News

China free trade agreement broadly positive for Australian thermal coal: bank

Source: www.chinamining.org   Citation: Platts   Date: June 23, 2015

China`s lifting of its 6% import tariff on Australian thermal coal within the next two years should increase Australian export volumes and lower those from countries without a free trade agreement with Beijing, Commonwealth Bank of Australia analyst Vivek Dhar said in a report released Friday, June 19.

The Australian bank`s report said the signing of a bilateral FTA between China and Australia Wednesday would have broadly positive implications for Australian coal exports.

China has committed to immediately abolish its 3% tariff on hard coking coal imports from Australia and phasing out its 6% import tax on Australian PCI coal over the next three years.

Australian thermal coal is subject to a 6% tariff at Chinese ports that is to be gradually reduced to zero over a two-year period.

"The removal of the import tariffs should improve the competitiveness of Australian coking and thermal coal exports relative to Chinese coal and other major exporters to China [except Indonesia, which has an FTA with China]," Dhar said in the report.

"On the margin, this should translate through to stronger Australian coal export volumes, weaker Chinese coal production, lower coal exports from countries that do not have an FTA with China and lower consumer prices in China for Australian coal," he added.

The 43.7% year-on-year decline in China`s imports of Australian thermal coal over January-April reflected underlying weakness in China`s resource-intensive industrial sectors, Dhar said.

"Slowing electricity output as China`s economy slows, a transition away from heavy industry and a shift in energy mix are driving China`s thermal coal demand lower," he said in the report.

Hydroelectricity generation was also playing a greater role in China`s energy mix and was another bearish factor for thermal coal import demand, he said.

Other downside risks for Chinese coal imports include rising domestic coal production, supply chain improvements in China and tougher environmental regulations on coal, he added.

China received 22% of Australia`s 202 million mt thermal coal shipments in the 12 months to April 30, or 45.3 million mt, according to the report.

Other major consumers of Australian thermal coal exports in the 12-month period were Japan at 39% or 79.5 million mt and South Korea at 17% or 33.6 million mt, it added.

China`s demand for imported coking coal has declined in recent months on falling domestic steel output, with total imports falling 24.5% year on year over January-April.

The country imported 41.8 million mt of Australian coking coal cargo in 12 months to April 30, 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Low oil prices gas up Chinese buyers

Source: www.chinamining.org   Citation: China Daily Africa  Date: June 19, 2015

As the downward trend levels out, companies from China are finding big bargains around the globe

A new wave of Chinese outbound oil acquisitions is expected in the second half of 2015 as well-financed Chinese firms take advantage of struggling companies while oil prices remain low globally, industry insiders say.

The huge drop in oil prices over the past year, from $110 per barrel in early July of last year to below $50 by the beginning of 2015, has fundamentally shocked the industry. But the prevailing forecast in the business is for price stabilization.

Chinese workers from Sinopec work with African colleagues at a facility in Sudan.

During this stabilization, a surge in global oil mergers and acquisitions is anticipated, with big implications for Chinese companies whose strong balance sheets and strategic investment mindset make them powerful buyers in the new environment.

"Since the middle of 2014, we`ve hardly seen any acquisitions by Chinese companies, but now that oil prices have stabilized, we would anticipate the pace of acquisitions to pick up," says Robin Matthews, managing director for Eurasia at Deloitte Upstream Oil & Gas Advisers.

Matthews says the previous lack of acquisitions was caused by the continuing drop in oil prices. The possibility always existed that after a bid was made, prices might soon drop even further.

Because oil prices are expected to remain in a new, lower price range, Chinese firms making acquisitions now can use a new scenario to evaluate their acquisitions, Matthews says.

In this new price environment, most oil companies are trying to cut costs by arranging better deals with their suppliers, negotiating 15-30 percent price cuts, while advanced deepwater rigs are going at day rates 50-60 percent lower than before, he says.

