CHINA MINING News

Iran, China to boost energy ties, eye upstream, downstream investment

Source: www.chinamining.org         Citation: Platts       Date: January 26, 2016

China and Iran on Saturday agreed to boost energy-sector ties under which Beijing will be looking into the possibility of boosting investment in Iran`s downstream and upstream sectors, in addition to signing more long-term contracts on energy trade related issues.

The Islamic Republic is seeking to open its doors to the world after international sanctions over its nuclear dispute were lifted on January 16.

"We examined banking and financial issues, joint investment, long-term contracts in the energy sector...," President Hassan Rouhani said after signing the documents, state television reported.

"We discussed boosting Iran-China [economic] ties over the next 10 years up to $600 billion," Rouhani said.

The Iranian president said that the two sides would work on a "25-year comprehensive document of strategic relations." Xi, accompanied by three deputy prime ministers, six ministers and a large business delegation, was the first Chinese president to visit Iran in 14 years.

"We agreed on energy cooperation and also on expanding relations within the Silk Road economic route and the marine Silk Road in various areas like roads, industrial capacities and fast railroads," Xi was quoted as saying by state television.

"The Chinese side will provide the necessary finance," the Chinese official said.

Iranian Supreme Leader Ayatollah Ali Khamenei called the landmark 25-year agreement a "very appropriate and wise" one.

"Iran is the only independent country in the region that can be relied on in the energy area because unlike some countries in the region Iran`s energy cannot be influenced by any non-Iranian element," Khamenei was quoted as saying by state television at a meeting with Xi, a veiled barb aimed at regional rival, Saudi Arabia.

MORE THAN JUST INVESTMENT

During western sanctions, China remained a major purchaser of Iranian crude and became its .

"Nobody would buy oil from us, but the Chinese did over the past few years. Nobody would give us essential goods, China did. Therefore, our trade reached $52 billion in 2013-14. Because of oil price fall in 2015, this volume shrank to $39 billion," Assadollah Asgaroladi, head of Iran-China Chamber of Commerce told state television on Saturday.

"But with the new accords and agreements, we hope to raise the trade by 20%-25% each year so that we can go to around $50 billion," Asgaroladi said, who has run the chamber for the past 17 years. He expects to see $60 billion worth of trade each year.

Asgaroladi also said he envisaged cash payments for around 50%-60% for Iran`s oil. The rest would remain in Chinese banks for Iran as a deposit to buy commodities and equipment.

Chinese companies filled in for western international oil companies, who abandoned Iran`s energy sector because of sanctions. The country is now opening up for investment again, and plans to launch new contracts for the oil sector this year.

"Based on the 20-30 year trade plan and the protocols signed, China will overtake Europe. China will have already started before Europe looks around and figures out what investments to make," Asgaroladi said.

About CHINA MINING

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

CHINA MINING Congress and Expo 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.

Capital to wipe out coal use by 2020

Source: www.chinamining.org         Citation: China Daily        Date: January 12, 2016

The national environmental watchdog has declared that boosting efforts to cut air pollution in northern China, especially winter smog from the burning of coal, is a mission for this year.

Among the efforts, Beijing has declared that it will wipe out coal use in its most rural areas by 2020.

As much as "60 percent of smog content is caused by coal burning in the starting phase of each smog", said Fang Li, an official with Beijing`s Environmental Protection Bureau.

To start with, Beijing will replace coal-fired heating stoves with those powered by electricity or gas in 400 villages this year, before taking the campaign to the districts of Chaoyang, Haidian, Fengtai and Shijingshan by 2017, said Guo Zihua, a municipal rural development official.

Beijing`s downtown districts of Dongcheng and Xicheng eliminated coal burning last year, officials said.

The capital and other places in northern China experienced several smog alerts in November and December, when peak readings were many times higher than the national safety level.

Burning coal for winter heating has been listed as one of the primary causes of air pollution, Chen Jining, minister of environmental protection, said on Monday at the annual meeting on environmental protection in Beijing.

The increased severity since November of hazardous smog in northern China showed that the government efforts in reducing the coal comsumption for improving air quality, Chen said.

He said the ministry will do everything to prevent environmental protection from becoming a stumbling block for the country during the 13th Five-Year Plan period £¨2016-20£©¡£

Chen said that the trend of transferring pollution from the country`s industrial eastern region to the developing central and western regions warrants particular attention.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.

