News

Govt to further push restructuring of SOEs

Source: www.chinamining.org     Citation: chinadaily.com.cn      Date: March 10, 2017

China will push forward the restructuring of State-owned enterprises (SOEs), while expanding the scope and depth of mixed ownership reform, top State-owned assets regulator said on Thursday.

The SOEs have been taking the lead in restructuring the production capacity of coal, steel and thermal power, said Xiao Yaqing, minister of the State-Owned Assets Supervision and Administration Commission (SASAC), at a press conference on the sidelines of the two sessions. 

Xiao said: "SOEs under central government control will be further slimmed down to streamline management and improve administrative penetration and continue with supply-side reform."

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 companies urged to take measured approach to Canada mining investment

Source: www.chinamining.org         Citation: chinadaily.com.cn      Date: March 09, 2017

Perhaps Chinese mining companies in Canada should consider taking minority stakes in Canadian companies instead of acquiring them. That was the takeaway at a mining forum on Monday in Toronto.

"Acquisition of interests in a Canadian public mining company is often a key step to acquiring mining interests throughout the world," said Fred Pletcher, chairman of National Mining Group, Borden Ladner Gervais LLP. 

Pletcher spoke to delegates of Chinese mining industry at the 2017 Chinese Mining Investment Forum. The forum coincided with the first day of the Prospectors & Developers Association of Canada (PDAC) convention, the premier international event for the mineral industry in Toronto, where optimism was voiced that the industry would rebound after a couple years` slump.

The forum hosted by the Canada China Chamber of Commerce (CCCC) and the China Mining Association (CMA) focused on the Belt and Road strategy and Chinese mining investment opportunities. 

Keith Spence, president of Global Mining Capital Corp and chairman of PDAC International, suggested that Chinese investors in Canada could learn from Japan`s 1970s approach in which he said it was "not necessary" to take majority ownership of the Canadian companies. 

The Japanese model that was developed to invest in Canadian resources companies started was involved not only in taking controlling interests, but smaller stakes, ranging from 15 percent to 30 percent. 

"But still having contracted a lot of Canadian companies to sell off-take commodities to the Japanese companies, many Japanese investors have been remained 20-plus years with successful operations," Spence said. 

Here is how Investopedia.com describes off-take commodities: "An off-take agreement is an agreement between a producer of a resource and a buyer of a resource to purchase or sell portions of the producer`s future production." 

 "Canada is rich in mineral resources, has an open and transparent policy and a prosperous mining capital market," said Cao Jie, managing director of CMA. 

 "There are complementary advantages in mining resources and the stock market between Canada and China," said Li Aihua, president of CCCC. 

 China has vast market potential due to its great demand for mining resources, while Canada has one of the largest stock markets in the world, which plays a leading role in international prospecting and exploration of mining resources. 

 However, many deals by Chinese companies in mining and energy projects are losing money, running into unexpected costs or generating significantly less output than expected. 

 "China`s mining companies need mining projects with high grades," said Luan Zhengming, a committee member of the CMA.

Spence offered three suggestions to Chinese investors: Focus on projects with lower risk; the financing structure should reflect the risk appetite; and manage and mitigate the soft risks. 

"You certainly have to give up something which means you don`t control it and you have to trust your partners," said Pletcher, of National Mining Group. "We started to see more Chinese investors approach it this way, like with Western Potash. He said CNOOC`s (China National Offshore Oil Corporation) initial investment was restructured with minority interests and off-take.

 Canada`s strong financial markets also help ease investment in the country. 

 Pletcher said Canada is the leading global centre for mining finance. The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSX-V) were home to 1,207 public mining companies as of 2017. 

"Canada`s government welcomes Chinese investors; what we value as much as the investment is the partnership that Chinese companies bring to Canada," said Canadian Senator David Wells, who represents Newfoundland and Labrador provinces.  

"The field of energy minerals is the focus of China`s investment in Canada, with the gradual rebounding of the mining industry," said Xia Xiang, minister-counsellor for economic & commercial affairs at the Chinese embassy in Canada.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

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

China promises further cuts to steel, coal capacity

Source: www.chinamining.org     Citation: Xinhua     Date: March 06, 2017

Chinese Premier Li Keqiang delivers a government work report during the opening meeting
of the fifth session of China`s 12th National People`s Congress (NPC) in
Beijing, capital of China, March 5, 2017. (Xinhua/Pang Xinglei)

BEIJING -- Numerical targets to reduce coal and steel production capacity have, for the first time, been set in the annual Chinese government work report. 

