News

News Analysis: China`s industry streamlining faces steel-price test

Source: www.chinamining.org     Citation: Xinhua   Date: May 04, 2016

Tangshan Songting Iron and Steel Co., a steel mill in China`s largest steel-producing city Tangshan, re-opened in April after five months laying idle.                

The company, which temporarily shutdown in November over mounting debt, is looking to restart production soon, media outlets quoted an unnamed industrial insider as saying.  

Similarly, mills in other steel-producing regions, including Tianjin and Shanxi, are resuming operation, despite a move by the government to downsize the steel sector.  

China`s steel sector had experienced years of plunging prices and factory shutdowns due to the sluggish economy, however, in March demand picked up thanks to infrastructure and property projects.  

Steel product prices have increased more than 60 percent in the year to date. Hot-rolled steel coils, for example, increased to around 3,200 yuan (around 500 U.S. dollars) per tonne from less than 2,000 yuan at the beginning of the year. 

Encouraged by the upward pricing trend, many steel mills are resuming production.  

National daily crude steel output amounted 2.28 million tonnes in March, up 12.9 percent from the first two months -- nearing the record 2.31 million tonnes seen in June 2014. The purchasing managers` index that tracks the iron and steel sector increased to 57.3 in April, the first time in two years that the index has climbed above 50, the level that separates expansion from contraction. 

China`s steel industry has been plagued by overcapacity for years. It has been felt even more in the past two years as demand for steel has dropped.  

Steel producers experienced their worst year in 2015, with combined losses in main business soaring 24-fold from 2014 to over 100 billion yuan.  

Despite the warming market, however, some are warning that it is too early to celebrate, just yet. There are concerns over whether the construction-driven price spike will impede the government plans for the steel sector.  

The return of steel companies adds pressure to the streamlining of the sector, thus, policies need to be better implemented, said Ma Li, an analyst with Lange Steel, a steel information website.  

Analysts expect the reopened factories will push crude steel output to a new high in April, but the government has vowed to control production. North China`s Hebei Province has asked officials to crack down on new mill projects and close those that failed to secure re-opening approval.  

On the other hand, some are downplaying the impact from surging steel prices, describing the rebound as "no more than a blip."  

The rapid price spikes are not sustainable as they are largely driven by a seasonal pick-up in fixed-asset investment and exacerbated by speculation in the steel futures market, according to Fitch Ratings.  

The rating agency expects steel prices will be under significant pressure in the near term as domestic demand for steel has generally remained flat.  

Vice president of China Iron and Steel Industry Association Qu Xiuli, said that although steel production is likely to hit new high in April, the rise in supply will help rein in the rampant market.  

Some industry insiders argue that consolidation of the sector will be a long process and unlikely to be disturbed by short-term changes.  

"It is like a `protracted war` we cannot win in single combat," said Zou Jixin, vice president of Wuhan Iron and Steel (Group) Co. To cut excess capacity, debt-ridden and inefficient steel producers need to make big changes, Zou said.  

Liu Weiming, financial analyst with CITIC Bank, went further and said the price surge may even help steel mills; "The price rebound will improve the solvency of steel companies and give them more room for restructuring."  

Moreover, price hikes are unlikely to change policymakers` resolve.  

China`s financial regulators in late April ordered banks to stop issuing loans to steel and coal enterprises that operate at a loss.  

The Ministry of Commerce said last week that it will work with more nations to address steel overcapacity.  

The government shut down outdated facilities with total production capacity of over 90 million tonnes in the past five years, and it plans to slash another 100 million to 150 million tonnes by 2020.

About CHINA MINING

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

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

Chinese state-owned coal firm to make good on bond payment

Source: www.chinamining.org     Citation: Reuters  Date: April 13, 2016

A unit of state-owned ChinaCoal Group said on Tuesday it will pay off principal and interest on overdue commercial debt on Wednesday in full, without specifying the source of its funds.  

ChinaCoal Group Shanxi Huayu Energy Co Ltd failed to pay 637.7 million yuan ($98.76 million) in principal and interest on domestic short-term commercial debt maturing on April 6, one of a string of recent defaults among Chinese companies.  

"The company has overcome numerous difficulties, actively strived to raise capital from various channels, and now decided to pay off the debts in full on Wednesday," Shanxi Huayu said in a statement posted on the website of the Shanghai Clearing House.  

Shanxi Huayu`s case was the first domestic bond default by a company controlled by a state-owned coal mining group since 2012.  

Shanghai Pudong Development Bank is the underwriter for Shanxi Huayu`s commercial debt, the statement said.  

