NEWS

China to toughen efforts in cutting excess capacity

Source: www.chinamining.org     Citation: Xinhua          Date: May 11, 2017

China will carry on phasing out sub-standard production capacity, especially in fields of steel and iron, coal-mining and coal-fired power plants, to keep up with targets set for the year. 

The decision was made at a State Council executive meeting, which was presided over by Premier Li Keqiang on Wednesday. 

Li listened to reports on the latest progress of this year`s campaign to cut excess capacities of steel, iron, coal-mining and coal-fueled power generation, as well as the findings of inspections over the drive in concrete and glass sectors.

Li said reforms offer the way forward in cutting overcapacity, which is a vital part of the supply-side structural reform. 

"China takes the initiative to reduce production capacity based on its own national conditions. The efforts are to make the growth model and economic structure shift to new economic drivers," he added. 

The government work report Li delivered in March set targets for this year to cut steel and iron overcapacity by 50 million tonnes and coal mining by 150 million tonnes respectively, as well as to phase out coal-fired power generation capacity of more than 50 million kilowatts.

As of Wednesday, 31.7 million tonnes of steel and iron capacity and 68.97 million tonnes of coal capacity have been cut, accounting for 63.4 percent and 46 percent of their annual goals respectively. 

The meeting decided to adopt more methods based on market rules and related laws while phasing out outdated capacities. It also decided to eliminate illegal productions and prevent shutdown production from flaring up again.

By the end of June, all facilities to produce inferior-quality steel bars will be dismantled across the country. All coal mines scheduled to close this year will stop production by the end of August and will be phased out by the end of November. Close attention will be paid to prevent overcapacity of coal-fired power generation and make room for clean and better energy mix to develop.

The meeting called for support to set up platforms for startups in cities reliant on the steel and coal industries to increase employment opportunities. A new mechanism will be set up to help workers get jobs in regions with strong demand for labor. The central government will promptly allocate subsidies to guarantee welfare for relocated employees, in combination with local funds and other support. 

Further endeavors will also be made to tackle debts incurred to companies with excess capacity. 

The meeting also encouraged companies in these sectors to seek strength through mergers. Third-party assessment will be introduced to help strengthen governmental supervision.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

CGN deepens ties with Kazakhstan

Source: www.chinamining.org     Citation: China Daily       Date: May 10, 2017

The uranium subsidiary of China General Nuclear Power Corp, the country`s largest nuclear operator, is looking to expand nuclear fuel supply deals with Kazakhstan, including uranium exploration, trade, nuclear fuel pellets and component processing. 

It has also vowed to further explore the high-tech component-processing field, and take advantage of the opportunities offered by the Belt and Road Initiative. 

According to Yu Zhiping, general manager of the company`s uranium subsidiary CGN Uranium Resources Co Ltd, the nuclear fuel fabrication plant in Kazakhstan, a joint venture between KazAtomProm and CGN, is under construction and on schedule, and is expected to be operational by 2019. 

"The fuel will be supplied mostly to CGN projects at home and abroad. China and Kazakhstan will seek third party markets as well," Yu said at a news conference in Beijing on Tuesday. 

"The fuel will also be supplied to Kazakhstan`s planned nuclear plant, and in the expansion of cooperation with Kazakhstan in both uranium production and fuel assembly." 

Being the first uranium mining project invested overseas, the Semizbay mine project in Kazakhstan has not only helped secure CGN`s uranium assets abroad, but also helped the company gain experience in the operation and management of uranium overseas, said Yu. 

According to Tan Jiansheng, CGN`s vice-general manager, CGN has business in 20 countries and revenue from overseas accounts for more than 20 percent of its total. 

Kazakhstan is the world`s leading uranium producer, accounting for 39 percent of output in 2015, and KazAtomProm has said it aims to supply up to one-third of the world fuel fabrication market by 2030. 

