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2013 review and 2014 outlook of China coal industry development

Source:www.mlr.gov.cn  Citation: www.chinamining.com.cn Date: Jan.20, 2014

There is no doubt that it was very hard for China`s coal industry in 2013.

In 2013, coal market price experienced "drop". Although it showed a slight rise a few months before the end of the year, it still faced the reality of “crash”.

At the same time, the year 2013 was an important year for the coal line to experience the deepening of marketing reform in our country.

This year, the general office of state council implemented fully “the Guidance on Deepening the Marketing Reform of Electricity and Coal,” cancelled the key contracts, and realized the price incorporation of electricity and coal. The examination and approval system reform of state administration meant that coal production license and coal business license were canceled and it was easy to operate coal business, which stimulated the market dynamics.

How to make the whole society have an in-depth understanding of the coal industry development and the difficulties and problems in the coal industry? On January 15, China Coal Industry Association held a press conference in Beijing. During the conference, 2013 national economic operation, reform and development of the coal industry were introduced. Meanwhile, coal development environment and the future development of coal industry were analyzed.

Liang Jiakun, vice-chairman and secretary-general of the Association, said that "China Coal Industry Association is the participant, promoter and builder of the reform and development of coal industry, shouldering the important mission. I also hope that all parties can pay more attention to the development of coal industry."

At this meeting, China Coal Industry Association issued “on the reform and development of China`s coal industry in 2013”. Relevant experts made analysis and forecast of coal.

Enough supply and structural surplus unchanged

Enough supply and structural surplus were still the general situation of national coal market in 2013.

According to Jiang Zhimin, vice-chair of Association and spokesman, in 2013 the national coal output increased slightly, and consumption began to fall with the shipment rebound, high inventories and the continual increase of net import.

According to the association’s preliminary statistics, in 2013, the national coal output was 3.7 billion tons with annual average output decrease from over 200 million tons for 10 consecutive years to 50 million tons the first time. The national coal consumption was 3.61 billion tons with annual average consumption decrease from 9% for 10 consecutive years to 2.6%. The rail shipment of coal throughout the year was 2.32 billion tons, 58.1 million tons and 2.6% increase over last year. The imported coal reached 327 million tons. The exported coal reached 7.51 million tons. The net imports of coal were 320 million tons, 40 million tons more than in 2012. By of the end of December 2013, the stored coal of coal companies reached 84 million tons, 700000 tons over last year.

Coal price decline was another feature in 2013. According to statistics, the national coal price began to recover slightly since December after a sharp drop.  According to China`s coal price index (the national comprehensive index) change, price index dropped from 170.7 at the beginning of the year to 157.8 at the end of September (low point), with slight rebound since early October. On December 27, it reached 161.8, 4 points increase than the end of September (low point), 8.9 points lower than the beginning of the year and    41.2 points lower than the high point of 2011.

The economic benefits of coal industry fell dramatically with business loss expansion, and the majority of the old mining areas experienced difficulties because of multiple factors such as coal market demand decline, output surplus, expansion of imported coal, tax burden and the heavy historical burden.

According to statistics, for the first 11 months, coal enterprises’ main business costs rose by 4.56% over last year. For the large-scale coal enterprises, main business costs rose by 21.1% with industry profits decrease by 38.8% (enterprise loss was 40.554 billion Yuan, 80.70% increase over last year). The profits of large-scale enterprises fell by 37.03% (33 loss-suffering enterprises, 36.7% of the total, 16.7% increase over last year).

Industrial structure optimization, concentration increasing

Compared with coal market situation, coal industrial restructuring made significant achievements.

First, it was the continuous optimization of production structure. Figures showed that in 2013, the coal mine number was 12,000, 13000 less than that in 2005. Among them, the large-scale coal mines with the annual output of 1.2 million tons reached more than 850, 560 more than those in 2005. The proportion of total output increased from 35.7% to 65%. There were more than 300000 small coal mines under the annual output of 300000 tons, 10000 less than those in 2005. The proportion of total output dropped from 30% to 16%.

At the same time, large-scale coal base construction was in steady progress. According to preliminary estimate, the output of 14 major coal bases reached 3.4 billion tons, accounting for 92% of the total national output, 2% increase. Preliminary analysis forecast showed that the output of nine provinces and autonomous regions such as Inner Mongolia, Shaanxi, Shanxi, Guizhou, Henan, Anhui, Shandong, Xinjiang, Yunnan exceeded one hundred million tons, accounting for about 83% of the country`s total output, 2% increase. The raw coal output of other five provinces like Hebei, Ningxia, Heilongjiang, Hunan, Liaoning, reached more than 50 million tons, accounting for about 10% of the country`s total output.

At the same time, large coal enterprises continued to maintain the rapid development. Preliminary statistical analysis showed that the raw coal output of eight enterprises such as Shenhua, Jining Coal Industry and Mining, Datong Coal Industry Group Company, Shandong Energy, Jizhong Energy Resources Co.Ltd., shaanxi Coal and Chemical Industry, Henan Energy, Shanxi Coking Coal Group accounting for 37% of the total.  The output of 11 companies like Kailuan, LuAn, Yankuang, Huaneng, Yangquan, CLP Group, Huainan, Jincheng would reach more than 50 million tons, accounting for about 19% of the total. There were 52 coal companies, whose output production surpassed more than 10 million tons, accounting for about 70% of the total output. There were 324 coal mines run by 17 state-owned enterprises with output of 980 million tons, accounting for 26.5% of the total.

The production concentration of coal enterprises were improved continuously. According to statistics, the production output of the top four coal enterprises accounted for about 25% of the total, 2.5% increase over last year. The production output of the top 10 coal enterprises accounted for 40%, 6% increase last year.

Positive progress was made in coal enterprise merger and reorganization. Statistics showed that in 2013, the total closed coal mines were more than 770.

Over 190 coal mines were improved with 610 coal mines’ merger and reorganization. More than 200 million tons of backward production facilities were closed down.

Industrial convergence development also speeded up the pace. According to the preliminary analysis of China coal industry association, the national rights and interests of equity participation was expected to account for 11% of the total, 15% of the thermal power installed capacity. The national kerosene output was about 1.47 million tons. Coal gasification was 2.7 billion cubic meters. Olefin output made by coal was 1.68 million tons. Glycol capacity was up to 900000 tons, with 32 million tons of coal turned.

Coal demand will continue to maintain a slight increase this year

At this meeting, Jiang Zhimin forecasted the coal market of 2014. According to him, in 2014 the national coal market demand will continue to maintain a small increase. The national coal supply capacity is estimated to be 4 billion tons, and annual output will be around 3.8 billion tons, with 2.7% increase. The annual net imports will be about 300 million tons.

Jiang Zhimin said, "Because the national efforts will be increased to control atmospheric pollution, the main coal consumption areas such as Beijing Tianjin, Hebei, Yangtze River delta and the Pearl River delta will be reined in demand. But the maturity of alternative energy technology and economic feasibility need further improvement."

According to Jiang Zhimin, with the increasing pressure on energy conservation and environmental protection, clean energy impact, the pressure is still large once the early formation of the large domestic coal production capacity is released. So the coal output will show a slight increase. Though the country will take measures to strengthen coal quality management and restrict the use and import of inferior coal, the pressure of excess capacity still exists. China`s coal imports will remain relatively large scale because of the price gap between domestic and imported coal, exchange rate changes, currency devaluation of coal exporters such as Indonesia and Australia.

 “The situation of enough supply and structural surplus will not change. But it may happen that individual coal will be in short supply. “According to Jiang Zhimin, during the first half of 2004, the situation of enough supply and structural surplus will not change, and total inventories remain high. Enterprises are faced with great difficulties and risks. During the second half of this year, the supply and demand situation will become balanced. Industrial economy will recover slightly, but it is stills faced many unstable and uncertain factors. The economic pressure is still there

According to Jiang zhimin, coal will remain world’s important energy and China’s major energy for the medium and long-term development trend of coal industry.

He said at the same time, the coal industry development was still faced with the problems such as coal production and consumption rough , the ecological environment constraints, the contradictions between long-term productivity advance and long-term shortage. The coal industry and enterprises would have a tough task.

Tax reform may be issued this year

Tax reform is the subject of media attention. China coal industry association also has responded.

Zhang Hong, deputy secretary-general of China Coal Industry Association, and director of the policy research department mentioned that a reasonable tax structure should be set after the collection of coal taxes. At the same time, standard fees should be set and all kinds of unreasonable administrative charges should be cancelled in particular. Coal tax reform should be promoted without increasing taxes.

