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Outlook for China Mining Industry in 2012
Source: Portal Website of Ministry of Land and Resources Citation: China Mining News  Date: Jan. 10, 2012

2012 is the Year of the Dragon and thus the real year of China. Can China still act as the locomotive of world economy after 2008 international financial crisis when the global economy is affected by Europe’s debt crisis? Both Chinese and worldwide foreigners are waiting and seeing. Understandably, there are somewhat complicated feelings from the foreigners. In the eyes of media, the year of 2012 is so special, not for doomsday but for world political explosion. 59 countries and regions will have their new president and parliamentary election this year, and China will also undergo leadership succession. Westerners prefer talking about the uncertainties in China in their harangue. Since Asian financial crisis in 1998, they have been keeping a watchful eye on China. The never-fall image of Chinese economy always discomforts them. 2012 is indeed a year with both challenges and opportunities for the world and China. However, the basic situation of China’s economy is not changed. China is now on the industrialized, urbanized and agriculture modernized development stage. Against this backdrop, curse will be no use to its stable economic growth. Despite the severe external environment, the huge internal demand market still leave a great space for economic growth in China. There is realistic basis for China’s stable economic progress in 2012. Mining industry, as a fundamental industry to support national economic development, may learn a lot in the fickle international economic environment. Coal market may see a reverse The strong coal market over the past few years may see a reverse in 2012 under the pressures of both overcapacity and shrinking demand. Except for special coal and scarce coal, the prices of thermal coal and chemical bituminous coal will hardly hike. It is even fortunate if the price can remain at its current level. This is the professional analysis from coal industry insiders. During the “Eleventh Five-Year Plan Period”, China reaped great achievements in both production and sales of coal supported by brisk demand at home and abroad and uprising global oil prices, which led to increase of intermediate price of energy and resource products. In 2010, China produced 3.24 billion tons of coal, up 1.13 billion tons as compared with output in 2005, indicating an average annual growth of 10.71%. Correspondingly, coal prices experienced sharp rise during the period. For instance, the price of 5,500 Kcal/kg thermal coals at Qinhuangdao port averaged RMB 450 per ton in 2005, while it reached as high as RMB 815 per ton in 2010, growing at an annualized rate of 16.22%. Some analysts predicted the end of coal market boom. First of all, overcapacity appears. Statistics show that the combined capacity at China’s coal mines reached 3.7 billion tons in 2010, accounting for 87.57% of the country’s coal production of 3.24 billion tons in the year. Many large mines are projected to be put into operation following restructuring efforts for coal sector in such provinces as Shanxi, Henan, Hebei, Inner Mongolia, Shaanxi, Heilongjiang, Guizhou, Shandong and Anhui. Moreover, large-scale modernized mines, under the government’s plan to invest RMB 4 trillion in 2009, are forecasted to start production in 2012-2013. These new operations will enable China’s total coal capacity to reach 4.2 billion tons in 2012, even touching the target of capacity for 2015 set by the government. The excess capacity will bear down on coal prices. Secondly, domestic and overseas macroeconomic situation will exert an influence. In 2012, local authorities will still take proactive measures to boost local GDP despite of further slowdown in China’s economic growth. Coal, petroleum, natural gas and other resource products can not only stimulate local GDP growth, but bring considerable fiscal revenue. What’s more, they have been in large scale, so local government is bound to urge release of their capacity. In this circumstance, coal enterprises have to ensure high and stable output and dramatically increase coal supply. Inner Mongolia and Shanxi, leaders in China’s coal production, saw coal output exceeding 800 million tons in 2011 and will strive for a higher target of 900 million tons in 2012. Besides, Xinjiang, Hebei, Guizhou, Henan and Ningxia guarantee to achieve an annual growth of over 14% in coal production this year. Coal production provinces will continuously raise coal output to ensure no sharp economic downturn. This will inevitably cause oversupply in coal market and inhibition of price drop. In addition, demand shrinking worsens oversupply in coal market. Domestic and overseas coal demands may not increase substantially, or even decline in 2012. Some experts said, continuous implementation of real estate regulation policies would not only make for squeezing out real estate bubbles and preventing and reducing financial risk, but also act as a drastic measure to high energy consumption enterprises, which would effectively inhibit consumption of resources and energy such as coal, petroleum, electrical power, etc. Nevertheless, anthracite and high quality coking coal are scarce resources strictly controlled by the state and monopolized by a small number of enterprises. These enterprises are able to make the right decision about production plans in line with market demand and ensure the prices stay firm in 2012. Thermal coal and soft coal applied in chemical industry, unfortunately, will see prices loosening and even experience a fall in the year. Nonetheless, some experts state that despite the gloomy outlook