NEWS

China, Turkmenistan to deepen energy cooperation

Source: www.chinamining.org  Citation: Xinhua  Date: September 15, 2014

Chinese President Xi Jinping (R) meets with Turkmen President Gurbanguly Berdymukhamedov  in Dushanbe, capital of Tajikistan, Sept. 12, 2014.

China and Turkmenistan on Friday vowed to deepen energy cooperation and jointly build the Silk Road Economic Belt.
    
The agreement was made at a meeting between Chinese President Xi Jinping and his Turkmen counterpart Gurbanguly Berdymukhamedov on the sidelines of the 14th summit of the Shanghai Cooperation Organization (SCO) in the Tajik capital of Dushanbe.
    
Xi said the China-Turkmenistan strategic partnership realized a good start and the two countries have become a community of shared interests and common destiny. He urged the two sides to continue to deepen the energy cooperation.
    
The Chinese president called on the two countries to ensure the construction and operation of the China-Central Asia gas pipeline as well as the construction of the second phase of the Fuxing Gas Field.
    
The two countries should optimize trade structure, expand cooperation in such fields as electricity, manufacturing industry and agriculture, jointly push forward the building of the Silk Road Economic Belt and promote cooperation in transportation and telecommunication, Xi said,
    
The two countries should jointly fight against "the three evil forces" of terrorism, separatism and extremism, said Xi, adding that China is willing to help Turkmenistan to popularize the Chinese language and promote people-to-people exchanges.
    
Berdymukhamedov said Turkmenistan will enhance mutual political support with China and boost practical cooperation.
    
He thanked China for respecting the permanent neutrality policy adopted by Turkmenistan, adding that his country will continue to support China firmly on the issues concerning China`s core interests and major concerns.
    
The president said Turkmenistan will realize the goal of transferring gas to China as scheduled by participating in the construction of Central Asia-China gas pipeline and the second phase of the Fuxing Gas Field.
    
Turkmenistan is willing to participate in the building of the Silk Road Economic Belt, improve its own transportation infrastructure and promote transborder transportation between Central Asian countries and China, Berdymukhamedov said.
    
The Sept. 11-12 summit brought together Xi and his counterparts from other members of the SCO.
    
Founded in 2001, the SCO groups China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. It has Afghanistan, India, Iran, Mongolia and Pakistan as observers, and Belarus, Sri Lanka and Turkey as dialogue partners.

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 November 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.

MOFCOM announces new rules on Chinese overseas investment

Source: www.chinamining.org  Citation: Xinhua  Date: September 9, 2014

The Chinese Ministry of Commerce (MOFCOM) has announced new measures which will make it easier for domestic companies to invest overseas.
    
Under the new rules, the ministry cedes its previous control over approval of investment projects. Only overseas investment projects in sensitive countries or regions as well as in sensitive industries will require approval from the MOFCOM.
    
Such sensitive countries or regions include countries that have not established diplomatic ties with China and countries that are under the UN sanctions.
    
Other overseas investment projects only need to register with the MOFCOM, according to the new measures posted on the ministry`s  website Saturday.
    
Aimed at allowing more freedom in outbound investment, the measures take effect on October 6 this year.
    
Previously, any overseas investment project worth more than $100 million was required to be approved by the MOFCOM. Overseas investment in energy and mining, and projects between $10 million and $100 million were also required to seek approval from provincial commerce departments.
    
Overseas investment companies in industries covered by China`s export restriction policies or projects affecting more than one foreign country`s interests are still subject to  MOFCOM`s approval.
    
Apart from the MOFCOM, the National Development and Reform Commission (NDRC), China`s top economic planner, has the power to approve or veto an overseas investment project.
    
According to the new measures released by the NDRC in April, Chinese companies planning to invest less than $1 billion overseas will only need to register with authorities instead of seeking approvals from the NDRC.
    
Any overseas investment project larger than $1 billion must be approved by the NDRC and investment above $2 billion must be approved by the State Council.
    
Apart from being one of the most popular destinations for foreign investment, China has also become the world`s third-largest investor during the first seven months of the year, investing $52.55 billion in non-financial companies in 149 countries or regions, according to the MOFCOM.

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 November 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.

Ghana lauds China`s oil giant for excellent job on gas plant

Source: www.chinamining.org  Citation: Xinhua  Date: September 4, 2014

Sinopec Petroleum, the Chinese company leading the building of Ghana`s gas infrastructure, came in for high commendation in Atuabo on Tuesday for the excellent and quality of delivery on the gas project.
    
