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China to increase rare earth purchase
Source: www.chinamining.org Citation: China Daily Date: Sept.24, 2013

China is likely to purchase billions of yuan of rare-earth minerals starting next month to bolster its strategic reserves, industry sources said.

Du Shuaibing, an analyst with market trends firm Baichuan Information, said that six large rare-earth producers are on the list for the purchasing program, which was launched last year.

This round of purchases will target medium and heavy rare earths, which are more valuable but less common than light rare earths, he added.

Du said it is likely that the plan involves about 10,000 metric tons of rare earths .

The six companies are Baotou Steel Rare Earth Hi-Tech Co, China`s largest rare earth producer by output; China Minmetal Rare Earth Co Ltd; China Nonferrous Metal Industry`s Foreign Engineering and Construction Co Ltd; Chinalco Rare Earth Jiangsu Co Ltd; Rising Nonferrous Metals Co Ltd and Ganzhou Rare Earth Mineral Industry Co Ltd.

Purchase prices are expected to be slightly above market levels, as was the case last year, he said. If prices were below market levels, he said, "the purchase might not be successful."

But Du added that nothing is confirmed at this stage.

The expected move is aimed at balancing market supplies of rare earths amid a decline in prices and demand this year and leading to expectations of higher prices, Du added.

Despite a brief uptick in August when the nation`s rare-earth industry convened at the Fifth China Baotou Rare Earth Industry Forum in Baotou, Inner Mongolia autonomous region, prices of the metals had been declining amid lethargic demand and strong supplies.

Du said that prices will remain depressed in the fourth quarter.

The rare-earth stockpile program, a strategy that many countries has used to ensure the sustainable development of high-tech industries, was launched last year.

Prices were raised after the announcement of purchases of light rare earths for the national reserves.

The State Council originally proposed establishing a national strategic reserve in conjunction with commercial inventories.

China`s rare-earth reserves account for about 23 percent of the global total, but they have been over-exploited. As the world`s largest producer of rare earths, China provides more than 90 percent of global supplies. But international dependence on China`s exports of rare earths has been declining.

Chen Zhanheng, deputy secretary-general of the China Rare Earths Industry Association, urged investors and industry players not to react to reports regarding national reserves by pushing up prices in the short term. He said prices won`t be affected by the national strategy.

Liu Yinan, vice-chairman of the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters, said on Sept 13 that the country`s light rare-earth reserves are sufficient for at least 100 years.

He proposed that the national strategic stockpile should focus on medium and heavy rare-earth elements.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: m.balanzskin.com.

Gold jewelry demand rises in 2Q
Source: www.chinamining.org Citation: Global Times Date: Aug.16, 2013

Chinese consumers` demand for gold products like gold -jewelry saw a significant increase in the second quarter due to falls in gold prices, the World Gold Council (WGC) said in a report Thursday.

Consumer demand in China showed strong growth, totaling 276 tons in the second quarter, a rise of 87 percent compared with the same quarter of last year, as investors used the -lower gold price to buy in advance of expected future price rises, the WGC said in its Gold Demand Trends report.

Jewelry demand in the -second quarter was 153 tons, up 54 percent compared with the same quarter of last year, while bar and coin investment was 123 tons, up 157 percent over the second quarter of last year, the report said.

Middle-aged Chinese women are one of the major groups of buyers for gold products.

"Most of our customers for bar and coin investment are the ladies around 40 years old who plan to buy in at low prices to maintain capital value," Jiao Guangyi, deputy general manager of Beijing Sun Gold Store, told the Global Times Thursday.

Since the prices for gold jewelry declined to around 350 yuan ($57.23) per gram recently, the lowest level since 2010, it is "a good opportunity for investment at present," Jiao said.

Jiao predicted gold prices will rise in a long term as some gold mines around the world have reduced production due to the recent price declines, and "fewer supplies will consequently lead to price hike," Jiao said.

China`s leading gold and metalliferous resource company Zijin Mining Group Co announced Wednesday that it will reduce the target for gold production this year by 2 tons to 31 tons.