as a result of demand decline and high inventory, coal enterprises see little odds that coal prices will dive in 2012 on tight capacity for coal rail transportation and on the fact that they still have a big say in coal pricing when consolidation efforts in coal sector continues in major coal-producing regions. An important factor is that for geopolitics reason, oil price will remain high in the future. Correspondingly, there is a relative price relation and complementary supply and demand relation between coal and oil, so coal price will hardly crash even if demand growth slows down. Apart from this, with transfer of coal production capacity to west areas, rapid growth of coal demands and continuous growth of inputs in main coal consumption areas, the coal transport bottleneck for railway will get worsened in 2012. Iron ore price will fall Steel industry of China walked hard in the past 2011. Overcapacity and low profit rate still haunt the industry. Consequently, iron ore market suffered great ups and downs from soaring at the beginning of 2011 to diving at the end of October. Thereafter, iron ore price started weak market adjustment at the end of 2011, and this situation will probably continue in 2012. It is pointed out by the insiders that production expansion of the foreign mines in the future is greater than the increase in the crude steel output of China. Therefore, there will be changes in the supply and demand pattern of iron ore. In 2012, the price fluctuation of iron ore will be more frequent, but the amplitude of the price fluctuation would be narrow, and the overall price will show a slow decreasing trend. The average import price of iron ore in 2011 is about 155 dollars/ton, and that in 2012 would be at about 145 dollars/ton. There is an opinion that 2012 is a turning point for the Chinese steel industry. After a decade of rapid growth, the steel industry has piled many problems, such as production capacity surplus, low or middle end of product structure, low industry concentration, intense disorderly competition, lacking of reasonable and effective allocation of resources, increased energy supply and environmental pressures, the demands of main industries downstream industries entering the steady growth period, etc. What’s more, as the last round of economic cycle is drawing to the close, the probability of economic downturn is increasing, the variables for global recovery are increasing, and there will be an obvious turning point in the industry supply and output in 2012, bringing the high growth in the past 10 years to an end. Meanwhile, affected by the decline in demands, the upstream cost will fall back from the historic high. Some experts believe that the steel industry will touch the bottom and rebound in 2012 if the structural adjustment accelerates. In October 2011, China Steel Association officially launched the Chinese iron ore price index. After the stable operation of the index is approved by Chinese steel plants, it is an inevitable move to fight for the reorganization from the three iron ore giants. On the night of January 2, in accordance with the Chinese iron ore index jointly prepared by China Steel Association and China Chamber of Commerce of Metals & Minerals & Chemicals Importers & Exporters, it is shown that the iron ore price index of China in the end of December 2011 is 460.36 points, dropped by over 130 points compared with the initial 596.87 points (the first week in September 2011), and the amplitude is about 22%; wherein the imported iron ore index dropped from 659.5 points to 504.72 points. By the end of 2011, the stock of iron ore in main ports of China had reached 96.82 million tones, increasing by 32.2% compared with that of last year. Data shows that the decreasing amplitude of the current domestic iron ore price is 23% compared with the high point at the beginning of 2011. The imported iron ore is decreased by about thirty percent. The iron ore price in the recent years remains high, which drives active investment in the iron ore field. The domestic mineral productivity in 2011 was released, and the output records were refreshed successively. From May 2011, the monthly raw ore output maintained more than 100 million tons, reaching 130 million tons in October, with the annual output exceeding 1.3 billion tons. Affected by the factors of the mine production expansion and slowed steel production growth, the relation between supply and demand in the iron ore market will be more balanced. It is predicted by the insiders that the break point of supply and demand might occur in 2012. In accordance with the prediction of the U metal website, the global iron ore output will be up to 2.28 billion tons in 2012, and 2.7 billion tons in 2015. The monopoly degree of global mines will be decreased, the competition will be intensified, and the situation of oversupply will appear in the market. In addition, great progresses in the control of foreign iron ore resources have been made by steel groups like Anshan Iron and Steel Group Corporation, Wuhan Iron and Steel (Group) Corporation, and Shandong Iron & Steel Group Co., Ltd. In accordance with the Statistics of Metallurgical Planning Institute, part of the first-stage project of the Sierra Leone Tangkelili Iron Mine with the equity participation of Shandong Iron & Steel Group Co., LTD, has been constructed and put into operation; Carrara Iron Mine of Australia invested by Anshan Iron and Steel Group Corporation is predicted to be put into operation in 2012; Wuhan Iron and Steel (Group) Corporation also conducts iron ore resources development layout in the global range. The investment will be increased in 2012, so as to form equity mine productivity as soon as possible. Unconventional oil and