China to cut overcapacity, help companies out

Source: www.chinamining.org         Citation: Xinhua       Date: January 8, 2016

Chinese Premier Li Keqiang (C, rear) presides over a symposium on China`s coal industry to address its excessive capacity in Taiyuan, capital of north China`s Shanxi Province, Jan. 4, 2016. (Xinhua/Xie Huanchi)

China will provide full support for the coal and steel sectors, which suffer serious overcapacity, to help them out of their current difficulties, according to an official statement issued Thursday.

Since last year, overcapacity in those sectors became a prominent problem due to weak demand at home and abroad and dropping commodity prices on the global market, the statement cited Premier Li Keqiang as saying at a meeting on the topic.

As companies in deteriorating hardship weighed on both economic growth and steady employment, the country must defuse overcapacity in an orderly manner and help companies find a new development path.

In the past three years, China eliminated more than 90 million tonnes of steel production capacity and over 200 million tonnes of coal mining capacity.

Li said the country will carefully study market conditions to set a reasonable target for the next three years.

Since 2013, the country has stopped approving new steel capacity. The country will suspend the approval procedure for new coal mines, technology upgrade projects and for raising capacity of existing coal mines, Li said.

China will also gradually close steel mills that fail to meet environmental, energy conservation and safety standards. Coal mines using forbidden mining methods or falling short of safety standard will also be shut down.

Remaining capacity should be optimized partly by raising market access standards on environment protection and the uses of energy, materials and water. Companies should upgrade their products toward a more sophisticated, smart and green direction, the premier said.

The country encourage mergers and acquisitions and "will guide the voluntary exit" of weak companies that cannot cease making losses, he said.

The government should take "a combination of measures" to resolve problems from overcapacity, including fiscal and financial support, ensuring the lives of laid-off workers and enhance supervision on local governments` work around overcapacity, Li said.

China will support steel and coal companies to engage in mass entrepreneurship and innovation to create new job opportunities.

The central government is going to set up a special fund to subsidize the efforts of local governments and companies to defuse overcapacity. The fund will be mainly used in taking care of laid-off workers, according to the premier.

The country will safeguard the legitimate interests of laid-off workers by offering new jobs, supporting them to start businesses and providing posts in non-profit endeavors.

Li added that local governments must abandon all preferential policies and protective measures for fields with overcapacity, and efforts of eliminating excessive capacity will be one of the major aspects in evaluating the work of local governments.

Industrial restructuring and optimization should not just focus on old industries, but also on new sectors that will provide new impetus for growth to provide more jobs lost in the traditional sectors, he said.

The meeting was held in Taiyuan, north China`s Shanxi Province Monday. It was attended by officials from some major steel- and coal-producing provinces and 24 leading companies in the fields.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.

Premier Li springs a surprise on coal mine visit

Source: www.chinamining.org         Citation: China Daily        Date: January 06, 2016

Premier Li Keqiang talks to miners before entering the 300-meter-deep Guandi Coal Mine in Taiyuan, Shanxi province. He praised their hard work, saying the miners are "not only the backbone of Shanxi, but also the backbone of China". Li had an inspection tour in Taiyuan, capital of North China`s Shanxi province on Jan 4-5. [Photo/Chinanews Service]

When 33-year-old Shi Haiqing answered the phone in the safety center at a coal mine in Taiyuan early on Tuesday, he thought the call might be from one of his colleagues reporting on work safety.

But the caller asked: "Can you tell me about the gas density at the position where I am standing now? Can you tell where I am at the moment?"

Shi felt the voice sounded familiar, but lost no time in replying. Taking a glance at the control panel, he said, "The gas density is 0.05 (percent per cubic meter)."

His heart then pounded with excitement after the caller told him, "This is Li Keqiang."

Premier Li Keqiang (3rd R) talks with groud duty staff on phone in the Guandi mine of Xishan Coal Electricity Group Co. Ltd, in North China`s Shanxi province, Jan 5, 2016.  [Photo/Chinanews Service]

The call took place during the premier`s visit to the Guandi Coal Mine in Taiyuan, Shanxi province. After hanging up the phone, Li told the workers that safety is paramount in mining jobs. He also extended New Year`s greetings to everyone at the scene.