Other world leading gold companies are also planning to cut output. Barrick Gold Corp announced earlier this month that it planned to sell or close 12 gold mines, and its gold production will also possibly be reduced this year.

However, an analyst told the Global Times Thursday that those middle-aged Chinese women were "too hasty" to invest in gold products in the past three months and their money will possibly be "trapped" due to their blind investments.

"International gold prices are unlikely to rebound within three to five years based on the expectation of QE withdrawal by US Federal Reserve, which consequently will prompt a drop in gold prices," Sun Yonggang, a gold analyst from Everbright Futures Co, told the Global Times.

Federal Reserve Chairman Ben Bernanke said at a news briefing in June that the US was about to start a total withdrawal from QE if economic data indicated the US economy is on a trend of recovery.

Driven by the demand for gold in China and India, which are the biggest markets for gold, the global jewelry demand hit 576 tons in the second quarter, up 37 percent from 421 tons in the same quarter last year, reaching its highest level since the third quarter of 2008, according to the WGC report.

Bar and coin investment grew by 78 percent globally compared to last year, topping 500 tons in a quarter for the first time, the report 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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: m.balanzskin.com.

Australian miners facing bust look to China`s Zijin
Source: www.chinamining.org Citation: Reuters Date: Aug.05, 2013

Gold miner Dianmin Chen - running Australia`s Norton Gold Ltd for China`s biggest gold producer Zijin Mining Group - says there`s still money to be made in mining.

While other companies are bracing for tough times by laying off workers and closing mines, Chen has been given a mandate to nearly double gold production and is keeping an eye out for potential acquisitions.

"We see this lower market as an opportunity to grow," he said in an interview.

Chen, who took the top job after Zijin paid $240 million for control of Norton a year ago, is lead speaker at the Diggers and Dealers mining conference starting Monday as organizers hope to inject some optimism into a likely gloomy gathering.

With bullion prices down more than 25 percent since October 2012, giants like Barrick Gold and Newmont Mining are joining Australia`s small- and mid-tier miners in laying off workers and selling higher-cost operations.

A group of seven one-time Australian favorites including Alacer Gold, OceanaGold and Silver Lake Resources have clocked up A$2.5 billion ($2.23 billion)in write-downs this year.

Globally, Barrick posted an $8.7 billion write-down, while majors Goldcorp Inc, Newmont and Kinross Gold Corp reported a combined $6 billion in impairment charges linked to plunging gold prices.

By contrast, Norton, which has mines in the Kalgoorlie region in western Australia`s outback, aims to nearly double bullion output to 300,000 ounces over three to five years.

Its 350 employees were all rewarded with pay rises this year and Chen says there is no talk of write-downs.

CHINA EXPANSION

China interest has been the big hope for the sector and optimism resurfaced after ChinaMolybdenum Co agreed last week to pay $820 million for Rio Tinto`s majority stake in the Northparkes copper and gold mine.

Chen is upbeat about future growth.

Norton is working its operations harder to cut costs, he said. It will soon be able to extract 1.7 grams of gold from every ton of ore, up from just 1 gram per ton in the past.

The miner is also close to mopping up Kalgoorlie Mining Ltd, acquired via a friendly scrip takeover that will help dilute Zijin`s ownership of Norton by about 7 percent to below 83 percent, hopefully boosting liquidity.

Chen said "plenty of mines" are for sale in the Australian gold fields and elsewhere in the world. Norton was "always looking", although he declined to give names.

"We aren`t going to stop at 300,000 ounces," he said.

Barrick said last week that efforts to sell some mines in Australia were "well-advanced", while Alacer has said it has received interest in some of its mines.

For now, Zijin wants to see Norton`s additional gold come from the assets it already owns, Chen said. Norton has already upped its 2013 guidance thanks to higher grade ores.

"This year we are looking at an 11 percent increase in gold production," he said.

"Our mandate is to double our production from our existing platform," said Chen. "If we have extra M&A activities we would go beyond that."

