NEWS

China`s energy giant willing to cooperate in Arctic resources extraction

Source: www.chinamining.org   Citation: Xinhua   Date: January 20, 2015

China`s energy giant PetroChina is willing to engage in cooperation in extracting oil and gas as well as other natural resources in the Arctic region, said a high-ranking official of the company on Monday.

Sun Xiansheng, president of the CNPC Economics and Technology Research Institute, made a presentation on Monday afternoon at the 2015 Arctic Frontiers conference, which runs from last Sunday to Friday.

PetroChina, which has oil and gas investment in 35 countries, has already involved itself in the Arctic through holding a 20 percent share in the Yamal LNG project, a joint venture with Russia.

"The development of Arctic resources requires joint efforts of all countries," Sun told a packed conference hall. "PetroChina is willing and able to participate in Arctic oil and gas cooperation to better promote the development of Arctic resources," said Sun.

It was the first time in many years that a Chinese company of this size was represented at the Arctic Frontiers conference, a meeting place for policymakers, researchers and businessmen from the Arctic Council member countries and observer nations to discuss the Arctic-related issues.

The theme of this year`s conference, the ninth one, was climate and energy.

The Arctic region is abundant with oil and gas resources.

The US Geological Survey came out with an evaluation in 2008，showing that the oil and gas resources in the Arctic amounts to 56.4 billion tons of oil equivalent, or about 22 percent of the global oil and gas resources awaiting development.

PetroChina is China`s largest oil and gas producer and supplier with assets worth 2.342 trillion yuan ($378.4 billion) at the end of 2013, ranked No 3 in the World`s Top 50 Oil companies in 2014 by the Petroleum Intelligence Weekly.

With a goal for zero accidents zero pollution and zero casualties, the Chinese oil company always puts an emphasis on safety, environment and health and tries its best helping the local communities where it is present, Sun said.

Apart from being a job creator for the local people, PetroChina also builds road, hospitals and schools in the countries where it operates.

China, over the years, has strengthened cooperation with Arctic countries in various fields.

On April 20, 2012, China and Iceland signed a framework agreement on Arctic cooperation.

During the APEC meeting in Beijing last year, China and Russia signed a number of cooperation agreements.

All these provide PetroChina with a good foundation for forging cooperation ties with partners from other countries, Sun 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 raises consumption tax on oil products

Source: www.chinamining.org   Citation: Xinhua   Date: January 13, 2015

Drivers fuel their vehicles at a gas station in Changchun, capital of northeast China`s Jilin Province, Jan. 12, 2015. (Xinhua/Xu Chang)

China`s finance and taxation authorities on Monday announced that consumption tax on oil products would be raised from Tuesday.

The tax on gasoline, naphtha, solvent oil and lubricating oil will be increased to 1.52 Yuan (about 25 U.S. cents) per liter from 1.4 Yuan. The levy on diesel, jet fuel and fuel oil will be increased from 1.1 Yuan per liter to 1.2 Yuan, according to the Ministry of Finance (MOF) and the State Administration of Taxation (SAT).

This will be the third increase in as many months, following one on Nov. 29 and another on Dec. 13.

The retail prices of gasoline and diesel will be cut by 180 Yuan and 230 Yuan per tonne after taking the higher tax into consideration, the National Development and Reform Commission announced in a separate statement.

This the 12th retail fuel prices cut since July 2014, as the government reacts to lower global crude oil prices.

Proceeds from the higher taxes will mainly be allocated to counter-pollution initiatives and the new energy sector, according to the MOF and the SAT.

However, experts warn that the drop in oil prices is bad news for the new energy sector. For example, new-energy cars will see reduced sales, said Liu Shangxi, director of the research institute for fiscal science at the MOF.

China`s energy consumption accounted for about 22.4 percent of the world`s total in 2013, but its energy consumption per gross domestic product (GDP) was 3.5 times of that of the United States and seven times of that of Japan, according to Liu.

Fuel tax and pricing reform measures began five years ago, and have featured consumption tax hikes and the introduction of a pricing system more closely linked to the international market.

Consumption tax was first imposed in 1994 on consumer goods with a high energy cost and high pollution to make production and consumption more environmentally-friendly and promote sustainable growth.

Over ten countries including Russia, Australia, New Zealand and France have raised their oil product consumption tax since 2012 to ensure green development.

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, Venezuela financing cooperation proceeding "smoothly": spokesman

Source: www.chinamining.org   Citation: Xinhua  Date: January 9, 2015

China said on Wednesday that financing cooperation with Venezuela is going smoothly, following reports that Venezuela is seeking more loans from China to overcome economic recession.

"China understands that falling oil prices have had an impact on Venezuela`s economy," Foreign Ministry spokesman Hong Lei said at a daily briefing.

"Financing cooperation has been a powerful backup for large project cooperation between the two countries. Relevant financing cooperation is going smoothly," Hong said, adding that China is willing to work with Venezuela to advance practical cooperation to benefit the people.

Venezuelan president Nicolas Maduro is in Beijing for the ministerial meeting of the Forum of China and the Community of Latin American and Caribbean States (CELAC).