Li spent two hours inside the mine, which was founded in 1960 and now has about 5,900 workers. He inspected mine production safety and talked with the workers, learning about their living and working conditions.

The two-day visit to Shanxi is Li`s first trip of the year. Most of his agenda comprises visits to traditional industries such as coal mines and iron and steel works.

The province has relied for decades on developing its rich mining resources. In 2012, about 56.6 percent of its GDP came from the coal mining industry. But an industry slump both domestically and globally has hit Shanxi hard, especially last year.

During his visit to the Guandi mine, the premier asked several times about workers` salaries.

He arrived at the mine, which lies inside a mountain, at 9 am and boarded a small train used to transport the miners. They work 300 meters underground but their work area is 7 kilometers from where Li boarded the train, and the journey took 40 minutes.

Premier Li Keqiang (1st R) rides in a tramcar as he inspects the Guandi mine of Xishan Coal Electricity Group Co.Ltd, in North China`s Shanxi province, Jan 5, 2016.  [Photo/Chinanews Service]

Before getting on the train, Li greeted scores of miners who had just finished the night shift and were about to change out of their dusty uniforms. After a 12-hour shift, the workers, whose faces were nearly half-black with coal dust, stood around the premier.

Li encouraged them to have confidence in the coal market, although current prospects are not looking so good.

"Coal mining still serves as Shanxi`s pillar industry. About 60 to 70 percent of the energy that the country requires for its development comes from coal mines," Li said.

Li Keqiang (1st front) inspects the Guandi mine of Xishan Coal Electricity Group Co. Ltd, in North China`s Shanxi province, Jan 5, 2016. Li had an inspection tour in Taiyuan, capital of North China`s Shanxi province on Jan 4 and Jan 5. [Photo/Chinanews Service]

The coal mining industry is suffering from "certain difficulties" as the global market does not look too good, he said.

"But we need to have confidence that coal will still be the country`s major industry. The difficulties will eventually be conquered," Li 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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.

China, Pakistan sign financing agreement on coal power project

Source: www.chinamining.org         Citation: Xinhua        Date: December 22, 2015

China and Pakistan on Monday signed a financing agreement on a coal power project located in the Thar Coalfield in Pakistan`s Sindh province. 

The project will cost in excess of 2 billion U.S. dollars, including the exploitation of a 3.8-million-tonne coal mine and the construction of a 660,000-kilowatt power station near the mine.  

China will contribute 800 million U.S. dollars to the financing, while the Pakistani partners will provide 500 million U.S. dollars, mainly through China Development Bank and Habib Bank.  

The project is expected to be completed by the end of 2017, and it will be the first such project in the China-Pakistan Economic Corridor.  

The corridor will be a 3,000-km network of roads, railways and energy infrastructure, between the ports of Gwadar in Pakistan and Kashgar in Xinjiang. It was established to help lift Pakistan out of its economic slumber and boost growth for the Chinese border economy.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.

Chinese oil trader sees economy benefiting as import rules ease

Source: www.chinamining.org         Citation: chinadaily        Date: November 27, 2015

China is opening up its crude-import market to private companies quicker than expected as the government looks to ease an economic slowdown, according to the general manager of oil trader China Zhenhua Oil Co.

Allowing more private companies to import crude will help independent refiners increase output and boost revenue, China Zhenhua`s Yuan Jun said in an interview. The government`s next move will be to allow more exports of oil products, he said.

"The crude oil market is opening up faster than we anticipated," Yuan said. "By allowing more crude imports, we will see smaller refiners increase operating rates, thus contributing to more fiscal revenue."

Zhenhua, a unit of weapons manufacturer China North Industries Group Corp, has benefited from government reforms over the past decade that allowed smaller companies to import crude directly-loosening the grip of State oil giants such as China Petroleum & Chemical Corp.

As part of a broader plan to revamp State-owned enterprises, the government is also encouraging more private investment in the energy sector.

Smaller refiners, known as teapots, account for almost a third of the nation`s processing capacity and 13 of them have been granted import quotas totaling a combined 55 million tons, or 18 percent of the country`s annual imports. These smaller processors will need help from bigger players like Zhenhua to import crude, Yuan said.

"A sudden flood of dozens of rookie traders into the international oil market could cause huge volatility," said Yuan, whose company will trade an estimated 40 million metric tons of crude and related products this year. Some teapots lack experience buying crude in the international market and may need trading teams to help, he said.