gas become a hot spot Because of the high price of oil, people have turned their attention to unconventional oil and gas recourses. It is certain that the exploration and development of unconventional oil and gas will welcome a boom in 2012. On Dec. 31, 2011, the National Energy Administration issued The 12th Five-Year Plan on Development and Utilization of Coal Bed Methane (Coal Gas). Till 2015, the coal bed methane output will reach 30 billion cubic meters, and newly proved geological reserves will be 1 trillion cubic meters. Moreover, the 17 plans prepared by the National Energy Administration have been completed, and will promulgate intensively this year. On the same day, the Ministry of Land and Resources published the announcement of a newly discovered mineral on its official website. Shale gas is officially listed as newly discovered mineral, and will be treated as separate mineral to invest and manage. It is proposed in the 12th Five-Year Plan on Shale gas that by 2015, the investigation and evaluation of the shale gas resource potential would complete basically, with proven shale gas geological reserves of 1 trillion cubic meters and recoverable reserves of 200 billion cubic meters, and annual production would reach 6.5 billion cubic meters. According to the instructions issued by the State Council, and taking into consideration the characteristics of shale gas itself and the exploration and mining progress in China as well as foreign experience, the Ministry of Land and Resources will develop related support policy to promote the process of shale gas exploration and exploitation and achieve large-scale development as soon as possible, which will help alleviate the shortage of oil and gas resources in China, improve the supply of natural gas, change China’s energy structure, increase the supply of clean energy to form a new pattern of oil and gas exploration and development. To advance the exploration and exploitation of shale gas, the Ministry of Land and Resources has completed the first round of shale gas exploration right transfer by bidding invitation to lead in a variety of investors who can get exploration right through competition; arranged exploration years and investment through contract. The ministry will urge the bid-winning enterprises to perform the contract by supervising and establishing the exit mechanism at the same time. For those enterprises who fail to complete the commitment of exploration investment, the ministry would require part or total exit from the block from the investors. The series of policy actions dispel the uncertainty of investors, which will greatly stimulate the input to the development of unconventional oil and gas exploration. The year 2012 is a critical year to implement the “prospecting breakthrough strategic actions” and achieve the geological prospecting’s “358” goal. With the national series of policies to encourage non-conventional energy exploration and development continuously introduced, China’s breakthrough in the oil and gas field will be larger than ever in 2012. Despite the bleak global economic outlook, the crude oil production is not subject to the interference. Experts said that the investment of global energy companies in the oil and gas exploration and production will continue to increase in 2012. The survey shows global investment in the field will reach USD 595 billion in 2012, an increase of 9.3 percent from 2011, mainly due to the increase in the investment of unconventional shale resources and the deep-water project from the oil and gas companies. Domestically, the Ministry of Finance issued a notice to adjust the threshold of the special gain levy on domestic crude oil since January 5, 2012, from the original USD40~USD60/barrel and above, to USD55~USD75/barrel and above. Specific collection ratio and progressive rate remain unchanged. The market has already expected the adjustment of the threshold of special gain levy on crude oil. The resource tax reform at the end of the last year has brought obvious tax burden on oil and gas exploration companies. Subject to the background that exploration and development are capital centralized industry, the high tax rate on the relevant enterprises is unfavorable for them. Secondly, the international crude oil prices level has elevated significantly in recent years. If maintaining the original collection method, it can impact the related business greatly, casting a negative effect to long-term development of enterprises. Therefore, this adjustment can be considered as a natural action and win-win, not weakening the force of the implementation of policies, also providing a more favorable environment for the development of related enterprises. Following the announcement of discovering “Daqing Oilfield in the Sea” early last year, China’s oil and gas offshore layout has never relaxed. Therefore, the offshore oil and gas development will be one of the highlights of China’s oil industry in 2012. The nonferrous metal will stabilize production without drastic fluctuations An outstanding feature in the operation of domestic nonferrous metal industry since 2011 is that: The smelted products have a slowing growth in production, while the minerals and intensively-processed products with a production growth obviously higher than that of the smelted products. From January to October 2011, 10 kinds of nonferrous metal have a total production of 28.49 million tons, with a year-on-year growth of 9.0%, and it is predicted that their production for all year round will exceed 34 million tons, with a year-on-year growth of about 8.8%, which is only higher than that (2.1%) in 2009 (with financial crisis). Therefore, 2011 is a year in which there is a relatively low growth in production