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China`s cooperation to expedite Thar Coal project

Source: www.chinamining.org   Citation: APP   Date: April 20, 2015

KARACHI: A new era of development is set to dawn on the underdeveloped interior Sindh, specially Tharparkar, as inclusion of Thar Coal mining and power project in the prioritised energy schemes under the multi-billion China-Pakistan Economic Corridor (CPEC) will help overcome financial challenges being faced by it.

This venture will open not only unprecedented economic opportunities but also prove to be a panacea for energy shortages that are stifling economic growth.

The exploitation of coal and power generation by coal-fired plants and related industries, according to some estimates, will generate thousands of direct and indirect job opportunities for both skilled and non-skilled workforce.

The financial and technical assistance by China for exploiting the coal reserves, which are estimated at about 175 billion tonnes and spread over 9,000 square kilometers in the Thar desert, will mark a turning point for the economy and help ensure energy security and ultimately lead to self-reliance.

The Sino-Sindh Resources Limited (SSRL) and the Sindh Engro Coal Mining Company (SECMC) are working on Block I & II of Thar Coal mining and power generation, as these energy projects have been included among the Early Harvest Projects of the CPEC making way for swift financing from Chinese financial institutions.

The SSRL has recently reached an agreement with the Industrial and Commercial Bank of China (ICBC) for funding for the mining operations. Large-scale mining at Thar coalfield is likely to begin next month, according to media reports quoting the SSRL Chief Executive Officer.

Prime Minister Muhammad Nawaz Sharif and former president Asif Ali Zardari jointly performed ground-breaking of the Thar Coal power project last year. It was decided that in its first phase, a coal mining and power project with a capacity of 3.8 million tonnes per annum and 660 MW would be developed. Subsequently, the mine would be expanded to a coal capacity of 6.5 million tonnes per annum to support a 1300 MW power plant.In the second phase, it was planned to expand the mining project to 13.5 million tonnes and then to 19.5 million tonnes, with power generation capacity of 2400 MW and 3600 MW.

Talking to APP, Khurram Saeed, former vice chairman of FPCCI`s Committee on Alternative Energy, said that the inclusion of Thar Coal project in CPEC had solved funding issues and accelerated pace of work on it.

He expressed the confidence that the implementation of this project would boost economic activities and ensure availability of cheap electricity, besides creating employment opportunities.

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`s Shenhua, Datong Group aim to reverse slide in coal exports

Source: www.chinamining.org   Citation: Platts   Date: April 17, 2015

Two of China`s largest coal producers -- Shenhua Group and Datong Coal Mining Group -- plan to revive their thermal coal exports to overseas customers, senior managers of the two companies said Thursday at the 13th Coaltrans China conference in Beijing.

China`s thermal coal exports to neighboring countries in Asia have progressively declined over the past decade to 2.59 million mt in 2014.

But slowing growth in China`s economy is creating a growing surplus for the domestic thermal coal market.

"We are trying to build our overseas customer base, and [our] exports are due to increase," Shenhua Group Vice General Manager Wang Xiaolin told the conference.

Xiaolin said Shenhua, China`s largest producer of thermal coal, used to export large volumes of coal in the recent past but, "due to strong domestic demand, exports have come down."

Shenhua is also following a central government instruction to reduce its domestic coal production, Xiaolin said.

"We will reduce our output by 50 million to 60 million mt [in 2015]," Xiaolin said. "The [government] policy applies to all coal mines, and Shenhua is no exception."

Datong Coal Mining Group, another of China`s larger coal producers, said it too is looking to reengage with the seaborne market for thermal coal.

"As to the increase of coal exports, we are studying this and we plan to increase the exports of coal," said Datong Coal Mining Group Vice General Manager Jin Hua.

Datong sold 200 million-300 million mt of its coal on the spot market in 2014, Hua said, without disclosing the amount of its term contract coal sales.

Commenting on the outlook for China`s market for imported thermal coal, which has slowed in recent months, Hua said: "If the Chinese market needs coal from other countries, it will come from other countries."

Wu Yin, a former deputy director general of China`s National Energy Agency, said the Chinese market was facing a "serious oversupply."

This is despite China`s domestic coal production falling to 3.56 billion mt in 2014, down 120 million mt from 2013, he said.

China imported 198.78 million mt of thermal coal -- not including lignite-- in 2014, down 6% year on year, according to China customs data.

Industry consolidation into 14 large business units has not prevented "the majority of coal enterprises from experiencing losses," and many state-owned coal mines in China had "social burdens" in terms of employee benefits which added to their costs, he said.

"China`s economy is in a new normal period," where economic growth and consequently energy demand was lower, he 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 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 finds 1.99 million mt new copper reserves in 2014: CGS

Source: www.chinamining.org   Citation: Platts   Date: April 17, 2015

China confirmed the discovery of new nonferrous metals reserves including 1.99 million mt of copper and 2.87 million mt of lead and zinc in 2014, state-owned mineral resources researcher China Geological Survey said Thursday.

