News

SOEs pledge more cuts to production capacity

Source: www.chinamining.org     Citation: Xinhua       Date: April 28, 2017

Reform of industries seen as an important link in pushing forward supply-side structural reform 

BEIJING - China`s central state-owned enterprises have pledged to continue to cut production overcapacity in some industrial sectors, aiming to reduce steel capacity by 5.95 million metric tons and coal by 24.73 million tons. 

"Detailed plans have been made by central SOEs," says an insider, who asks to remain anonymous. 

China Huaneng Group says it is considering cutting 9.14 million tons of coal production capacity by the end of 2018 while dealing with 16 of the group`s "zombie companies".

Zombie companies are economically unviable businesses, usually in industries with severe overcapacity, which only survive due to financing from the government and banks. 

China PolyGroup Corp, a state-run conglomerate, has vowed to close inefficient coal mines and reorganize 39 of its subordinate companies to improve profits. The latest efforts by the central SOEs will reinforce their achievements made in 2016 in reducing overcapacity. 

Last year, the central SOEs reduced steel production capacity by more than 10.19 million tons and coal capacity by 34.97 million tons, both beating annual targets. 

The capacity cut drive by central SOEs is only apart of China`s bigger picture in slashing overcapacity. 

The country aims to curtail steel production capacity by around 50 million tons and coal by at least 150 million tons this year, a key part of the country`s supply-side structural reform. 

To improve its growth quality and efficiency, China began its supply-side structural reform in 2015 to cut overcapacity, reduce inventory, deleverage, lower costs and strengthen weak links. 

"China`s SOE reform is an important link in pushing forward supply-side structural reform," says Li Jin, chief researcher of the China Enterprise Research Institute. 

Realizing the significance of SOEs to the country`s sustainable growth, China launched a series of reforms including cutting capacity, managing zombie companies and calling for innovation among these companies. 

Overcapacity, poor corporate governance and low productivity had dragged down profits of China`s SOEs, which deteriorated in 2015. 

In 2016, China`s central SOEs cut 2,730 subsidiaries and saved 4.91 billion yuan ($713.4 million;652.1 million euros; ￡555.6 million) in management costs, according to the State-owned Assets Supervision and Administration Commission. 

Thanks in part to these efforts, central SOEs saw profits rise slightly. Growth last year picked up from a 5.6 percent decrease in 2015. 

In 2016, central SOEs made total profits of 1.23 trillion yuan, up 0.5 percent year-on-year, according to the SOE watchdog. 

This year, China has pledged to deepen SOE reform, promising measures such as introducing a mixed ownership system and more efforts to make SOEs leaner, healthier and perform better. 

China has 102 centrally administered SOEs, which manage the bulk of the country`s State assets. 

The improving figures of the SOEs contributed to the country`s broader economy, which has shown more signs of stabilizing since the second half of 2016, with indicators including factory prices and industrial profits seeing significant improvements.

About CHINA MINING

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

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

Investment from China helps give steel mill new life

Source: www.chinamining.org     Citation: China Daily Europe          Date: April 28, 2017

Hesteel Serbia employees discuss production techniques with a member of the Chinese management team. Fu Jing / China Daily

With higher wages and increased job security, workers at Serbian plant that at one time neared bankruptcy are now more confident and productive 

For 20 years, Svetlana Radosavljevic has monitored the manufacture of steel and iron from a glass-walled control room in an old production center at Zelezara Smederevo, Serbia`s biggest mill. 

For many years, the mill, less than a 60-minute drive from Belgrade, could only run one of its two production lines, and it lost about $10 million a month. Moreover, many of the 5,000 workers were unproductive. These factors resulted in a prolonged period of low productivity that almost forced the company into bankruptcy. 

Last year, the 105-year-old mill was given a new lease on life when Hesteel Group, from Hebei province, purchased it for 46 million euros ($49.6 million; ￡38.75).

Now, both production lines are running at full capacity at Hesteel Serbia, the mill`s new name, which will see production of 2 million metric tons this year, the maximum quota agreed to between the European Union and Serbia. The acquisition ended seven years of losses, and by the end of last year the mill was profitable again. 

The workers are now more confident because their jobs are secure and wages have risen by an average of 8 percent, compared with the pre-takeover level. 

"Now it is safer, production is higher, and I am more focused on my job because I don`t need to worry about becoming unemployed," Radosavljevic says. 