So Chinese firms should consider the efficiency of potential targets and evaluate the cost-return profile of oil fields requiring different extraction methods, he says. Chinese firms should especially consider how to maximize the synergy of their capabilities and the assets within their portfolios.

"In selecting good targets for acquisition, Chinese companies should probably look at assets that are big enough for them to be material and also fit well with the strengths of their portfolio," Matthews says.

That means Chinese companies should reassess their existing assets within the given portfolio and sell off "non-core assets" that may not be generating a desirable level of profitability or no longer be strategically important.

"Within a portfolio of assets a lot of synergy can be achieved if they are well managed. All large oil companies would have core and non-core assets and some assets become non-core over time as a firm`s strategy changes or the assets themselves change," Matthews says.

According to an analysis by Matthews` team, some of the assets held in Chinese firms` portfolios are already failing to achieve desirable profitability, but to date Chinese firms have not yet sold off any assets in their portfolio.

Chinese companies first ventured overseas for oil acquisitions in 1993, initially investing in oil and gas production in Thailand, Canada and Peru and, in 1995, in Sudan.  

Chinese investments rapidly grew, and by 2014 Chinese national oil companies already operated in more than 40 countries, controlling about 7 percent of worldwide crude oil output. Between 2011 and 2014 alone, they spent total of $73 billion in outbound acquisitions, according to an International Energy Agency report.

The report also showed that Chinese national oil companies have combined overseas oil and gas production totaling 2.5 million barrels per day.

Most Chinese overseas investments are made in Africa, the Middle East and Eastern Europe, but CNOOC Ltd`s 2012 acquisition of Canada`s Nexen for $15.1 billion is noted as China`s biggest overseas acquisition.

This acquisition spree is partly due to China`s strong domestic demand for oil, but also reflects Chinese companies` desire to gain advanced extraction technology and oilfield operation expertise from industry leaders abroad. According to BMI Research data, Chinese crude oil production currently meets almost 40 percent of domestic crude oil demand.

Marina Petroleka, head of energy and infrastructure research at BMI Research, says that Chinese buyers have a steep learning curve on complex oil extraction techniques like offshore and Arctic oil extraction, but they can then use them in the domestic market or markets they can access easily.

Deep-water techniques could be helpful for Chinese firms that potentially wish to work in the deep-water environment of the South China Sea, while Arctic methodology could be helpful for Chinese firms eyeing an expansion to Russia, which is an area with oil resources that Chinese firms have good chances to access with the recent strengthening of relations between the two countries.

Last year, a consortium led by CNOOC, with a 60 percent stake, won a license to explore for hydrocarbons in the Icelandic Arctic, forming a partnership with two smaller firms in the project - Iceland`s Eykon and Norway`s Petoro.

Other areas Chinese firms may focus on include shale gas and shale oil and potentially methane hydrates. The latter is a relatively new source of which China is believed to have large offshore reserves. China is estimated to have the world`s largest shale gas resources. One of the reasons that CNOOC bought Nexen is that Nexen has technology in shale.

"Chinese companies want to be ahead of the curve. They want to partner up with Western firms in the international environment, and bring back technology and experience," Petroleka says.

Although Chinese firms have traditionally preferred full acquisitions, they should also consider minority stakes because many firms with oil assets in the exploration, production and development stages now want to sell their ownership given the new low price environment, Petroleka says.

"Internationally, many big firms are rationalizing their portfolios by focusing on certain areas and selling off assets in other areas, meaning there are many assets available and can be bought at cheaper prices," Petroleka says.

Those views are echoed by Jonathan Robinson, principal consultant of energy, environment and building technologies at Frost & Sullivan, who adds that Chinese investment in the North Sea is an example of their rapid learning in offshore extraction methods in a mature oil field, which could be used in their own aging oil fields in the future.  

Robinson says offshore is more complex because it requires more advanced infrastructure and equipment, and demands more skilled engineers and complex oil extraction techniques like enhanced oil recovery.

