en_矿业资讯

Iron ore surplus seen shuttering China mines

Source: www.chinamining.org   Citation: China Daily   Date: May.09, 2014

Imported iron ore is unloaded from a vessel in Nantong, Jiangsu province.

New, cheap supplies from Australia, Brazil pushing global prices down   

Surging global supplies of seaborne iron ore will challenge Chinese producers of the raw material for steel, probably forcing some higher-cost capacity in the country to close, according to BHP Billiton Ltd.
   
The gain in global production is being led by Australia and Brazil and their new, low-cost output will displace marginal suppliers in China, Michiel Hovers, vice-president of iron ore marketing at BHP, told an industry conference on Wednesday.
   
Vale SA, the world`s biggest iron ore producer, plans to raise output by almost 50 percent by 2018, Claudio Alves, global director of marketing and sales, told the gathering in Singapore.
   
The biggest producers, including Vale, BHP, Rio Tinto Group and Fortescue Metals Group Ltd, have invested billions of dollars to expand output, betting on sustained growth in demand from China, the biggest buyer. Iron ore fell into a bear market in March amid forecasts for a global glut.
   
Fortes cue wouldn`t cut output even if prices extend declines as its costs are low, Zhuang Binjun, business development manager, said.
   
"Seaborne supply growth will come largely from Australia and Brazil," said Hovers. "This new supply will be low-cost seaborne and displace marginal supply from high-cost domestic Chinese producers and other lower-quality iron ore imports into China."
   
Slumping prices
   
Ore with 62 percent content delivered to Tianjin has fallen 21 percent so far this year to $106 a ton as of Tuesday, according to data from The Steel Index Ltd. The benchmark fell to $104.70 on March 10, the lowest level since 2012. While prices may be firmer over three months, there may be a drop below $100 over six months, toward $90, on the new supplies, Kamal Naqvi, global head of metals at Credit Suisse Group AG, told the conference.
   
If prices drop to $100, output in China may be hurt as domestic mines with high production costs are forced to cut output or close, according to the Bureau of Resources and Energy Economics, Australia`s government forecaster. By comparison, Rio Tinto can be profitable above A $39 ($36), BHP`s breakeven is A $41 ($38), and Fortescue`s is A $56, UBS AG estimated.
   
Global seaborne supplies will increase 126 million tons to 1.38 billion tons this year, Morgan Stanley estimated in a May 5 report. That will increase the worldwide surplus to 79 million tons in 2014 from 1 million last year, the bank forecast.    

"What`s happening now is the major iron ore producers are bringing considerable new capacity," Alves said in an interview, forecasting a rise of about 120 million tons this year and a further 100 million tons in 2015. "Most of the tonnage is very competitive," he said.
   
 Vale`s expansion
   
Production at the Rio de Janeiro-based company will rise to about 453 million tons in 2018 compared with 306 million tons last year, Alves told the conference. Vale`s average cost of production in Brazil is $21 to $22 a ton, he said.
   
"It takes time to absorb all this pickup in iron ore supply," said Alves, forecasting China`s imports will be more than 900 million tons this year from 820 million tons. "It will make some pressure in terms of price, create some volatility."
   
The Tianjin benchmark fell for a fifth month in April, the longest losing run since August 2012, as growth in China slowed and seaborne supplies rose. The price will drop to $100 in the fourth quarter, according to Goldman Sachs Group Inc.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s crude steel output up 2.4% in Q1

Source: www.chinamining.org   Citation: China Knowledge   Date: May.05, 2014

China, the world`s largest steel producer, saw its crude steel output increase 2.4% year on year to 202.7 million tons in the first quarter of this year, according to the latest statistics released by the National Development and Reform Commission.

The commission said that the country`s output of steel products grow 5.3% year on year to 261.41 million tons in the first three months.

China exported 18.33 million tons of steel products in the three-month period, up 27% year on year, while its import of steel products hit 3.59 million tons, up 11.3% from a year earlier.

In the month of Mar, the prices of 20-mm steel sheets and 1-mm cold-rolled coils were at RMB 3, 488 per ton and RMB 4,314 per ton, down 11.7% and up 10.3% from a year earlier, respectively.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Chinalco Mining sets sights on copper projects in Latin America

Source: www.chinamining.org   Citation: scmp.com   Date: Apr.25, 2014

Peng Huaisheng shrugs off the impact from Peru`s suspension order on the output of Chinalco Mining`s Toromocho project. Photo: Nora Tam

Chinalco Mining, the non-ferrous and non-aluminium metals unit of aluminium giant Chinalco, is seeking acquisition opportunities in Latin America for copper projects with long-term return rates of more than 10 per cent.

