CHINA MINING News

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

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

Current low prices likely to stimulate demand eventually

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

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

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

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

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

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

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

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

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

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

China, Russia oil trade co-op `mutually beneficial`: official

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

China rebutted claims that high priced imported oil from Russia made the country the biggest loser from the sharp fall in global oil prices, saying its oil cooperation with Russia was "mutually beneficial."

"China and Russia have conducted smooth cooperation on long-term oil trade in recent years," said Foreign Ministry spokeswoman Hua Chunying at a daily press briefing. "The cooperation is mutually beneficial and based on the joint efforts of the two governments and relevant enterprises."

Hua made the remarks in response to a question concerning reports saying that Russia exported oil to China in November at a price higher than the global oil price in the same period, which made China the biggest loser in the current round of global oil price turbulence.

"According to the deal signed by both sides, the formula of crude oil trade price between China and Russia is linked and fluctuated with global oil price," Hua said.

"The price of the oil exported from Russian to China the report mentioned does not conform to the fact," she said.

China and Russia are comprehensive strategic partners of coordination, said the spokeswoman, adding that the energy cooperation between two sides is the key area of bilateral substantial cooperation.

The Chinese government supports both sides` enterprises in further expanding and deepening energy cooperation in oil and gas as well as other areas, she said.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Private investors flock to Africa

Source: www.chinamining.org   Citation: China Daily  Date: December 5, 2014

A worker inspects natural gas supply facilities in Jiujiang, Jiangxi province. Natural gas has become an important option in the world`s largest energy consumer, and it plays a vital role in optimizing the energy mix.（ZHANG HAIYAN/CHINA DAILY）

Official: LNG terminals, pipelines among projects to be opened further

The government will encourage private-sector investment in liquefied natural gas terminals and oil and gas storage and distribution facilities, a senior official at the National Energy Administration said on Thursday.

Liu Deshun, director-general of the department of oil and gas at the nation`s top energy planner, said that there is "huge potential" for growth in infrastructure for oil and gas storage and distribution.

"If you look at the demand for natural gas in China, the building of facilities (for) storage and distribution is far from enough," he said. "Compared with developed markets such as the United States, we are still at an early stage."

Liu made the comments at a news conference in Beijing held by the National Development and Reform Commission.

China has built 120,000 kilometers of onshore oil and gas pipelines, excluding those in the oilfields. These pipelines form the backbone of the oil and gas market, Liu said.

Natural gas has become an important option in the world`s largest energy consumer, and it plays a vital role in optimizing the energy mix. Earlier this year, Russia and China signed a $400 billion deal for the construction of a pipeline that will supply 30 billion cubic meters of natural gas a year to China.

Natural gas consumption in China stood at 167.6 billion cu m in 2013, up 13.9 percent year-on-year, while natural gas imports rose 25 percent.

With huge amounts of local government debt and mounting pressure to stabilize economic growth, the State Council, China`s cabinet, is rolling out measures to draw more private capital into public-sector projects. The steps it has approved include reducing barriers to entry in some markets and using the public-private-partnership investment model.

Li Pumin, a spokesman for the NDRC, said during the news conference that the private investment model will focus on seven fields including transportation, water conservation, municipal infrastructure and energy facilities.

He said that such steps will help dismantle domestic monopolies and establish sound, dynamic markets.

But Sun Hongzhan, an analyst at Minsheng Securities Co Ltd, said many private firms that have invested heavily in the public sector often struggle to reach equal status with their State-owned counterparts.

"Public sectors such as infrastructure construction can`t be completely opened to the private sector, because some of them exist for the public good and their value can`t be set by the market," he said.

And in some other fields, such as the capital-intensive nuclear industry, few private-sector companies have the necessary financial or other resources to participate, Sun said.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Chile eyes Chinese investment

Source: www.chinamining.org   Citation: China Daily Latin America   Date: December 1, 2014

Chile is keen to attract Chinese investment into both its physical and digital infrastructure to enhance its connectivity and facilitate its development.

Jorge Heine, Chile`s ambassador to China, made the remarks in an interview with China Daily.

The special geography of the South American country, featuring a long coastline, poses challenges to the country`s connectivity. An underwater optical fiber broadband network is planned to link up the 1,000 kilometer southern half of the country, Heine said.

The tender for the project is scheduled to open next year and some Chinese companies have shown interest in bidding for it, he said.

Heine visited ZTE Corp, one of China`s leading telecommunications vendors, in Shenzhen, Guangdong province, on Nov 26.

He also took a high-speed train from Shenzhen to Guangzhou, capital of Guangdong province.

Although a high-speed rail project is not foreseeable in Chile in the near future, Heine did not rule out such a project in the mid-run.

A number of shorter-range rail projects will become open for bidding in a few months and Heine considered Chinese construction companies as competitive in this field.