"The North Sea would not be attractive for companies from a revenue or market share perspective, but it provides good access to competency. In the offshore oil sector, Chinese companies are still learning because traditionally they have more experience with oilfields on land."

CNOOC acquired a 43 percent stake in Buzzard, the UK`s largest producing oil field, located in the North Sea, as part of its 2012 Nexen acquisition. In the same year, Sinopec acquired a 49 percent stake in Canadian oil firm Talisman`s UK North Sea business.

In addition, the current Energy Bill proposed by the UK government suggests financial incentives for oil producers in the North Sea, as a way to support oil production in there. Robinson says these financial incentives could potentially make the North Sea more attractive for Chinese companies.

During the new wave of Chinese outbound oil acquisitions, companies also would be likely to search for opportunities in Latin American countries like Brazil and Argentina, Robinson says.

"Western firms may have been hesitant about some opportunities in these markets due to perceived risks. But because the Chinese government has good relationships with governments of many Latin American countries, Chinese firms may be more willing to invest in these countries, potentially by establishing joint ventures with local companies, which is the technique used by Chinese firms in Africa`s mining industry," he says.

Bjarne Schieldrop, chief analyst of commodities at SEB, the official name of the Swedish banking group Skandinaviska Enskilda Banken, adds that in the new low price environment where onshore oil production is generating good returns, Chinese firms could focus on helping countries in Latin America and Africa with underdeveloped onshore oil resources, which is consistent with China`s outbound resource acquisition strategy across all commodity sectors.

Also, consolidation within the US shale sector means potential acquisition opportunities exist for Chinese firms to buy US shale firms with good access to resources but too little cash to survive in the competitive environment, Schieldrop says.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Free trade pact to cut costs of coal and iron

Source: www.chinamining.org   Citation: China Daily   Date: June 18, 2015

Minister of Commerce Gao Hucheng meets with Australian Prime Minister Tony Abbott during an official meeting in Canberra on Wednesday.The two countries signed a free trade agreement the same day. [Photo/Agencies]

Agreement to ensure supply of raw materials, duties to be phased out

The landmark signing of a free trade agreement between China and Australia on Wednesday will further ensure the supply of commodities to the world`s second-largest economy, helping Chinese users cut costs for materials such as coal and iron ore, industry experts said.

After more than a decade of negotiations, the two sides signed the China-Australia Free Trade Agreement, giving Chinese steel companies and power stations more choices when they need to import iron ore and thermal coal.

But the pact "will bring tougher competition to Chinese miners, which are already suffering from a weak market and falling prices", said Zhang Lin, a senior researcher at the Lange Steel Information Research Center.

Australia is the biggest iron ore supplier to China, providing about two-thirds of total demand.

According to data from the National Bureau of Statistics, China imported 71 million metric tons of iron ore in May, a 12 percent decline from the previous month and 9 percent lower than the monthly average in 2014.

"China`s economic slowdown has caused lower steel demand, which resulted in declining iron ore imports," Zhang said. "It will cause worries among Australian miners because the mining industry contributes about half of the country`s economic growth."

The agreement will help Australian iron ore miners sell their output on preferential terms to buyers in China, which will be beneficial to the Australian economy.

Australian coal producers will also benefit. Under the agreement, tariffs on coking coal exported from Australia to China will end, falling from 3 percent to zero immediately. The tariff on thermal coal is being phased out over two years, and there will be tariff eliminations on a wide range of Australian manufactured goods, including pharmaceutical products and vehicle engines.

For the first four months of the year, Australian coal accounted for 43.6 percent of China`s total coal imports.

Compared with Indonesian coal, Australian coal is of higher quality with less sulfur, which is in line with the Chinese government`s policy on environmental protection.

"Most of China`s coal producers are facing sharply falling prices and weak demand, which has caused many to lose a lot of money in recent years," said Liu Dongna, a coal analyst with Shandong-based commodities consultancy Sublime China Information Group Co Ltd.