Meeting with Maduro on Wednesday, Chinese President Xi Jinping said he hopes Venezuela will make good use of bilateral financing mechanisms and channel more funds to the areas of energy, mining, agriculture and industry. 

Venezuela is an OPEC member and the world`s fifth-largest exporter of oil. The country depends on oil for over 90 percent of its export income. Oil export prices per barrel in Venezuela have plummeted from 95 dollars in September to the current 48 dollars.

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`s CISA to revise iron ore price index methodology: official 

Source: www.chinamining.org   Citation: Platts   Date: January 6, 2015

The China Iron & Steel Association, the organization representing Chinese steel mills, has started revising its iron ore price index methodology, an association official said Monday.

"At the request of our member mills, we will be placing greater emphasis on actual transaction prices instead of an index, and may be adding more varieties of iron ore to our basket for calculating the iron ore price index instead of only fines," the official said, adding that the association is also open to publishing seaborne iron prices for some individual Chinese ports should Chinese mills need it to do so.

CISA started publishing its iron ore index on a weekly basis on October 11 2011 and increased the frequency to daily from January 2, 2014.

Besides selecting 1994 iron ore prices as the basis, CISA also included components of imported iron ore prices in dollars for seaborne cargoes and in Yuan for port inventories, both including 62% and 58% Fe,  into its index calculation.

Prices of domestically produced iron ore both for 62% and 65% grade concentrates are also included in the index`s calculation.

"CISA has been approached by Chinese mills to revise its existing iron ore pricing index methodology as these mills need to get hold of exact transaction prices, for example, a 62% grade fines CFR China price in dollars, for them to refer to when signing deals with overseas iron ore miners instead of an index," a Beijing-based iron ore source close to CISA explained.

In the latest iron ore pricing methodology draft CISA issued on December 31, 2014, it said that in the future index calculation, the organization would include transaction prices of tenders concluded on the e-trading platforms such as COREX or originally the China Beijing International Mining Exchange, Singapore-based Global Ore, and iron ore futures on the Dalian Commodity Exchange, which had not been mentioned in CISA`s original methodology details released in 2011.

Moreover, Chinese mills have talked to CISA about individual seaborne iron ore CFR China price in dollars at frequently used Chinese ports to reflect freight differences in delivery points from North to South China, he added.

Imported iron ore price indexes have become increasingly important to Chinese mills because of their greater reliance on imported iron ore, with imported iron ore now accounting for 70% of China`s annual iron ore consumption for steel output from about 60% a decade ago, market sources said.

This development has triggered Chinese market`s desire to have its own price index, they added.

With the fall in seaborne iron ore prices in 2014, imported material may increase its share of the Chinese market in 2015 because some Chinese miners and processors, with higher production costs, have been squeezed out of the business since late 2014, further raising the importance of pricing indexes.

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 alumina prices rangebound; likely to edge down in near term

Source: www.chinamining.org   Citation: Platts   Date: January 6, 2015

China`s domestic alumina spot prices stood rangebound at the start of 2015 this week, but are likely to edge lower in the near term on the back of prevailing weak aluminum prices, market participants said Monday, January 5.

The Platts ex-works Henan alumina price continued at Yuan 2,790/mt ($456) for 70:30 cash and credit payment, unchanged from Friday and a week ago.

Refiners` offers stayed high at a minimum Yuan 2,800/mt cash, while smelters` asking levels stood around Yuan 2,750/mt.

In neighboring Shanxi province, offers were pegged at Yuan 2,750-2,800/mt cash, with tradable levels at Yuan 2,700-2,750/mt.

Down south in Guangxi, offers were pegged at a minimum Yuan 2,700/mt cash, with prices at a stable Yuan 2,650/mt.

Spot activity was lacking Monday as the market returned from extended New Year holidays from January 1-3.

"The market is very quiet. There`s no trades and no queries, everyone wants to wait and see first, since we just came back," a Henan refiner said.

"We are still offering Yuan 2,800/mt cash for January spot, but no one is buying...smelters` talking levels are around Yuan 2,750/mt," he added.

Another Henan refiner who also quoted Yuan 2,800/mt cash Monday said prices may test lower levels in near term, especially if smelters started cutting back capacity or output.

But refiners agreed the downward movement will be limited as smelters in the western regions, such as Xinjiang and Inner Mongolia, continued to expand.

Xinjiang Qiya Aluminum said Monday it aimed to raise capacity by 33% to 800,000 mt/year by end 2015 as costs remained low.

Actual output in 2015 is also expected to increase by 33% to 600,000 mt from 450,000 mt in 2014.

"There`s talks of smelter cuts, but we doubt anyone will really cut back unless domestic metal prices fell below Yuan 12,500/mt," a South China smelter source said.

On Monday, the front-month January aluminum contract on the Shanghai Futures Exchange closed at Yuan 12,825/mt, down from Yuan 12,970/mt last week, and also from Yuan 13,420/mt a month ago.

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 abolishes rare earth export quotas: state media  

Source: www.chinamining.org   Citation: Reuters   Date: January 5, 2015

China has scrapped a quota system aimed at restricting exports of rare earths, a group of 17 metals used in high tech sectors, as it moves to comply with a World Trade Organization (WTO) ruling last year, official Chinese media reported on Monday.