Chief executive Peng Huaisheng said the region presented more development potential, especially Peru, where the company has been developing the Toromocho copper project since 2007.

"Our understanding is that Peru offers greater potential within Latin America," he said. "Peru has a strategy to catch up with Chile in metals and mining development, so it provides an overseas-investor-friendly investment environment."

Chile is the world`s largest producer and resource holder of copper, which is used widely in the power distribution and construction sectors. China imports about 70 per cent of its raw copper ore needs.

Hong Kong-listed Chinalco Mining`s US$3.5 billion Toromocho project, about 140 kilometres from Lima, started trial commercial production in December.

But power shortages, caused by a three-month delay in power connection, meant the company had to first process ore with lower copper content than originally planned. This caused the firm to slash in December its output target for this year to between 120,000 and 150,000 tonnes from 190,500 tonnes.

In March, heavy rainfall resulted in muddy water being discharged from the project`s quarry mine to a lake. Peru`s Ministry of Environment ordered on March 28 the project to stop operation for alleged non-compliance with environmental laws relating to water discharge. After building a water tank to collect rainfall and a draining system, the ministry allowed production to resume on April 11.

Peng said the suspension would not hinder the project from achieving the revised output target since it was not expected to reach full capacity utilisation until the third quarter.

He said his firm was "surprised" by the suspension order, but he would not comment when asked if he thought foreign and domestic firms had been treated differently on similar issues.

In July last year, Chinalco Mining decided to use US$120 million from its initial public offering proceeds, originally for acquisitions, towards phase two expansion of Toromocho.

The US$1.32 billion expansion will be 80 per cent-financed by bank loans and will raise annual output capacity by 45 per cent to 310,000 tonnes when completed in the first half of 2016.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Minmetals Group Buys Glencore Peru Copper Mine for $5.85 Billion

Source: www.chinamining.org   Citation: Bloomberg   Date: Apr.14, 2014

China Minmetals Corp., the state-owned metals trader, led a group that agreed to pay $5.85 billion for Glencore Xstrata Plc (GLEN)`s Las Bambas copper project in Peru as China seeks greater control over material supplies.

"It`s a good price, probably toward the top end of market expectations," Jeff Largey, an analyst at Macquarie Group Ltd. in London, said in a phone interview, adding the deal provides a good outcome for China. "This is a Chinese buyer, buying a very high quality copper asset."

Buying Las Bambas gives the group, which includes Melbourne-based MMG Ltd., control of a mine that`s forecast to produce 400,000 metric tons of copper a year from 2015, equivalent to 12.5 percent of 2013 imports of copper metal by China, the world`s biggest buyer. The sale also satisfies the final condition by Chinese regulators for Glencore`s $29 billion takeover of Xstrata Plc.

Glencore has "taken decisive steps to de-risk Las Bambas" since acquiring Xstrata last year, Ivan Glasenberg, the billionaire chief executive officer of Baar, Switzerland-based Glencore, said yesterday in a statement.

MMG holds a 62.5 percent stake in the group buying Las Bambas. The consortium also includes Guoxin International Investment Corp., with a 22.5 percent stake, and Citic Metal Co., with 15 percent, Glencore said.

The deal is subject to approval by regulators and by MMG shareholders. Minmetals, which holds about 73 percent of MMG according to data compiled by Bloomberg., has committed to vote in favor of the purchase, Glencore said.

Debt, Shareholders

Sale proceeds will immediately be used to reduce debt, Glencore said. The company will also look at reinvesting capital and returning some of it to shareholders.

Glencore may invest in copper projects in the Democratic Republic of Congo and Zambia or seek acquisitions, Paul Gait, an analyst at Sanford C. Bernstein Ltd. in London, said in an e-mail.

"The main story will be, I guess, what next for the deal flow," Gait said. Glencore`s London-Based peer Anglo American Plc (AAL) is "vulnerable," Gait said.

The sale comes as other global miners also divest properties, giving Glencore the opportunity to make purchases, Macquarie`s Largey said. The takeover of Xstrata was Glencore`s largest.

"Acquisitions have always been part of the company`s DNA," Largey said, noting Glencore could look at buying additional thermal coal assets as peers distance themselves from a tough market for the fossil fuel.

Mine Development

Development of Las Bambas was about 56 percent complete at the end of last year and there`s about $2.4 billion left to be spent on the site, Glencore said recently. It will cost an estimated $5.9 billion in total, Glencore Chief Financial Officer Steven Kalmin said in September. The mine is slated to start production in 2015.