President John Dramani Mahama made the commendation during his visit to the project site at Atuabo in the Western Region, 217 km west of the national capital, ahead of commissioning later, this year.
    
Mahama commended the company, which partnered the Ghana National Gas Company Ltd (GNGCL), in developing the infrastructure.
    
"I would like to commend SINOPEC who, together with Ghana Gas, began this project, for a job done really well," the president said.
    
He recalled how the project took off against all odds in July 2012 but was now over 99 percent complete, mechanically.
    
"What makes this project important, first of all, is the multiplier effect on the economy in terms of the Foreign Exchange savings from crude oil importation for thermal plant operations, Liquefied Petroleum Gas (LPG) importation, and job creation," Mahama pointed out.
    
He said it was also important in terms of the numerous jobs to be created as well as making Ghana self-sufficient in energy production to make it gradually a net exporter of energy.
    
"Ghana could not have gotten a better company than Sinopec," Chief Executive Officer (CEO) of Ghana Gas, George Sipa Yankey commented.
    
He said, but for SINOPEC, the project could not have reached "this far" as they spent 400 million USdollars on pre-financing the project, making the work go on even as there were delays in the parliamentary approval and the disbursement process of the China Development Bank (CDB) facility which was contracted for the project.
    
Sipa-Yankey described the contractors as a company of integrity, credibility and great efficiency and very good to work with, and expressed his willingness to work with them again on any other project.
    
The gas processing plant is expected to process between 90 million Standard Cubic feet (scf) of gas and 110 million scf of gas per day from the Jubilee field.
    
Shen Yan, Sinopec`s Deputy Project Coordinator for the Ghana Gas project, remarked that the Ghanaian gas industry was just about to take off.
    
According to her, SINOPEC, with its 60 years experience in the oil and gas industry, sought to bring its technical and managerial expertise to train the locals to deliver on the job.
    
"The importance of the project is the economic benefits it brings on board in gas commercialization and job creation, among others," Yan told Xinhua in an interview.
    
The gas project has been a major part of the program of the Ghanaian government to increase its electricity generating power to 5000 Mega Watts(MW) by 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 November 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 copper demand hinges on power sector, credit: industry

Source: www.chinamining.org  Citation: Reuters  Date: September 4, 2014

An employee works at a electricity cable factory in Baoying, Jiangsu province, July 23, 2006.

China`s consumption of refined copper in the rest of 2014 may hinge on new orders from the power sector, where investment recorded a rare fall in the first half, and on bank lending, as tight credit conditions have cut demand from smaller end-users.
    
The power sector accounted for nearly half of copper demand last year in China, the world`s top consumer and producer. A drop in orders from the sector could cut China`s appetite for imports, a driving force of prices in the international market.
    
Investment in new power networks had been expected to rise more than 10 percent this year, industry sources said, but in the first half investment fell 0.6 percent from a year before, according to data from industry body China Electricity Council.
    
"If investment in the power sector doesn`t rise in the second half, we`ll have to adjust down our consumption forecast for 2014," said Yang Changhua, a senior analyst at state-backed research firm Antaike Information Development Co.
    
Antaike has forecast that China`s consumption of refined copper would rise 6.7 percent from last year to 8.75 million tonnes.
    
State Grid Corp of China, the dominant investor in power networks, said in May it was being audited, which industry sources said was likely to have slowed network investment. It was unclear what the aim of the audit was.
    
Antaike`s Yang said audits of firms in China usually slowed investment because decisions took longer to be made and it was not clear when the auditing at State Grid would be completed.
    
TIGHT CREDIT
    
Chinese banks have tightened lending since June because of a probe into an alleged metal financing scam, which has forced small traders of refined copper to delay some term shipments, cutting imports to a 14-month low in July. [MTL/CHINA1]     
Tight credit and fewer orders from the power sector have also forced some small copper rod and wire producers to close as the industry has surplus capacity, the industry sources said.
    
Rods and wires, mostly made from refined copper, are used to manufacture power cables and wires.
    
Some medium-sized rod and wire producers are also facing a credit crunch, said a trader at a large plant in southern Guangdong.
    
Jiangsu Zhongtong Copper, a medium-sized producer with 200,000 tonnes of capacity in eastern Jiangsu province, has told at least one foreign supplier it has been unable to get letters of credit (LCs) from banks for refined copper imports and wanted to delay term shipments, four trading sources said.
    
"Jiangsu Zhongtong told us they couldn`t obtain LCs," said an Asian-based trader at an international trading firm that had planned to ship 1,000 tonnes of refined copper a month to Jiangsu Zhongtong between September and December.
    