According to his introduction, the current coal enterprises pay high taxes. The taxed account for 35.04 of the sales cost of. Among them, the taxes account for 21.03% of the sales revenue. All kinds of administrative charges accounts for 14.01% of sales revenue. 16 of the 19 taxes will be paid by coal enterprises.

According to Jiang Zhimin, the relevant state departments have made a clear requirement for coal tax reform. The specific scheme has already been drawn up. Because it belongs to local taxes, specific amount will be set by the local government.

Jiang Zhimin said, "The amount of taxes does not mean that big provinces will pay more and small provinces less. As to the specific range, it is now being studied and is likely to be launched this year." He also said that the reform of resource taxes and “clean-up fees” would be conducted together.

Pay attention to “safety and health”

Compared with the downturn of the coal market, we can see that the safety of coal production in our country shows stable and better performance. According to the China coal industry association, in 2013, the total number of coal mine accidents was 604. 1067 people were dead or missing, 22.5% and 22.9% decrease respectively compared with last year. Major accident fell by 35.2% and 36.2% respectively and serious and major accidents fell by 12.5% and 10.3% respectively. The death rate of coal mine with or over one million tons dropped to 0.288, 23% decrease compared with last year.

The reporter showed that in 2012, the death rate of coal mines with or over one million tons was 0.374. 33.7% decrease compared with 2011, which was the first time since the development of China`s coal industry to drop within 0.5. For the first time, the number of the dead and missing was less than 1500. In the long run, the death rate of coal mines with or over one million tons declined year by year. In 1989 it was 7.07. In 2001, it was 5.03. In 2005, it was 2.81. In 2009, it was 0.892, the first time below 1. In 2011, it was 0.564, the first time below 2000 people.

Jiang Zhimin said, "Coal industry establishes firmly a ‘safety first, life first’ philosophy. Conduct large production safety inspection.  Crack down on illegal production and operating activities and govern according to law. Implement the ‘double seven’. Speed up the revised ‘coal mine safety regulations’. Strengthen the management of coal mine technology standards and promote the safety of coal mine."

He said, the coal industry should pay more attention to the reduction of production safety accidents, increase the degree of occupational health protection. Meanwhile, under the upturn of coal mine safety, investment should be made to improve the coal mine production environment. Coal mine occupational disease should also be prevented to increase the degree of occupational health and security. (Zhang Li) （translated by TLRHVC）

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.

Top ten news of 2013 China’s mining announced

Source: www.mlr.gov.cn  Citation: www.chinamining.com.cn Date: Jan.20, 2014

After China Mining Association jury selection, "Top Ten News of 2013 China’s Mining" recently was announced.

They are: The new types of high purity "combustible ice" drilled in China for the first time"; The world`s first delivery of iron ore futures traded in Dalian; Solid potassium deposit changed from "stay"into "live", new device of million tons of potassium chloride in Saline Lake was built; China`s largest overseas project----copper project, designed of an annual output of 220,000 tons of copper metal put into operation in Peru copper mine; Changqing Oilfield with innovative technology built in "Western Daqing"; The natural gas pipeline in Myanmar built and began the domestic gas supply; China`s first "Shale Gas Industry Policy" promulgated; Technology of deep exploration of uranium tend to be intelligent; 262 resource-oriented cities were first defined and introduced development planning; The world`s biggest flotation machine researched and developed by our own realized the production and application.

It is reported the jury was composed by the Ministry of Land and Resources News, experts in mining industry association, mining media leaders and senior journalists. (Yang Qiuling) （translated by TLRHVC）

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.

Accurately grasp the key mission, promote the construction of maritime power

Source:www.mlr.gov.cn  Citation: www.gtzyb.com  Date: Jan.17, 2014

On January 16th, the national marine working conference held in Beijing, reviewing the work in 2013 and arranging for the deployment of key tasks in 2014. Jiang Daming, Minister of Land and Resources, China, National land chief inspector, attended the meeting and delivered the speech. He emphasized we implement the relevant requirements of the central, have a clear understanding of opportunities and challenges of marine work, accurately grasp the key tasks and promote the marine strategy implementation. Liu Cigui, member of leading Party group of the Ministry of Land and Resources, director of the State Oceanic Administration, secretary of the Party group, did the report work. Chen Lianzeng, member of National Ocean Bureau, vice director, Zhang Hongsheng, Wang Fei, Wang Hong, Lv Bin, bureau Party member, secretary of the Discipline Inspection Commission, Fang Jianmeng, bureau Party member, director of the Division of Personnel attended the meeting.     

Jiang Daming pointed out that all the staff of marine system innovated and overcome difficulties. Marine economy has maintained rapid growth, and the construction of comprehensive marine management was strengthened with steady promotion of marine ecological civilization and the powerful and effective marine rights and interests. Meanwhile, the research and investigation has made important progress which achieved remarkable results.

In order to implement the central requirements and earnestly do a good job in the marine work, Jiang Daming put forward 4 opinions as follows: first, to further unify their thinking to the Central Committee on a series of important instructions of strengthening the marine work; to get to the relevant requirements as program and guidance, unify the thought, improve knowledge and implement them comprehensively. Second, to clearly understand the opportunities and challenges of marine work in current and future period. It attached great importance to the work of marine by the Party Central Committee and the State Council. The coastal provinces concerned and supported marine work which became the public attention. At the same time, it provided favorable conditions to consolidate the foundation of marine economy, to expand the space and constantly improve the level of comprehensive marine management. Meanwhile, the marine work was still faced with many problems. There was a gap from the requirements of the central authorities and the public which need take measures to solve. Third, accurately grasp the current marine key task. The implementation of maritime power strategy and the present work should be combined organically, top-level design should be strengthened. We should enhance the level of work, pay attention to quality and efficiency, accelerate the reform and development and promote the rights and the maintenance of stability, cooperation and win-win. The development of marine economy, the development of marine science and technology, the protection of the marine ecological and safeguard marine rights and interests were the inevitable requirements of the construction of maritime power which should start from these aspects and position situation in the ocean work. Fourth, strengthen the team construction and promote the implementation of the work. Consolidate the education practice results of the party`s mass line, keep on carving on a team with a good team, and attaches great importance to the construction of a clean and honest government.

Jiang Daming said the marine work was an important part of the work of land and resources. Ministry of land and resources would be as in the past to support the work of the State Oceanic Administration, to jointly promote the sound and rapid development of marine industry.

On the meeting, Liu Cigui made the work report named “Be Enthusiastic and Press on Deepening the Reform and to Promote the New Achievements of Marine Power Construction ”  (Wang Shaoyong) （translated by TLRHVC）

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.

Zhong Ziran met with the governor of the northwest territories of Canada

Source:www.mlr.gov.cn  Citation: www.gtzyb.com  Date: Jan.15, 2014

Mr. Zhong Ziran, chief engineer, Ministry of Land and Resources, China， met with Bob McLeod, the governor of the Northwest Territories of Canada and the line in the morning of January 14th. Both sides conducted in-depth exchanges in strengthening Sino-Canada cooperation in the field of geology and mineral resources, especially in the field of Northwest Territories of Canada.

On behalf of the Ministry of Land and Resources, Zhong Ziran gave Macleod a warm welcome. He said Canada and China were the big countries in the world mining industry. Canada had been regarded as an important cooperation partner by the Ministry of Land and Resources. The two countries had made substantial progress in the field of strengthening cooperation in mining geological survey research, field personnel training, promoting two-way investment, and cooperation in the development of mineral resources. The Ministry of Land and Resources would be willing to have further exchanges and cooperation with Canada in the field of establish long-term, stable relations of cooperation and complementary advantages and mutual exchange of needed products. China supported the Chinese enterprise to invest in Canada and also welcomed the Canadian companies to invest in China.

Macleod introduced the relevant situation in the Northwest Territories of Canada. He said Canada was rich in natural resources in Northwest, especially the oil and gas resources. He welcomed the Chinese enterprises to invest in Northwest, which would create better investment environment.

Relevant responsible persons from Mineral Resources Development Management Division, Geological Exploration Department, Technology and International Cooperation Department, The Central Geological Prospecting Fund Management Center and Chinese Mining Association attended the meeting. (Cheng Xiujuan) （translated by TLRHVC）

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.

2013 ten progress announced by China geological survey

Source: www.mlr.gov.cn  Citation: www.gtzyb.com  Date: Jan.15, 2014

2013 ten progress of China geological survey implemented by Chinese Geological Survey Bureau were announced recently.

