CHINA MINING News

Oil, gas investment dwindles

Source: www.chinamining.org     Citation: Global Times        Date: July 12, 2017

China`s investment in petroleum and natural gas exploration and mining plunged in 2016 due to continuing depressed oil prices, although a basic geological survey of oil and gas made progress, according to a report posted on the website of the Ministry of Land and Resources on Monday. 

In 2016, the investment in petroleum and natural gas exploration stood?at 52.75 billion yuan ($7.75 billion), and?mining at 133.34 billion yuan, down 12.1 percent and 29.6 percent respectively, returning to the level of a decade ago, the report said.

National newly-proven oil geological reserves stood at 914 million tons in 2016, below 1 billion for the first time over the past decade. For the natural gas, the figure was 726.56 billion cubic meters, exceeding 500 billion for the 14th straight year, the report showed.

About CHINA MINING

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

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

IEA chief hails China`s efforts on combustible ice

Source: www.chinamining.org     Citation: Xinhua              Date: July 12, 2017

ISTANBUL — Fatih Birol, executive director of the International Energy Agency (IEA), on Tuesday lauded China`s efforts to extract combustible ice from sea.

Referring to the fact that China leads the world in terms of its research and development efforts, Birol said "China takes once again the leadership." 

"Today China is number one in terms of the wind, number one in terms of the solar and number one in terms of the energy-efficiency effort as well as in nuclear power," he told Xinhua.

On Sunday, China completed in the South China Sea a 60-day trial of mining gas hydrates, commonly known as combustible ice, marking a breakthrough in the search for alternative clean energy resources. 

It was announced that the exploration produced over 300,000 cubic meters of gas, mainly methane, with an average daily extraction of more than 5,000 cubic meters of high-purity gas, and a highest daily output of 35,000 cubic meters. 

"What we are seeing is that the natural gas industry is in transformation," Birol said. "We are seeing more and more unconventional gas being part of the total gas mix." 

Speaking of the ongoing efforts on methane hydrate by China, Japan and others, as US is doing on shale gas and Australia on coalbed methane, the IEA chief commented "it is not a technology for today but maybe for tomorrow." 

China began its research on combustible ice in 1998, as one cubic meter of combustible ice, a kind of natural gas hydrate, equals 164 cubic meters of regular natural gas.

About CHINA MINING

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

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

Ghana signs $10bn MOU with China to Develop its Bauxite Industry

Source: www.chinamining.org     Citation: footprint2africa.com        Date: July 10, 2017

Ghana has signed a $10 billion memorandum of understanding (MOU) with China to develop its bauxite industry, the country’s Senior Minister Yaw Osafo-Maafo has said. 

Growth in the West African country slowed sharply in 2014 due to a fiscal crisis and tumbling commodity prices following years of economic expansion at around 8 percent on the back of gold, cocoa and oil exports. 

Taking office in January, President Nana Akufo-Addo has outlined a programme of job creation through the private sector and rural development. 

“To develop the bauxite project with its railway and converting bauxite into aluminium we will need about $10 billion … we signed an MOU,” Osafo-Maafo told reporters at a conference in London after arriving from China. 

“The money will come from the Chinese Development Bank, the implementation of the project will come from other agencies, infrastructure agencies in China, like China Railway,” he said. 

The funds from Beijing would contribute towards building 1,400 km of a planned 4,000 km railway network, which would connect bauxite mines and production sites as well as establish a rail link into neighbouring Burkina Faso. 

Details such as interest rates and terms had yet to be decided, he said, speaking on the sidelines of an investor conference organised by Developing Market Associates. 

During his China visit, a second MOU had been signed between China and the Association of Ghana Industries which could lead to some $2 billion being invested in agricultural projects and industries, Osafo-Maafo said. 

This was part of a government pledge to “build a dam in every village and a factory in every district”, he said.

Asked about the government’s plan to issue a 10 billion cedi ($2.25 billion) bond, Osafo-Maafo said he expected the debt to be issued towards the end of the year, and with maturities ranging from 5-15 years. 

Earlier in June, Ghana had named Standard Chartered Bank and local lender Fidelity as lead managers for the issue expected to clear debts owed by public sector energy utilities.

