News

China, U.S. recognize that steel overcapacity requires global solution

Source: www.chinamining.org Citation: Xinhua Date: July 21, 2017

Chinese Vice Minister of Finance Zhu Guangyao speaks at a press briefing after the conclusion of the first China-U.S.
Comprehensive Economic Dialogue (CED) in Washington D.C., the United States, July 19, 2017.

Both China and the United States recognized that steel overcapacity is a global issue that requires a global solution, a senior Chinese official said Wednesday.

At a press briefing after the conclusion of the first China-U.S. Comprehensive Economic Dialogue (CED) in Washington D.C. on Wednesday, Chinese Vice Minister of Finance Zhu Guangyao said the two sides discussed the issue of steel overcapacity during the one-day high-level economic dialogue.

China shared the same view with the United States that steel overcapacity is a global issue, which requires a global collective response, Zhu said, adding China also emphasized that the excess steel capacity was a result of sluggish global economic recovery.

Meanwhile, the Chinese delegation told the U.S. side that China had actively taken measures to cut steel overcapacity, Zhu said, citing China`s plans to reduce steel capacity by 100 million to 150 million tons from 2016 to 2020.

As the world`s two largest economies and co-chairs of the global forum on steel excess capacity, China and the United States have maintained policy dialogue and communication regarding the steel glut, Zhu said, noting G20 leaders agreed to establish the forum at last year`s Hangzhou summit.

At the G20 summit in Hamburg, Germany earlier this month, G20 leaders called on the forum to fulfill their commitments on enhancing information sharing and cooperation by August, and to rapidly develop concrete policy solutions that reduce steel excess capacity, the official said.

The G20`s new commitment to address global steel overcapacity comes as the Trump administration is about to release a report on the national security implications of steel imports in the coming weeks.

In defense of the U.S. steel industry, the Trump administration in April invoked a decades-old, rarely used trade tool, known as a Section 232 investigation under the Trade Expansion Act of 1962, to look into all foreign steel imports.

If the investigation concludes that steel imports would undermine U.S. national security, the trade law would allow the U.S. government to impose tariffs, quotas, or other measures to restrict the imports.

Many trade experts and economists have warned that it would hurt millions of U.S. consumers and thousands of U.S. manufacturers if the Trump administration imposes new restrictions on steel imports.

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 in September 23-25, 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 Minmetals, China National Gold "unaware" of merger talks

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

China Minmetals Corp and China National Gold Group are unaware of any merger talks between the two companies, their listed units said on Wednesday, after a Reuters report on a possible deal caused a rally in their shares. 

Sources with knowledge of the matter told Reuters on Tuesday that China was considering a merger between the two major metals and mining firms as Beijing pushed to consolidate its bloated state-run enterprises to help increase efficiency and competitiveness. 

"After checking with the company`s owner China Minmetals Group, the group said it was not aware of a merger deal and had not been notified by relevant authorities on the matter," the listed units said in similar statements. 

The China Minmetals` subsidiaries that issued statements include China Minmetals Rare Earth Co Ltd, China Tungsten And Hightech Materials Co Ltd, Minmetals Development Co Ltd, Minmetals Capital Co Ltd and Zhuzhou Smelter Group Co Ltd. 

On Wednesday, the five listed companies` shares ended up between 4.6 percent and 10 percent.

China National Gold`s unit Zhongjin Gold Corp Ltd , whose stock rose 6 percent, also issued similar comments.

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 in September 23-25, 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 becomes one of the biggest oil drilling contractors in Kuwait: report

Source: www.chinamining.org Citation: Global Times Date: July 17, 2017

The huge amount of Chinese-made oil equipment imported by Kuwait shows the country`s support for Chinese manufacturers in the field and breaks the monopoly of US and Europe in the Middle East oil sector, the People`s Daily reported on Sunday. 

As of end of the first quarter, Chinese enterprises had won contracts for 64 projects in Kuwait, covering such sectors as oil field services and exploration, infrastructure and telecommunications, with total value of $13.7 billion.

New contracts reached $3.01 billion in the oil drilling sector in the first quarter, becoming landmark projects in China-Kuwait cooperation, the report said.

Kuwait has so far bought Chinese-made rig equipment worth more than 4.3 billion yuan ($635 million), it noted. 

Entering the Kuwait market in 2008, Zhang Congbang, manager of the Kuwait subsidiary of Sinopec International Petroleum Service Corp (SIPSC), said his team has transformed the Chinese enterprise`s image and become the biggest rig contractor in Kuwait. 

"When we arrived, the Kuwait side didn`t show much interest in us and worried whether Chinese companies could complete projects with an expected high level of quality," Zhang was quoted as telling the People`s Daily. 

To break the monopoly of the US and Europe in the rig market in the Middle East, Zhang and his team worked with domestic manufacturers to understand the technological aspects required, helping them establish an internationalized quality system. 