($1 = 1.1223 Australian dollars)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: m.balanzskin.com.

China Crude Steel Output Is Set to Hit a Record
Source: www.chinamining.org Citation: Dow Jones Date: Jul.25, 2013

China`s crude steel production this year is set to hit a new high, according to a government forecast, in the latest sign that state measures to control overcapacity aren`t working and global prices will likely remain sluggish.

China produces slightly less than half the world`s steel, and mills here haven`t cut production significantly even though growth in demand is slowing. As a result, a rising flood of Chinese steel exports is weighing on the world market.

At the current pace, output of crude steel-the basic building block for China`s construction and manufacturing industries-could reach 790 million metric tons in 2013, Zhu Hongren, chief engineer at the Ministry of Industry and Information Technology, said Wednesday. The previous high was last year`s 716.5 million tons.

The government has promised new measures to combat steel overcapacity but has yet to unveil them. In the past, these have typically consisted of moratoriums on the building of new plants, efforts to encourage producers to mergeand tougher environmental rules, designed to both reduce pollution and encourage companies to close older facilities.

Output has surged despite the fact that "the industry hasn`t yet emerged from a trough," Mr. Zhu said in comments posted on his ministry`s website.

"In this situation of high steel output, steel prices have continued to fall and inventories are still relatively high," Mr. Zhu said. "Some mills have no intention of cutting output."

The production binge and weaker macroeconomic conditions hit prices. According to Bernstein Research, aggregate monthly profit at the country`s 80 largest steelmakers fell to 150 million yuan ($24.4 million) in May from 210 million yuan in April, a result the firm described as "barely break-even in these two months."

Steel prices in China rose 2.2% in June after falling 14% in the first five months of the year, according to Shanghai Futures Exchange data.

The slight recovery led industry bellwether Baoshan Iron & Steel Co. to keep its prices unchanged for August, after cutting them in May, June and July. "We have seen some moderate recovery in steel prices, but we do not think the upward trend is sustainable unless significant capacity is curtailed or China implements a stimulus," said Bernstein analyst Vanessa Lau.

A spokesman for Baosteel Group Corp, Baoshan`s parent company, said Wednesday that Baoshan wouldn`t comment on its plans for pricing or output.

The high output reflects Chinese steel mills each deploying what amounts to a beggar-thy-neighbor policy in their production practices, analysts say.

"The attitude among mills is, if I cut my output, others may raise theirs," said Ma Haitian, a steel analyst for Beijing`s Antaike Development consultancy. "So it leads to a situation of everyone waiting to see who will cut first."

The state-backed industry group China Iron and Steel Association has blamed smaller mills for overproduction before, but analysts say both large and small mills have been responsible for jacking up output in recent months. Some steelmakers cut output earlier this year amid climbing losses but as soon as "the steel market showed signs of improvement, steelmakers began to restore capacity," the association said in a report Monday.

The percentage of capacity in use in the Tangshan area east of Beijing, the heart of China`s steel industry, reached historical highs of 95% in April and May and around 90% in June, Mr. Ma said. Global utilization rates were below 80%, according to an Ernst & Young report.

China`s steel exports have surged, rising 12.8% in the first half from a year earlier even as imports fell 1.8%. The rising exports have prompted U.S. analysts to warn for months that Chinese mills may be increasing their sales overseas to make up for weak demand at home.

Global steel prices have fallen 6% in the first half of this year, according to data from the MEPS steel consultancy.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: m.balanzskin.com.

China is 3rd biggest M&A player in Africa
Source: www.chinamining.org Citation: China Daily Date: Jul.09, 2013

China has become the world`s third-largest country doing mergers and acquisitions in Africa, favoring the oil and gas sector, according to a report by international law firm Freshfields Bruckhaus Deringer released on Monday.

The country made 49 M&A deals totaling $20.8 billion in Africa since 2003, following the United Kingdom with $30.5 billion and France with $30.47 billion.

The value of African inward investment has tripled in the last 10 years reaching more than $182 billion, up 214 percent in 2012 compared with 2003.