"The increasing Australian thermal coal imports will worsen domestic coal companies` profits because Australian coal has better price competitiveness compared with domestic sources," she said.

Although some Chinese companies will face tougher competition from Australia, the agreement also offers opportunities to other industries such as steel and manufacturing, said Wei Zengmin, an analyst from steel information provider mysteel.com.

He said Australia`s infrastructure construction projects will generate demand for steel products and steel structure, which Chinese companies can provide.

"However, Chinese steel exports often face anti-dumping investigations in foreign markets, and Australia is not an exception. Thus, Chinese steel companies should be aware of potential trade disputes in their overseas market expansion in Australia," Wei 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Miners face headwinds from weak prices: PwC

Source: www.chinamining.org   Citation: Global Times   Date: June 17, 2015

The global mining industry faced a challenging year in 2014 with falling commodity prices and increasing short-term volatility, which forced companies to control costs and free up cash flow, according to a report released by PricewaterhouseCoopers (PwC) on Monday.

The overall market capitalization of the top 40 miners plummeted by $156 billion in 2014, a decline of 16 percent in combined market values from 2013, said the report.

The largest miners cut spending and largely managed expectations through higher production, with unexpected help from currency devaluations and lower input costs. Despite this, there were continued headwinds from weak commodity prices, which drove revenues lower for companies, according to PwC.

While China`s slowing economic growth has had a major impact on demand for steel-making commodities, as well as base metals, the expectation of China`s continued thirst for commodities in the longer term remains a key driver for global miners, the report said, noting that China accounts for as much as 50 percent of global commodity demand.

PwC said the general outlook for the global metals and mining market remains bleak due to the combined effects of a slower rate of economic growth, particularly in emerging markets.

The oversupply of bulk commodities, especially iron ore and coal, combined with China`s cooling growth rates, have been major contributors to the price slump. Specifically, iron ore, coal and copper prices fell by 50 percent, 26 percent and 11 percent respectively in 2014,  said the report.

The report also noted that global mining companies` capital spending on significant projects declined by 20 percent, with further decreases expected in 2015.

In Asia, more industry consolidation is expected between key resource players from India and China in order to stem production overcapacity, the report 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Asian energy, resources partnership proposed at Boao Forum conference

Source: www.chinamining.org   Citation: Xinhua   Date: June 12, 2015

A chief Chinese representative proposed on Thursday to build an Asian energy and resources partnership at the Boao Forum for Asia (BFA) "Energy, Resources and Sustainable Development Conference."

Focusing on the Silk Road Economic Belt and the 21st-Century Maritime Silk Road as well as the cooperation of energy and resources in the Asian region, the participants will analyze the latest situation of the world energy and resources, and discuss on the new ideas of future cooperation in the region.

Zeng Peiyan, vice chairman of the BFA, said the ups and downs in the energy and resources prices have a great impact on both the supplying and the consuming countries, and thus they wish to see a reasonable, stable and predictable trajectory of prices and a balanced relationship between supply and demand.

He said the center of global energy consumption is moving to Asia, which is home to both the major suppliers and consumers of energy and resources in the world.

Against the backdrop of falling energy prices and changing international energy relocation structure, it is necessary for Asia to explore the establishment of a new model of cooperation at the opportune time to promote the sound and orderly development of the energy and resources market.

The Chinese representatives proposed that Asian countries establish an energy and resources partnership in the spirit of cooperation for win-win development, so as to achieve "four stables," - to establish a stable supplier-consumer partnership to generate a stable expectation of prices and market prospect, promote the stable economic development of countries on both the supply and demand sides, and help bring about a stable world energy and resources market.