The team also engaged with executives of Kuwait Petroleum Corp (KPC) to introduce the technological index and data of domestic equipment, and they invited the Kuwait side to inspect Chinese factories and learn the standard of "made in China". 

"KPC agreed to use some Chinese rig equipment on a trial basis. Finally, the first-rate quality and reasonable price of domestic products won recognition from Kuwait," Zhang was quoted as saying in the report. 

The Kuwait subsidiary of SIPSC signed a big rig agreement worth $1.15 billion in 2014 when the international oil price slumped, rising to become the biggest rig contractor in Kuwait.

At present, the company owns 53 drilling rigs, taking up more than 45 percent of the Kuwait market, according to the report.

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 in September 23-25, 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.

Sino-Russia oil pipeline expands

Source: www.chinamining.org Citation: Xinhua Date: July 14, 2017

Activity in joint projects shows changing attitude

A worker checks valves at the terminal of the China-Russia oil pipeline in Daqing, Northeast China`s Heilongjiang Province. Photo: IC 

Joint energy projects between Russia and China are in full swing as Russia has reached out to tackle the gigantic Chinese market amid economic woes. 

On Wednesday, the main part of the second oil pipeline of the China-Russia crude oil pipeline project in Northeast China`s Heilongjiang Province was completed, chinanews.com reported. The pipeline is expected to carry its first oil this year. 

Built by the two biggest oil producers in China and Russia, China National Petroleum Corp and Rosneft, respectively, the 940-kilometer pipeline from Mohe to Daqing, both in Heilongjiang, will have an annual capacity of 15 million tons. 

The first oil pipeline of the China-Russia crude oil pipeline project, from Skovorodino to Mohe, moved 100 million tons of oil from Russia to China between 2011 and May 19 this year, according to the TASS news agency. 

"The around-the-clock pipeline will be the fastest and most convenient method for oil transportation from Russia to China,"? Zhang Hong, a research fellow at the Chinese Academy of Social Sciences, told the Global Times on Thursday. 

"The China-Russia crude oil pipeline project will make Sino-Russia oil trade more stable and regular," Lin Boqiang, dean of the China Institute for Studies in Energy Policy at Xiamen University, told the Global Time on Thursday. 

The rapid progress of the two oil pipelines is an example of how Russia, a good user of energy leverage, has been more active in seeking energy business operation with China.

Lin said that in the past, Russia was a hard nut to crack in business cooperation based on his own experience and what he learned from other industry insiders. "It was hard to strike a bargain with them. But in the past few years they have grown more amicable businesswise," he noted, adding that the country`s economic downturn had prompted Russia to be more active in exporting oil. 

"Besides, currently many countries are studying new energy to replace hydrocarbons, so actually the world`s reliance upon oil is decreasing. That`s why Russia is speeding up selling oil - because it has sensed the market pressure," Zhang noted. 

According to Zhang, importing oil from Russia also has great benefits for China because first, diversifying oil import sources can reduce the risks of regional politics on domestic economic security. Second, in terms of geography, importing oil from Russia is more convenient than getting it from distant sources like Saudi Arabia.

"It`s unlikely that China can build an oil pipeline with Saudi Arabia like the one it has developed with Russia," Lin noted. 

But he stressed that so far Saudi Arabia is still China`s biggest oil importer and this position is unlikely to be replaced by Russia in the short term.? 

"Overall, China needs to import oil as our oil reserves are becoming a little depleted, and it costs much less to import oil than producing our own," Zhang said. 

According to Lin, China imports about 65 percent of its oil. "I think the proportion is going to rise to 80 percent very soon," he said. 

Apart from oil, cooperation between China and Russia in other types of energy is also surging. 

A statement sent by Rosneft to the Global Times earlier stressed that the company`s cooperation in energy with Chinese partners "covers all business domains, from upstream to refining and petrochemical production."

The statement also listed several of those projects, including a refinery project in North China`s Tianjin? Municipality and a joint venture it established with the China Petrochemical Corp for the production of hydrocarbons.

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 in September 23-25, 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.

Sino-Russia oil pipeline expands

Oil, gas investment dwindles

Source: www.chinamining.org     Citation: Global Times        Date: July 12, 2017

China`s investment in petroleum and natural gas exploration and mining plunged in 2016 due to continuing depressed oil prices, although a basic geological survey of oil and gas made progress, according to a report posted on the website of the Ministry of Land and Resources on Monday. 

In 2016, the investment in petroleum and natural gas exploration stood?at 52.75 billion yuan ($7.75 billion), and?mining at 133.34 billion yuan, down 12.1 percent and 29.6 percent respectively, returning to the level of a decade ago, the report said.

National newly-proven oil geological reserves stood at 914 million tons in 2016, below 1 billion for the first time over the past decade. For the natural gas, the figure was 726.56 billion cubic meters, exceeding 500 billion for the 14th straight year, the report showed.

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 in September 23-25, 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.

