News

Chinese government urged to cut taxes on steel scrap as consumption falls

Source: www.chinamining.org  Citation: Platts  Date: September 3, 2014

The China Association of Metalscrap Utilization has been lobbying the central government to lower the 17% tax on steel scrap sales to help increase its utilization in steelmaking, CAMU Secretary General Li Shubin said at the 7th China International Metal Recycling Conference in Beijing last weekend.
   
Recently, CAMU joined four other industrial associations, including the China National Ship Recycling Association, and petitioned the National Development and Reform Commission for preferential policies in steel scrap recycling, especially a tax cut, he said.
   
"We have been in frequent communication with related Chinese authorities since 2011 when Beijing canceled the tax refund, explaining the necessity for the steel scrap sector to enjoy a lower tax. Now it is more pressing when China is shifting towards an eco-friendly economy as scrap is more environmental friendly than iron ore and coke in steelmaking," he said.
   
Every tonne of scrap used in steelmaking will reduce 1.6 mt of carbon dioxide emissions and 3 mt of solid waste.
    
Beijing withdrew a 70% rebate on the 17% VAT for steel scrap recyclers in 2011, which has put China`s steel recycling industry at a disadvantage against iron ore that is becoming more affordable.
   
China`s steel scrap utilization fell to 110 kg/mt in 2013 from 117 kg/mt in 2012, Li said.
   
"Crude steel production using scrap now is about Yuan 200 ($32.40)/mt higher than iron ore, which we can`t afford as sometimes our gross profits per mt are not that much," a procurement official from a steel mill in central China said on the sidelines of the conference.
   
The company has been limiting scrap utilization to 10% of its total use in steelmaking for now.
   
A resumption of a 50-70% discount on the 17% VAT for steel scrap will, however, lead more mills to reconsider the proportion of scrap utilization, he added.
   
Zhu Jimin, vice chairman of the China Iron & Steel Association, nevertheless, was optimistic about the tax cut on scrap.
   
China is the world`s largest steel producer with crude steel output reaching 780 million mt in 2013, which was about 48% of the world`s total production.
   
Most mills now moving to blast furnaces that use mainly iron ore and coking coal also contributed to lower steel scrap consumption, market sources added.
   
China`s steel scrap utilization for steelmaking was merely 11% in 2013 compared with 32% in 1994.  

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

China to cooperate with APEC on energy

Source: www.chinadaily.com.cn   Citation: Xinhua   Date: September 3, 2014

Chinese Vice Premier Zhang Gaoli addresses the opening ceremony of the 11th APEC Energy Ministerial Meeting in Beijing, capital of China, Sept 2, 2014.

BEIJING - Chinese Vice Premier Zhang Gaoli vowed on Tuesday to step up energy cooperation with members of the Asia-Pacific Economic Cooperation (APEC).

While addressing an APEC energy ministers meeting in Beijing, Zhang said the Asia-Pacific region has witnessed both robust economic growth and increasing energy consumption.

In face of challenges of energy security and environment, countries should speed up transformation of their economic development pattern, and seek sustainable growth that features diversification, energy saving and low carbon, Zhang said.

He urged closer coordination and cooperation in energy exploration, and to promote energy investment and trade, facilitate research and development of advanced energy technology, and enhance energy security.

China, as a large energy consumer and producer, will strive for sustainable energy development, and promote energy saving in its economic and social development, said the vice premier.

China will explore non-coal energy such as oil, gas, nuclear power, new energy and renewable energy, he said.

"We will promote technological innovation in the energy industry, step up energy system reform, build and improve an energy price system that reflects supply and demand in the energy market," he said.

China will facilitate closer international energy cooperation, utilize global resources and ensure energy security, he added.

The meeting is one of nine ministerial meetings held in China ahead of the APEC economic leaders` meeting in November.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

China-Mongolia co-op goes beyond resources exploration

Source: www.chinamining.org  Citation: Xinhua  Date: August 26, 2014

The economic and trade cooperation between China and Mongolia has gone well beyond natural resources, and is extending to the fields of infrastructure and finance.
    
During Chinese President Xi Jinping`s state visit to Mongolia on Thursday and Friday, the two countries signed a host of cooperation documents, covering mainly three fields -- mineral resources exploration, infrastructure construction and finance.
    
In infrastructure, China agreed to help Mongolia finance a number of projects in medical care, education, railroad and housing.
    
In finance, the two sides inked a memorandum of understanding on setting up an economic cooperation zone and a deal on currency swap.
    