"Africa`s rapid pace of growth makes it an obvious investment partner for China in many jurisdictions," said Rob Ashworth, Freshfields Asia`s managing director.

Chinese dealmakers favor the natural resources sector with $8.1 billion invested in oil and gas across three deals and $6.7 billion invested across 19 deals in metals and mining over the last 10 years, and their preference for these sectors will likely continue, said the report.

Globally, there were 1,190 M&A deals totaling $87.6 billion done in Africa over the same period.

"Extractives and mining opportunities have been big drivers of growth," said Ashworth. "However, consumer-related M&As could take the limelight as GDP per household continues to grow, the middle class in Africa expands and consumer demand rises."

The value of investment targeting these industries has doubled in the last 10 years with $3.8 billion across 71 deals invested in 2012, up from $1.9 billion and 33 deals in 2003.

South Africa, Nigeria and Uganda became attractive destinations for Chinese investors with 23 deals totaling $16.4 billion, said the report.

One of the largest deals was the China-Africa Development Fund`s acquisition of a stake in Misr Refrigeration and Air Conditioning Manufacturing Co, a Cairo-based manufacturer of refrigerators and air conditioning systems, from the Barakat Group, for $5.6 billion in 2010.

"The African economy is growing and China`s similar development experience makes us believe that Africa is on the right track," said Chi Jianxin, president of the China-Africa Development Fund.

Chi said that Africa is full of opportunities and the African market is increasingly attracting multinational companies from Europe, the United States, Japan and South Korea.

As of this year, over 2,000 Chinese companies have invested in Africa. Apart from the traditional big SOEs - such as PetroChina Co Ltd and Aluminum Corp of China - that are significant investors in the energy and mining sectors, private Chinese companies have in recent years become a key driving force.

Alan Wang, a Freshfields partner based in Beijing and Shanghai, told China Daily that Chinese privately owned companies see great opportunities in Africa given the continent`s rising income levels and economic dynamism in recent years, and the high complementary nature of its economy and China`s.

Wang said that main challenges to Chinese investors in Africa include lack of understanding of local laws, particularly around labor, environment and taxes; inadequate infrastructure, particularly power supply, transport and logistics; and lack of political stability, as well as bureaucracy and corruption.

"They need to understand the local laws and be prepared to follow them. It is important to study the political environment and not to overly rely on special deals made with particular government officials since they may not hold once there is a change of government," said Wang, adding that companies should also never underestimate startup costs, consider structuring investments in Africa, and find an international partner.

Wang said that as the domestic economy slows, Chinese companies are likely to be driven to focus more on developing overseas markets, particularly in Africa, Southeast Asia and Latin America.

"Over the next few years we expect Chinese investment in Africa to continue to rise. SOEs will lead the way in services and manufacturing, to take advantage of low tariffs that some African nations enjoy when exporting to Western markets as protectionism rises against Chinese exports," said Wang.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: m.balanzskin.com.

Submersible taps vast mineral deposits in South China Sea
Source: www.chinamining.org Citation: China Daily Date: Jul.05, 2013

                                      A robotic arm of Jiaolong readies to take a sample of the iron-manganese deposits on
                                              Wednesday that the deep-sea manned submersible first discovered during its ongoing
                                              experimental voyage in the South China Sea.(Photo: Xinhua/China Daily

Jiaolong, the manned deep-sea submersible, is helping the country tap a treasure of iron-manganese deposits that were first discovered in the South China Sea on Wednesday.

Tang Jialing, an oceanaut on the submersible, told Xinhua News Agency that although the exact area of the deposits was still unknown, he was sure that it was large.

Tongji University Professor Zhou Huaiyang, who was on board Jiaolong`s support ship Xiangyanghong 09 on Wednesday, said scientists will conduct experiments to determine the age of the deposits.

"Since one of the samples was broken by the sub`s robotic arm, a round core inside could be identified as volcanic lava. The materials covering the core are iron and manganese oxides, which need tens of thousands of years to form," he said.