The progress included: successful ending of potential evaluation of national mineral resources; drilling new type of natural gas hydrate of high purity in the South China Sea ; opening up unconventional oil and gas new fields made by investigation and evaluation of shale gas; full completion of survey and evaluation of shallow geothermal energy resources in provincial capital city; major breakthroughs achieved in copper mine in Tibet area; important achievements in the geological environment survey in important economic region and city group; significant progress made by study of stratigraphy paleontology; providing public services by medium scale digital geologic map; China`s first discovery of rare earth resources in the Pacific Ocean; the UAV aerial geophysical integrated station survey filling the domestic blank. (Gao Huili) （translated by TLRHVC）

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.

13th Li Siguang Geological Science Award Ceremony held in Beijing

Source: www.mlr.gov.cn  Citation: www.gtzyb.com  Date: Jan.15, 2014

(Photo：Li Zhentao)

On the afternoon of Jan. 13, Jiang Daming and other leaders awarded for the 13th Li Siguang Geological Science Award Ceremony.

13th Li Siguang Geological Science Award Ceremony Held in Beijing on the afternoon of Jan. 13. Jiang Daming, Minister of Land and Resources, China, National land chief inspector, Committee Director of LiSiguang Geological Science Award, attended the meeting to award for the winners and delivered a speech. He emphasized that we should vigorously carry forward the spirit of Li Siguang, to accelerate the progress of geological technology, make new larger contribution for the economic and social development of the new period and the construction of ecological civilization.

Ms. Shou Jiahua, vice director of LiSiguang Geological Science Award, former vice minister of Land and Resources, Cai Xiyuan, vice director of LiSiguang Geological Science Award, chief geologist of China Petroleum Chemical Co., Ltd., Fang Xin, deputy secretary of Chinese Academy of Science, Zhang Shaonong, vice minister of Land and Resources, Zhang Hongtao, foundation chairman of Li Siguang Geological Science Award, vice director of LiSiguang Geological Science Award, counselor of the State Council attended the meeting and awarded for the winners. Zhong Ziran, chief engineer，Ministry of Land and Resources, China presided over the meeting.   　　

Jiang Daming said Li Siguang spirit is the precious spiritual wealth for the majority of geological science and technology workers. Under the guidance of the spirit, the progress of science and technology has provided strong support for the development of China`s geology. In recent years, the geological work of science and technology in China has made great achievements and made a number of influential research results in the domestic and foreign countries which provided strong support for a series of major issues such as solving resource security, environmental protection, disaster prevention and the geochemical evolution. It not only improved the scientific development of mineral resources, promoted the protection of geological environment and geological disaster prevention, but also enhanced the cognitive ability and the earth scientific theory and technique.

Jiang Daming emphasized geological science and technology work shouldered the important historical mission in ensuring the economic and social development, the promotion of ecological civilization construction in the new period. We should serve for the protection of national energy security, promoting the construction of ecological civilization, disaster prevention and mitigation, promoting the new urbanization and agricultural modernization and the construction of major projects as well as the construction of maritime power. In order to meet the new requirements to implement the Party Central Committee, the State Council on the geological work of science and technology and fulfill the new task to safeguard and promote the modernization construction, we must deepen the reform of geological science and technology system, carefully implement major science and technology projects, accelerate the pace of growth of scientific and technological personnel which played an important role in leading and supporting the geological science and technology.

On the meeting, Ms. Shou Jiahua read out in public "The Decision on the Award of the 13th Li Siguang Prize in Geological Science", awarded “Li Siguang Prize in Geological Science” to Xia Qinglong, professor of the CNOOC Tianjin Branch. Xia Qinglong, from CNOOC, Yin Yueping, professor of Chinese Institute of Geo Environment Monitoring, Yan Danping, professor of China University of Geosciences (Beijing) delivered the speech. (Li Xiang) （translated by TLRHVC）

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.

Strengthen mining administrations and push forward prospecting breakthrough

Source: www.mlr.gov.cn   Citation: www.chinaming.com.cn  Date: Jan.14, 2014

On the morning of January 11^th, Xu Deming, vice minister of the Ministry of Land and Resources deployed the overall arrangement of 2014 land and resources during the second plenary meeting of national land and resources. Meanwhile, he put forward ten major tasks. He required that the management of mining administrations should be strengthened, and geological prospecting breakthrough be pushed forward in the line of mining.

"Mineral resources are the food and blood of industries. The simultaneous promotion of ‘four modernizations’ has increased the demand for mineral resources in a certain period". Xu Deming pointed that although prospecting breakthrough strategy had made important achievements, the supply and demand contradiction in China was still very outstanding, which resulted in high external dependency. So, based on domestic, mineral resources management must be further strengthened and the implementation of prospecting breakthrough strategic actions be speeded up to improve the ability of resource security.

First, it is to strengthen the management of mineral resources. The protection, rational development and utilization of mineral resources should be through mine administration management. The third round of mineral resources planning should be worked out, with the strengthening of access and constraints, optimization of exploration development layout structure. The mining right market should be promoted actively with the improvement of mining right transfer system. The mining right approval should be studied seriously. For example, what should be approved? Who should be approved? How to manage? Strengthen departments’ responsibilities. Perfect unified distribution system. Strengthen the dynamic monitoring of examination and approval, and explore the system of “approved by province and controlled by ministry ". Control strictly protocol transfer. Deepen the reform of mineral resources reserve management, and make clear the relationship among governments, institutions and intermediaries. Give full play to and strengthen the social supervision such as mineral inspectors. Strengthen the reserve and protection of preponderant mineral resources, and pay more attention to the role of the market. Weaken or cancel the administrative measures for the regulation of tungsten, antimony, rare earths and coal.

Second, it is to do a good job for geology survey. Strengthen the basic and public welfare geology survey. Carry out the regional development strategy, and increase the support of geological survey in west, northeast and poverty alleviation area. Focus on developing energy resources investigation and evaluation such as oil, gas and unconventional energy, and strategy area selection. Strengthen the basic support and integrated application of research. Develop deep prospecting, new technology, and new method for fast prospecting and exploration. Do a good job for geological data open and services in exploration area. Support the transfer of golden armed forces, and arrange the remove. Provide relatively stable working area to ensure the full workload.

Third, continue to implement prospecting breakthrough strategy, which has gotten good phrased results. Carry out three-year target assessment, sum up experience, analyze problems, and improve the strategy in time. Highlight key areas, energy and mineral resources which are in short supply. Promote the second stage work. Communicate actively with the treasury department to ensure the steady investment of central geological exploration fund, and optimize the management procedures of central geological exploration fund. Encourage the integrated exploration development of mineral resources such as oil gas, uranium ore, coal, and coal bed gas. Continue to improve the mining investment environment and encourage the introduction of social capital investment. Promote the classification and reform of state-owned geological exploration units, and gather all geological exploration forces to promote geological prospecting new breakthroughs.

Fourth, deepen the international cooperation of mining. Implement actively the strategy of "going abroad", highlighting key minerals, and countries. Implement   overseas mineral resources risk exploration. Intensify mineral resources information service in foreign countries. Strengthen the cooperation with the competent mining department of important countries, and important geological international organization. Prepare for 2014 CHINA MINING and the APEC mining minister meeting. (Li Ping)  （translated by TLRHVC）

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.

Review of the national geographical exploration work in 2013

Source: www.mlr.gov.cn  Citation: www.chinamining.com.cn  Date: Jan. 02, 2014

Editor’s note: 2013 was the end of the first stage (2011-2013) of the Prospecting Strategic Action. Trough three years’ unremitting efforts, geologists submitted satisfactory answers to our nation and people. Not only have the work of the first stage been completed according to the schedule, but also have achieved the goals that the uranium and tungsten mines would be finished 5 years in advance (from 2011 to 2015), the molybdenum and nickel mines would be finished 8 to 10 years in advance (from 2011 to 2020).

In 2013, with reality, each province has made positive exploration on encouraging and attracting social capital investment, the distribution of the results and profits of prospecting, incentive policy of prospecting, supporting the reform and development of the geological prospecting units and coordinating the external environment of the reconnaissance. At the same time, depending on the innovation of the concept, institution and science and technology, geologists got fruitful results in the ending year of the first stage of the Prospecting Strategic Action: from the classified reform of the geological prospecting units to the construction of the exploration risk capital markets, from the prospecting breakthrough of the old mining areas to the discovery of the new areas, from the in-depth advancing of the package exploration to the overseas mineral resources base which established by the enterprises under the guidance of the “Out-going” strategy. The consensus from all parties effectively promoted the implementation of the Prospecting Strategic Action. The achievement of the exploration have provided resource guarantee for our country’s economic and social development.