CGN has been seeking more uranium resources globally, and has secured uranium projects in countries such as Namibia, Kazakhstan and Australia. 

Last year, CGN paid $63.78 million for a nearly 20 percent stake in Canada`s Fission Uranium Corp.

A report on China`s power utilities M&A trends, by Bloomberg Intelligence by Joseph Jacobelli and Charles Shum, revealed that domestic and overseas M&As by Chinese electric power utilities are expected to accelerate in the next few quarters thanks to financial strength and policy support. 

CGN, China`s leading listed power developer by market value, has also been focusing on uranium assets in Australia, it said. 

According to Jacobelli, many businesses are keen to invest overseas, motivated in part by China`s national power glut, the result of new capacity outstripping demand.

"Being the world`s fifth-largest nuclear operator, CGN has witnessed impressive performances in nuclear power, nuclear fuel, nuclear power station digital instrument control and clean energy sectors taking advantage of the Belt and Road Initiative," Tan said. 

"The company has become the biggest investor in Ireland, the biggest independent power generator in Bangladesh and Egypt, the biggest foreign direct investor in Malaysia. It had also involved in the biggest physical investment project in Africa."

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China questions EU ruling on Chinese hot-rolled coil

Source: www.chinamining.org     Citation: Xinhua          Date: May 09, 2017

China`s Ministry of Commerce (MOC) on Friday questioned the European Commission`s (EC) anti-subsidy ruling on Chinese hot-rolled coil, criticizing improper practices in the investigation.

The commission has ruled that Chinese producers of the steel product received subsidies ranging from 4.9 percent to 42.6 percent. 

Ignoring the fact that Chinese commercial banks operated independently in accordance with market principles, the EC asserted their loans to the producers were preferential lending, said Wang Hejun, head of the trade remedy and investigation bureau at the MOC. 

The commission also wrongly took banking loans obtained by state firms as bestowal, which inflated the subsidy range, Wang said. 

China urged the EC to strictly abide by WTO rules to correct the improper ruling as soon as possible, he stressed, pledging to take necessary measures to defend the rights of Chinese companies. 

Hot-rolled coil, a major variety of steel product, is widely used in construction and machinery building.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China joins UK nuclear energy development for Hinkley Point Project

Source: www.chinamining.org     Citation: CGTN          Date: May 03, 2017

In the remote countryside of southwest Britain, construction has started on the first permanent structures at the 25-billion-U.S.-dollar Hinkley Point nuclear power station. Financed jointly by the Chinese and the French, it`s a significant step towards building the UK`s first new nuclear power plant in nearly three decades. 

As CGTN`s Richard Bestic reports, three million cubic meters of earth have been moved for the project, about half of the final amount. And the first concrete has been poured, a significant moment of permanency. 

It`s taken years getting to this point, a remarkable joint venture involving the governments of the UK, China and France. For such a gargantuan project, it needs its own jetty for building materials shipped by sea. 

Running at full capacity, the reactor will provide around seven per cent of Britain`s energy needs - British consumers controversially repaying the initial cash outlay in higher energy costs.

For the governments of Britain and China, Hinkley Point could act as a possible trigger for a further eight nuclear power stations, some entirely paid for and built by China. This could prove to be not just a renaissance for the nuclear power industry here, but also for longer-term Sino-UK industrial links.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Kenyan president hails China for boosting its geothermal power

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

NAIVASHA, Kenya - Kenyan President Uhuru Kenyatta on Friday hailed Chinese government for its assistance in boosting geothermal power production in the country. 

Kenyatta said the Chinese have extended financial and technical expertise that has made Kenya become a leading geothermal electricity producer. 

"We are very grateful to the people and government of China for their assistance that has enabled Kenya to exploit its enormous geothermal resources," Kenyatta said in Naivasha when he broke ground for the construction of the Olkaria V power project which will produce 158 MW of electricity.

The President at the same time also commissioned 14 wellhead units producing a total of 75 mW of electricity. 

