Tuesday, but did not reveal the exact official trading date.   

China ranks first in the world`s ferroalloy production, providing about 40 percent of total global ferroalloy output annually.   

Ferroalloy prices have been volatile in recent years, adding risks for traders. The introduction of the futures is expected to promote the steady growth of the ferroalloy industry.

Posted in: Industries

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.

Global mining sector on the way up, but recovery still slow

Source: www.chinamining.org  Citation: www.mining.com  Date: July 30, 2014

Global mining activity showed steady signs of improvement in the first half of the year, but recover is still expected to be slow, the latest study by SNL Metals Economics Group published Tuesday shows.
   
Its closely watched Pipeline Activity Index (PAI)- one of the most trusted indicators of the global exploration sector`s overall health - recovered a bit in May after an all-time low in April, but still sits at low levels, SNL notes.
   
The good news, said the Charlottesville, Virginia-based research firm, is that the industry`s aggregate market capitalization improved for the sixth month in a row in June, reaching $1.75 trillion. This is a 20% increase over December 2013 and the highest level since January 2013.
   
The recovery was driven mainly by a high number of encouraging milestones, including several new mines coming on stream.
   
The number and value of positive announcements, shows the study, increased significantly in May-June from the lows seen in the first four months of 2014. The in-situ value of advancing gold reports was considerably higher than in the March-April period, including production starting at several mines. 

The largest positive announcement was from Newcrest Mining`s Cadia East gold mine in New South Wales, which was officially opened in May. At full capacity, Cadia East will produce 250,000 oz/y of gold and 15,000 mt/y of copper.
    
The leading negative news came from First Quantum`s Kansanshi copper mine in Zambia, where the company will reportedly slow or postpone additional spending on an in-progress expansion due to uncertainty over the country`s fiscal regime.

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 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 steel, iron ore at one-week highs on recovery bets

Source: www.chinamining.org  Citation: Reuters  Date: July 30, 2014

Chinese steel and iron ore futures rose to their highest in more than a week on Tuesday on hopes that a brightening economic outlook would spur demand for the two commodities, although property sector risks kept advances in check.
   
Stocks in Hong Kong edged up to more than 3-1/2-year highs and those in the mainland held to Monday`s sharp gains. The rally was fuelled by optimism that the world`s second-largest economy has turned a corner and that more growth-friendly policies are ahead.
   
The most-traded iron ore contract for January 2015 delivery on the Dalian Commodity Exchange hit a session high of 690 yuan ($110) a tonne, its loftiest since July 18. It closed up 1 percent at 684 yuan.
  
Rebar for January 2015 rose 1.3 percent to end at 3,105 yuan per tonne on the Shanghai Futures Exchange, after peaking at 3,115 yuan, also its highest since July 18.
   
"The sentiment towards the second half for China has really improved but we still believe that the stimulus we have seen is minuscule and the property market remains tough," said Helen Lau, senior mining analyst at UOB-Kay Hian Securities in Hong Kong.
   
Optimism over China`s economy rose after HSBC`s preliminary survey showed manufacturing activity there quickened to an 18-month high in July, suggesting that government measures to stimulate the economy had been effective.
   
Some analysts say more stimulus may be needed to counter a cooling property market and increasing risks in the financial system, such as deteriorating credit quality.
   
China will release its official purchasing managers` index for the manufacturing sector on Friday.
   
Gains in steel prices came as Chinese traders` inventories of steel products fell further to 13 million tonnes on Friday, based on data tracked by industry consultancy Mysteel.
   
That is the lowest stockpiles of steel held by traders since the last week of 2012, when they stood at 11.88 million tonnes, said Lau.
   
Inventories could fall further in the second half of 2014, as stockpiles did in 2012. If supported by strong end-user demand, that could sustain a rally in steel prices through early next year as it did in 2012 through early 2013, said Lau.
   
Another scenario would be that Chinese steel traders would restock from August, but then the price gains would be milder as it would not be backed by end-user demand, which is what happened in 2011, she said.
   
"I think what we might see is a watered down version of 2012, but we`re not as pessimistic that it would be like 2011 again," said Lau.
   
THREAT TO IRON ORE
   
A 170,000-tonne cargo of 62-percent grade Australian Pilbara iron ore fines for delivery to China in September was sold on the Singapore-based globalORE platform at $96.50 a tonne on Tuesday, according to globalORE`s website. That was up from the sale of a same-grade cargo at $95 on Friday.
   
The threat for iron ore prices remains the excess supply that has kept spot prices below $100 a tonne since May 19.
   
A faster-than-expected increase in iron ore production by the world`s biggest miners in Australia and Brazil this year is pushing less efficient smaller suppliers from Europe to Australia to the Middle East to cut output or shut altogether.
   
By 2015, major producers in Brazil and Australia will account for 1.15 billion tonnes or 83 percent of world seaborne ore trade, according to Australian government data, up from 71 percent in 2012.
   
Exports from Iran - the world`s eighth-biggest supplier on the seaborne market - fell by a third in June from a year ago to just 1.2 million tonnes, according to Iranian industry data, a figure largely in line with numbers later released by China`s customs.
    
Iron ore for immediate delivery to China .IO62-CNI=SI stood at $94.30 a tonne on Friday, according to data compiled by Steel Index. There was no pricing reference published on Monday due to a public holiday in Singapore.
   
Iron ore is down nearly 30 percent this year, having fallen to a 21-month low of $89 in mid-June.
   
Rebar and iron ore prices at 0706 GMT Contract Last Change Pct Change SHFE REBAR JAN5 3105 +40.00 +1.31 DALIAN IRON ORE DCE DCIO SEP4 695 +6.00 +0.87 METAL BULLETIN INDEX 94.65 +0.63 +0.67 Dalian iron ore and Shanghai rebar in yuan/tonne Index in dollars/tonne, show close for the previous trading day ($1 = 6.1811 Chinese yuan)

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 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.