The approval of Shanxi Province’s shale gas geological survey and evaluation project

In January, the project “Shanxi Province’s shale gas geological survey and evaluation” applied by the Shanxi Coal Geological Bureau had been approved by the Shanxi Province Development and Reform Committee. This project emphasized the research of the spatial development and comprehensive features of the effective source rock and container rock of the shale gas and sand gas in the valuable stratum in Shanxi Province, analyzed resource distribution and storage of shale gas and sand gas in Shanxi and studied the appropriate exploration methods fitted the condition of the gas reservoir of the shale gas and sand gas in Shanxi.

Comment: In recent years, “shale gas” is a hot word. The resource-rich areas are active in exploiting. As a resource-rich province, Shanxi is no exception. Exploiting shale gas is a systems engineering, they should use the advanced technology and experience from China and abroad for reference, build a cooperation platform and integrate scientific and technological resources. In the meantime, scientific and technical personnel should free their minds, look around and devote themselves to meeting the government’s needs, improving services and setting up scientific research project.

The first batch of potassic salt ore core got to the Nation’s Geological Sample Center

On February  3^rd, the first batch of potassic salt ore core arrived at the nation’s geological material date center safely. The rock core came from the Da Qaidam Town which was located in the north rim of the Qaidam Basin in Qinghai Province and was formed by the potassic salt ore general survey project which supported by the Qinghai Geological Exploration Fund. This time, one drill was in Gas Hure mining area and the other in Nanbaxian mining area. The total footage was 2503.5 meters, the total length of the rock core was 1857 meters.

Comment: Qaidam Basin is located in the north of the Qinghai- Tibet Plateau and formed in Jurassic Period. It is our nations typical mainland sylvite basin, and seldom abroad. The exploration of the rock core has great influence on studying the sedimentary environment, analyzing the formation of potassic salt ore, completing metallogenic theory and guiding the future prospecting.

Start of the classification and reform of public institutions of Guangdong Geological Bureau

On February 28^th, the mobilization meeting of the classification and reform of public institutions of Guangdong Geological Bureau was held in Guangzhou, which symbolizing the start of the classification and reform of public institutions. This reform intensified the function of “livelihood geology” which emphasizing geological prospecting and disaster prevention and control. For this purpose, the bureau adjusted and set up Guangdong Geological Survey and four more public benefit first class geological exploration units (others were second class). According to the indication of reform document, integrating two geological teams in one city into one integrated team. The original ten geological teams which started with number 7 changed their names. They were named “Guangdong Geological Bureau No. 1 to No.10 Geological Team”. Combined with Shenzhen Geological Bureau and Foshan Geological Bureau, all of them hung out the shingle “Geological Disaster Emergency Rescue and Technical Center”. They followed the management system “co-managed by province and city and province is main”. This measure was unprecedented and it was the highlight of the reform.

Comment: The implementation of “separation of enterprise from public institutions”, the classification and reform of Guangdong Geological Bureau and the innovation and intensification of system and mechanism of geological teams will improve the level and capacity of geological teams in serving local economic development, then promote sound and rapid development of geological work.

The first “top one hundred” geological prospecting units

In April, the rank of the first “top one hundred” was audited and examined by the sorting steering committee of Minerals Exploration Branch of China Mining Association which meant the birth of the first “top one hundred” geological prospecting units. There were 74 mineral exploration geological teams, 13 hydrogeology teams and 13 professional exploration technology service teams in the list of “top one hundred”. Another 15 geological teams get rankings in geological drilling. This ranking was protocolled to be held biennially.

Comment: The “top one hundred” geological teams ranking contributed to push forward reform, establish a new style of the industry, optimize work environment. It was also conducive to disseminating geological exploring industry, winning market and improving core market competitiveness of the geological exploring units. It benefited nation, people and geological exploring units.

The accomplishment of nation’s fully equipped areas drilling distribution diagram

In April, the nation’s fully equipped areas drilling distribution diagram and drilling catalog which compiled by the “nation’s geological drilling basic information check” project of Nation’s Land and Resources Geological Sample Center has been accomplished. The catalog gathered 71 non-uranium fully equipped areas drilling distribution diagram and drilling catalog which announced by Ministry of Land and Resources. It involved Hebei, Inner Mongolia, Chongqing, Tibet, Qinghai, Xinjiang and a total of 23 provinces (municipality and city). It had 24 volumes in all, including 76980 drilling information.

Comment: This achievement visually showed the current distribution status and characteristics of distribution of the fully equipped areas drilling, as well as the geological working level and research results, providing reliable basic information for the overall planning, unified deployment and a reasonable and orderly new drilling work.

Startup of the Guangxi Province “twelfth-five” rural drinking water safety and drilling project

In May, Guangxi Province “twelfth-five” rural drinking water safety and drilling project started. Engineering technicians from 17 geological exploration units went to operation points. In accordance with the plan, in 2014, geological exploration institutions would dig 1750 wells in rural areas and solve 100 million people’s drinking safety problem.

Comment: Geological exploration units in Guangxi made good use of their advantages and took part in livelihood projects actively. They contributed their efforts to the improvement of rural inhabitable environment, renewal of water quality, development of rural ecology, growth in living standard and harmony of the society.

A super-large gold mine was explored in Xinjiang

In mid-May, geological workers evaluated a super-huge gold mine with gold reserves of 53 tones in Xinyuan County, Ili Kazakh Autonomous Prefecture, Xinjiang Uygur Autonomous Region. It was a new breakthrough since the No.1 Regional Survey Team of Xinjiang Bureau of Geology and Mineral Exploration Development found Axi gold mine in 1988. This new gold mine was one of the major projects of “358 plan”. And the project was carried out by the No.1 Regional Survey Team.

Comment: This newfound gold mine is the biggest in western Tianshan area and situated in the same minerogenetic province with many large and supersized gold miners in Central Asian countries. As extension of the “Central Asian gold belt” within China, it had favorable minerogenetic condition and hopeful prospecting potential. At the same time, alterated rocks prospecting opened up new direction in western Tianshan Narat area.

A world-class supersized tungsten ore was found in Jiangxi Province

On May 26^th, Jiangxi Bureau of Geology and Mineral Exploration Development declared after finding the supersized tungsten ore in southwest Jiangxi, they found another world-class supersized tungsten ore in Zhuxi diggings, Fuliang County, northeast Jiangxi. They penetrated the maximum ore body thickness to 449 meters. The highest grade of the tungsten ore reached up to 8%, average grade was between 0.64% and 0.65%, amounted to five times the industrial grade and penetrated almost 30 meters thick copper ore. It was estimated that the amount of tungsten and copper exceeded 100 million tons, achieved large scale.

Comment: The south Jiangxi area is known as “The City of Tungsten” for its abundant tungsten resources. But on account of exploiting, the tungsten reserves continue to decline. The breakthrough in Zhuxi diggings makes the south, northeast and northwest Jiangxi a situation of tripartite confrontation, and enhances our nation’s position of tungsten resources in the world.

Three Inner Mongolia geological exploration units established mining group

In June, the Inner Mongolia Autonomous Region Bureau of Geology and Mining, Nonferrous Metal Geological Exploration Bureau and Coalfield Geology Bureau established Inner Mongolia Mining Limited Liability Company. This company was a departmental level unit authorized by autonomous region government. High starting point, high standard, high efficiency and large scale, clustering, capitalization are its goal. Its characteristics are new system, new mechanism, new science and technology, new construction and new culture. Then it integrated mineral resources exploration and development, and developed simultaneously resources industrialization and capitalization.

Comment: Institutions and enterprises have not been separated totally, fully market-oriented mechanism have not been built, so just as other geological exploration units, the anti-risk capability of Inner Mongolia geological exploration units are not strong enough. Establishing mining group contributes to deepening geological exploration reform, growing mining industry economy and promoting the economic and industrial advantages of the mining resources in the autonomous region.

The regularity of ore formation and forecasting project results of Daying uranium ore passed acceptance

In July 1^st, the regularity of ore formation and forecasting project results of Daying uranium ore passed acceptance by expert group, setting an example of combining geological mineral exploration research with production. This special research project was built for Daying uranium ore exploration by Center Geological Exploration Fund of Ministry of Land and Resources. Its main purpose was studying the sequence of ledge, setting up marker bed, researching the sand body’s distribution and interlayer oxidized zone’s development characteristics of target stratum, confirming forward line’s location of interlayer oxidized zone, building metallogenic model and regional prospecting model, enriching leachable sandstone-type uranium ore prospecting theory and guiding this type’s uranium ore prospecting.