The "wellhead unit" is a unique technology to harness geothermal power, which has reduced the duration between the first drilling of a well and installation of a geothermal plant from five years to two years. 

The Export-Import Bank of China has given a $400 million loan facility to enable Kenya to conduct drilling for geothermal steam. 

The financial assistance was for drilling 80 wells; but given the efficiency and expertise of the Chinese firm, Great Wall Drilling Company, 89 geothermal wells have been drilled. The drilling began in September 2012 and the last well was completed in June 2016. 

Kenyatta said the expansion of geothermal power production will contribute to Kenya`s prosperity. "In commissioning these wells, and in breaking ground for the new project, we take a mighty step on the road to prosperity for this nation," he noted. 

He added that Kenya has one of the largest reserves of geothermal energy and more plants will be constructed to harness the power for the benefit of Kenyans. 

"This form of energy is not subject to the vagaries of the weather, and that it runs at a respectable rate of more than 90 percent of the time every year, means that we can bring reliable power to every Kenyan home," said the Kenyan leader. 

Once the geothermal power plant is connected to the national grid, more Kenyan households are expected to access electricity.

Government data indicates that since 2013, electricity connections have risen to 5.9 million households representing 63 percent of the total population, up from 2.26 million.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

SOEs pledge more cuts to production capacity

Source: www.chinamining.org     Citation: Xinhua       Date: April 28, 2017

Reform of industries seen as an important link in pushing forward supply-side structural reform 

BEIJING - China`s central state-owned enterprises have pledged to continue to cut production overcapacity in some industrial sectors, aiming to reduce steel capacity by 5.95 million metric tons and coal by 24.73 million tons. 

"Detailed plans have been made by central SOEs," says an insider, who asks to remain anonymous. 

China Huaneng Group says it is considering cutting 9.14 million tons of coal production capacity by the end of 2018 while dealing with 16 of the group`s "zombie companies".

Zombie companies are economically unviable businesses, usually in industries with severe overcapacity, which only survive due to financing from the government and banks. 

China PolyGroup Corp, a state-run conglomerate, has vowed to close inefficient coal mines and reorganize 39 of its subordinate companies to improve profits. The latest efforts by the central SOEs will reinforce their achievements made in 2016 in reducing overcapacity. 

Last year, the central SOEs reduced steel production capacity by more than 10.19 million tons and coal capacity by 34.97 million tons, both beating annual targets. 

The capacity cut drive by central SOEs is only apart of China`s bigger picture in slashing overcapacity. 

The country aims to curtail steel production capacity by around 50 million tons and coal by at least 150 million tons this year, a key part of the country`s supply-side structural reform. 

To improve its growth quality and efficiency, China began its supply-side structural reform in 2015 to cut overcapacity, reduce inventory, deleverage, lower costs and strengthen weak links. 

"China`s SOE reform is an important link in pushing forward supply-side structural reform," says Li Jin, chief researcher of the China Enterprise Research Institute. 

Realizing the significance of SOEs to the country`s sustainable growth, China launched a series of reforms including cutting capacity, managing zombie companies and calling for innovation among these companies. 

Overcapacity, poor corporate governance and low productivity had dragged down profits of China`s SOEs, which deteriorated in 2015. 

In 2016, China`s central SOEs cut 2,730 subsidiaries and saved 4.91 billion yuan ($713.4 million;652.1 million euros; ￡555.6 million) in management costs, according to the State-owned Assets Supervision and Administration Commission. 

Thanks in part to these efforts, central SOEs saw profits rise slightly. Growth last year picked up from a 5.6 percent decrease in 2015. 

In 2016, central SOEs made total profits of 1.23 trillion yuan, up 0.5 percent year-on-year, according to the SOE watchdog. 

This year, China has pledged to deepen SOE reform, promising measures such as introducing a mixed ownership system and more efforts to make SOEs leaner, healthier and perform better. 