About CHINA MINING

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

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

Iran, China, France sign $4.8 billion gas deal

Source: www.chinamining.org     Citation: Xinhua          Date: July 04, 2017

Representatives from cooperation parties attend the deal signing ceremony in Teheran, Iran,
on July 3, 2017. (Xinhua/Ahamad Halabisaz)

Iran and a consortium of Chinese and French energy giants signed a multi-billion-dollar deal here on Monday to develop a major Iranian gas field in the Persian Gulf. 

The deal followed a Memorandum of Understanding (MOU) signed by the National Iranian Oil Company and a consortium involving China National Petroleum Corporation (CNPC), France`s Total and Iran`s Petropars in November 2016 to develop Iran`s South Pars (SP11) gas field. 

At Monday`s signing ceremony, Iran`s Petroleum Minister Bijan Namdar Zanganeh, Total`s CEO Patrick Pouyanne and Lv Gongxun, representatives of the CNPC were present. 

According to Zanganeh, the contract for development of the gas field is worth 4.8 billion U.S. dollars. The contract will be carried out in two phases with a total period of 20 years. 

At each stage, 2.4 billion U.S. dollars of foreign fund will be allocated for the project, the minister said, adding that Total will operate the SP11 project with a 50.1 interest alongside CNPC with 30 percent and Petropars with 19.9 percent. 

Iran expects to produce as much as 56 million cubic meters per day of natural gas from the field once it is in full swing, he said. 

The South Pars field is a natural gas condensate field located in the Persian Gulf. It is the world`s largest gas field shared between Iran and Qatar. 

According to the International Energy Agency, the field holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of natural gas condensate.

About CHINA MINING

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

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

Imported aluminum products do not impair US national security: Chinese official

Source: www.chinamining.org Citation: Xinhua Date: June 26, 2017

WASHINGTON - Imported aluminum products do not impair US national security or the American economy, a Chinese official said here on Thursday. 

"US national security requirements for aluminum are entirely and safely supplied by US domestic enterprises," Li Xie, director of export division one at China`s Ministry of Commerce, said at a public hearing on the national security implications of US aluminum imports at the US Department of Commerce. 

"The amount of aluminum required by national defense is small, accounting for less than two percent of the US total domestic consumption of aluminum," he said. 

The Trump administration in April launched the so-called Section 232 investigations into imported aluminum products, a rarely-used trade tool to limit imports on the grounds of protecting national security, which could lead to legal challenges at the World Trade Organization (WTO). 

Li said the WTO legal framework does not permit members to impose restrictive trade measures through the abusive invocation of a "national security" exception. 

"Many members and interested parties have raised serious concerns that trade restrictions in this case may trigger similar applications by other members," he warned.

"We hope the US Department of Commerce will carry on this investigation cautiously and fairly, and refrain from taking unilateral restrictive measures on imported aluminum products," Li said, urging the US government to conduct this proceeding "in a balanced and transparent manner." 

Meanwhile, in a written comments, obtained by Xinhua, to US Commerce Department by China Non-Ferrous Metals Industry Association (CNIA), the Chinese industry association said aluminum products exported from China to the United States "have not endangered US national security in any respect." 

Aluminum products from China that are imported into the US are mostly general and medium-end products with civilian applications, while aluminum products imported into China from the US are mostly high value-added thick plates which are used in automobile and airplane structural components, according to the CNIA.

"Aluminum products from China and US-made aluminum products are highly complementary," the CNIA noted, adding China`s aluminum industry is critical to stimulating global economic growth and boosting global aluminum consumption. 

In terms of the global overcapacity issue, "the world should not only work together to guide the withdrawal of inefficient production capacity, but also to expand aluminum applications in newly emerging sectors," the CNIA said, opposing the imposition of trade or investment restrictions on the grounds of national security.

"The CNIA is willing to work together with aluminum industries in other countries to strengthen cooperation, remove barriers, and further push the development of global aluminum industry to benefit humanity," it added.

About CHINA MINING

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

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

China leads the pack

Source: www.chinamining.org Citation: China Daily Date: June 19, 2017

A platform is used to collect combustible ice in the South China Sea recently. GUO JUNFENG/CHINA DAILY

Though still 15 years from commercial use, so-called combustible ice and its successful mining in China is seen as a breakthrough toward a global energy revolution.