Jiangsu Zhongtong wanted to delay the shipments to next year as it was still in talks with banks, he added.
    
A senior executive at Jiangsu Zhongtong declined comment.
    
Traders said importers were not keen to buy spot copper, while sellers were not accepting low premiums.
    
Premiums for bonded stocks were at about $90-$100 a tonne over cash prices on the London Metal Exchange this week, flat from a month ago.
    
Stocks in bonded warehouses in Shanghai were about 500,000-550,000 tonnes last Friday, down from 570,000-600,000 tonnes in early August due to low imports, three traders estimated.

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 November 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 readying coal import curbs to help sickly miners-sources

Source: www.chinamining.org  Citation: Reuters  Date: September 4, 2014

China, the world`s top coal importer, is expected to soon put curbs on shipments of low-quality coal, responding to calls for support from the country`s miners who are seeing widespread losses due to oversupply and anaemic demand for the fuel.
    
The China National Coal Association has sent a proposal to the government calling for imports of low-quality coal with ash and sulphur content exceeding 15 percent and 0.6 percent, respectively, to be halted, sources from coal producers and power utilities said.
    
The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), which are key policy-setting organs of the Chinese government, have already signed off on the proposal, the sources said. It still awaits approval from China`s State Council to be written as law.
    
The plan is set to hit Australian coal exports hardest and block out tens of millions of thermal coal imports by year-end, the sources said.
    
"The association`s rationale is to try to cut total imports by about 10 percent to restore balance in the domestic market," said a source with a major coal producer who has been briefed on the association`s proposal at a meeting last month.
    
Officials from the coal association declined to confirm details of the proposal. The NDRC and NEA could not be reached for comment.
    
If the regulation is implemented, Australian and South African coal with a heating value of 5,500 kcal/kg will be worst hit, since their ash content hovers around 23-25 percent and they contain sulphur of 0.8-1.0 percent, traders said.
    
Top steam coal exporter Indonesia, which largely ships fuel with low heating value, sulphur and ash content, will be the least affected.
    
The Minerals Council of Australia said it is awaiting details on the policy and that the country is well positioned to meet importers` requirements on sulphur and ash content.
    
China imported about 54 million tonnes of Australian thermal coal and another 13 million tonnes from South Africa in 2013 - most of which would not meet the proposed restrictions on ash and sulphur content.
    
"We think the document may come within days or weeks. Beijing already hinted at restricting imports of low-grade coal previously and is well aware of the need to take swift actions to arrest the crisis," said an executive at a large coal firm.
    
PRODUCTION CUTS
    
The association, which represents about 1,000 coal miners in the country, had mooted a proposal last year to bar imports of coal with a heating value lower than 4,540 kcal/kg, sulphur content higher than 1 percent and ash exceeding 25 percent.
    
The plan did not get the government`s nod due to protests by utilities, who argued that they had long-term contracts that had to be honoured and that such a rule would jack up their costs.
    
But with more than two-thirds of Chinese coal miners now deep in the red and more than half of the firms either delaying or cutting staff salaries, the State Council is expected to soon implement import curbs to support the highly leveraged sector.
    
Hit by slackening demand growth, a worsening supply glut and Beijing`s war on smog, China`s benchmark thermal coal prices have been on a downtrend since late 2011 and are now hovering around six-year lows, at 478 yuan ($77.75) a tonne.
    
To help shore up prices, the country`s major coal producers, including Shenhua Group, China National Coal Group and Datong Coal Mine Group, have cut output, with promises to slash production by as much as 10 percent this year.
    
At an industry meeting on Aug. 28 attended by coal miners, power plants and chaired by NDRC director Lian Weilian, the commission said coal production should be cut by 200 million tonnes in the second half of this year and urged local governments to shut down outdated mines.
    
As part of Beijing`s anti-pollution campaign, the NEA, in charge of researching and drafting strategies to address China`s energy needs, is also studying plans to ban power stations from using coal with ash and sulphur content of more than 16 percent and 1 percent, respectively, local media reported. (1 US dollar = 6.1480 Chinese yuan)

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 November 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.

Nigeria woos Chinese investors for power sector reform

Source: www.chinamining.org  Citation: Xinhua  Date: September 3, 2014

Nigeria said Monday that Chinese investors are welcome as its electricity transmission expansion program is now open for foreign investment in the form of public-private partnership.
   
Alhaji Mohammed Wakil, power minister of Nigeria, made the remarks at a meeting with leading stakeholders and investors from Chinese power industry in the capital city of Abuja.
   