China will reduce steel production capacity this year by around 50 million metric tons and shut down at least 150 million metric tons of coal production facilities, Premier Li Keqiang said Sunday in a government work report to the fifth session of the 12th National People`s Congress.  

Last year`s government work report promised capacity-cutting in the two industries, but did not specify targets.  

In 2016, the country reduced coal capacity by 290 million metric tons and steel capacity by 65 million metric tons for steel, said the premier.  

Continued capacity reduction is in line with market expectations. 

DIFFICULT CUTS  

China is the world`s largest producer and consumer of steel and coal, but gluts can have implications such as depressed commodity and materials prices, reduced profits of debt-ridden firms, and increased non-performing loans that jeopardize financial stability.  

While capacity cuts are necessary and have long-term benefits for the economy, the process has not been without challenges.  

Capital-intensive industries present potential investment, taxation and jobs for local governments, which in at least two cases broke capacity-cutting rules set by the central government.  

Huada Steel in eastern China`s Jiangsu Province and Anfeng Steel in northern China`s Hebei Province were identified by authorities in December for violating capacity reduction efforts in the sector with "extremely bad influence."  

Thanks in part to the efforts, China`s broader economic growth has showed increasing signs of stabilizing since the latter half of last year, with indicators such as factory prices and industrial profits seeing significant improvements. 

"Overall, the negative impact on growth and employment is manageable," wrote UBS economist Wang Tao in a note on excess capacity. 

ZOMBIE ENTERPRISES NEXT  

One key initiative in excess capacity reductions is to shut down "zombie companies," which are loss-making, debt-laden, and dependent on government subsidies or bank loans.  

"We will strictly enforce all laws, regulations and standards on environmental protection, energy consumption, quality, and safety and make more use of market- and law-based methods as we work to address the problems of `zombie enterprises`," said the premier in the government work report.  

For workers laid off because of capacity cuts, the central and local governments will allocate special funds and take measures to ensure they find new jobs, Li said.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

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

China to lead foreign investment in Peruvian mining sector

Source: www.chinamining.org     Citation: Xinhua     Date: March 03, 2017

China, Canada and the U.S. will account for 53 percent of investments in the Peruvian mining sector in the next few years, according to the new guide for mining investments published Wednesday. 

The guide, which was produced by Peru`s Ministry of Energy and Mines (MEM) and Ernst & Young, showed that China will be the leading foreign investor in 2017-2018, with its companies planning to spend 10.189 billion U.S. dollars, or 21.6 percent of the total. 

Canada will come in second place with 8.755 billion U.S. dollars, or 18.6 percent, and the U.S. in third with 6.55 billions, or 12.8 percent. 

Chinese investments include the expansion of the Marcona iron mine in the southern region of Ica at a cost of 1.5 billion U.S. dollars, which is to be completed by December 2019. This will increase the mine`s production to 3.5 million metric tons. 

Jinzhao Mining is planning to invest 1.5 billion U.S. dollars at Pampa de Pongo mine, to complete an environmental impact assessment and begin production by 2021.

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 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 expresses doubts about EU tariffs on steel products

Source: www.chinamining.org         Citation: Xinhua      Date: March 02, 2017

China has expressed doubts about exorbitant tariffs imposed by the European Union (EU) on steel products from China, calling for an end to such unfair measures.

The European Commission, the EU`s executive body, recently announced its final ruling to impose anti-dumping taxes on Chinese steel plate for a five-year period, with duties ranging between 65.1 percent and 73.7 percent. 

Wang Hejun, head of the Ministry of Commerce (MOC)`s trade remedy and investigation bureau, said China has grave doubts about the ruling and is highly concerned about the EU`s protectionist tendencies regarding Chinese steel products. 

He said the European Commission investigation disregarded facts and materials provided by Chinese companies and continued to use the "unfair and unreasonable" surrogate country approach, seriously affecting Chinese companies` interests. 

He urged the EU to fulfill its obligations under the World Trade Organization (WTO) and apply a justified and non-discriminatory approach toward Chinese companies. 

A tepid economic recovery and shrinking demand are to blame for the plight faced by global steel makers, Wang said. Countries should unite to weather hardships with solutions that benefit all. Easy reliance on protective measures will only undermine the global trade order. 

Wang said China is willing to strengthen communications with the EU and work with the EU to properly sort out the problems faced by the steel industry.

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.

Spotlight: China-Venezuela cooperation eyes new development projects

Source: www.chinamining.org         Citation: Xinhua      Date: February 27, 2017

Already robust, development cooperation between China and Venezuela got an additional boost with the recent signing of 22 new agreements to strengthen their comprehensive strategic partnership.