IEA chief hails China`s efforts on combustible ice

Source: www.chinamining.org     Citation: Xinhua              Date: July 12, 2017

ISTANBUL — Fatih Birol, executive director of the International Energy Agency (IEA), on Tuesday lauded China`s efforts to extract combustible ice from sea.

Referring to the fact that China leads the world in terms of its research and development efforts, Birol said "China takes once again the leadership." 

"Today China is number one in terms of the wind, number one in terms of the solar and number one in terms of the energy-efficiency effort as well as in nuclear power," he told Xinhua.

On Sunday, China completed in the South China Sea a 60-day trial of mining gas hydrates, commonly known as combustible ice, marking a breakthrough in the search for alternative clean energy resources. 

It was announced that the exploration produced over 300,000 cubic meters of gas, mainly methane, with an average daily extraction of more than 5,000 cubic meters of high-purity gas, and a highest daily output of 35,000 cubic meters. 

"What we are seeing is that the natural gas industry is in transformation," Birol said. "We are seeing more and more unconventional gas being part of the total gas mix." 

Speaking of the ongoing efforts on methane hydrate by China, Japan and others, as US is doing on shale gas and Australia on coalbed methane, the IEA chief commented "it is not a technology for today but maybe for tomorrow." 

China began its research on combustible ice in 1998, as one cubic meter of combustible ice, a kind of natural gas hydrate, equals 164 cubic meters of regular natural gas.

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 in September 23-25, 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.

Ghana signs $10bn MOU with China to Develop its Bauxite Industry

Source: www.chinamining.org     Citation: footprint2africa.com        Date: July 10, 2017

Ghana has signed a $10 billion memorandum of understanding (MOU) with China to develop its bauxite industry, the country’s Senior Minister Yaw Osafo-Maafo has said. 

Growth in the West African country slowed sharply in 2014 due to a fiscal crisis and tumbling commodity prices following years of economic expansion at around 8 percent on the back of gold, cocoa and oil exports. 

Taking office in January, President Nana Akufo-Addo has outlined a programme of job creation through the private sector and rural development. 

“To develop the bauxite project with its railway and converting bauxite into aluminium we will need about $10 billion … we signed an MOU,” Osafo-Maafo told reporters at a conference in London after arriving from China. 

“The money will come from the Chinese Development Bank, the implementation of the project will come from other agencies, infrastructure agencies in China, like China Railway,” he said. 

The funds from Beijing would contribute towards building 1,400 km of a planned 4,000 km railway network, which would connect bauxite mines and production sites as well as establish a rail link into neighbouring Burkina Faso. 

Details such as interest rates and terms had yet to be decided, he said, speaking on the sidelines of an investor conference organised by Developing Market Associates. 

During his China visit, a second MOU had been signed between China and the Association of Ghana Industries which could lead to some $2 billion being invested in agricultural projects and industries, Osafo-Maafo said. 

This was part of a government pledge to “build a dam in every village and a factory in every district”, he said.

Asked about the government’s plan to issue a 10 billion cedi ($2.25 billion) bond, Osafo-Maafo said he expected the debt to be issued towards the end of the year, and with maturities ranging from 5-15 years. 

Earlier in June, Ghana had named Standard Chartered Bank and local lender Fidelity as lead managers for the issue expected to clear debts owed by public sector energy utilities.

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 in September 23-25, 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.

Iran, China, France sign $4.8 billion gas deal

Source: www.chinamining.org     Citation: Xinhua          Date: July 04, 2017

Representatives from cooperation parties attend the deal signing ceremony in Teheran, Iran,
on July 3, 2017. (Xinhua/Ahamad Halabisaz)

Iran and a consortium of Chinese and French energy giants signed a multi-billion-dollar deal here on Monday to develop a major Iranian gas field in the Persian Gulf. 

The deal followed a Memorandum of Understanding (MOU) signed by the National Iranian Oil Company and a consortium involving China National Petroleum Corporation (CNPC), France`s Total and Iran`s Petropars in November 2016 to develop Iran`s South Pars (SP11) gas field. 

At Monday`s signing ceremony, Iran`s Petroleum Minister Bijan Namdar Zanganeh, Total`s CEO Patrick Pouyanne and Lv Gongxun, representatives of the CNPC were present. 

According to Zanganeh, the contract for development of the gas field is worth 4.8 billion U.S. dollars. The contract will be carried out in two phases with a total period of 20 years. 

At each stage, 2.4 billion U.S. dollars of foreign fund will be allocated for the project, the minister said, adding that Total will operate the SP11 project with a 50.1 interest alongside CNPC with 30 percent and Petropars with 19.9 percent. 

Iran expects to produce as much as 56 million cubic meters per day of natural gas from the field once it is in full swing, he said. 

The South Pars field is a natural gas condensate field located in the Persian Gulf. It is the world`s largest gas field shared between Iran and Qatar. 

According to the International Energy Agency, the field holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of natural gas condensate.

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 in September 23-25, 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.