The country also found 1.92 million mt of tungsten, as well as 718,300 mt of molybdenum reserves last year.

Other new metals reserves including 125,500 mt of tin, 67,500 mt of antimony, 52,800 mt of nickel, 780.1 mt of gold, 3,276.4 mt of silver and 110.9 million mt of bauxite reserves were also found in 2014, it 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 oil storage flows key for crude imports: Russell

Source: www.chinamining.org   Citation: Reuters Middle East   Date: April 2, 2015

The state of China`s oil storage tanks is shaping up as a key determinant of the likely path of imports by Asia`s largest fuel consumer.

It`s widely accepted in the oil market that China is importing more crude than it actually uses, or re-exports as refined products, and that the extra is flowing into both strategic and commercial storage sites.

What is less known is how much capacity is left in these tanks, when they are likely to be full and the rate at which new facilities are being built.

A trading executive at top Chinese refiner Sinopec weighed into the issue on March 25, saying China`s commercial and strategic storage is almost full.

Perhaps showing how sensitive the issue is, the executive requested not to be named despite speaking to reporters at an industry event.

If the Sinopec official is correct, it almost certainly will lead to slower growth in China`s crude imports, thus putting downward pressure on global prices given China`s status as one of the few centres of significant demand growth.

The problem is that there is a fair degree of scepticism over whether China`s storage tanks are indeed full.

It is believed that some of the capacity due to come available in the second half of last year has been delayed, probably to the second half of this year.

Storage with a nameplate capacity of 132 million barrels was delayed until at least the second half of this year, according to Thomson Reuters Oil Research and Forecasts.

This would imply there is scope for oil imports to remain strong in the second half of this year as these storage tanks become available.

It is also fairly clear that some oil has been finding its way to storage tanks this year, with imports and domestic oil output exceeding the amount of crude processed by refiners.

Crude imports averaged 6.62 million barrels per day (bpd) in the first two months of the year, while domestic output was 4.22 million bpd, giving a combined total of 10.84 million bpd of oil available for refining.

However, only 10.22 million bpd was refined in January and February, leaving 620,000 bpd that likely went into storage.

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Refiners have been boosting commercial stocks in line with a government requirement that they increase inventories to 15 days of average throughput by the beginning of next year.

This does help explain some of the surplus crude coming in during the first two months, but again, questions have to be asked as to whether this can continue at the pace it has been going at so far this year.

The answer for March is that it likely did, with Thomson Reuters Oil Research and Forecasts estimating China will have imported 28 million-29 million tonnes of crude in March or about 6.59 million-6.82 million bpd.

This can be confirmed only when the preliminary data for China`s March imports is released next week.

Another factor worth considering is how much of China`s crude imports are being re-exported as refined products, particularly diesel and gasoline.

The first two months of 2015 have seen fairly significant reductions in exports of the two main fuels, with diesel shipments dropping to about 23,100 bpd from 89,900 bpd in the first two months of last year, and gasoline declining to 76,800 bpd from 98,900 bpd.

While positive for the margins of Asian refiners outside of China, the lower fuel exports raise the risk that these will be ramped up in coming months, especially if diesel demand growth remains soft in China.

The picture that emerges overall is that large volumes of crude are still apparently flowing into storage in China, but there is uncertainty as to whether this will continue, or will taper away towards the middle of the year before resuming as new tanks are completed.

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.

Large gold deposit found in north China

Source: www.chinamining.org   Citation: English.news.cn   Date: March 19, 2015

A large gold deposit with estimated reserves of more than 100 tons has been discovered in north China`s Inner Mongolia Autonomous Region, the local land and resource authority announced on March 18.

The deposit, which covers an area of 20 square kilometers, is located in the Araxan Left Banner, according to the banner (county) land and resource bureau.

The deposit could be exploited for 30 years with an annual exploitation capacity of 3 tons, according to the bureau.

Araxan region, which borders Mongolia, has more than 80 types of mineral reserves.

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 Feb coal output down 7.7 pct on supply clampdown

Source: www.chinamining.org   Citation: Reuters   Date: March 19, 2015

China produced 240 million tonnes of coal in holiday-shortened February, down 7.7 percent from a year ago, an industry website said on Wednesday, hurt by orchestrated output cuts in major regions.

Csteelnews.com, a website run by the official China Metallurgical News, said that output in the first two months of the year reached 530 million tonnes, down 4 percent compared to the same period of last year.

China has urged local authorities and coal enterprises to restrain output in a bid to support the sector, which has been suffering from persistent losses. It is also trying to cut supplies by closing small mines and curbing imports of low-grade coal.

Production last year fell for the first time in 14 years, dipping 2.5 percent to 3.87 billion tonnes. Consumption dropped 2.9 percent, hit by a slowing economy and a concerted effort to raise the share of non-fossil fuel energy, and few expect demand to recover this year.

At a recent session of parliament, China`s two biggest coal producing regions promised to implement policies to restrain output and restructure the sector this year.