China`s bond market has witnessed an increasing number of defaults over the past year as the country`s economy slows and Beijing moved to slash capacity in traditional industries including steel and coal, and state-owned companies - once considered safe bets - have begun to show signs of stress.  

The National Development and Reform Commission (NDRC) ordered issuers to take stock of their ability to repay principal and interest and submit reports by April 15 every year, starting this month, according to three sources with direct knowledge of the notice and a copy seen by Reuters.  

On Monday, state-owned China Railway Materials Co Ltd suspended trade in 16.8 billion yuan worth of its debt instruments, citing operation difficulties and payment issues.  

Fitch Ratings said in a report this week that Shanxi Huayu`s default highlighted the very difficult situation that many Chinese coal mining companies face.  

Lower prices, weak demand and over-capacity have significantly weakened the balance sheet of not only smaller-scale companies such as Shanxi Huayu, but also major players such as Yanzhou Coal Mining Co Ltd and China Shenhua Energy Co Ltd, Fitch said.  

However, the domestic bond market has remained calm so far, with traders betting that more stimulus spending, policy easing and tax cuts will help issuers avoid default, and average bond yields have remained accommodative.

($1 = 6.4573 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 2016 will be held at Meijiang Convention and Exhibition Center in Tianjin on September 22^nd -25^th, 2016. We invite you to join the event and to celebrate the 18^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2016, please visit: m.balanzskin.com.

Britain and China must join to solve steel crisis, ambassador says

Source: www.chinamining.org         Citation: chinadaily.com.cn    Date: April 12, 2016

Chinese Ambassador to the UK Liu Xiaoming talks about the 13th Five-Year Plan at a recent interview on March 6, 2015. [Photo/ fmprc.gov.cn]

Chinese Ambassador to the UK, Liu Xiaoming, publishes an article on the Daily Telegraph on Monday calling for the two countries to join hands and solve the current steel crisis. The following is the full text of the writing.  

Recently, the UK`s steel industry has been dogged by news of closures or sell-offs, with thousands of jobs at risk.  

This is a sad story: the pioneer of the modern steel industry - once the world`s factory, churning out almost half of global steel production in the latter half of the 19th century - is shrinking and bogged down in difficulties.  

However, it is regrettable that some people in Britain blame China for what is happening in the British steel industry and accuse China of "dumping" steels in Britain and pricing local companies out of the steel market.  

Making China the "scapegoat" only misleads the public and contributes nothing to the solution of the problem.  

As Chinese Ambassador, I believe it is my duty to share with the British public what I see as the multiple reasons behind the sluggishness in Britain`s steel industry.  

First of all, the shrinking steel sector tallies with the general trend in advanced economies where traditional manufacturing has been replaced by a modern services and financial sector. Sheffield`s transformation from a steel-making city to a sport and education hub is a case in point.  

Second, in the post-financial crisis era, recovery stays weak and demand remains scarce in most of the economies. Steel overcapacity thus becomes an acute issue worldwide and steelmakers, wherever they are, face similar difficulties. The UK is not alone. Steel companies in Europe, China and beyond are all trapped in the same predicament.  

Third, the price of steel production, including energy, labour and environmental costs, is rather high here in the UK. In face of fierce global competition, British companies in general are less competitive and less profitable in the field of ordinary and low-end steel production.  

Steel imported from China, amounts of which are very limited, has little to do with the predicament of the UK`s steel industry. In both volume and value, steel from China makes up only a fraction of the UK`s total steel imports.  

In 2015, for example, of the UK`s 6.66m tons of imports, only 11pc, or 760,000 tons, were from China. If put in value, that was $457m, only 7.6pc of the $5.98bn total.  

Moreover, steel products from China are mostly low value-added, such as ordinary steel rods and plates, which Britain no longer makes and would have to import from other countries anyway.  

Therefore, imports from China have no impact upon the British steel market. On the contrary, by importing steels from China, the auto, machinery, construction and other British industries have effectively lowered their costs and increased their profit margin. And imports from China are not "dumping", as some claim. The Chinese steel manufacturers have followed market rules strictly when exporting to Britain.  

Like their British counterparts, steelmakers in China are also in difficulty.  

But unlike in Britain, the situation in China is even more serious and challenging. Over the past three years, China has reduced steel capacity by 90m tons. In 2015, for the first time in nearly 30 years, China`s crude steel production fell by 2.3pc year on year. In the coming five years, China is going to cut its crude steel capacity by 100m-150m tons. 

This new round of reductions will result in several million lay-offs and relocations of steelworkers, far outnumbering those in the UK.  

So, both China and the UK have huge challenges on our way ahead - to reform and revitalise our respective steel sectors, and to provide help and support to those workers who might lose their jobs.  