The South American economy, which is heavily dependent on oil exports, and was devastated by falling crude prices, is getting a helping hand from China to diversify its production base. 

One initiative Beijing has pledged to invest in is a government-backed program to strengthen community supply and distribution networks through Local Supply and Production Committees (CLAP) and a Great Sovereign Supply Mission (GMAS). 

Both strategies emerged from a need to provide average Venezuelans with basic goods that became scarce to find amid a protracted "economic war" between politically conservative business sectors and the socialist government. 

But the greater objective is to help Venezuela consolidate its productive sector and exports -- by increasing energy and technological innovation, among other things -- in a way that also benefits people in China. 

In a recent interview with Xinhua, Venezuelan Planning Minister Ricardo Menendez described the bilateral relationship as an "authentic process of integration" to build a better future for both countries. 

"Everything is part of a strategic framework between our countries and is related to the 2025 Venezuela-China Plan. We are talking about linking China`s Five Year Plan with the (Venezuelan) National Plan ...it is a relationship of profound breadth," said Menendez. 

Six of the 22 accords are related with boosting energy output, including an agreement to build a refinery in southeast China`s Guangdong Province, called Nanhai, that will specialize in processing some 400,000 barrels of extra-heavy crude extracted from Venezuela by joint venture firms between Venezuela`s state oil company PDVSA and the China National Petroleum Corporation (CNPC). 

Another project aims to boost output at joint Sino-Venezuelan firm Sinovensa, located in Venezuela`s oil-rich Orinoco Belt, by 165,000 barrels per day (bpd) to 230,000 bpd.

The Orinoco region joint ventures Petrozumano and Petrourica also plan to raise output. 

The results of these agreements are expected to be felt in the first quarter of 2017, though other plans are more medium- to long-term. 

Though not part of the recently signed agreements, there is also a project underway to build a deep-sea port in Araya Peninsula, in the eastern Sucre state, along with a network of oil and gas pipelines from the oil belt, to facilitate export. 

"We are breaking with this concept, this idea of Venezuela as a country that lacks investment. That (the port) plus the oil investments speak of the confidence that prevails in our countries, and of how we are going to approach all of the difficulties that may arise, and how we are going to embark on a path towards the future," said the official. 

In the agricultural sector, China and Venezuela plan to build Latin America`s largest industrial park in Anaco, a town in the eastern state of Anzoategui. 

The ambitious project aims to produce traditionally imported inputs, such as seeds, fertilizers and other agrochemicals, but with "an environmental perspective," said Menendez. 

Several China-Venezuela joint ventures are already at a stage where they can expand their production lines and seek out new export markets. 

The joint venture between Venezolana de Industrias Tecnologicas (VIT) and China`s multinational IT company the Inspur Group is one of them, as it looks to increase its computer assembly operation for export.

Mobile phone makers Venezolana de Telecomunicaciones (VTELCA) and China`s ZTE Corporation "are expanding with another five production lines," said Menendez. 

In the automotive sector, Venezuela`s Chery-brand carmaker is also poised to roll out more vehicles, not just for a government-backed plan to modernize the country`s fleet of taxis, but also for foreign markets. 

Finally, as part of a push to diversify its economy, Venezuela has launched Arco Minero del Orinoco, a large-scale mining project in which Chinese companies will be taking part. 

Arco Minero is designed to position the country as a key supplier of gold, diamonds, bauxite, copper and coltan.

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.

Roadmap for global energy interconnection depicted

Source: www.chinamining.org     Citation: People`s Daily Online     Date: February 27, 2017

The Beijing-headquartered Global Energy Interconnection Development and Cooperation Organization (GEIDCO), the first China-initiated international energy organ, released three reports on its research findings on Wednesday, depicting a vision of a green, low-carbon, interconnected and shared energy community around the globe. 

In the three documents, namely White Paper on Global Energy Interconnection Development Strategy, Technology and Prospects for Cross-regional Power Networks and Global Energy Interconnection Development and Outlook 2017, the organization shared the strategic system, ideas and roadmap for global energy interconnection. 

The idea of building a "Global Energy Interconnection (GEI)" was first put forward by Chinese President Xi Jinping at the UN Sustainable Development Summit on September 26, 2015. Xi`s proposal, with an aim to facilitate efforts to meet the global power demand with clean and green energy alternatives, was widely echoed by the international community. 

The GEIDCO, founded last March upon China`s initiative, has received its first 80 members from Asia, Europe, Africa, America and Oceania. 

The fusion of energy network, together with information network and transportation network, is regarded as a new trend of the world, but the progress of former one lagged behind after the latter two. 