China has 102 centrally administered SOEs, which manage the bulk of the country`s State assets. 

The improving figures of the SOEs contributed to the country`s broader economy, which has shown more signs of stabilizing since the second half of 2016, with indicators including factory prices and industrial profits seeing significant improvements.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

Investment from China helps give steel mill new life

Source: www.chinamining.org     Citation: China Daily Europe          Date: April 28, 2017

Hesteel Serbia employees discuss production techniques with a member of the Chinese management team. Fu Jing / China Daily

With higher wages and increased job security, workers at Serbian plant that at one time neared bankruptcy are now more confident and productive 

For 20 years, Svetlana Radosavljevic has monitored the manufacture of steel and iron from a glass-walled control room in an old production center at Zelezara Smederevo, Serbia`s biggest mill. 

For many years, the mill, less than a 60-minute drive from Belgrade, could only run one of its two production lines, and it lost about $10 million a month. Moreover, many of the 5,000 workers were unproductive. These factors resulted in a prolonged period of low productivity that almost forced the company into bankruptcy. 

Last year, the 105-year-old mill was given a new lease on life when Hesteel Group, from Hebei province, purchased it for 46 million euros ($49.6 million; ￡38.75).

Now, both production lines are running at full capacity at Hesteel Serbia, the mill`s new name, which will see production of 2 million metric tons this year, the maximum quota agreed to between the European Union and Serbia. The acquisition ended seven years of losses, and by the end of last year the mill was profitable again. 

The workers are now more confident because their jobs are secure and wages have risen by an average of 8 percent, compared with the pre-takeover level. 

"Now it is safer, production is higher, and I am more focused on my job because I don`t need to worry about becoming unemployed," Radosavljevic says. 

Her control room is about 50 meters from the end of a line that produces steel plate. During a visit in June, President Xi Jinping spoke with the workers and management in the control room, which helped to inject the confidence needed to make the most of the lifeline offered by the acquisition. 

In addition to the front line workers, even Serbia`s Prime Minister Aleksandar Vucic, who is also president-elect, is excited about the performance. 

Song Sihai, an executive board member of Hesteel Serbia who oversees management of the mill, describes his meeting with Vucic. "The prime minister and I discussed the revenue target for this year, which will be about $800 million, and he asked his assistant to calculate the amount it would contribute to the country`s economic output," he says. 

Sitting in his office, Song, an executive with the parent company, quotes Vucic`s conclusion, that the company`s revenues will account for more than 2 percent of GDP this year. 

"Surely, this will provide great help to Serbia`s economic development," he 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin in September 23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: www.chinaminingtj.org.

China urges upgrading energy consumption pattern

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

China`s top economic planner Tuesday called for implementation of a government plan to promote reform in energy production and consumption.

China`s total energy consumption will be capped at 6 billion metric tons of coal equivalent by 2030, according to a government plan for 2016 to 2030, issued by the National Development and Reform Commission (NDRC).

The plan is aimed at optimizing the energy mix and ensuring energy security, in the face of a new supply-demand pattern in the global market, said NDRC in an online statement.

By the end of 2030, non-fossil energy is expected to account for 20 percent of the total energy consumption, accompanied with a reduction of carbon dioxide (CO2) emission per unit of GDP by 60 percent to 65 percent compared with 2005, according to the government plan.

The plan also outlined the target of maintaining self-reliance of energy consumption beyond 80 percent by the end of 2020, in a bid to ensure China`s energy security.

In the statement, NDRC pledged strengthened supervision over local authorities for better implementation of the plan.

Advanced technology, sound market mechanism and strong legal support are all necessary in achieving the goal, according to the report.

China`s energy intensity, the amount of energy consumed per unit of GDP, decreased 3.8 percent year-on-year in the first quarter of 2017, according to the National Bureau of Statistics.

The decline was better than the government target of 3.4 percent in 2017.

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.