The Chinese and UK governments have maintained close contact on the steel issue. In late February, the China-UK Joint Economic and Trade Commission had a special discussion on this matter.  

Over the weekend, during Foreign Secretary Philip Hammond`s visit to China, the two governments had an in-depth exchange of views over the steel issue.  

Here in the UK, I have spoken on many occasions and shared China`s position with British people from different sectors of industry.  

I am pleased that China and the UK share the consensus that protectionism is not the solution, as it is retrogressive, goes against market rules and serves the long-term interest of neither side.  

Both sides believe that there should be closer dialogue and co-operation between our governments. Working with, rather than against, each other is the only way leading to a solution.  

Overcapacity in the steel industry is a global problem. It therefore calls for a global solution with stronger communication and co-operation among all steelmakers worldwide, who have the joint responsibility to uphold the order of steel trade and promote the sound development of the global steel industry.  

For China and the UK, 2016 is the opening year of the "Golden Era", in which dialogue, co-operation, mutual benefit and common development constitute the prevailing mainstream.  

In September, world leaders will gather in Hangzhou in China for the G20 Summit, which will focus on ways to withstand the global downward pressure, to find innovative growth models and to enhance international trade and investment.  

It is my hope and belief that China and the UK will work together to strengthen dialogue, break through the current difficulties and create a sustainable future for the steel industries of both countries.    Chinese Ambassador to the UK, Liu Xiaoming, publishes an article on the Daily Telegraph on Monday calling for the two countries to join hands and solve the current steel crisis. The following is the full text of the writing.  

Recently, the UK`s steel industry has been dogged by news of closures or sell-offs, with thousands of jobs at risk.  

This is a sad story: the pioneer of the modern steel industry - once the world`s factory, churning out almost half of global steel production in the latter half of the 19th century - is shrinking and bogged down in difficulties.  

However, it is regrettable that some people in Britain blame China for what is happening in the British steel industry and accuse China of "dumping" steels in Britain and pricing local companies out of the steel market.  

Making China the "scapegoat" only misleads the public and contributes nothing to the solution of the problem.  

As Chinese Ambassador, I believe it is my duty to share with the British public what I see as the multiple reasons behind the sluggishness in Britain`s steel industry.  

First of all, the shrinking steel sector tallies with the general trend in advanced economies where traditional manufacturing has been replaced by a modern services and financial sector. Sheffield`s transformation from a steel-making city to a sport and education hub is a case in point.  

Second, in the post-financial crisis era, recovery stays weak and demand remains scarce in most of the economies. Steel overcapacity thus becomes an acute issue worldwide and steelmakers, wherever they are, face similar difficulties. The UK is not alone. Steel companies in Europe, China and beyond are all trapped in the same predicament.  

Third, the price of steel production, including energy, labour and environmental costs, is rather high here in the UK. In face of fierce global competition, British companies in general are less competitive and less profitable in the field of ordinary and low-end steel production.  

Steel imported from China, amounts of which are very limited, has little to do with the predicament of the UK`s steel industry. In both volume and value, steel from China makes up only a fraction of the UK`s total steel imports.  

In 2015, for example, of the UK`s 6.66m tons of imports, only 11pc, or 760,000 tons, were from China. If put in value, that was $457m, only 7.6pc of the $5.98bn total.  

Moreover, steel products from China are mostly low value-added, such as ordinary steel rods and plates, which Britain no longer makes and would have to import from other countries anyway. 

Therefore, imports from China have no impact upon the British steel market. On the contrary, by importing steels from China, the auto, machinery, construction and other British industries have effectively lowered their costs and increased their profit margin. And imports from China are not "dumping", as some claim. The Chinese steel manufacturers have followed market rules strictly when exporting to Britain. 

Like their British counterparts, steelmakers in China are also in difficulty.  

But unlike in Britain, the situation in China is even more serious and challenging. Over the past three years, China has reduced steel capacity by 90m tons. In 2015, for the first time in nearly 30 years, China`s crude steel production fell by 2.3pc year on year. In the coming five years, China is going to cut its crude steel capacity by 100m-150m tons.  

This new round of reductions will result in several million lay-offs and relocations of steelworkers, far outnumbering those in the UK.  

So, both China and the UK have huge challenges on our way ahead - to reform and revitalise our respective steel sectors, and to provide help and support to those workers who might lose their jobs. 

The Chinese and UK governments have maintained close contact on the steel issue. In late February, the China-UK Joint Economic and Trade Commission had a special discussion on this matter.  

Over the weekend, during Foreign Secretary Philip Hammond`s visit to China, the two governments had an in-depth exchange of views over the steel issue.  