Meanwhile, Chinese investors are also welcome for joining the construction of a several billion-dollar cargo railway connecting Chile and Argentina, going through the Andes mountains.

As cars, trucks and container vehicles keep increasing, Chile needs more investment into its infrastructure, including roads, ports, tunnels and bridges, Heine said.

Energy, particularly renewable energy, including solar, wind and hydropower, makes another prioritized sector for enticing Chinese investment, he said.

Without crucial energy resources like oil and gas, the country pays a high energy bill, with the mining industry located in the north, which supplies major export items, as it`s a heavy energy consumer.

The vast Atacama Desert, the world`s driest desert, is blessed with rich source of solar power, he said.

Heine was in Guangzhou to attend the Pacific Alliance Investment Forum, established to promote investment in the four member countries, namely Chile, Mexico, Peru and Colombia.

The forum makes an important first step in promoting the opportunities in the alliance among businesses in this part of China, with Guangzhou being an industrial capital and Shenzhen highly IT-oriented, Heine said.

Julian Ventura, ambassador of Mexico to China, said great potential exists for cooperation between southern China and the alliance.

Guangdong accounts for one-ninth of the country`s gross domestic product (GDP) and about 25 percent of the country`s foreign trade and foreign direct investment (FDI), said Chen Qiuyan, chairman of Guangdong Sub-Council of China Council for the Promotion of International Trade.

Increasingly Guangdong businesses are interested in investing abroad. With the complementary nature in the economies of Guangdong and the Pacific Alliance and the drive for industrial transformation in the province, the prospect for cooperation is promising, Chen said.

He said his council would work to help turn the related projects into realities.

The Pacific Alliance has become a new prioritized destination for investment to Guangdong businesses, said Zhao Rong, vice-president of the Association of Promotion for Guangdong Economy and Investment.

Deng Zhihui, deputy director of the international business division of Guangzhou Automobile Group Motor Co, said his group started to sell passenger cars to Chile earlier this year and expects the sale to grow significantly in the future.

Shenzhen-based BYD Auto is considering setting up a branch in Peru, with such branches already operating in Chile, Mexico and Colombia, said Yi Liqun, a manager for automobile marketing of the overseas department of the company.

The Pacific Alliance was established to create a more deeply integrated economic area to foster growth, development, and competitiveness for its member countries, and to create more opportunities for trade, investment and cooperation with the Asia-Pacific region and the rest of the world.

Last year, the combined GDP of the member countries represented 38 percent of the total for Latin America and the Caribbean, which placed it as the 8th largest economy in the world.

The alliance has been the sixth highest receiver of FDI worldwide in the last decade.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

China tipped to hit peak steel in 2017

Source: www.chinamining.org  Citation: www.afr.com  Date: November 27, 2014

China`s steel consumption will peak in just three years, according to one of the country`s top industry officials, more than a decade before the ambitious forecasts of Australia`s big iron ore big miners.

Li Xingchuang, president of the government-linked China Metallurgical Industry Planning Association, said steel consumption would peak at 740 million tonnes in 2017.

The forecast comes as China`s central bank loosened monetary policy for the second time in a week, from selling repurchase agreements for the first time since July.

This is well below the 1 billion tonne forecasts of Rio Tinto, BHP Billiton and Fortescue Metals Group, who all broadly believe Chinese steel consumption will not peak until beyond 2030.

"I really don`t understand how the big mining companies made that forecast," said Mr Li at a Platts steel conference in Shanghai.

"Consumption is really near the peak."

Mr Li said it was "not realistic" to think that Chinese consumption would ever get beyond 1 billion tonnes.

"I really think that our forecasts give the real picture," said Mr Li.

Mr Li, who has been involved in the formulation of China¡¯s five year plans, said steel consumption would increase by 3 per cent this year to 710 million tonnes.

In 2015 he predicts consumption growth will slow to 1.4 per cent, before peaking at around 740 million tonnes in 2017.

"The mining companies were too optimistic," said Mr Li.

"They just looked what had happened in other countries and believed China would be the same, but it`s a very different market."

Mr Li said China`s overall production would peak around 850 million tonnes in the coming years if exports could be maintained.

He believes overall production will grow at 1.7 per cent next year to around 834 million tonnes

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Private investors flock to Africa

Source: www.chinamining.org  Citation: China Daily Africa  Date: November 25, 2014

China`s investments in continent shifting to manufacturing and telecommunications

Africa continues to be the beacon for China`s outbound investment, with companies committing to cumulative investments of about $150.4 billion in the Sub-Saharan region from 2006 to July 2014, despite the marginal slowdown in actual investment to the region, according to a new report.