The government may next allow more oil products to be exported, Yuan said. That may help refiners manage swelling stockpiles that follow the move to open the import market, he said.

Zhenhua may apply for an oil product export license by the end of year and is considering taking minority stakes in some local refining and chemical companies.

"After the policy breakthrough, no matter whether you are State-owned or not, we all compete in the same market environment," Yuan said.

About CHINA MINING

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

China signals curbs on aluminum output in accord with Russia

Source: www.chinamining.org    Citation: www.bloomberg.com     Date: November 23, 2015

China signaled it`s prepared to curb aluminum production to try to stem oversupply as part of an agreement with Russia.

The Sino-Russian protocol on energy cooperation, signed Nov. 16 by Russian Deputy Prime Minister Arkady Dvorkovich and Chinese Vice Premier Zhang Gaoli, includes a section on bringing aluminum output into line with demand, according to a copy of the document obtained by Bloomberg News. It also supports tie-ups between Russia`s United Co. Rusal and Aluminum Corp. of China Ltd., or Chalco, on developing mining and new alloys, the document shows.

"China is finally ready to review its policy in aluminum and help to stabilize the market after the price declined to the level where all of its aluminum producers are working below break-even," Rusal`s Deputy Chief Executive Officer Oleg Mukhamedshin said in a phone interview from Moscow. It`s "mega news for the industry," he said.

A flood of aluminum exports from China has depressed international markets this year, sending prices to the lowest since 2009 and forcing smelters around the world to reduce production. Rusal may move forward in December with plans to cut its output by 200,000 metric tons while its Kubal smelter in Sweden may be idled, the company said this week.

Exports Peak

The protocol between the two governments includes a "recommendation for optimization of aluminum production in line with demand by Chinese and Russian aluminum industries in order to avoid inefficient use of energy resources," Mukhamedshin said.

The Chinese State Council Information Office didn`t immediately reply to requests for comment. Aliya Samigullina, a spokeswoman for Dvorkovich, confirmed the signing of the protocol and referred to a Nov. 16 government statement on the meeting with China that said the parties welcomed talks to develop aluminum projects.

Russia may offer to build new domestic smelting capacity to supply China as its production is cleaner and more commercially viable than that of the Asian country, Mukhamedshin said.

"That won`t happen now, only in at least three years, when the market will be stabilized and the oversupply issue solved," he said. Rusal and Chalco are working on developing new alloys, which may be sold to China, and they may consider joint projects in bauxite and alumina, Mukhamedshin said.

Chinese exports of semi-finished aluminum totaled about 300,000 tons in October, similar to levels at the start of 2014, according to Rusal. That compares with exports that peaked at almost 500,000 tons in December, a Rusal presentation published this month shows.

Exports of so-called fake semis, or primary aluminum lightly processed to qualify for a 13 percent tax rebate, fell significantly after the issue "had obtained serious attention from the Chinese authorities," Mukhamedshin said.

About CHINA MINING

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

China and Russia cooperate on liquefied natural gas project

Source: www.chinamining.org         Citation: chinadaily.com.cn        Date: November 18, 2015

China and Russia are pressing ahead with the Yamal liquefied natural gas (LNG) project in Russia`s offshore Arctic area, according to senior officials.

China`s Vice-Premier Zhang Gaoli said that the strategic partnership between the two countries has continued at a high-level of development and he also pledged both parties to take an active part in the build-up of more flagship projects in energy cooperation.

Zhang made the remarks during the 12th Meeting of the China-Russia Energy Cooperation Committee in Beijing in preparation for the upcoming 20th Regular China-Russia Prime Ministers` Meeting.

During the meeting, both countries agreed to deepen energy cooperation over the construction of an eastern natural gas pipeline as well as projects for western natural gas and Yamal liquefied natural gas (LNG), according to a report by Xinhua News Agency.

In addition, both parties will make sure that the construction of a China-Russia crude oil pipeline goes smoothly and at the same time expand cooperation in the sector of energy equipment.

Earlier reports said that China and Russia are expected to sign contracts for the Yamal LNG project in December.

In September, the $40 billion Chinese Silk Road Fund acquired a 9.9 percent stake in Yamal LNG without disclosing detailed information about the price.

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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^th-25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.