The Ministry of Commerce issued a notice at the end of December that abolished export quotas for rare earth, as well as tungsten, molybdenum and fluorspar, Shanghai Securities News said.

China is responsible for more than 90 percent of global rare earth production, giving it a chokehold over the supply of a group of elements used in sectors such as defense and renewable energy.

It raised tariffs and imposed strict quotas in 2010, saying that cheap prices on the global market were not enough to cover the huge environmental costs of production, but importers in Japan, Europe and the United States complained that the move breached trade rules.

China was widely expected to abolish the quota system and replace it with higher resource taxes following a WTO ruling in March last year that the tariff and quota system was discriminatory and gave unfair advantage to domestic consumers.

The government has sought to improve China`s pricing power over rare earths by imposing strict domestic production caps and cracking down on illegal production and smuggling.

It has also raised environmental and production standards and encouraged big state firms to take over smaller private producers.

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 mining firms will not halt operations in Zambia 

Source: www.chinamining.org  Citation: Xinhua  Date: January 4, 2015

Chinese Ambassador to Zambia Yang Youming said on Friday that Chinese firms operating in Zambia will not halt their operations following the change of the country`s mining tax plan.

The Zambian parliament recently approved the 2015 national budget, which among other things has introduced a new mining tax plan. The new tax law has since been assented to by the acting Zambian president.   

The new tax plan has seen the increase in mineral royalty taxes from six to eight percent for underground mines and to 20 percent for open pit mines, with some mining firms threatening to halt operations.

But Yang said in an interview broadcast on state radio, the Zambia National Broadcasting Corporation, that halting operations was not the best solution to tackle the problem but dialogue.

The Chinese envoy said Chinese firms have started consulting the government over the new tax plan and hoped that an amicable solution will be found after the talks.

He further reaffirmed Chinese companies` commitment to work closely with Zambian communities and to contribute to the country` s development due to long-lasting relations.

Zambia`s acting President Guy Scott said last week that the government has begun talks with the mining firms following the change of the mining tax plan.

He further said the government will not be intimidated by some mining companies that were threatening to close their operations following the introduction of the new mine tax plan.

Last year, Canadian-based mining giant, Barrick Gold Corporation, announced plans to initiate a process of suspending operations at its unit in Zambia following the government`s decision to approve the budget which contains the controversial new tax plan.

The Toronto-headquartered mining giant, which runs Lumwana Copper Mine in northwestern Zambia, said the introduction of the new mineral royalty has left it with no option but to initiate the process of suspending operations to reduce costs.

The new Mines and Minerals Act of 2014 replaces the 2008 Mines and Minerals Act and has stirred a debate in Africa`s second largest copper producer, with mining firms threatening to cut down on operations while the government has insisted that it will not bow down to the pressure from mining firms, saying the new law is a win-win situation for both parties.

The Zambia Chambers of Mines, an umbrella body representing major foreign mining firms, said the imminent implementation of the 2015 budget measures will make a number of other operations economically unviable, potentially leading to further mine closures.

The industry body said the southern African nation will lose in excess of 158,000 tons in copper production next year while over 12,000 workers will lose jobs in the sector due to the implementation of new mining tax plan.

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.

OPEC expects oil price back above $70 by end-2015

 Source: www.chinamining.org   Citation: Reuters   Date: December 29, 2014

Current low prices likely to stimulate demand eventually

Arab OPEC producers expect global oil prices to rebound to between $70 and $80 a barrel by the end of 2015 as a global economic recovery revives demand, delegates of the Organization of the Petroleum Exporting Countries (OPEC) said this week, in the first indication of where the group expects oil markets to stabilize in the medium term.

The delegates, some of whom are from core Gulf OPEC producing countries, said they may not see - and some may not even welcome now - a return to $100 any time soon.

Once deemed a "fair" price by many major producers, $100 a barrel crude is encouraging too much new production from high cost producers outside the exporting group, some sources say.

But they believe that once the breakneck growth of high cost producers such as US shale patch slows and lower prices begin to stimulate demand, oil prices could begin finding a new equilibrium by the end of 2015, even in the absence of any production cuts by OPEC, something that has repeatedly been ruled out.

"The general thinking is that prices can`t collapse. Prices can touch $60 or a bit lower for some months and then come back to an acceptable level, which is $80 a barrel, but probably after eight months to a year," one Gulf oil source said.

"We don`t see $100 for next year, unless there is a sudden supply disruption," a separate Gulf OPEC source said. "But an average of $70-80 for next year - yes."

The comments are among the first to indicate how big producers see oil markets playing out next year, after the current slump that has almost halved prices since June. Global benchmark Brent closed at around $60 a barrel on Tuesday.

Their internal view on the market outlook will provide welcome insight to oil company executives, analysts and traders, who were caught out by what was seen by some as a shift in Saudi policy two months ago and have struggled since then to understand how and when the market will find its feet.

At the weekend, Saudi Oil Minister Ali al-Naimi was blunt when asked if the world would ever again see triple-digit oil prices. "We may not," he 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.