Comment: Daying uranium ore prospecting project is a productive project which arranging scientific research project as well and making them combined tightly and form a win-win situation. This is a pioneering work of our nation’s current project management system as well as one of the six innovations of Daying uranium ore prospecting management. Due to a series of innovations, Daying uranium ore becomes a successful example of high efficiency, low cost and big result.

Major breakthrough in our nation’s uranium drilling

On July 17^th, China National Nuclear Corporation announced in Fuzhou, Jiangxi Province, the first scientific drilling of our nation’s uranium ore refreshed the old record 1200 meters with 2818.88 meters. In addition, the drilling equipments were researched and developed independently, and their digitalization and intellectualization filled gaps in this area. In the matter of drilling technology, we found polymetallic ore including uranium, lead, zinc and copper, and set up rock core mineralization alteration hyperspectral technology for the first time.

Comment: The breakthrough fills in gaps in our nation’s deep uranium ore prospecting technology and has a profound impact on improving guarantee degree of domestic natural uranium and meeting the need of the development of nuclear power. Continental scientific drilling is known as “telescope deep inside the Earth”. For so long, the prospecting depth of uranium ore in our nation was less than 500 meters and had a big gap in prospecting technology compared with France, Germany, Canada and other nations. This breakthrough expends our uranium prospecting space to a large extent.

Two rare rubidium production regions were found in Guangdong Province

On July 18^th, prospecting breakthrough strategic action report meeting was held by Department of Land and Resources of Guangdong Province. Reporter learned that after three years of efforts, Guangdong Province found two rare rubidium production regions in Zijin County and Jiaoling County which located in southern Guangdong section of Wuyi Mountain metallogenic belt. It estimated that the total of rubidium resources reach up to more than 3.6 million tons.

Comment: Up to now, 19 orefields have rubidium resource 1.85 million tons, but most of them cannot be utilized. The estimated quantity of rubidium resources in these two regions are 1000 times and 800 times the standard of nation’s large mineral deposits. And they also have high recovery rate. Rubidium is a type of white waxy alkali metal with soft texture and light weight. The outermost electrons of rubidium atoms are unstable, so they can be easily emitted. According to this feather, scientists invented MHD generation and thermoelectric generation. This new discovery will contribute to a great technical revolution of our nation’s power technology and energy utilization.

A super-sized gold and zinc ore was found in Xinjiang

In July, a piece of good news came from Dunde which is located in deep Mountain Tianshan: Dunde iron ore ranked among large iron ores with 187 million tons of iron resource. At the same time, gold and zinc resources were also found in Dunde. The total amount of gold reached 50 tons and zinc was 1.5 million tons. Both of them were big deposits. The director of Xinjiang Bureau of Geology and Mineral Resources Zeng Xiaogang said:” In Xinjiang, it is the first time we find three kinds of minerals in one ore body and the amount of resources are all large-scale.”

Comment: Dunde diggings are located in eastern Awulale metallogenic belt in western Tianshan. It is a volcanic rock zone extending 400 thousand kilometers and containing astonishing mineral resources. The quantity of iron resources in Awulale polymetallic metallogenic belt can provide iron to iron and steel enterprises in Xinjiang for 30 years. The breakthrough in prospecting gold, zinc and other mineral resources makes this metallogenic belt play a more important role in supporting economic and social development of Xinjiang.

Our nation will build important geological drillings database

In August, Ministry of Land and Resources implemented Notice on Building Important Geological Drillings Database, deciding to carry out the work of building important geological drillings database nationwide and finishing it at the end of 2015. The main task include: collecting and sorting data of geological drillings; digitizing the data; building database, setting up service platform and so on.

Comment: Building important geological drillings database mean a great deal to raising efficiency of the service of geological drillings data, developing economy and the Prospecting Strategic Action.

Qinghai Province lode gold mine prospecting project issued and implemented

In September, Qinghai Province Lode Gold Mine Prospecting Project (2013~2020) officially issued and implemented. The project divided Qinghai into northern Kunlun River lode gold mine prospecting target area and the other 7 target areas. The project had two stages: the amount of newly increased gold resource reaching 230 tons from 2013 to 2015 and resource reserve in whole province reaching 650 tons; by 2020, arranging 2 to 3 new gold mine package exploration areas, discovering 5 to 8 medium and large gold resource bases, newly increased gold resource reserve 600 tons and accumulated detected quantity of resource 1250 tons.

Comment: The continuity of gold mine exploration work was affected due to lack of long deployments and specialized and stable geological teams. In recent years, according to strengthen geological exploratory work in eastern Kunlun areas, Dachang, Wulonggou and Walegen gold mines were found. And the eastern Kunlun area became a famous gold metallogenic belt. Qinghai Province promoted researches and appraisals as well as exploration degree by scientifically planning lode gold mine geological exploratory work, hoping to a major breakthrough in gold mine prospecting.

Our nation found gold in siegenite for the first time

In early October, the first detachment of People’s Armed Police Force Gold found a new gold loaded mineral—siegennit, in Jinchang copper-gold deposit of Heilongjiang Province. Jinchang diggings which is a super-sized gold ore exploration base and key scientific research base of the People’s Armed Police Force Gold, is located in southeastern Heilongjiang. In the late twentieth century, the first detachment entered the diggings. By now, 23 ore bodies, 4 mineralization bodies and more than 80 tons of gold reserve with industrial value were explored. Experts say deep Jinchang copper-gold deposit has a good prospective of prospecting and mineral deposit can be enlarged.

Comment: This is the first time in the world that discovering gold in siegennit, and filling in the blanks of gold prospecting field. As gold loaded mineral, siegennit mainly can be found in deep porphyry bodies and average purity of native gold they containing is higher than other gold loaded mineral. This theoretical research proves that gold can mineralize at high temperature and deep stratum, and has theoretical and practical guiding significance for gold prospecting.

Our nation used drones for geophysical prospecting surveying

In October, the project “drones based development of measuring technique and application demonstration of geophysical airborne prospecting integrated station” leaded by Department of Geophysical and Geochemical of China Geological Survey made important progress. According to the self-developed prospecting system, department carried out magnetic and radioactive measurement based on drones in Duobao Mountain in Nenjiang County of Heilongjian Province. The flight altitudes were 180 meters with the scale 1:10000 and 120 meters with the scale 1:50000. Total length of survey lines were 2980 kilometers and controlling area were 200 square kilometers. Production and flight test was accomplished and measured data of high quality was gotten.

Comment: The first success of test production and flight of drones symbolizes an integral and practical low-altitude drones aerial geophysical prospecting integrated exploration system is formed. This will provide technical support for our nation’s mineral resources exploration.

Our nation’s first shale gas venture fund was set up

Chongqing Shunlian Shale Gas Venture Fund was started on October 17^th. The initial fund of 250 million Yuan has been collected. It will become the first technical venture fund emphasizing high-tech innovation and investment in shale gas field.

Comment: This fund will invest companies about the research and development, sales, technique, equipment service of shale gas, as well as other energy and resources. It will open a new avenue for shale gas exploration and development in Chongqing.

Construction of our nation’s venture exploration capital market started

During China Mining 2013, Tianjin International Mining Exchange held venture exploration capital market strategic investor signing and ceremony and China dominant minerals spot trading platform launching ceremony. At the ceremony, Tianjin Jiyuan Geological Exploration Limited Liability Company signed the Letter of Intent for Venture Exploration Stock Rights and Financing with Shenzhen Zhongkeyingchuang Investment and Development Company and Jiangxi Mogenli Industrial Limited which symbolizing the start of the construction of our nation’s venture exploration capital market.

Comment: The construction of China’s venture exploration capital market will connect venture exploration enterprises with market, disperse investment risks and improve the standard of market investment and financing.

Ministry of Land and Resources declared to establish the third batch of package exploration areas

To speed up the Prospecting Strategic Action, the Ministry of Land and Resources decided to establish the third batch of package exploration areas including 31 districts and announced list and scope on December 12^th.

Comment: According to the “Five Haves” principles which are having large mines, having potential, having plan, having positivity and having safeguard, 31 else districts become national level package exploration areas. The total number of package exploration areas grows to 109, and total area is about 50.55 square kilometers. It is believed that the progress of the third batch of package exploration areas will bring more good news.