According to plans, the GEI foresees a global smart ultra-high-voltage grid connecting power providers and consumers worldwide with clean energy across national boundaries. It is also designed to serve as a basic platform for extensive development, deployment and utilization of clean energy. 

In a bid to realize the UN`s goal of "Sustainable Energy for All", the GEI is expected to be attained by the middle of the century, in three steps of domestic, intracontinental and intercontinental interconnection. 

Liu Zhenya, chairman of the GEIDCO, stressed that global energy interconnection will promote a new way for energy production and consumption guided and featured by clean energy and high degree of electrification. 

Meanwhile, a new energy development pattern should be formed, Liu suggested, explaining that in the new pattern, the power system will be shared within countries and continents and the global electric power allocation will be optimized. 

He also urged the world to establish a new mutually beneficial energy cooperation relationship with joint efforts and shared fruits. 

Liu called for an accelerated technology-driven innovative development in GEI progress as well, saying that innovation harvests in sectors like big data, Internet of Things, automatic drive and car networking should be reaped as soon as possible.

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, France sign deals on nuclear energy, science

Source: www.chinamining.org         Citation: Xinhua      Date: February 22, 2017

Chinese Premier Li Keqiang (R) shakes hands with French Prime Minister Bernard Cazeneuve
    in Beijing, capital of China, Feb. 21, 2017. (Xinhua/Yao Dawei)

China and France on Tuesday signed agreements on nuclear energy and science during French Prime Minister Bernard Cazeneuve`s Beijing visit.

During talks with Cazeneuve, Chinese Premier Li Keqiang said China is willing to work with France to deepen cooperation in the whole industrial chain of nuclear energy. 

He hoped that the two sides would ensure a smooth implementation of the Hinkley Point C nuclear power plant program and discuss joint development of the third-party nuclear power market. 

Li suggested the two sides explore cooperation in civil aviation and space industries, deepen cooperation in coping with climate change, and speed up the eco-city project in Wuhan, capital city of central China`s Hubei Province. 

He also hoped the two countries to explore cooperation in whole industrial chain of agriculture, medicine and health, as well as coping with an aging society. 

Li urged the two sides to facilitate bilateral people-to-people exchanges, effectively implement the Sino-French "1000 Interns" program and the mutual recognition agreement of driving license just signed between the two sides. 

He called on the two nations to push the social security agreement signed last October into effect as soon as possible, which exempts company employees assigned to work in each other`s countries from the mandatory social security contributions. 

The premier hoped that the French side would provide Chinese tourists with better services. 

On bilateral relations, Li said China and France both serve as the permanent members of the UN Security Council, and the Sino-French ties have been at the forefront of China`s links with western countries. 

He said the two countries should always uphold the principle of mutual respect, equality, cooperation, mutual benefit and win-win and strengthen communication and coordination in international affairs.

He called on the two sides, against the backdrop of the complicated and volatile international situation, jointly send out strong signals of safeguarding world peace and stability and promoting development, so as to respond to uncertainty with stability. 

China firmly supports European integration, and hopes to see a united, prosperous and stable European Union(EU), which is not only conducive to China-France and China-Europe relations, but also in the interests of multilateralism and the development of globalization, said Li. 

Li urged the EU to comprehensively and thoroughly fulfill its obligations under the Protocol on China`s Accession to the World Trade Organization (WTO), so as to create conditions for sound and healthy development of China-Europe pragmatic cooperation. 

Under Article 15 of the Protocol on China`s Accession to the WTO, the EU should have ended its "surrogate country system" by Dec. 11, 2016. 

For his part, Cazeneuve praised the fruitful cooperation with China in civilian nuclear energy sector, adding bilateral cooperation in agriculture and environmental protection is exemplary. 

France is ready to work with China to enhance cooperation in such areas of politics, economic and trade, investment, science, agriculture, nuclear energy, environmental protection and education, he said. 

France is willing to make efforts with China to maintain trade liberalization and defuse protectionism, he added. 

Noting Europe and China share broad common interests, Cazeneuve said the two sides will find proper solution to the implementation of the Article 15 of the Protocol on China`s Accession to the WTO and France is willing to make efforts in this regard. 

When jointly meeting the press with Cazeneuve, Li reaffirmed that China upholds to the principle of openness, inclusiveness, and win-win cooperation, opposes to all kinds of protectionism, and safeguards an open international trade system as well as the multilateral framework. 

Cazeneuve said France is ready to work with China to oppose trade protectionism and promote the development and prosperity of the two countries. 

Cazeneuve is paying an official visit to China on Feb. 21-23. Besides Beijing, Cazeneuve will also visit Wuhan.

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.