A five-point proposal was made to build such an Asian energy and resource partnership. First, build an Asian trading market of energy and resources. Second, negotiate the rules for investment and trade liberalization and facilitation in energy and resources. Third, step up regulatory cooperation on the financialization of bulk commodities. Fourth, encourage business of the relevant countries to deepen cooperation. Fifth, set up an information sharing mechanism between supplying and consuming countries.

The attendants positively responded to the proposal, believing that the establishment of an Asian energy and resources partnership will help enhance the regional energy security, and can be placed as a priority for the cooperation in China`s "One Belt, One Road" initiative for Asian countries.

The BFA Expert Committee of Energy, Resources and Sustainable Development was also launched during the meeting, which will provide intelligence support for the energy cooperation in Asia.

More than 300 representatives from government, industries and the academia attended the conference.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

Chinese energy giant helps Ghana develop oil, gas industry

Source: www.chinamining.org   Citation: Xinhua   Date: June 11, 2015

Chinese Petrochemical Corporation (Sinopec) says it is committed to supporting Ghana to develop its oil and gas industry so that the West African country could derive maximum benefits from its rich hydrocarbon resources.

"We are here definitely for the long haul. I think it`s a long term strategy to assist and support Ghana in all of its needs, economic and social and anything that we can contribute to the improvement of the country," said Mushtaq Kaloo, Engineering Advisor to Sinopec.

Kaloo spoke to Xinhua in a recent interview at Ghana`s first ever Gas Processing Plant (GPP), located at Atuabo, 327 km west of the capital, which was constructed by Sinopec.

Ghana National Gas Company (GNGC) contracted Sinopec in July 2012 to construct the gas facility to take over the associated gas coming from the Jubilee oil fields. The facility started processing gas last November.

After building the facility, the Chinese company signed a two- year contract to operate and maintain the plant while training young Ghanaian engineers in its operation and maintenance.

"We have brought in our expertise from Beijing, China. Those who are experts in operation and maintenance and running such facilities which are much bigger facilities than this are running in China, huge facilities," said Kaloo.

"We`ve got a team of hard-core staff who are operation staff, maintenance staff, inspection staff, and they are here, running the plant with Ghanaians working with the Ghana Gas, under the authority of Ghana Gas," said Kaloo.

By the end of the contract, he said, there will be a pool of knowledgeable Ghanaians who would be able to operate and maintain the 850 million U.S. dollars facility financed by China Development Bank (CDB).

Sinopec is also in the process of building a pipeline - an expansion of the main onshore gas pipeline from Esiama, 292 km west of the capital, to Prestea, 318 km west of the capital, where Ghana plans to develop a hydrocarbon propelled minerals complex.

"The petrol-chemical park and development that is going to take place in Prestea; this is something that Sinopec will definitely take part and will participate in any proposal in any development of power plant in Prestea or power plant in Duminle. S is well placed to provide such facilities," Kaloo stated.

According to him, the company is well placed to assist Ghana in the development of its energy and hydrocarbon needs, whether it`s Prestea or Aboadze or Tema or anywhere else.

Wang Xianghui, Deputy Project Manager for the Sinopec Ghana projects said the project is of great benefit to Ghana with enormous benefits in terms of commercializing of gas reserves in Ghana; boosting Ghana`s industrial development and economic growth and in the area of power generation, fertilizer.

"It is also a catalyst for industrialization in the salt, alumina, petrochemicals such as plastics, methanol etc. It is also important in creating jobs and improving of the quality of life for the citizens of Ghana," Wang added.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China should aim for peak coal use by 2020 : NCSC

Source: www.chinamining.org   Citation: Reuters   Date: June 11, 2015

China needs to bring its coal use to a peak by 2020 and reduce it by 500 million tonnes over the 2020-30 period in order to meet greenhouse gas emission targets and keep climate change under control, researchers said on Wednesday.

China is expected to submit post-2020 national pledges to cut carbon emissions to the United Nations later this month ahead of crucial talks on a new global climate change accord in Paris at the end of the year. It has already promised to bring emissions to a peak by "around 2030".