China also promised to support Mongolia in the creation of a better environment for foreign investment and help it join the Asia-Pacific Economic Cooperation mechanism.
    
Those agreements came at a time when Mongolia is seeking to diversify its cooperation with other countries as its mining-driven economy is facing a slowdown.
    
A 2012 law aimed at restricting foreign ownership in "strategic" sectors, which was later reversed, has slowed foreign investment, which fell 70 percent in the first half of 2014.
    
In the first half of this year, Mongolia`s economy grew 5.3 percent, compared with 11.7 percent in 2013, official data showed.
    
Faced with declining foreign investment and higher inflation, Mongolia is eager to change its natural resources-reliant economic mode and seek international cooperation in other fields.
    
Meanwhile, China, the world`s second largest economy and Mongolia`s biggest trading partner, could help to contribute to Mongolia`s economic restructuring.
    
China and Mongolia have huge cooperation prospects, said Chinese Foreign Minister Wang Yi, who accompanied Xi during the visit.
    
Wang said that Mongolia boasts natural resources while China have ample capital and advanced technology. The two neighboring countries are economically complementary, he said.
    
China has been Mongolia`s largest trading partner and largest source of foreign investment over the past 10-plus years.
    
Between 1990 and 2012, about half of the 11,642 foreign enterprises registered in Mongolia were Chinese. Of the 9.83 billion dollars of foreign direct investment absorbed by Mongolia during the same period, 3.48 billion dollars came from Chinese companies.
    
Also, trade with China in 2013 accounted for more than half of Mongolia`s total foreign trade. The two countries are hoping that bilateral trade could reach 10 billion dollars by 2020.
    
In its cooperation with Mongolia, China will always strive for win-win outcomes and will never attempt to seek gains for itself at the expense of the other side, Xi said in a signed article titled "Galloping Toward a Better Tomorrow for China-Mongolia Relations."
    
"Mutual benefit is precisely where the strength of their cooperation lies," Xi 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

China, Mongolia explore ways to expand bilateral economic ties

Source: www.chinamining.org  Citation: Xinhua  Date: August 21, 2014

Chinese President Xi Jinping is expected, during his upcoming visit to Mongolia, to work with Mongolian leaders to explore effective ways to expand and deepen bilateral economic and trade relations between two countries.

China has been Mongolia`s largest trading partner and a major investor for more than a decade, with the bilateral trade volume reaching nearly 6 billion U.S. dollars in 2013 -- nearly 20 times that of 2002 and more than half of Mongolia`s total foreign trade.

Xi`s visit will largely promote investment, economic and trade cooperation between the two countries, said Sun Weiren, the commercial counselor of the Chinese Embassy in Mongolia.

There are 6,169 Chinese enterprises registered in Mongolia as of June, 2013, accounting for 48.8 percent of foreign enterprises registered in Mongolia, according to statistics released by Mongolia.

Chinese investment totaled 2.56 billion U.S. dollars by the end of 2013, according to statistics released by China.

China and Mongolia share 14 border crossings for exports and imports, with the advantage of less transportation distance and lower cost.

China imports coal, oil, minerals, livestock and other primary products from Mongolia, while the electromechanical products, agricultural products, construction materials, and textiles from China are also popular in Mongolia.

The projects Chinese enterprises have engaged in include construction of roads, thermo-electricity stations, and housing, all of which serve as infrastructure build-up to help improve Mongolian people`s living standard.

China`s Gezhouba Corporation has built roads in western Mongolia, and other Chinese companies have built houses for Mongolian people. The Beijing Construction Engineering Group plans to build residential buildings in Ulan Bator, covering an area of 210 hectares with the support of preferential loans from China.

The financial cooperation between the two countries is also enhanced. The Bank of China (BOC) set up its representative office in Mongolia in 2012. In June 2014, the bank allocated its first loan of 25 million dollars to a local company, TUUSHIN. And more than 40 local companies have applied for loans of more than 3 billion dollars from the bank, covering such fields as energy, manufacture and infrastructure.

BOC will continue to support Chinese enterprises in Mongolia, as well as Mongolia`s construction of infrastructure, energy and resources development, and avoid competition with local banks, the chief representative of BOC to Mongolia, Dai Xingjun, said.

BOC, jointly with other Chinese enterprises, established two funds to help improve Mongolia`s education and the livelihood of the people, and to enhance cultural exchanges between the two.