Here in the UK, I have spoken on many occasions and shared China`s position with British people from different sectors of industry.  

I am pleased that China and the UK share the consensus that protectionism is not the solution, as it is retrogressive, goes against market rules and serves the long-term interest of neither side.  

Both sides believe that there should be closer dialogue and co-operation between our governments. Working with, rather than against, each other is the only way leading to a solution.  

Overcapacity in the steel industry is a global problem. It therefore calls for a global solution with stronger communication and co-operation among all steelmakers worldwide, who have the joint responsibility to uphold the order of steel trade and promote the sound development of the global steel industry.  

For China and the UK, 2016 is the opening year of the "Golden Era", in which dialogue, co-operation, mutual benefit and common development constitute the prevailing mainstream.  

In September, world leaders will gather in Hangzhou in China for the G20 Summit, which will focus on ways to withstand the global downward pressure, to find innovative growth models and to enhance international trade and investment.  

It is my hope and belief that China and the UK will work together to strengthen dialogue, break through the current difficulties and create a sustainable future for the steel industries of both countries. 

Liu Xiaoming is the Chinese Ambassador to the UK.

About CHINA MINING

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

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

China to open up iron ore futures to foreign investors

Source: www.chinamining.org         Citation: Reuters       Date: April 11, 2016

China is planning to open up the world`s most liquid iron ore futures to overseas investors, an official with the Dalian Commodity Exchange said on Friday, a move that would increase China`s sway over pricing as the world`s top iron ore consumer.  

The Dalian exchange is applying for approval from the China Securities Regulatory Commission to allow offshore investors to directly trade in the raw material, said Jing Mingyi, a manager with the exchange`s industrial products department.  

"We are actively working on it and hope to finish the relevant work regarding the trading system, connection with banks, deposit centre and futures firms," Jing told an industry conference.  

China has banned investors abroad from directly trading local commodity futures unless they set up a local unit in China.  

Dalian iron ore futures have become a benchmark for Chinese steelmakers and iron ore traders to assess prices for ore delivered to China.  

They have also attracted large capital flows from Chinese commodities funds. The iron ore contract surged as much as 19.5 per cent in a day in March amid a rally in prices. The volatility prompted the Dalian Exchange to enact measures to curb the sharp movements in prices.  

The most actively traded September contract on the Dalian Exchange was down 0.1 per cent on Friday at 377 yuan (S$78.78) a tonne.

About CHINA MINING

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

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

China sets energy use target for 2016

Source: www.chinamining.org         Citation: Xinhua   Date: April 05, 2016

China aims to keep total energy consumption at around 4.34 billion tonnes of standard-coal equivalent in 2016, with non-fossil fuel consumption rising to 13 percent, the National Energy Administration said Friday.  

Gas consumption will account for 6.3 percent of total energy consumption this year, and the proportion of coal consumption will fall below 63 percent, according to a guideline issued by the administration.  

On the supply side, the country is expected to produce 3.6 billion tonnes of standard coal equivalent in 2016, with crude output reaching 200 million tonnes and gas output standing at 144 billion cubic meters.  

The country aims to reduce energy consumption per unit of gross domestic product by at least 3.4 percent year on year in 2016, according to the guideline.  

The administration called for efforts to promote clean energy and emission reductions, further optimize the country`s energy structure and strengthen international energy cooperation.  

China plans to invest 30 billion yuan ($4.62 billion dollars) in recharging-infrastructure construction in 2016 to promote the use of electric vehicles, the guideline said.  

The country will build 2,000 charging stations, 100,000 public charging posts and 860,000 private charging posts in 2016. 

China will also kick off a new round of rural electric power grid upgrades to improve rural residents` lives and bolster the country`s economy, according to the guideline.  

China`s energy consumption rose 0.9 percent year on year to 4.3 billion tonnes of standard coal equivalent in 2015. 

About CHINA MINING

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

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

Chinese investors eye Tanzania`s power generation sector

Source: www.chinamining.org         Citation: Xinhua       Date: April 1, 2016

Chinese investors in power generation on Wednesday expressed their intention to open business in Tanzania to enable the sector to contribute to the country`s socio-economic development.

They expressed their intention when they met the Permanent Secretary in the Ministry of Energy and Minerals in charge of Energy, Juliana Pallangyo, and experts from the Tanzania Electric Supply Company Limited (Tanesco), the State Mining Corporation (Stamico), the National Development Corporation (NDC) and the Energy and Water Utilities Regulatory Authority (Ewura)

Speaking at the meeting, Chinese Economic and Business Representative to Tanzania Lin Zhiyong said companies dealing with energy production were interested in investing in Tanzania, where opportunities abound.