Chinese researchers have explored some 210,000 cubic meters of combustible ice trapped in frozen crystals in the South China Sea in the 30 days since a test drilling and production operation in early May. Daily production reached 6,800 cu m.

It will be another energy revolution, led by China following the U.S. shale revolution, reshaping the global energy mix, said Li Jinfa, deputy director of China Geological Survey, which is under the Ministry of Land and Resources.

Reserves of gas hydrate, as combustible ice or flammable ice is known, in the South China Sea are estimated at 80 billion metric tons of oil equivalent, he added.

The ministry said it would formulate policies to encourage participation in the exploration of various types of combustible ice, while aspects including exploration block delineation, granting of licenses for mining, mining registration and development will be given priority to pave a path for commercialization of the frozen fuel.

According to a report on China`s energy and mineral geology survey in 2016, China`s gas hydrate could last the country for 100 years and could well be China`s next big opportunity in energy.

China`s choice of vigorous expansion of flammable ice mining at the moment is due to its urgency to replace conventional energy to optimize the energy structure and relieve problems caused by energy shortages, analysts said.

The nation now relies heavily on crude imports. Successfully mining flammable ice will substantially boost its energy security while lifting the country`s clean energy production technologies to a new level, said Lu Hailong, a professor at the Institute of Ocean Research at Peking University.

Han Wenke, director of the Energy Research Institute at the National Development and Reform Commission, said environmental concerns had been pushing China to further upgrade its energy mix. Right now, China has a relatively high proportion of coal, which creates heavy pollution.

According to the International Energy Agency, China has been increasingly relying on imported oil as demand increases, and it is estimated that China`s reliance on oil imports in 2020 could be even greater than the government`s plan suggests.

All these are pushing China toward a cleaner fuel alternative.

A researcher shows off combustible ice in a laboratory in Zhuhai, Guangdong province. GUO JUNFENG/CHINA DAILY

Leader on global stage

China is not the first country to try mining flammable ice. Japan made headway in 2013 and again last month, while the U.S. government also been conducting research into the clean fuel for years. 

However, no progress has been made mostly because of technological barriers. 

The successful mining of gas hydrate has absolutely made China into a forerunner in the clean energy mining field, Han said, even though it has trailed behind international peers in the exploration of oil, gas, shale gas and coal mining. The lack of technology or experience to borrow or learn from makes China`s success of even greater value, Han said. 

The gas hydrate, which usually is located frozen deep in the Earth, requires advanced technologies and a comprehensive national strength, he said. 

Once China comes up with a steady output of hydrate gas in the future, international cooperation would be needed, as much of the gas hydrate is frozen deep beneath international seas, he said. 

According to Qiu Haijun, director of the trial mining headquarters, many countries along the 21st Century Maritime Silk Road have a demand for flammable ice mining. 

With advanced technology, Qiu said, the gas hydrate could help resolve the problem of energy resources and boost economic development and exchanges between countries. 

Deep-sea capabilities 

The test drilling and production operation conducted by China International Marine Containers Group and China National Petroleum Corp created a solid foundation for commercial use of the resource before 2030 and the test-drilling will help facilitate China`s deep-sea exploration capability, said Li, of the China Geological Survey. 

According to Jin Qinghuan, an academician with the Chinese Academy of Engineering, China will complete the initial preparatory work for commercial production by 2020, including mining technologies and evaluation of seabed natural gas hydrate. By 2030, China will carry out commercial production. 

Blue Whale 1, the ultra-deep-water semisubmersible drilling rig built by the nation`s largest semisubmersible platform manufacturer, China Yantai CIMC Raffles Offshore Ltd, conducted the tests in the South China Sea.

Mai Boliang, president of CIMC, said Blue Whale 1 is the world`s most advanced ocean drilling platform design and it was important practice for CIMC to further enhance China`s high-end energy exploration equipment.

One step in long journey

Han, the Energy Research Institute`s director, told China Daily that the success after 20 years of research and exploration is only a small step in a very long journey.

The potential risks for the environment and technological barriers soften all the optimistic outlooks, he said. 

According to Han, collection so far is more of strategic concern with vast uncertainties, and whether the frozen fuel will replace regular oil and natural gas remains to be seen.