The minister said in a statement reaching Xinhua that the investment in the Nigerian power sector will be safe and get adequate returns.
   
"I urge you all to participate in the planned power transmission project in Nigeria. The government of Nigeria is working out the participation of private sector in the transmission sub-sector under a public-private partnership," he said.
   
Wakil described the opportunities in the power transmission and renewable energy sector as "very attractive and sustainable."
   
"In the renewable sector, we are opened to both independent power producers and participants in the Private-Public Partnership," he added.
   
He stressed that investors in Nigeria should maintain high level of efficiency and standard.
   
Nigeria, Africa`s top oil producer and most populous country, is intensively seeking more investment in its power industry to meet growing energy demands.

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 November 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.

Chinese government urged to cut taxes on steel scrap as consumption falls

Source: www.chinamining.org  Citation: Platts  Date: September 3, 2014

The China Association of Metalscrap Utilization has been lobbying the central government to lower the 17% tax on steel scrap sales to help increase its utilization in steelmaking, CAMU Secretary General Li Shubin said at the 7th China International Metal Recycling Conference in Beijing last weekend.
   
Recently, CAMU joined four other industrial associations, including the China National Ship Recycling Association, and petitioned the National Development and Reform Commission for preferential policies in steel scrap recycling, especially a tax cut, he said.
   
"We have been in frequent communication with related Chinese authorities since 2011 when Beijing canceled the tax refund, explaining the necessity for the steel scrap sector to enjoy a lower tax. Now it is more pressing when China is shifting towards an eco-friendly economy as scrap is more environmental friendly than iron ore and coke in steelmaking," he said.
   
Every tonne of scrap used in steelmaking will reduce 1.6 mt of carbon dioxide emissions and 3 mt of solid waste.
    
Beijing withdrew a 70% rebate on the 17% VAT for steel scrap recyclers in 2011, which has put China`s steel recycling industry at a disadvantage against iron ore that is becoming more affordable.
   
China`s steel scrap utilization fell to 110 kg/mt in 2013 from 117 kg/mt in 2012, Li said.
   
"Crude steel production using scrap now is about Yuan 200 ($32.40)/mt higher than iron ore, which we can`t afford as sometimes our gross profits per mt are not that much," a procurement official from a steel mill in central China said on the sidelines of the conference.
   
The company has been limiting scrap utilization to 10% of its total use in steelmaking for now.
   
A resumption of a 50-70% discount on the 17% VAT for steel scrap will, however, lead more mills to reconsider the proportion of scrap utilization, he added.
   
Zhu Jimin, vice chairman of the China Iron & Steel Association, nevertheless, was optimistic about the tax cut on scrap.
   
China is the world`s largest steel producer with crude steel output reaching 780 million mt in 2013, which was about 48% of the world`s total production.
   
Most mills now moving to blast furnaces that use mainly iron ore and coking coal also contributed to lower steel scrap consumption, market sources added.
   
China`s steel scrap utilization for steelmaking was merely 11% in 2013 compared with 32% in 1994.  

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 November 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 to cooperate with APEC on energy

Source: www.chinadaily.com.cn   Citation: Xinhua   Date: September 3, 2014

Chinese Vice Premier Zhang Gaoli addresses the opening ceremony of the 11th APEC Energy Ministerial Meeting in Beijing, capital of China, Sept 2, 2014.

BEIJING - Chinese Vice Premier Zhang Gaoli vowed on Tuesday to step up energy cooperation with members of the Asia-Pacific Economic Cooperation (APEC).

While addressing an APEC energy ministers meeting in Beijing, Zhang said the Asia-Pacific region has witnessed both robust economic growth and increasing energy consumption.

In face of challenges of energy security and environment, countries should speed up transformation of their economic development pattern, and seek sustainable growth that features diversification, energy saving and low carbon, Zhang said.

He urged closer coordination and cooperation in energy exploration, and to promote energy investment and trade, facilitate research and development of advanced energy technology, and enhance energy security.

China, as a large energy consumer and producer, will strive for sustainable energy development, and promote energy saving in its economic and social development, said the vice premier.

China will explore non-coal energy such as oil, gas, nuclear power, new energy and renewable energy, he said.

"We will promote technological innovation in the energy industry, step up energy system reform, build and improve an energy price system that reflects supply and demand in the energy market," he said.

China will facilitate closer international energy cooperation, utilize global resources and ensure energy security, he added.

The meeting is one of nine ministerial meetings held in China ahead of the APEC economic leaders` meeting in November.

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 November 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.