The National Centre for Climate Change Strategy and International Cooperation (NCSC) said China`s current CO2 trajectory might not allow it to achieve an international goal of limiting global warming to no more than 2 degrees Celsius over the pre-industrial average, and more effort to cut coal use was required.

Coal burning is responsible for around three-quarters of China`s greenhouse emissions, and with carbon capture technologies still far from mature, the country`s only option is to curb coal consumption, the researchers said.

"We know there is a very close connection between restricting coal use and restricting carbon emissions," Liu Qiang, one of the report`s authors, told a briefing on Wednesday.

The report recommended that China, the world`s biggest carbon-emitting nation, should cap consumption at 4 billion tonnes by 2020 but said it would need to cut it to 3.5 billion by 2030.

Chinese production hit 3.87 billion tonnes in 2014, half the global total. That was down 2.5 percent from 2013, raising hopes the country was already close to "peak coal".

A British study this week said China could bring emissions to a peak by 2025.

But the NCSC researchers said that should be brought forward. A 2020 emissions peak represented the best chance of keeping within the 2 degree target, but the goal would be very difficult to achieve, they said.

Tougher emission caps should be imposed on China`s richer coastal regions from next year, they said.

Regions with per capita GDP of more than 80,000 yuan ($12,890) a year should be ordered to bring emissions to a peak by 2025. Poorer western regions with per capita GDP of 40,000 yuan should be given until 2040.

Companies that exceeded a specific regional threshold should be given compulsory emissions targets and aim to cut the volume by 10 percent every five years, the report 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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.

China awakens to protecting the environment

Source: www.chinamining.org   Citation: Xinhua   Date: June 05, 2015

With China`s iron business in trouble and facing losses, Malanzhuang Iron Mine is spending 2.4 million yuan (390,000 U.S. Dollars) planting on slag heaps.

Since 2008, more than 28 million yuan has been spent by the company in Qian`an City, Hebei Province, undoing the damage done by the largest open iron ore mine in Asia. The Malanzhuang mine is a joint venture between the Shougang Group, a leading steelmaker, and Tangshan City, which administers Qian`an.

On the outskirts of Qian`an, some 200 km east of Beijing, 20 hectares of dense shrubbery covering what was once a large tailings reservoir are now home to numerous wild birds.

Liu Zuoli, general manager of Malanzhuang, believes that harmony with the natural world is part of productivity and reflects the value of labor."We don`t simply abandon tailings reservoirs any more like we used to, leaving them barren and a source of sandstorms," Liu said.

In 2007, China`s top leadership pushed ecological agenda up the list of the nation`s priorities, a great advance after nearly three decades of rapid growth that paid no heed to pollution or damage to the ecosystem. In 2012, the greening of society was incorporated into the nation`s overall development plan.

Over the past seven years, Qian`an has spent 2 billion yuan on the treatment and restoration of nearly 200 tailings reservoirs, with 1,500 hectares of mining areas restored to something close to their former glory.

Song Xiaojie, 35, is a graduate in agriculture and forestry. She is chief technical consultant for vegetation restoration at the mine and plants trees with her colleagues every spring."Repairing the ecosystem is an indispensable part of our work," she said.

The city divided itself into three major zones -- eco-agriculture, new industries and residential -- in 2013. Forest coverage in Qian`an reached 40.8 percent last year, nearly double the national average. The city has cut iron and steel capacity by nearly 10 million tonnes.

Restoration of mining areas is just one aspect of building a better Qian`an. The city signed an agreement with Hollywood China Investment Group in May to build a Paramount theme park there within five years. The core scenic area of the project will cost upwards of 30 billion yuan and the park is expected to host up to 30 million tourists each year.

Environmental protection is now important for evaluating township officials, 20 percent of the full evacuation scores among township officials in Qian`an, for example.