Li Xiaopeng, governor of Shanxi, said his province would not approve any new mines until 2020, while Bao Manda, a planning official in Inner Mongolia, told Reuters that his region would also cap production at 1 billion tonnes a year over the next few years and promote downstream industries.

The National Development and Reform Commission held a meeting of top industry and company officials last week and said the utmost effort should be made to limit production and address the imbalance between supply and demand, and that authorities should continue to take action against illegal production.

In February, coal freight volumes fell to their lowest level since April 2010, dipping 32.3 percent on the year to 119.15 million tonnes, according to data from China`s railway ministry.

In its annual report to parliament earlier this month, China`s top regulator vowed to tackle pollution and impose further restrictions on coal consumption, but in a sign of the country`s difficult balancing act, it also promised to "turn around" a struggling sector facing huge losses.

Zhang Youxi, the chairman of leading producer Datong Coal Mine Group, has urged China to set a minimum price for coal in order to tackle industry losses, now believed to afflict more than 70 percent of China`s mining firms.

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.

Copper futures rally to six-week high over rising demand in China

Source: www.chinamining.org   Citation: Global Times   Date: March 2, 2015

Copper futures in Shanghai advanced considerably Friday thanks to bullish expectations of a rise in Chinese demand in the post-holiday period.

The most traded copper contract on the Shanghai Futures Exchange (SHFE), for May delivery, closed at 42,730 yuan ($6,816) per ton Friday, up 540 yuan or 1.28 percent from the previous day. At one point during trading, the contract surged above the psychologically important 43,000-yuan mark, representing a new high in six weeks and up nearly 10 percent from the low point registered at the end of January.

Meanwhile, three-month copper on the London Metal Exchange (LME) climbed 0.1 percent to close at $5,895 per ton Friday, after surging 2.2 percent Thursday and hitting a six-week high of $5,944. On a monthly basis, LME copper registered a remarkable 7 percent increase in February, the biggest monthly gain since September 2012.

"Copper prices are at a six-week high following strong US durable goods data and on speculation of more accommodating government policies in China to stimulate economic growth," the Australia and New Zealand Banking Group said in a research note sent to the Global Times.

Investors have been generally bullish, expecting a recovery in copper prices in the run-up to the seasonally strong second quarter.

Nevertheless, a report from Hongyuan Futures pointed out that factors supporting the price rebound in February are mainly temporary, as the copper market is expected to trend downward in the medium to long term.

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.

Iron ore futures slip amid subdued Chinese buying interest

Source: www.chinamining.org   Citation: Reuters   Date: February 12, 2015

Iron ore futures in China and Singapore edged lower on Thursday as weak Chinese buying interest kept spot prices near their lowest level in almost six years.

Most Chinese buyers replenishing iron ore stockpiles ahead of the week-long Lunar New Year holiday that starts on Feb. 18 may have already completed their purchases, traders said.

"Restocking is almost done and it`s too late to do any more now because it`s very difficult to get LCs (letters of credit) with the holidays approaching," said an iron ore trader in Shanghai.

Iron ore for May delivery on the Dalian Commodity Exchange was off 0.2 percent at 478 yuan ($77) a tonne by 0305 GMT. The March iron ore contract on the Singapore Exchange slipped 0.8 percent to $62.44 a tonne.

Benchmark 62-percent grade iron ore for immediate delivery to China`s Tianjin port .IO62-CNI=SI was unchanged at $62.20 a  tonne on Wednesday, according to The Steel Index. The price hit $61.10 last week, its lowest since May 2009.

"Weak steel prices in China have put intense pressure on steel mill margins - and the pain is being shared in raw material prices," Morgan Stanley said in a report, adding that an "unusually quiet period" ahead of Lunar New Year is a key contributor to the price weakness.

Morgan Stanley sees iron ore averaging at $79 a tonne this year and forecasts it would slip to $75 in 2016.

The price of iron ore has dropped a further 13 percent in 2015 after a 47-percent slide last year amid a glut, as big, low-cost miners lifted output to ship more to China where steel consumption shrank last year for the first time since 1981.

But the world`s top three iron ore miners - Vale, Rio Tinto and BHP Billiton - appear to be  entering the final phase of a fight to increase market share in China as massive expansions drive more high-cost rivals out of business.

    Rebar and iron ore prices at 0305 GMT

    Contract                                                      Last    Change   Pct Change

    SHFE REBAR MAY5                                  2477     -8.00        -0.32

    DALIAN IRON ORE DCE DCIO MAY5       478     -1.00        -0.21

    SGX IRON ORE FUTURES MAR              62.44     -0.50        -0.79

    THE STEEL INDEX 62 PCT INDEX           62.2     +0.00        +0.00

    METAL BULLETIN INDEX                         62.18     -0.20        -0.32

    Dalian iron ore and Shanghai rebar in yuan/tonne

    Index in dollars/tonne, show close for the previous trading day

    ($1 = 6.2453 Chinese yuan)

About CHINA MINING

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

CHINA MINING Congress and Expo 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.