The largest strontium deposit in Asia was found in Chongqing

In December, 205 geological team of Chongqing Bureau of Geology and Minerals Exploration had breakthrough in Xinglong diggings. They found the largest strontium deposit in Asia with more than 20 million tons of resources. And it was worth about 2 billion Yuan.

Comment: The strontium resources are important strategic mineral resources in the world and play more and more important roles in our national economy. At present, the variety of our nation’s strontium chemical products is single, many downstream products are not available and the abstraction of strontium is in the development stages. In order to fully utilize abundant strontium resources in our nation, we should strengthen researches on applied science and enhance international cooperation.

The Chinalco-Rio Tinto accelerated porphyry copper deposit prospecting

On December 16^th, witnessed by Governor of Heilongjiang Province Lu Hao, chairman of Chinalco Company Xiong Weiping and Ke Yan Shu who doubled China Business Group’s Executive Committee member of Rio Tinto Company with CEO of Iron Ore Group, vice-governor of Heilognjiang Province Yu Sha Yan and chairman of Chinalco-Rio Tinto Wang Dongsheng signed cooperation agreement on Handaqi-Sandaowanzi fast break areas package exploration project. The project aimed to accelerate porphyry copper deposit prospecting in package exploration areas.

In the package exploration work, as important strategic investment and main part of package exploration of this project, Chinalco-Rio Tinto will adopt methods of quick start, quick verification, quick breakthrough, quick quit and quick development, fully take advantage of new idea, new technique and new method, speed up exploration, make breakthrough in central and eastern China. With regard to world-class resources, Chinalco-Rio Tinto will input ample resources, insist the concept of “green mining, harmonious development”, advance integration, exploit, construct and operate world first class mineral resources.

Comment: Signing this contract means another reform and innovation of our nation’s prospecting and resource development. It is an important practice of deepening reform of the Third Plenary Session of the 18^th CPC which symbolizing a new level of cooperation on resources between Heilongjiang Province, Chinalco Company and Rio Tinto Company, as well as a milestone for Chinalco-Rio Tinto on exploration work in northeastern China.

The largest coal field of Henan Province was found in Shangqiu

A super-sized coal field was found in Shangqiu, Henan Province. On October 5^th, Zhang Xingliao, the Chief engineer of Department of Land and Resources of Henan Province said, this was the largest coal field of Henan. The reserve of Pingdingshan was only more than 7 billion. And reserve of the new coal field was three times Pingdingshan coal field. This “black dragon” had 23 billion coal resources.

Comment: Henan is known as a large province. Pingdingshan Group, Shenhuo Group, Zhengzhou Coal Group and Henan Energy and Chemical Industry Group play important roles in the construction of coal exploitation in Henan. However, as non-renewable resources, coal resources become less and less with the exploitation. Under this condition, this super-sized coal field which has 23 billion tons resources, plays an important role in shoring up its position of coal mine province.

45 square kilometers of land in Qinghai Province contained shale gas

In December, the latest prospecting of Qinghai Geology Department showed that Qinghai Province which was located in eastern Qinghai-Tibet Plateau had abundant shale gas with 45 square kilometers. It took up half area of Qinghai. Neopaleozoic and Mesozoic had wide distribution, thick stratum and a high organic content. They could be seen as one of the important serious of strata of shale gas exploration and research in Qinghai.

Comment: In terms of the goal brought up in the 12^th Five-Year Plan, by 2014, proved reserve should reach one trillion cubic meters with annual output of 6.5 cubic meters. Insider said exploration results in our nation exceeded expectation more than once, and the third round shale gas tendering was approaching, our nation were expected to trigger investment and mining boom of unconventional oil and gas again. Once it was exploited successfully, our nation would thoroughly change the situation of energy shortage. (Sun Haoyu) （translated by TLRHVC）

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Editor’s note: 2013 was the end of the first stage (2011-2013) of the Prospecting Strategic Action. Trough three years’ unremitting efforts, geologists submitted satisfactory answers to our nation and people. Not only have the work of the first stage been completed according to the schedule, but also have achieved the goals that the uranium and tungsten mines would be finished 5 years in advance (from 2011 to 2015), the molybdenum and nickel mines would be finished 8 to 10 years in advance (from 2011 to 2020).

In 2013, with reality, each province has made positive exploration on encouraging and attracting social capital investment, the distribution of the results and profits of prospecting, incentive policy of prospecting, supporting the reform and development of the geological prospecting units and coordinating the external environment of the reconnaissance. At the same time, depending on the innovation of the concept, institution and science and technology, geologists got fruitful results in the ending year of the first stage of the Prospecting Strategic Action: from the classified reform of the geological prospecting units to the construction of the exploration risk capital markets, from the prospecting breakthrough of the old mining areas to the discovery of the new areas, from the in-depth advancing of the package exploration to the overseas mineral resources base which established by the enterprises under the guidance of the “Out-going” strategy. The consensus from all parties effectively promoted the implementation of the Prospecting Strategic Action. The achievement of the exploration have provided resource guarantee for our country’s economic and social development.

The approval of Shanxi Province’s shale gas geological survey and evaluation project

In January, the project “Shanxi Province’s shale gas geological survey and evaluation” applied by the Shanxi Coal Geological Bureau had been approved by the Shanxi Province Development and Reform Committee. This project emphasized the research of the spatial development and comprehensive features of the effective source rock and container rock of the shale gas and sand gas in the valuable stratum in Shanxi Province, analyzed resource distribution and storage of shale gas and sand gas in Shanxi and studied the appropriate exploration methods fitted the condition of the gas reservoir of the shale gas and sand gas in Shanxi.

Comment: In recent years, “shale gas” is a hot word. The resource-rich areas are active in exploiting. As a resource-rich province, Shanxi is no exception. Exploiting shale gas is a systems engineering, they should use the advanced technology and experience from China and abroad for reference, build a cooperation platform and integrate scientific and technological resources. In the meantime, scientific and technical personnel should free their minds, look around and devote themselves to meeting the government’s needs, improving services and setting up scientific research project.

The first batch of potassic salt ore core got to the Nation’s Geological Sample Center

On February  3^rd, the first batch of potassic salt ore core arrived at the nation’s geological material date center safely. The rock core came from the Da Qaidam Town which was located in the north rim of the Qaidam Basin in Qinghai Province and was formed by the potassic salt ore general survey project which supported by the Qinghai Geological Exploration Fund. This time, one drill was in Gas Hure mining area and the other in Nanbaxian mining area. The total footage was 2503.5 meters, the total length of the rock core was 1857 meters.

Comment: Qaidam Basin is located in the north of the Qinghai- Tibet Plateau and formed in Jurassic Period. It is our nations typical mainland sylvite basin, and seldom abroad. The exploration of the rock core has great influence on studying the sedimentary environment, analyzing the formation of potassic salt ore, completing metallogenic theory and guiding the future prospecting.

Start of the classification and reform of public institutions of Guangdong Geological Bureau

On February 28^th, the mobilization meeting of the classification and reform of public institutions of Guangdong Geological Bureau was held in Guangzhou, which symbolizing the start of the classification and reform of public institutions. This reform intensified the function of “livelihood geology” which emphasizing geological prospecting and disaster prevention and control. For this purpose, the bureau adjusted and set up Guangdong Geological Survey and four more public benefit first class geological exploration units (others were second class). According to the indication of reform document, integrating two geological teams in one city into one integrated team. The original ten geological teams which started with number 7 changed their names. They were named “Guangdong Geological Bureau No. 1 to No.10 Geological Team”. Combined with Shenzhen Geological Bureau and Foshan Geological Bureau, all of them hung out the shingle “Geological Disaster Emergency Rescue and Technical Center”. They followed the management system “co-managed by province and city and province is main”. This measure was unprecedented and it was the highlight of the reform.

Comment: The implementation of “separation of enterprise from public institutions”, the classification and reform of Guangdong Geological Bureau and the innovation and intensification of system and mechanism of geological teams will improve the level and capacity of geological teams in serving local economic development, then promote sound and rapid development of geological work.

The first “top one hundred” geological prospecting units

In April, the rank of the first “top one hundred” was audited and examined by the sorting steering committee of Minerals Exploration Branch of China Mining Association which meant the birth of the first “top one hundred” geological prospecting units. There were 74 mineral exploration geological teams, 13 hydrogeology teams and 13 professional exploration technology service teams in the list of “top one hundred”. Another 15 geological teams get rankings in geological drilling. This ranking was protocolled to be held biennially.