Her control room is about 50 meters from the end of a line that produces steel plate. During a visit in June, President Xi Jinping spoke with the workers and management in the control room, which helped to inject the confidence needed to make the most of the lifeline offered by the acquisition. 

In addition to the front line workers, even Serbia`s Prime Minister Aleksandar Vucic, who is also president-elect, is excited about the performance. 

Song Sihai, an executive board member of Hesteel Serbia who oversees management of the mill, describes his meeting with Vucic. "The prime minister and I discussed the revenue target for this year, which will be about $800 million, and he asked his assistant to calculate the amount it would contribute to the country`s economic output," he says. 

Sitting in his office, Song, an executive with the parent company, quotes Vucic`s conclusion, that the company`s revenues will account for more than 2 percent of GDP this year. 

"Surely, this will provide great help to Serbia`s economic development," he says.

About CHINA MINING

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

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

China urges upgrading energy consumption pattern

Source: www.chinamining.org     Citation: Xinhua          Date: April 27, 2017

China`s top economic planner Tuesday called for implementation of a government plan to promote reform in energy production and consumption.

China`s total energy consumption will be capped at 6 billion metric tons of coal equivalent by 2030, according to a government plan for 2016 to 2030, issued by the National Development and Reform Commission (NDRC).

The plan is aimed at optimizing the energy mix and ensuring energy security, in the face of a new supply-demand pattern in the global market, said NDRC in an online statement.

By the end of 2030, non-fossil energy is expected to account for 20 percent of the total energy consumption, accompanied with a reduction of carbon dioxide (CO2) emission per unit of GDP by 60 percent to 65 percent compared with 2005, according to the government plan.

The plan also outlined the target of maintaining self-reliance of energy consumption beyond 80 percent by the end of 2020, in a bid to ensure China`s energy security.

In the statement, NDRC pledged strengthened supervision over local authorities for better implementation of the plan.

Advanced technology, sound market mechanism and strong legal support are all necessary in achieving the goal, according to the report.

China`s energy intensity, the amount of energy consumed per unit of GDP, decreased 3.8 percent year-on-year in the first quarter of 2017, according to the National Bureau of Statistics.

The decline was better than the government target of 3.4 percent in 2017.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: m.balanzskin.com.

China will encourage coal miners to merge, restructure - state planner

Source: www.chinamining.org     Citation: Reuters      Date: April 26, 2017

Beijing will encourage coal companies to merge and restructure to increase efficiency in the industry and take measures to return thermal coal prices to a "reasonable" range, China`s economic planning agency said in a statement on Wednesday.

The comment by the state planner, the National Development and Reform Commission (NDRC), came after a meeting with coal mining firms on Tuesday as thermal coal prices continue to rally while utilities that consume the fuel lose money.

The NDRC issued a similar release on Tuesday following a gathering late last week with utilities

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: m.balanzskin.com.

Jordan welcomes China to boost investment in energy, infrastructure

Source: www.chinamining.org     Citation: Xinhua          Date: April 25, 2017

Jordan said on Monday the potential for Chinese companies to boost their investment in Jordan is extensive in various fields.

Addressing the Jordanian-Chinese Business Forum, Jordanian Minister of Trade and Industry, Yaroub Qudah, called on Chinese companies to benefit from the investment facilities and incentives provided in Jordan, especially in solar and wind energy, oil shale, pharmaceuticals and fertilizers sectors.

During the forum, held by Jordan`s Chamber of Commerce, the minister said several investment opportunities exist in Jordan in the fields of energy and infrastructure plus tourism.

The minister added that Chinese companies investing in Jordan will benefit from a strategic geographic location due to Jordan`s proximity to Syria, thus Chinese companies can play a key role in reconstructing Syria.

Stressing upon the strategic ties between Jordan and China in several areas, the minister said China is Jordan`s second largest trade partner and that the trade exchange between both sides exceeded 3 billion U.S. dollars in 2016.

Qudan said Jordan is a gateway to Middle East markets and the country is a signatory to several free trade agreements with various countries such as Canada and the U.S.

Jordanian Chamber of Commerce President Nael Kabariti said diverse investment opportunities exist in Jordan, a country which enjoys both political and economic stability and security.

He added that the potential was substantial for increased partnerships between Jordan and China as well as both countries` private sectors.

The Chinese ambassador to Jordan, Pan Weifang, stressed the key strategic partnership between China and Jordan during his speech, noting that Chinese companies are involved in implementing mega projects in Jordan.