Experts expect that China and Mongolia will work together to increase bilateral trade volume, improve the structure of foreign trade and investment, promote industrial upgrading, develop interconnection of railways, highways and electricity, as well as support cooperation in key areas and large-scale 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

China using more natural gas

Source: www.chinamining.org  Citation: China Daily  Date: August 21, 2014

Workers conduct a gas test at an energy station to ensure safe operation at an industrial part in southeast China`s Jiangxi province in March.

China`s natural gas consumption is on the rise and large investment in domestic gas production will increase that demand significantly in the future, a new report says.

China`s shift from coal to natural gas has led the government to spend more on infrastructure to develop the country`s own gas production, which is "likely to underpin a significantly larger role" in the country`s total energy consumption, said the Energy Information Administration (EIA), an agency under the US Department of Energy.

"China`s natural gas consumption has outstripped domestic supply since 2007, triggering rising imports of both liquefied natural gas (LNG) and pipeline gas," the report issued Monday said. "China`s natural gas consumption rose at an average annual rate of 17 percent from 2003 through 2013."

"What the data are showing is that China is relying a bit more heavily on gas. They`re basically interested in energy security and that comes from different sources," Candace Dunn, an industry economist at the EIA who wrote the article, told China Daily. "For gas, they see that as more of an opportunity, whether it be trying to produce it domestically and also looking at import opportunities."

In 2012, natural gas only made up 4.9 percent of China`s total energy consumption, but the Chinese government said this number will climb to about 8 percent by 2015, and to 10 percent by 2020, the EIA said.

To meet growing demand, the country has more than tripled natural gas production in the last decade, producing 3.8 trillion cubic feet in 2012, with aims to reach 5.5 trillion cubic feet a year by the end of 2015, according to the EIA.

"Most of the anticipated production growth is from large onshore fields in the western and north central regions of China as well as from the offshore deepwater regions in the South China Sea," Dunn said.

China`s natural gas imports have increased from 0.6 trillion cubic feet in 2010 to 1.8 trillion cubic feet in 2013, according to EIA data. The majority of its imports come from Qatar and Australia, two top sources of natural gas for Asian countries.

In 2012, China was the third-largest liquefied natural gas importer in the world, outranked by Japan and South Korea.

China has rich reserves of natural gas, but their extraction technologies may not be as sophisticated as those found in the US and it`s not easy to get at, according to Dunn.

"The geography there is a bit more complex and challenging. Water resources are another issue. That`s just more challenging in that environment. Plus, they have issues with land rights and mineral rights that are different in the US. There are various reasons why it seems to be taking longer there," she said.

Compared to the US, China`s consumption of natural gas is small: natural gas consumption made up 4.9 percent of total energy consumption in China, compared to the 27 percent of total energy consumption in the US, but that`s to be expected, Dunn said.

"We do have a very sophisticated gas industry here with infrastructure and trading systems," she said. "With China, I think it`s fair to say they`re working towards building a better system, more pipelines, more infrastructure."

"Overall, they would like to develop their gas industry much more, and they`re also looking at their pricing regime and reforming that. That`s been a process, just to make their prices more market-oriented," Dunn 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

China allows 3 more banks including StanChart to import gold -sources

Source: www.chinamining.org  Citation: Reuters  Date: August 20, 2014

China has allowed three more banks, including a foreign lender, to import gold, sources with direct knowledge of the matter said, as the world`s top gold buyer gears up for its strongest effort yet to gain pricing power of the metal.
    
The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the launch in September of a new international bullion exchange in Shanghai with which China hopes to become a price-discovery centre.
    
China and other Asian gold trading centres such as Singapore are calling for more localised pricing of the precious metal as they seek alternatives to the so-called London fix, the global benchmark for spot gold prices, which is being investigated by regulators on suspicion that it may have been manipulated.
    
Standard Chartered (STAN.L), Shanghai Pudong Development Bank and China Merchants Bank were given regulatory approval recently to import gold, five sources with direct knowledge of the matter told Reuters.
    
"We were given the license earlier this month. We haven`t started importing yet but we will soon," said a source at one of the three banks, speaking on condition of anonymity as the news has not yet been publicly announced.
    
Standard Chartered, only the third foreign bank to be allowed to import gold into China, declined to comment. The other two banks did not immediately reply to requests for comment.
    
Trading data from the Shanghai Gold Exchange (SGE) - the platform for all physical trades in China - show Shanghai Pudong Development Bank was ranked among the top 10 trading members every month from January to July, while China Merchants was among the top 10 for five out of seven months.
    