Li Xinzheng, a biologist who was on board the Jiaolong, told Science and Technology Daily that besides the excitement he felt when the large-scale deposits were discovered, he was also struck by the size of the deep-sea world and its expansive population of strange species, most of which he had never seen before.

"I will never forget my experience in the deep sea," Li said.

Jiaolong will carry out two more dives in the area to continue research and survey the seabed. The large underwater mountain where the deposits were discovered was named the "Jiaolong Seamount" by scientists on board the submersible, Xinhua reported.

Zhou said he hopes more rock samples will be collected from the seamount during the coming two dives.

Jiaolong completed four deep-sea dives from June 17 to 20, collecting rare animal specimens and mineral samples.

Jin Jiancai, secretary-general of the China Ocean Mineral Resources Research and Development Association, said Xiangyanghong 09 is expected to sail for 113 days and complete three dive missions in its first experimental voyage, which began on June 10.

The first mission, set to last about 43 days, is in the South China Sea, where Jiaolong will test its performance and scientists will study the formation and development of the waters and record its influence on China`s climate.

Jin added, the ship will then sail to two mining areas in the Pacific Ocean for a geological survey, collecting biological and mineral samples and preparing for future sea mining projects.

The mission marks the start of a five-year trial period for the Jiaolong before it starts regular operations, Xinhua reported.

Since 2001, China signed several contracts with the International Seabed Authority for mineral prospecting and exploration in the western Pacific Ocean and the Southwest India Ridge.

Jin told China Daily in a previous interview that the refined metals from the deposits will help the country meet the increasing demand for mineral resources during its rapid economic development.)

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us. For more information about CHINA MINING 2013, please visit: m.balanzskin.com.

                                           China to remove 40% export tax on metallurgical coke from Jan 1, 2013 
                                                                              Source: www.chinamining.org  Citation: Platts  Date: Dec.18, 2012 China will remove the 40% duty on the export of metallurgical coke from January 1, 2013, an announcement posted on the finance ministry`s website showed Monday.

Coal-based coke and semi-coke, used in steelmaking, has been removed from a list of goods attracting export duty in 2013, according to a statement by the Customs Tariff Commission of the State Council dated December 10.

Market participants said China`s coke export quotas have also been removed at the same time, although the Ministry of Finance couldn`t be reached for comment. The Ministry of Commerce, which is also involved in setting trade policy, declined to comment on the matter.

COKE RETHINK

Two recent buyers of coke via tenders said Monday they were considering whether they should renegotiate contracts as there was a possibility of cheaper offers being made after the announcement.

"Then what would happen to my spot deals?," said a Southeast Asian end-user who bought coke recently.

Coke buyers would now seek lower prices for coke as a result of the news, said another source at an Indian mill, adding that he would demand a Rupees 800-900/mt ($14-16/mt) drop if he were to buy from the spot market today.

Domestic coke prices in India would also face downward pressure from more competitively priced imports, he added.

Sources at Indian coke producers expressed anxiety after hearing about the confirmation of the removal of Chinese coke tax.

"I don`t know and I can`t understand which direction it will go," one of them said. "Domestic coke prices are already under tremendous pressure but I don`t know what it will become," he said, conceding that domestic coke prices would be negatively impacted.

"There will be pricing pressure on Japanese and Colombian coke producers," he said. "Russian producers will also have a tough time now."

Indian cokemakers "will have to give a good price rebate to remain competitive" in view of potentially cheaper imported material, he added.

A source at a Russian coke producer said he expected prices of seaborne coke to drop to $260-270/mt CFR India from current $288/mt levels as a result of the duty removal.

"Tough competition will cause a drop in spot prices," he said. "There is too much coke in the market."

SOME SKEPTICAL

Some were less sure that the policy would directly translate into China`s return as a major coke exporter.

A Beijing-based trader said the impact on both coke and coking coal markets would be limited.

"Cost wise, China`s coke is no longer competitive," he said, citing raw materials, labor and governmental taxes. Chinese cokemakers may not necessarily be able to undercut seaborne producers, he added.