The China Global Investment Tracker, published by the Washington-based American Enterprise Institute and the Heritage Foundation, says the investment pipeline continues to be robust in Africa, with actual investments in the region rising to $19.49 billion by the end of 2013, compared with $5.54 billion in 2006 when China started its "going global" strategy.

The report also finds common ground with a recent white paper published by the government on China`s economic and trade cooperation with Africa, which says that China`s investment in Africa grew at an annual rate of 20.5 percent between 2009 and 2012.

Most of China`s outbound investments in Africa have centered on the metals and energy sectors that accounted for more than 80 percent of China`s outbound investment in the region, according to a separate report published by the Chicago-based Mayer Brown, a global legal services provider.

Actual investments to Africa slowed slightly during the first six months as China is looking to diversify its investment sectors and geographies. According to AEI data, China`s outbound investment to Africa amounted to just $1.9 billion during the first six months of this year.

"The drop-off can be explained partly by a moderation of China`s appetite for resources as economic growth slows, and also due to an increase in risk-aversion among national resources and energy companies," says the report.

Ge Xiangyang, a partner with Mayer Brown, says that has not stopped a flurry of deals by Chinese private companies in Africa.

"For private companies, the driving force undoubtedly is the better returns that Africa offers," Ge says.

Unlike the SOEs, private companies with an eye on Africa are also more cautious about the possible risks, says Wang Jiahua, executive vice-president of the China Mining Association.

"It is time to stop paying `tuition fees` for Chinese companies during their overseas investment," he says.

Proper due diligence mechanisms will help ensure the success of Chinese merger and acquisition deals in the African mining sector.

Zhejiang-based private mining company Huayou Cobalt Co Ltd first decided to invest in cobalt and copper mining, processing and refining plants in Africa in 2006.

Li Xiaodong, its vice-president, says the company made thorough investigations before committing investments in Africa.

"We started as a trading company, importing cobalt from Africa. After three years of preparation, we bought three mines in the Democratic Republic of Congo," Li says. It has now become China`s biggest and the world`s third-largest cobalt producer by production capacity

China`s demand for cobalt, an important raw material for batteries, has grown rapidly in past years, with about 90 percent of the demand being met through imports.

"The company`s success depends on an accurate sense of the market and friendly bilateral ties between China and Africa," Li says.

During President Xi Jinping`s visit to Africa in March 2013, he made a commitment to provide concessional loans worth $20 billion to the region by 2015, further reinforcing China`s economic ties to the continent.

In addition to increasing private investors, there is another trend that China`s investment in Africa is shifting from natural resources to other areas including infrastructure, telecommunications and manufacturing, says the AEI report.

In 2013, the state-owned China Machinery Engineering Corp signed a $127 million contract to build and expand power grids in six cities in Equatorial Guinea, and a $199 million contract to build a national power supply system.

In the same year, the company also won contracts to build two power plants in Nigeria for $621 million.

In telecommunications, ZTE Corp and Huawei Technologies Co Ltd have been building fixed-line and wireless telecom networks throughout the continent.

Paul Theiss, chairman of Mayer Brown, says challenges remain for China`s investment in Africa even though it can provide stable jobs to Africans who are eager to climb out of poverty.

"China is facing a host of perception-related issues in Africa as local employees are often suspicious of China`s true intentions, and chafe under the different expectations of Chinese employers," says Theiss.

Tong Junhu, general manager of the overseas development department at China National Gold Group Corp, the nation`s biggest gold producer, says China is still facing challenges like unstable political conditions, weak infrastructure and poverty in Africa.

"China Gold has been working on many corporate social responsibility projects in Africa to strengthen communication with local communities," Tong says.

The company has helped build roads and bridges in Africa and also donated money for education and drinking water projects for residential communities, according to Tong.

He says the investment environment in Africa`s mining industry has been improving and the overseas business now has a major say in the overall group profit.

"Considering the current weak commodities market, it is a good time to invest in African mineral resources business at reasonable cost," he says.

Ge with Mayer Brown says Chinese companies need to conduct more thorough due diligence that fully accounts for the unique costs and challenges presented by the target market in Africa.

To better reform Chinese companies on outbound investment, the Chinese Chamber of Commerce of Metals, Minerals and Chemicals Imports and Exports released its guidelines for social responsibility in outbound mining investments on Oct 28.

Zhang Jianping, a senior researcher at the Institute for International Economic Research at the National Development and Reform Commission, says it is important for the country to provide outbound investment guidelines for huge industries like mining.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Latin American steel industry seeks `win-win` cooperation with China

Source: www.chinamining.org  Citation: China Daily Latin America  Date: November 24, 2014

Andre Gerdau Johannpeter, president and CEO of Brazil`s largest steel producer, Gerdau (Brasil), made a presentation during the annual conference of the Latin American steel industry in Mexico City held from Nov 9-11. （Xun Wei / Xinhua）

At the annual conference of the Latin American steel industry, a number of local steel companies expressed willingness to seek win-win cooperation with China`s steel industry even though a substantial rise in steel imports from the world`s second-largest economy has accelerated rivalry with local steel producers.