"We are active traders on the SGE and have been waiting for the gold import license for more than a year now," said a source at China Merchants Bank.
    
Allowing more banks to import is a sign of willingness by regulators to open up the market, especially to foreign firms, but the move does not necessarily mean import volumes into China would increase significantly in the near term given current weak demand.
    
China has increased the pace of liberalisation of the gold market over the past year, with the approval last year of the country`s first gold-backed exchange-traded funds, extended trading hours and the granting of import licenses to foreign players.
    
ANZ and HSBC were granted import licenses late last year.
    
    
PRICE-DISCOVERY CENTRE
    
China approached foreign banks, gold producers and refiners to participate in SGE`s international bourse, sources told Reuters earlier in the year, to boost its position as a price-discovery centre for gold. It plans to launch three physically-backed gold contracts.
    
The chairman of the exchange said in June that China should have its own pricing benchmark as it is the biggest consumer and producer of gold.
    
"The new import licenses seem to be well-timed. Along with their upcoming new exchange, they are clearly showing that they want to make the market more accessible, and easier for foreign players," said one precious metals trader in Hong Kong.
    
However, the granting of the new licenses would not mean China`s gold imports would surge as buyers have taken a pause after record consumption last year. Total gold demand halved in the second-quarter, according to the World Gold Council.
    
China imported over 1,000 tonnes of gold last year as gold prices slumped after a 12-year rally.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

Xi`s upcoming visit to further ties: Mongolian lawmaker

Source: www.chinamining.org  Citation: Xinhua  Date: August 18, 2014

Chinese President Xi Jinping`s upcoming state visit to Mongolia will significantly promote the economic relations between the two countries, a Mongolian lawmaker said.
    
Mongolia and China are enhancing their economic relationship and Mongolia`s hard currency revenue has increased as most of its exports, especially coal and copper concentrate, go to China, Dulamsuren Oyunkhorol, from the opposition Mongolian People`s Party, was quoted by Mongolian news website www.news.mn as saying.
    
The lawmaker urged Mongolia to learn from the experiences of China`s Inner Mongolia Autonomous Region in supplying solar and power energy, increasing the productivity of livestock animals and improving herders` quality of life.
    
In 2011, China`s Inner Mongolia Autonomous Region and Mongolia started a cooperative project designed to reduce pastureland overgrazing, increase output of cashmere and meat, as well as supply solar power to herder households to meet their demand in both production and life.
    
"It is important for Mongolia to work with the Chinese side, especially the Inner Mongolian Autonomous Region`s academic and research institutions and herders to improve the livelihood of our herders," said Oyunkhorol.
    
President Xi will pay a state visit to Mongolia at the invitation of Mongolian President Tsakhiagiin Elbegdorj from Aug. 21-22.

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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.

China plan to cut wholesale power price may help coal producers

Source: www.chinamining.org  Citation: Bloomberg  Date: August 18, 2014

China will cut wholesale prices that distributors pay for electricity from coal-fired plants, two government officials said, a move that may allow it to compensate struggling coal suppliers.
    
The National Development and Reform Commission told provinces to impose cuts at an average rate of about 0.0093 yuan a kilowatt-hour, according to the officials, who asked not to be identified because they weren`t allowed to discuss the matter publicly. Some cuts took effect on Aug. 15, while power companies` regional branches may adopt different dates for implementation, they said. The retail price won`t change.
    
China last adjusted on-grid power tariffs in September 2013, cutting it by as much as 0.025 yuan a kilowatt-hour. The nation uses a coal-tariff linkage system where tariffs are subject to change when coal prices fluctuate more than 5 percent. The mechanism, introduced in 2004, wasn`t strictly followed. The country`s benchmark coal price fell 21 percent this year, trading from 470 yuan to 480 yuan a metric ton as of Aug. 17.
    
"There`s a possibility that the government will conversely use the extra money to compensate coal producers since they are barely making money," Tian Miao, a Beijing-based analyst with researcher North Square Blue Oak in London, said by phone. More than 70 percent of Chinese coal companies are losing money and 50 percent aren`t paying wages on time, according to China National Coal Association.
    
The tariff cuts are relatively small and will have "limited impact" on power companies` profits, according to Tian. It will remove more than 5 billion yuan ($813 million) of profit for the top five state-owned power companies, including China Huaneng Group and China Guodian Corp., in the second half of the year. These companies will still have "double digit" growth in their 2014 earnings because the cost of coal is at a seven-year low, Tian 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 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: m.balanzskin.com.