He also said that a special Chinese delegation was expected in Tanzania next week to get a first-hand information on the potentials available in the sector.

"They will come to see policies and government strategies in the energy sector before signing preliminary agreements," the official said.

Lin said that Chinese investors were ready to partner with their Tanzanian counterparts in power generation, so that the country could get enough power for the country`s economic prosperity.

Pallangyo commended the Chinese delegation for showing interest in the energy sector and urged them to explore the available opportunities.

"Our people need reliable energy that will stimulate the economy of the country. So, we`re welcoming investors to invest in power generation," he said, citing some of the energy sources as gas, geothermal, coal, solar and wind power.

Tanzania`s resources which are suitable for solar power generation are estimated to be equivalent to those of Spain, and areas of high wind power potential cover more than ten per cent of the country.

According to the World Bank`s Energy Sector Management Assistance Programme (ESMAP), the current electrification rate in Tanzania stands at 18.4 percent.

The target is to increase access to modern electricity to 75 per cent of the population by 2035.

About CHINA MINING

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

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

China to supply petroleum products to landlocked Nepal

Source: www.chinamining.org         Citation: quadrangleonline.com    Date: March 29, 2016

The airport project will also allow for more trade between China and Nepal, it said.

Two-thirds of Nepal`s worldwide trade is with India.

In the statement, Nepal and China agreed to strengthen connectivity, further step up the land and air links and improve the land transport infrastructure.

During Oli`s India visit in February, India offered access to a second port, Visakhapatnam, in a move understood in Kathmandu as the southern neighbour`s attempt to woo Nepal away from seeking sea access via Chinese territory.

Kathmandu blamed New Delhi for supporting the protestors who were agitated over a new Constitution that denied them their due through a realignment of constituencies. Another issue that is causing some heartburn in India is the proposed free trade zone between China and Nepal.

China will also build oil storage facilities for Nepal, and will send experts to Nepal to carry out a feasibility study on oil and gas resources research.

"The two sides have also agreed on building railways in Nepal", he said.

Oli, on his first official visit to China as Nepali Prime Minister, said the traditional Nepal-China friendship will not be affected by any external factor, which has set an example for relationship between countries of different sizes and different political systems. Our work there can help to work for common development. The Nepal-China border is snowed out for large parts of the year, with few motorable routes even theoretically possible. Similarly, the proposed rail link from China to Nepal is another long-term project that faces Herculean geographical challenges.

China was already planning to extend the railway from the Tibetan city of Xigaze to Gyirong on the Nepali border, she said. That said, India can not afford to be complacent or else it will run the risk of losing at least its economic influence with its northern neighbour in the long term.

Besides, the two countries signed agreements in the fields of science and technology, sister-city relations between various Nepalese and Chinese cities, and establishment of Nepal`s Consular General Office in Chengdu, China. "Kathmandu has the right to choose the development partners that maximise its national interests", it said.

"Therefore, instead of being forced into becoming a strategic barrier against China, Nepal should be better treated and act as a bridge between Beijing and New Delhi", the article said.

About CHINA MINING

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

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

Chinese submersible explores Indian Ocean for precious metals

Source: www.chinamining.org     Citation: PTI    Date: March 25, 2016

China`s unmanned submersible Qianlong No 2 has succesfully completed its first exploration in the southwest Indian Ocean early this month looking for sulfide deposits and precious metals, scientists said today.

The autonomous underwater vehicle (AUV) with a length of 3.5 metres, was independently designed by Chinese scientists and can dive to a depth of 4,500 metres, Liu Jian, chief designer of Qianlong No 2 was quoted as saying by the state-run Xinhua news agency.

 It dived 16 times during the exploration from December 16, 2015 to March 4, 2016 in the southwest Indian Ocean.

 Its work covered 218 square kilometres with the maximum depth of over 3.2 kilometre, Liu said.

The AUV explored sea areas rich in sulfide deposits that contain various metals, detected deep-sea terrain as well as photographed sulfide, basalt and marine organisms, he said.

The success of the trial exploration of Qianlong No.2 in the Indian Ocean has proved that the AUV can be put into practice in deep-sea mineral resource investigation since it can adapt to the complex terrain in the ocean and finish underwater tasks smoothly, Liu said.

In 2014 China has pressed another submersible Jiaolong which reported to have discovered deposits of copper, zinc and precious metals.

China has already secured contracts to explore Indian Ocean for polymetallic sulphide ore and its research vessel has discovered two hydrothermal areas and four hydrothermal anomaly areas in southwest Indian Ocean.

About CHINA MINING

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

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