A Polish trader also didn`t think much of the policy`s impact.

"I don`t think it will cause a revolution," he said. "Prices in China for coke are quite high now, so even if you reduce the taxes, they`re still quite expensive."

A coke purchasing manager at a Chinese steelmaker said he didn`t expect any significant immediate impact.

"The export volume would still be small compared with total output in China," he said. "There might be some impact on sentiment, but this shouldn`t actually affect China`s domestic market."

China had been the world`s biggest coke exporter until the introduction of the duty in 2008, which caused volumes to plunge. The country exported 15 million mt of coke in 2007, out of the 329 million mt it produced.

In February this year, China agreed to act upon recommendations made by the World Trade Organization`s dispute settlement body, and said it would change policies to remove barriers to export coke, including taxes and quotas, by the end of the year.

Platts started assessing coke prices weekly on FOB North China and DDP North China bases since July 12 this year. The assessments, representing material with 62% CSR, were $420/mt FOB Tianjin and Yuan 1,730/mt ($277.39/mt) delivered to North China, respectively, as of Thursday.

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 2013 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 2-5, 2013. We invite you to join the event and to celebrate the 15th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2013, please visit: m.balanzskin.com.  

                                                                         Nation eyes Africa mining       
                                                              Source: www.chinamining.org  Citation: Global Times  Date: Jun.21, 2012 China`s investments in the African mining sector have increased tenfold since 2011, and the country is pouring more money into the continent while moving away from traditional markets such as Australia due to cost concerns, the China Mining Association said yesterday.

Chinese investment in Africa`s mining sector reached $15.6 billion in 2011, ten times larger than that in the previous year, data released by the trade body yesterday showed.

"The country`s rapid increase of investment in Africa was mainly driven by several large successful projects undertaken by Chinese companies in the continent last year," Yang Qiuling, a spokesperson of the association, told the Global Times yesterday.

Seven such investments in the mining sector in 2011, with even the smallest deal exceeding $1 billion, reached a total of $14.7 billion, accounting for 94 percent of China`s investment in mining in Africa last year, she said.

Meanwhile, China`s mining investment in Australia dropped dramatically to $1.3 billion in 2011, a 70 percent drop from the previous year, figures from the association showed.

In the first half of the year, the country`s total mining investment in Australia was only $140 million, according to the figures.

"The change of Australia`s mining tax policy has made it more expensive to invest in the country," Zheng Jiaxin, chief analyst at Beijing-based ATKEPP International Consulting, told the Global Times.

In March, Australia`s parliament passed laws for a new 30 percent tax on iron ore and coal mine profits.

"Compared to traditional markets such as Australia where it is getting increasingly difficult to get approval, Africa has a lower access threshold," Zheng said.

"Chinese firms now tend to form a consortium to jointly hold shares in mining companies in the emerging mining markets instead of holding controlling stakes as they did in the traditional markets," he noted.

"In this way, it makes it easier to be accepted by the recipient countries and regions such as Africa," he said.

In March, the National Development and Reform Commission approved Aluminum Corporation of China to form a consortium with four other Chinese companies to jointly develop Simandou iron ore mine in Guinea, Africa with Anglo-Australian miner Rio Tinto.

Chalco will hold a 47 percent stake in the joint venture with a total investment of $1.35 billion.

"Transportation issues and labor disputes are big concerns for investment in Africa," Yuan Li, a spokesman with Aluminum Corporation of China, parent of Chalco, told the Global Times yesterday.

"The joint venture makes it easier to share the risks and maximize efficiency," Yuan said.

With China`s growing presence in Africa, labor disputes and threats to Chinese workers` safety are on the rise.

In January, a total of 29 Chinese workers of Sinohydro Group Ltd were taken hostage by rebels in Sudan where the company had a $63 million road project.

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 2012 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 3-6, 2012. We invite you to join the event and to celebrate the 14th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2012, please visit: m.balanzskin.com.