Statistics released by the Latin American Steel Association (ALACERO) showed that during the initial seven months of the this year, China sent 4.7 million tons of finished steel to the region, an increase of 60 percent from the same period last year. 

Analysts point out that like China, the Latin American steel industry also is dealing with over capacity, which is causing local steel producers to see imports from China as a threat to their profitability.

During the meeting held Nov 9-11 in Mexico City, some speakers said that Latin American steelmakers need to go beyond the issue of steel imports from China and focus more on improving their own industry and enhancing customer service.  

One of those was Osvaldo Rorales, the International Trade and Integration Division director from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). He said that rather than complain about the growth of China`s exports to the region, the Latin American steel industry should respond by upgrading its own industrial structure and improving value-added products through technology and innovation. 

"Latin America needs to actively implement the cooperation framework of `one plan, three engines, six fields`, which is recognized by Latin America and China, and promote the economic development and boost the demand of steel to achieve win-win cooperation," he said.  

As predicted by Zhang Changfu, vice-chairman of China Iron and Steel Association (CISA), massive imports of low value-added steel from China with cheaper prices will bring about trade friction. Chinese steel imports have been subjected to several anti-dumping investigations this year. Earlier in November, Brazilian authorities decided to levy anti-dumping duties of $908.59 per metric ton on seamless steel tube imports from China.  

Andre Gerdau Johannpeter, president and CEO of Brazil`s largest steel producer, Gerdau (Brasil), acknowledged that there is a rivalry between Chinese and Brazilians steel producers, but he said that Brazil should not simply limit China`s steel exports. On the contrary, he said, Brazil`s steel industry should increase investment and infrastructure construction. Meanwhile, the Brazilian steel industry is also in need of adjusting its structure, improving its labor and production efficiency.  

According to ALACERO, from January to July of this year, Latin America maintained its position as the second main destination for Chinese finished steel, surpassed by South Korea, which received 7.3 million tons. 

Yang Yong, chief representative of Citic Pacific Special Steel in Brazil, China`s largest steel exporter to Brazil, said that Latin America is an important overseas market for China`s steel. But at the same time, China should standardize its steel exports, maintain market order and avoid economic losses and wasting resources caused by internal malicious competition.

In analyzing the advantage that the Latin American steel industry has compared with its Chinese counterpart, Benjamin Baptista Filho, CEO of Flat Carbon South America ArcelorMittal (Brazil) said it has a better understanding of local markets and customers.  

"The Latin American steel industry should respect the laws of the market and enhance customer service, providing customers with a full range of solutions when selling products. The Latin American companies clearly have a better understanding of their markets and customers. This is our advantage," he said.  

Aryam Vasquez, senior Latin America economist of Oxford Economics, discussed the global economic situation and structural changes affecting the markets and the Latin American region during the conference.

He said that China`s economic influence in Latin America and throughout the world is growing every year. He suggested that Latin American companies need to recognize that the future economic development of the region will be closely linked to China and make good use of it.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.

Rio Tinto, Sinosteel extend Australian iron ore joint venture

Source: www.chinamining.org  Citation: www.mining.com  Date: November 18, 2014

Mining giant Rio Tinto and China`s Sinosteel have inked a deal that extends a long-term iron ore joint venture in Australia`s Pilbara region, which has provided about 250m tonnes of iron ore to date.

The two companies first signed the Channar Mining JV deal in 1987 to produce 200m tonnes of iron ore, extending it in 2010 for a further 50m tonnes. At the time it was one of the largest Chinese investments in the world as well as the first overseas mineral resource project entered into by a Chinese company.

The operation has become one of Beijing`s longest running and most successful partnerships with Canberra and "a model" for economic cooperation

Rio`s chief executive Sam Walsh noted the operation has become one of Beijing`s longest running and most successful partnerships with Canberra and "a model" for economic cooperation between the two countries.

"The signing demonstrates the commitment by Rio Tinto and Sinosteel to continue exploring opportunities that build on a mutually beneficial partnership that has developed over many years," Walsh said in a statement.

Underlining the significance of the Sino-Australian project, both Chinese president Xi Jinping and Australian Prime Minister Tony Abbott attended the signing.

Rio has a 60% stake in Channar mine, located about 60 km south of the mining town of Tom Price, and acts as the operating company. Sinosteel, in turn, has 100% off-take rights.

The two companies will have to reach mutually acceptable terms on the new extension before the previous one runs out in 2016.

About CHINA MINING

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

CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2015. We invite you to join the event and to celebrate the 17^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2015, please visit: m.balanzskin.com.