China imported 3.2 million tons of copper metal and 10.1 million tons of copper ore and concentrate last year, data from the country`s customs authority shows. Its consumption totaled 9.83 million tons in 2013, or 47 percent of global demand, according to the World Bureau of Metal Statistics.

There`s 950 million tons of ore reserves at Las Bambas at 0.73 percent copper, Glencore said in February. The mine currently has an estimated life of 23 years though there`s potential to add further reserves, it said.

"China has to import 80 percent of its need for copper, which is massively used in infrastructure construction," Heng Kun, an analyst with Essence Securities Co., said before the deal was announced. "Buying copper resources is a strategic move for China to secure the raw material supplies."

Peter Grauer, the chairman of Bloomberg LP, parent of Bloomberg News, is a non-executive director of Glencore Xstrata.

BMO Capital Markets Ltd. and Credit Suisse Group AG are advising Glencore on the sale.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China Aluminum Exports Highest Since 2011 on Overseas Premium

Source: www.chinamining.org   Citation: Bloomberg   Date: Apr.11, 2014

Aluminum exports from China, the world`s largest producer and user, rose to the highest level last month in more than two years as traders shipped the metal overseas for higher returns amid a record premium.
   
Exports of unwrought aluminum and aluminum products were 370,000 metric tons in March, customs data showed today. That was the highest since 390,000 tons in July 2011 and more than doubled the figure in February.
   
Premiums that are added to the London Metal Exchange aluminum price to secure delivery reached a record in Europe and the U.S. in the first two months of 2014, and they`re at an all-time high in Japan, Harbor Intelligence, a researcher based in Austin, Texas, said in a report last month.
   
"Exports rose as traders pursued profits from arbitrage with higher overseas premiums," said Wang Chunhui, an analyst in Shanghai at SMM Information & Technology Co.
   
The contract for delivery in three months on the LME rose 0.9 percent to $1,873.75 a ton at 3:01 p.m. in Shanghai and has climbed 4.1 percent this year. The metal on the Shanghai Futures Exchange gained 0.8 percent to close at 13,160 yuan ($2,120) a ton. China imposes a 15 percent export tax on primary aluminum and offers tax rebate on exports of some aluminum products.
   
China also imported 420,000 tons of unwrought copper and copper products in March, customs said today. That compared with 380,000 tons in February and was the highest since a record in January.
   
Copper imports rose because of deliveries from long-term supply contracts and demand for using the metal as collateral in financing agreements, said Li Ye, an analyst at Shenyin & Wanguo Futures Co. in Shanghai.
   
Iron ore imports by China rose to 73.96 million tons in March, compared with 61.24 million tons in February, according to customs. That was the highest level since a record in January.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s coal imports set to hold steady in 2014 - govt

Source: www.chinamining.org   Citation: Reuters   Date: Apr.10, 2014

China`s imports of coal in 2014 are expected to remain at the same level as last year, with demand growth slowing and the domestic market already well-supplied, a senior energy official said on Thursday.

China imported 267 million tonnes of coal for the whole of 2013, up 14 percent on the year, with many buyers seeking out cheaper overseas supplies.

Ren Lixin, director of the coal department at the National Energy Administration (NEA), told an industry conference that oversupply also remains a problem for a sector struggling with slowing demand and a campaign by the government to switch to less polluting energies.

Oversupply was reflected in China`s coal inventories, which have remained at around 300 million tonnes since last year, up from the traditional rate of 200 million tonnes, Ren said.

Tumbling prices, caused by weaker demand due to slowing growth in China and a flood of cheaper imports, have forced many smaller coal miners out of business, while a slew of majors, including Shenhua Energy , China Coal Energy and Yanzhou Coal, reported losses for their 2013 results.

The sector has also faced heavy pressure from a nationwide campaign to cut smog and promote cleaner energy sources like gas and renewables, but Ren suggested China`s war on pollution could provide the impetus for the struggling sector to reform itself.

"It is important for the coal industry to transform itself by becoming clean and green in order to survive this new era," he said.

Ren said that China would step up efforts to consolidate the sprawling, fragmented sector this year and phase out inefficient and small-scale production. China closed 1,200 small-scale mines in 2013, but there were still around 6,300 that needed to be shut, he said.

The NEA announced last week that it would close 1,725 small coal mines this year, amounting to a total capacity of 117.48 million tonnes, with local governments under orders to shut all mines with annual production capacity of less than 90,000 tonnes.

However, China`s last five-year plan for the energy sector still allows for the construction of an additional 860 million tonnes of new coal production capacity over the 2011-2015 period.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20^th -23^rd , 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s crude oil imports up 11% in Feb

Source: www.chinamining.org Citation: China Knowledge Date: Mar.11, 2014

China, the world`s second largest oil consumer after the U.S., imported 23.05 million tons of crude oil in Feb 2014, 10.92% more than in the same period of last year, according to the latest figures from China`s General Administration of Customs.
 