"Qian`an boomed because of mining and became strong through the associated industries. Going forward, Qian`an will be prosperous thanks to its greenery," said Zhang Shuyun, mayor of the city.

RULE OF LAW IN ENVIRONMENT PROTECTION

With World Environment Day celebrated this Friday, it`s a good time to take stock of China`s progress on the environment this year. In January, the new Environmental Protection Law came into effect, with tough measures against polluters and high fines. The new rules allow NGOs to initiate environmental lawsuits.

Record fines have already been imposed this year. In March, Zhangjiakou City in Hebei fined a sewage center 6.74 million yuan for discharging four to five times the national limit of pollutants. Beijing slapped a fine of 3.9 million yuan on a food company for water pollution.

In that time, Qian`an environmental protection bureau handled more than 50 cases of excessive pollution or lack of environmental impact evaluation.In April, Qian`an Intermediate People`s Court sentenced a factory owner to one year in prison for water pollution. Suspects in two other cases are awaiting trial. All three cases came to the attention of the police through tip-offs from the public.

NGOs in China now have the weapon of litigation in their armory to fight the green fight. Last month, a court in Fujian heard an environmental damage lawsuit filed by two NGOs. It was the first filed by NGOs for environmental damage since the new law took effect.

"The rule of law in environmental protection is our basic goal,"said Zhang Boju, executive director of Friends of Nature, one of the organizations which brought the action. "We should use the legal weapon to protect our green mountains and to clean up our rivers."

With obvious smog in many cities and water pollution everywhere, the public has become hyper-aware of environmental problems and wants to see substantial progress.

Much remains to be done. A water resource official from Ya`an, a major refuge for giant pandas in Sichuan Province, recently complained that he has no legal basis to ask small hydropower stations to allow more water downstream in case of drought.

"Public action is far from enough. Of course citizens should play a bigger part in environmental monitoring, but we must also do more to pollute less and adopt energy-saving ways of life," Zhang said, citing this year`s World Environment Day theme - Seven Billion Dreams. One Planet. Consume with Care.

RECYCLE, RE-USE

An industrial park is under construction in Ya`an with recycling at its heart. With forest coverage of 63 percent, the highest in Sichuan, Ya`an was made one of 55 ecological demonstration areas last year.

In the recycling park EMIN Microcrystalline Technology produces microcrystalline stone from leftovers from granite production processes. Ya`an has rich granite resources.

"Our production process has zero emissions of carbon dioxide and other waste," said Wang Ganglin, deputy general manager of the company.

Ya`an is moving polluting plants out of key ecological areas and planning a national giant panda park. The government of under-developed Ya`an has made eco-tourism a key strategy for local development while adopting the strictest regulations to protect its water and forests.

Recycling on an industrial scale is being promoted elsewhere in China, including Qian`an, which boasts a provincial-level recycling demonstration park.

CHINA`S GREEN FUTURE

China is committed to decreasing the share of fossil fuels in primary energy consumption to around 80 percent by 2030 and cutting carbon dioxide emissions 40 to 45 percent from the 2005 level by 2020.

A series of global ecological crises has shown that the Earth is unable to support further industrialization. Developed, capitalist countries suffer from a fundamental conflict between the logic of capital and the natural world, according Zhao Lingyun, an eco-economist and former head of Hubei Academy of Social Sciences.

Zhao said the developed powers have alleviated their own ecological crises by seeking ecological hegemony, exploiting the resources of other countries and transferring their ecological burdens abroad. But socialist China that puts people`s interests first has advantages in building a green society, said Zhao.

Chinese President Xi Jinping last week said coordinated regional growth and green development must be carried out fully, and green development will be prominent in the 13th five-year plan (2016-2020) for social and economic development.

In its first report on public awareness of ecological civilization, by the Ministry of Environmental Protection last year, 78 percent of those surveyed agreed it was a matter for everyone and 99.5 percent promised to actively work toward the goal of a society in balance with itself and with nature.

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 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.