Comment: The “top one hundred” geological teams ranking contributed to push forward reform, establish a new style of the industry, optimize work environment. It was also conducive to disseminating geological exploring industry, winning market and improving core market competitiveness of the geological exploring units. It benefited nation, people and geological exploring units.

The accomplishment of nation’s fully equipped areas drilling distribution diagram

In April, the nation’s fully equipped areas drilling distribution diagram and drilling catalog which compiled by the “nation’s geological drilling basic information check” project of Nation’s Land and Resources Geological Sample Center has been accomplished. The catalog gathered 71 non-uranium fully equipped areas drilling distribution diagram and drilling catalog which announced by Ministry of Land and Resources. It involved Hebei, Inner Mongolia, Chongqing, Tibet, Qinghai, Xinjiang and a total of 23 provinces (municipality and city). It had 24 volumes in all, including 76980 drilling information.

Comment: This achievement visually showed the current distribution status and characteristics of distribution of the fully equipped areas drilling, as well as the geological working level and research results, providing reliable basic information for the overall planning, unified deployment and a reasonable and orderly new drilling work.

Startup of the Guangxi Province “twelfth-five” rural drinking water safety and drilling project

In May, Guangxi Province “twelfth-five” rural drinking water safety and drilling project started. Engineering technicians from 17 geological exploration units went to operation points. In accordance with the plan, in 2014, geological exploration institutions would dig 1750 wells in rural areas and solve 100 million people’s drinking safety problem.

Comment: Geological exploration units in Guangxi made good use of their advantages and took part in livelihood projects actively. They contributed their efforts to the improvement of rural inhabitable environment, renewal of water quality, development of rural ecology, growth in living standard and harmony of the society.

A super-large gold mine was explored in Xinjiang

In mid-May, geological workers evaluated a super-huge gold mine with gold reserves of 53 tones in Xinyuan County, Ili Kazakh Autonomous Prefecture, Xinjiang Uygur Autonomous Region. It was a new breakthrough since the No.1 Regional Survey Team of Xinjiang Bureau of Geology and Mineral Exploration Development found Axi gold mine in 1988. This new gold mine was one of the major projects of “358 plan”. And the project was carried out by the No.1 Regional Survey Team.

Comment: This newfound gold mine is the biggest in western Tianshan area and situated in the same minerogenetic province with many large and supersized gold miners in Central Asian countries. As extension of the “Central Asian gold belt” within China, it had favorable minerogenetic condition and hopeful prospecting potential. At the same time, alterated rocks prospecting opened up new direction in western Tianshan Narat area.

A world-class supersized tungsten ore was found in Jiangxi Province

On May 26^th, Jiangxi Bureau of Geology and Mineral Exploration Development declared after finding the supersized tungsten ore in southwest Jiangxi, they found another world-class supersized tungsten ore in Zhuxi diggings, Fuliang County, northeast Jiangxi. They penetrated the maximum ore body thickness to 449 meters. The highest grade of the tungsten ore reached up to 8%, average grade was between 0.64% and 0.65%, amounted to five times the industrial grade and penetrated almost 30 meters thick copper ore. It was estimated that the amount of tungsten and copper exceeded 100 million tons, achieved large scale.

Comment: The south Jiangxi area is known as “The City of Tungsten” for its abundant tungsten resources. But on account of exploiting, the tungsten reserves continue to decline. The breakthrough in Zhuxi diggings makes the south, northeast and northwest Jiangxi a situation of tripartite confrontation, and enhances our nation’s position of tungsten resources in the world.

Three Inner Mongolia geological exploration units established mining group

In June, the Inner Mongolia Autonomous Region Bureau of Geology and Mining, Nonferrous Metal Geological Exploration Bureau and Coalfield Geology Bureau established Inner Mongolia Mining Limited Liability Company. This company was a departmental level unit authorized by autonomous region government. High starting point, high standard, high efficiency and large scale, clustering, capitalization are its goal. Its characteristics are new system, new mechanism, new science and technology, new construction and new culture. Then it integrated mineral resources exploration and development, and developed simultaneously resources industrialization and capitalization.

Comment: Institutions and enterprises have not been separated totally, fully market-oriented mechanism have not been built, so just as other geological exploration units, the anti-risk capability of Inner Mongolia geological exploration units are not strong enough. Establishing mining group contributes to deepening geological exploration reform, growing mining industry economy and promoting the economic and industrial advantages of the mining resources in the autonomous region.

The regularity of ore formation and forecasting project results of Daying uranium ore passed acceptance

In July 1^st, the regularity of ore formation and forecasting project results of Daying uranium ore passed acceptance by expert group, setting an example of combining geological mineral exploration research with production. This special research project was built for Daying uranium ore exploration by Center Geological Exploration Fund of Ministry of Land and Resources. Its main purpose was studying the sequence of ledge, setting up marker bed, researching the sand body’s distribution and interlayer oxidized zone’s development characteristics of target stratum, confirming forward line’s location of interlayer oxidized zone, building metallogenic model and regional prospecting model, enriching leachable sandstone-type uranium ore prospecting theory and guiding this type’s uranium ore prospecting.

Comment: Daying uranium ore prospecting project is a productive project which arranging scientific research project as well and making them combined tightly and form a win-win situation. This is a pioneering work of our nation’s current project management system as well as one of the six innovations of Daying uranium ore prospecting management. Due to a series of innovations, Daying uranium ore becomes a successful example of high efficiency, low cost and big result.

Major breakthrough in our nation’s uranium drilling

On July 17^th, China National Nuclear Corporation announced in Fuzhou, Jiangxi Province, the first scientific drilling of our nation’s uranium ore refreshed the old record 1200 meters with 2818.88 meters. In addition, the drilling equipments were researched and developed independently, and their digitalization and intellectualization filled gaps in this area. In the matter of drilling technology, we found polymetallic ore including uranium, lead, zinc and copper, and set up rock core mineralization alteration hyperspectral technology for the first time.

Comment: The breakthrough fills in gaps in our nation’s deep uranium ore prospecting technology and has a profound impact on improving guarantee degree of domestic natural uranium and meeting the need of the development of nuclear power. Continental scientific drilling is known as “telescope deep inside the Earth”. For so long, the prospecting depth of uranium ore in our nation was less than 500 meters and had a big gap in prospecting technology compared with France, Germany, Canada and other nations. This breakthrough expends our uranium prospecting space to a large extent.

Two rare rubidium production regions were found in Guangdong Province

On July 18^th, prospecting breakthrough strategic action report meeting was held by Department of Land and Resources of Guangdong Province. Reporter learned that after three years of efforts, Guangdong Province found two rare rubidium production regions in Zijin County and Jiaoling County which located in southern Guangdong section of Wuyi Mountain metallogenic belt. It estimated that the total of rubidium resources reach up to more than 3.6 million tons.

Comment: Up to now, 19 orefields have rubidium resource 1.85 million tons, but most of them cannot be utilized. The estimated quantity of rubidium resources in these two regions are 1000 times and 800 times the standard of nation’s large mineral deposits. And they also have high recovery rate. Rubidium is a type of white waxy alkali metal with soft texture and light weight. The outermost electrons of rubidium atoms are unstable, so they can be easily emitted. According to this feather, scientists invented MHD generation and thermoelectric generation. This new discovery will contribute to a great technical revolution of our nation’s power technology and energy utilization.

A super-sized gold and zinc ore was found in Xinjiang

In July, a piece of good news came from Dunde which is located in deep Mountain Tianshan: Dunde iron ore ranked among large iron ores with 187 million tons of iron resource. At the same time, gold and zinc resources were also found in Dunde. The total amount of gold reached 50 tons and zinc was 1.5 million tons. Both of them were big deposits. The director of Xinjiang Bureau of Geology and Mineral Resources Zeng Xiaogang said:” In Xinjiang, it is the first time we find three kinds of minerals in one ore body and the amount of resources are all large-scale.”

Comment: Dunde diggings are located in eastern Awulale metallogenic belt in western Tianshan. It is a volcanic rock zone extending 400 thousand kilometers and containing astonishing mineral resources. The quantity of iron resources in Awulale polymetallic metallogenic belt can provide iron to iron and steel enterprises in Xinjiang for 30 years. The breakthrough in prospecting gold, zinc and other mineral resources makes this metallogenic belt play a more important role in supporting economic and social development of Xinjiang.

Our nation will build important geological drillings database

In August, Ministry of Land and Resources implemented Notice on Building Important Geological Drillings Database, deciding to carry out the work of building important geological drillings database nationwide and finishing it at the end of 2015. The main task include: collecting and sorting data of geological drillings; digitizing the data; building database, setting up service platform and so on.