The import value of crude oil for last month rose 8.35% from a year earlier to US$18.08 billion.
 
Last month, the country saw its imports of refined oil reach 2.41 million tons, reflecting a decrease of 28.7% year on year. The import value of refined oil was down 27.05% from a year earlier to US$1.88 billion in Feb.
 
In the first two months of this year, the country imported a total of 51.2 million tons of crude oil, up 11.5% year on year, while the import value for the period grew 10.3% to US$40.51 billion.
 
China imported 6.18 million tons of refined oil in the first two months, reflecting a year on year decrease of 15.4%.

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20-23, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Indonesia`s export ban to curb China aluminium expansion

Source: www.chinamining.org Citation: Reuters Date: Feb.10, 2014

China has found an inadvertent ally in its efforts to slim down a bloated aluminium sector, with Indonesia`s ban on exporting metal ores set to boost costs of the raw material bauxite and pile more pressure on struggling smelters. Beijing has been issuing broadbrush rules aimed at reining in overcapacity in sectors such as aluminium and steel for about a decade, but plans have usually been thwarted by resistance from local governments anxious to boost growth. In the aluminium sector, ageing and inefficient smelters are already grappling with rising power prices, but now face potential bauxite shortages after Indonesia halted ore shipments on Jan. 12, as part of efforts to make miners process minerals at home. China is the world`s biggest aluminium producer and curbing expansion could ease a global surplus of the metal and even lead to the country resuming sizeable imports of refined aluminium. It is also likely to provide support to the price of a metal that has been depressed for years. "(Indonesia`s ban) will have a huge impact on the Chinese aluminium industry in the medium term," said Citi China commodities analyst Ivan Szpakowski. Despite building up big stockpiles ahead of the export ban, Chinese aluminium makers may struggle to find alternative supplies at similar prices. It takes roughly five tonnes of bauxite to produce one tonne of aluminium. Analysts estimate China has around 10 months supply of bauxite stockpiled after importing 48 million tonnes from Indonesia alone last year, up 79 percent from a year earlier. "China`s bauxite stocks may be used up around the end of this year and refineries would need to import," said a manager at a big Chinese aluminium smelter. But bauxite prices are likely to be higher by then and drive up alumina and aluminium prices, added the manager, who declined to be identified as he was not authorised to speak to media. China`s production of aluminium is expected to grow 8 percent to 26.5 million tonnes in 2014, accounting for half of global output, according to Beijing consultancy AZ China. AUSTRALIA
China could get some bauxite from Australia, where Rio Tinto is closing its loss-making alumina refinery Gove in northern Australia. The firm will continue mining and expects to be able to export 7-8 million tonnes a year. But Macquarie estimates that Pacific basin suppliers will not be able to make up for the drop in Indonesian shipments, leaving China short of about 10 million tonnes that would have to be filled by mines in Brazil, Guinea, Ghana and Jamaica. Sourcing imports from further afield could add $80-$100 a tonne, or 5 percent, to the all-in aluminium price which includes LME futures prices plus physical surcharge for delivery, given extra logistics costs, it said. "This will put pressure on Eastern seaboard Chinese smelters, and if China`s clamp down on inefficient capacity means closures ... China could start to import refined material again - if the price is right," Macquarie said in a report. The Western world is still working through an overhang of around 10-12 million tonnes of aluminium built up in the wake of the global financial crisis which has kept a lid on prices. INDONESIAN SMELTER PLANS
Indonesia`s export ban was set down in 2009, but has been ignored by many miners in the hope the government will give ground, as it has with other controversial policies in the past. China Hongqiao Group Ltd is one firm building an Indonesian alumina refinery that is due to be completed by end-2014. It expects to resume bauxite exports in the second half of 2014, after getting a break from the Indonesian government because it is building a refinery. But other firms, faced with high costs and regulatory uncertainty, are not rushing in. Paul Adkins of AZ China said China may be able to secure enough bauxite to scrape by before smelters are built to allow Indonesia to export alumina, which could be within two years, depending on how much infrastructure is in place. But with London Metal Exchange prices stubbornly mired at 4-1/2 year lows around $1,720 a tonne, some believe markets appear to be underestimating the impact on supply. "(The ban) doesn`t just question the expansions in China, it actually threatens the existing industry as well," said London-based BNP Paribas analyst Stephen Briggs, warning that expectations the Indonesian government will retreat could backfire. "To me, the market is putting too low a probability on it."

About CHINA MINING

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

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20-23, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.