Furthermore, Chairman of China Council to Promote International Trade, Jiang Zengwei, heading a Chinese business delegation of over 20 entrepreneurs to Jordan, voiced China`s readiness to boost collaboration with Jordan and to exchange official delegations in order to explore further cooperation opportunities.

The two sides signed a memorandum of understanding during the forum in order to effectively establish the Silk Road Business Council and promote joint investment between both countries and further develop their trade relations.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: m.balanzskin.com.

Uganda eyes more Chinese investment: ambassador  

   Source: www.chinamining.org     Citation: Xinhua          Date: April 24, 2017

Uganda seeks to attract more Chinese investment with "the most favorable policies," said Ugandan Ambassador to China Charles Madibo Wagidoso on Friday.

"Foreign investors will enjoy tax exemption, quick investment examination process, and liberty to transfer capital in and out of Uganda," said Wagidoso attending an investment promotion conference in Fuzhou, capital of east China`s Fujian Province.

The projects highlighted at the event range from a crude oil pipeline, iron ore processing, airport development and gold and gemstone mining.

China ranks the first place in terms of foreign direct investment in Uganda, totaling 4 billion U.S. dollars, according to the Chinese Embassy in Uganda.

Wagidoso said Uganda is an open and highly liberal market, a good investment destination for both state-owned enterprises and private businesses from China.

In response to the recent protest against Chinese retailers in Uganda`s capital Kampala, Wagidoso reassured investors that their interests will be well protected as always, and that domestic and foreign businesses are treated equally in the country.

"We welcome both large and small businesses from China," Wagidoso said.

He also stressed the win-win nature of China-Africa economic cooperation. "Guangdong Dongsong, a successful company in Uganda, produces fertilizers which is in dire need for local agriculture and has created 3,000 jobs, generating tax revenue for the local government."

In recent years, China has launched a series of projects in Uganda, including Entebbe International Airport, an agri-industrial park in the central Ugandan district of Luweero and several hydropower projects.

About CHINA MINING

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

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

China plans Shanghai crude oil futures launch in H2 2017 – sources

Source: www.chinamining.org     Citation: Reuters       Date: April 19, 2017

China is looking at launching its crude oil futures in Shanghai in the second half of this year, two sources familiar with the matter said, breathing new life into a derivative that was considered shelved only months ago. 

The contract is aimed at giving China, world`s second-largest oil consumer after the United States, clout in pricing crude in Asia, and a share of the trillions of dollars in oil futures trade that flow through global benchmarks Brent and West Texas Intermediate .

Shanghai`s International Energy Exchange (INE) last year was close to launching the futures contract, which was approved in 2014 after years of planning, but its plans were shelved after volatility in domestic stock and commodities markets spooked regulators.

The sources were unclear when the contract would actually start to trade.

"In the second half of this year, maybe in September or October," one of the sources said, adding it could take place before the 19th National Congress of the Communist Party of China, where a change of guard under President Xi Jinping will take place.

The second source said the launch could happen earlier, possibly in July or August.

It was not immediately clear what factors prompted the project`s revival.

An INE spokeswoman did not give a definitive start date, saying, "We are actively preparing and are striving to launch the product as soon as possible."

Crude oil sold in Asia is mainly priced against the Dubai, Oman and dated Brent benchmarks assessed by S&P Global Platts or the Oman crude futures on Dubai Mercantile Exchange.

About CHINA MINING

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

CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: m.balanzskin.com.

UAE aluminium giant gears up to tap Chinese market

Source: www.chinamining.org     Citation: Xinhua      Date: April 18, 2017

DUBAI - Emirates Global Aluminium (EGA) said here Monday in an e-mailed statement that it has opened its first office in Shanghai.

The office in Shanghai of EGA`s wholly-owned Chinese subsidiary will source raw materials and other supplies in China.

EGA has procured over $500 million of supplies from the world`s second economy over the past two years, it said. "Shanghai is an important economic centre in China," EGA`s CEO Abdulla Kalban told Xinhua by e-Mail.

Kalban said "China is already a substantial source of raw materials and supplies for EGA, and we expect the importance of China for our business to grow in the coming years."

The scale in future of EGA`s sourcing from China and sales into China will depend on the success of commercial discussions, he explained.

Kalban said the UAE is strategically situated in West Asia, an area of focus for China under its Belt and Road Initiative, which aims to revive ancient Silk Road trading links.

In 2014, China replaced India as Dubai`s biggest trade partner and has retained this position since then, 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 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2017, please visit: m.balanzskin.com.