Comment: Building important geological drillings database mean a great deal to raising efficiency of the service of geological drillings data, developing economy and the Prospecting Strategic Action.

Qinghai Province lode gold mine prospecting project issued and implemented

In September, Qinghai Province Lode Gold Mine Prospecting Project (2013~2020) officially issued and implemented. The project divided Qinghai into northern Kunlun River lode gold mine prospecting target area and the other 7 target areas. The project had two stages: the amount of newly increased gold resource reaching 230 tons from 2013 to 2015 and resource reserve in whole province reaching 650 tons; by 2020, arranging 2 to 3 new gold mine package exploration areas, discovering 5 to 8 medium and large gold resource bases, newly increased gold resource reserve 600 tons and accumulated detected quantity of resource 1250 tons.

Comment: The continuity of gold mine exploration work was affected due to lack of long deployments and specialized and stable geological teams. In recent years, according to strengthen geological exploratory work in eastern Kunlun areas, Dachang, Wulonggou and Walegen gold mines were found. And the eastern Kunlun area became a famous gold metallogenic belt. Qinghai Province promoted researches and appraisals as well as exploration degree by scientifically planning lode gold mine geological exploratory work, hoping to a major breakthrough in gold mine prospecting.

Our nation found gold in siegenite for the first time

In early October, the first detachment of People’s Armed Police Force Gold found a new gold loaded mineral—siegennit, in Jinchang copper-gold deposit of Heilongjiang Province. Jinchang diggings which is a super-sized gold ore exploration base and key scientific research base of the People’s Armed Police Force Gold, is located in southeastern Heilongjiang. In the late twentieth century, the first detachment entered the diggings. By now, 23 ore bodies, 4 mineralization bodies and more than 80 tons of gold reserve with industrial value were explored. Experts say deep Jinchang copper-gold deposit has a good prospective of prospecting and mineral deposit can be enlarged.

Comment: This is the first time in the world that discovering gold in siegennit, and filling in the blanks of gold prospecting field. As gold loaded mineral, siegennit mainly can be found in deep porphyry bodies and average purity of native gold they containing is higher than other gold loaded mineral. This theoretical research proves that gold can mineralize at high temperature and deep stratum, and has theoretical and practical guiding significance for gold prospecting.

Our nation used drones for geophysical prospecting surveying

In October, the project “drones based development of measuring technique and application demonstration of geophysical airborne prospecting integrated station” leaded by Department of Geophysical and Geochemical of China Geological Survey made important progress. According to the self-developed prospecting system, department carried out magnetic and radioactive measurement based on drones in Duobao Mountain in Nenjiang County of Heilongjian Province. The flight altitudes were 180 meters with the scale 1:10000 and 120 meters with the scale 1:50000. Total length of survey lines were 2980 kilometers and controlling area were 200 square kilometers. Production and flight test was accomplished and measured data of high quality was gotten.

Comment: The first success of test production and flight of drones symbolizes an integral and practical low-altitude drones aerial geophysical prospecting integrated exploration system is formed. This will provide technical support for our nation’s mineral resources exploration.

Our nation’s first shale gas venture fund was set up

Chongqing Shunlian Shale Gas Venture Fund was started on October 17^th. The initial fund of 250 million Yuan has been collected. It will become the first technical venture fund emphasizing high-tech innovation and investment in shale gas field.

Comment: This fund will invest companies about the research and development, sales, technique, equipment service of shale gas, as well as other energy and resources. It will open a new avenue for shale gas exploration and development in Chongqing.

Construction of our nation’s venture exploration capital market started

During China Mining 2013, Tianjin International Mining Exchange held venture exploration capital market strategic investor signing and ceremony and China dominant minerals spot trading platform launching ceremony. At the ceremony, Tianjin Jiyuan Geological Exploration Limited Liability Company signed the Letter of Intent for Venture Exploration Stock Rights and Financing with Shenzhen Zhongkeyingchuang Investment and Development Company and Jiangxi Mogenli Industrial Limited which symbolizing the start of the construction of our nation’s venture exploration capital market.

Comment: The construction of China’s venture exploration capital market will connect venture exploration enterprises with market, disperse investment risks and improve the standard of market investment and financing.

Ministry of Land and Resources declared to establish the third batch of package exploration areas

To speed up the Prospecting Strategic Action, the Ministry of Land and Resources decided to establish the third batch of package exploration areas including 31 districts and announced list and scope on December 12^th.

Comment: According to the “Five Haves” principles which are having large mines, having potential, having plan, having positivity and having safeguard, 31 else districts become national level package exploration areas. The total number of package exploration areas grows to 109, and total area is about 50.55 square kilometers. It is believed that the progress of the third batch of package exploration areas will bring more good news.

The largest strontium deposit in Asia was found in Chongqing

In December, 205 geological team of Chongqing Bureau of Geology and Minerals Exploration had breakthrough in Xinglong diggings. They found the largest strontium deposit in Asia with more than 20 million tons of resources. And it was worth about 2 billion Yuan.

Comment: The strontium resources are important strategic mineral resources in the world and play more and more important roles in our national economy. At present, the variety of our nation’s strontium chemical products is single, many downstream products are not available and the abstraction of strontium is in the development stages. In order to fully utilize abundant strontium resources in our nation, we should strengthen researches on applied science and enhance international cooperation.

The Chinalco-Rio Tinto accelerated porphyry copper deposit prospecting

On December 16^th, witnessed by Governor of Heilongjiang Province Lu Hao, chairman of Chinalco Company Xiong Weiping and Ke Yan Shu who doubled China Business Group’s Executive Committee member of Rio Tinto Company with CEO of Iron Ore Group, vice-governor of Heilognjiang Province Yu Sha Yan and chairman of Chinalco-Rio Tinto Wang Dongsheng signed cooperation agreement on Handaqi-Sandaowanzi fast break areas package exploration project. The project aimed to accelerate porphyry copper deposit prospecting in package exploration areas.

In the package exploration work, as important strategic investment and main part of package exploration of this project, Chinalco-Rio Tinto will adopt methods of quick start, quick verification, quick breakthrough, quick quit and quick development, fully take advantage of new idea, new technique and new method, speed up exploration, make breakthrough in central and eastern China. With regard to world-class resources, Chinalco-Rio Tinto will input ample resources, insist the concept of “green mining, harmonious development”, advance integration, exploit, construct and operate world first class mineral resources.

Comment: Signing this contract means another reform and innovation of our nation’s prospecting and resource development. It is an important practice of deepening reform of the Third Plenary Session of the 18^th CPC which symbolizing a new level of cooperation on resources between Heilongjiang Province, Chinalco Company and Rio Tinto Company, as well as a milestone for Chinalco-Rio Tinto on exploration work in northeastern China.

The largest coal field of Henan Province was found in Shangqiu

A super-sized coal field was found in Shangqiu, Henan Province. On October 5^th, Zhang Xingliao, the Chief engineer of Department of Land and Resources of Henan Province said, this was the largest coal field of Henan. The reserve of Pingdingshan was only more than 7 billion. And reserve of the new coal field was three times Pingdingshan coal field. This “black dragon” had 23 billion coal resources.

Comment: Henan is known as a large province. Pingdingshan Group, Shenhuo Group, Zhengzhou Coal Group and Henan Energy and Chemical Industry Group play important roles in the construction of coal exploitation in Henan. However, as non-renewable resources, coal resources become less and less with the exploitation. Under this condition, this super-sized coal field which has 23 billion tons resources, plays an important role in shoring up its position of coal mine province.

45 square kilometers of land in Qinghai Province contained shale gas

In December, the latest prospecting of Qinghai Geology Department showed that Qinghai Province which was located in eastern Qinghai-Tibet Plateau had abundant shale gas with 45 square kilometers. It took up half area of Qinghai. Neopaleozoic and Mesozoic had wide distribution, thick stratum and a high organic content. They could be seen as one of the important serious of strata of shale gas exploration and research in Qinghai.

Comment: In terms of the goal brought up in the 12^th Five-Year Plan, by 2014, proved reserve should reach one trillion cubic meters with annual output of 6.5 cubic meters. Insider said exploration results in our nation exceeded expectation more than once, and the third round shale gas tendering was approaching, our nation were expected to trigger investment and mining boom of unconventional oil and gas again. Once it was exploited successfully, our nation would thoroughly change the situation of energy shortage. (Sun Haoyu) （translated by TLRHVC）

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.