Gas hydrate also will face competition from other cleaner alternative fuels, including photovoltaic and wind power. And just like the early days of shale exploration in the United States, successful exploration depends on advanced technologies, reduced costs and environmental risks, he said.

The next step is more of research and trial exploration. Commercial production is unlikely in the next three years, considering storage and transportation costs, potential environmental concerns, the risk of marine pollution and technological barriers.

Being a strong contender to replace regular oil and natural gas, gas hydrate－like any fossil fuel－also raises significant environmental concerns.

According to the U.S. Geological Survey, resources of flammable ice are located at sea bottom, making the collection challenging.

Li said an accident while exploring would lead to a massive leakage of methane gas and intensify the greenhouse effect.

Ye Jianliang, who heads the gas hydrate production field, said strict measures have been taken to protect the environment.

"We are monitoring the air, seawater, seabed and the exploration equipment. We also closely follow the amount of methane and carbon dioxide," he said.

"No pollution to the environment or geological hazards had happened so far."

About CHINA MINING

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

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

China`s overcapacity cuts progressing smoothly: NDRC

Source: www.chinamining.org Citation: Xinhua Date: June 16, 2017

BEIJING - China`s top economic planner announced Thursday that the country`s drive to cut overcapacity in steel and coal has progressed well.

As of the end of May, 42.39 million tons of crude steel capacity and 97 million tons of coal capacity had been cut, accounting for 84.8 percent and 65 percent of the annual goals, respectively, said the National Development and Reform Commission (NDRC).

China will phase out about 50 million tons of crude steel capacity and over 150 million tons of coal capacity this year, according to the NDRC.

By the end of June, all facilities producing inferior-quality steel bars will be dismantled, the NDRC said in May. 

As excess capacity has weighed on China`s overall economic performance, cutting overcapacity is high on the reform agenda. In 2016, China completed both its annual targets for coal and steel capacity reduction ahead of schedule. 

The government plans to adopt more methods based on market rules and related laws while phasing out outdated capacity. It also decided to eliminate illegal production facilities and prevent those that have been shut down from opening again.

About CHINA MINING

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

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

China, Kazakhstan sign cooperation deals worth over 8 bln USD

Source: www.chinamining.org  Citation: Xinhua  Date: June 12, 2017

Chinese and Kazakh enterprises and financial institutions have signed at least 24 deals worth more than 8 billion U.S. dollars during Chinese President Xi Jinping`s visit to Kazakhstan, Chinese Commerce Minister Zhong Shan said Friday. 

Both sides agreed to push for the progress in cooperation in energy, mining, chemical industry, mechanical manufacturing, agriculture and infrastructure, said Zhong.

China signed an agreement with Kazakhstan to supply the latter with super computer equipment, and the two countries are discussing the signing of a renewed investment protection deal, he said. 

They also inked a protocol to approve the entry of Kazakhstan`s frozen mutton to China. 

Zhong said both sides will continue measures to facilitate bilateral trade, expand cooperation in economy and trade, customs and quality inspection, and cement the rebounding momentum in bilateral trade. 

China and Kazakhstan agreed to quicken the implementation of plans to align the China-proposed Belt and Road Initiative with the Kazakh "Bright Path" new economic policy.

The Belt and Road Initiative, proposed by Xi in 2013, comprises the Silk Road Economic Belt and the 21st Century Maritime Silk Road, with the aim of building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes. 

Kazakhstan`s "Bright Path" policy is aimed at revitalizing the country`s economy. 

Kazakhstan is a comprehensive strategic partner of China and an important member of the Shanghai Cooperation Organization (SCO). 

Xi is currently paying a state visit to Kazakhstan. 

During his trip, the two countries reached a broad range of consensuses on trade, investment, energy and financial cooperation, and achieved positive results.

Meanwhile at the Astana summit of the SCO, Xi put forward a series of economic and trade proposals. 

To implement these proposals, Zhong said the Chinese Ministry of Commerce will work to advance the mechanism arrangement for regional economic cooperation.

The ministry will actively promote cooperation between small and medium-sized enterprises and local governments from SCO member countries.

China will also work for the establishment of a union of economic think tanks and strengthen capability building by promoting people-to-people exchanges.

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: m.balanzskin.com.

China, Kazakhstan sign cooperation deals worth over 8 bln USD