of 10 kinds of nonferrous metal in the new century. In particular, the electrolytic aluminum production slows down remarkably, with a year-on-year growth of 8.9% in January to October 2011, and it is predicted that the annual production will have a growth of about 9.0% compared with that of last year. Meanwhile, the nonferrous metal mines have obviously increased production of raw materials, resulting in an improved resource guarantee capacity. From January to October 2011, the copper and nickel concentrates that China lacks have a year-on-year production growth of 11.1% and 14.3% respectively, thereby alleviating the situation of their tight supply in the market; the lead and zinc concentrates have a year-on-year production growth of 22.74% and 14.9% respectively, resulting in a downward trend in import of lead and zinc raw materials The processed products of nonferrous metal continue a substantial growth in production; and the copper and aluminum products respectively has a year-on-year growth of 19.9% and 24.2% in production from January to October 2011. It is indicated that China is speeding up adjustment of industrial structure in nonferrous metal industry from extensive development based on production expansion to balanced development of industrial chain. Another important feature is the rare-earth metal has a rising strategic position and its value as advantageous resource is taking effect. With the development of modern high and new-tech industries, the rare-earth metal is playing an increasingly important and strategic role in the economic and social development, and has become a “highlight” in the nonferrous metal industry of China. Since 2011, under the condition that there is no obvious improvement in both production and export volume of main rare rare-earth products, the rare-earth metal industry has witnessed a considerable growth in profit and export sales, and it is predicted that the industry will continue to have a good performance this year. Looking forward to 2012, although the economic environment at home and abroad is still complex, the global demand for main nonferrous metal will continue a proper growth based on the analysis of the current market supply and demand conditions. Under the support of a growing demand, the nonferrous metal will keep a stable production without drastic fluctuations in the world. With the enhancement of residents’ consumption capacity, the improvement of residents’ consumption expectation, the cultivation and development of consumption hot spots, and the perfection of consumption environment, the domestic market will witness a new growth in its demand for nonferrous metal. Especially, with the development of seven national strategic emerging industries and the implementation of major strategic projects like large aircraft industry, space station project, Chang’e project, and high-speed transport, there will be a higher demand for nonferrous metal materials in the future ten years with the economic and social development, so the nonferrous metal industry will have a broader development space. (By Li Ping)

Deputy Minister Wang Min Visited Laos
Source: Portal Website of China Geological Survey Citation: Portal Website of China Geological Survey Date: Dec. 20, 2011

Photo of Some Delegates of Ministry of Land and Resources of China and Ministry of Natural Resources and Environment of Laos

During December 16-17, In the interest of further enhancing cooperation between China and Laos in the fields of geology and mineral resources, in response to invitation by the Ministry of Energy and Mines and the Ministry of Natural Resources and Environment of Laos, Deputy Minister of the Ministry of Land and Resources of China Wang Min (also Secretary of Party Leadership Group of the Ministry and Director of China Geological Survey) led a delegation to visit Laos and had a meeting with Deputy Minister of Energy and Mines Somboun Rasasombath and Deputy Minister of Natural Resources and Environment Sisavat. Both sides communicated with each other about further consolidation of bilateral cooperative relationship, implementation of primary geological survey cooperation, strengthened instruction to and communication with Chinese-founded enterprises which are engaged in mineral resources exploitation in Laos, and conversion of Laos`resource advantage into economic advantage.
 
The Ministry of Natural Resources and Environment was newly founded this year. Deputy Minister Sisavat introduced primary functions of the ministry. It is mainly in charge of administration of land, forests, water conservancy, geological mineral resources, meteorology and environmental protection. Both sides discussed issues related to cooperation in the field of geological mineral resources and signed project cooperation agreement. Firstly, both sides would cooperate with each other in geochemical mapping of Laos; and China would train geological and mining technicians for Laos and assist Laos to construct state labs. Secondly, both sides shall make efforts to improve geological minerals administration information building level of Laos. Thirdly, both sides shall enhance cooperation in mineral prospecting, environmental and geological survey and geological disaster prevention and control, and promote environmental protection and sustainable development of mining economy of Laos. Furthermore, China Geological Survey and Department of Geological Minerals of Ministry of Natural Resources and Environment signed geochemical mapping cooperation agreement. Both sides would cooperate to carry out 1:200000 geological mapping and 1:200000 geochemical survey for Xaignabouri in the north part of Laos as well as 1:1000000 low density geochemical survey for entire Laos. The mentioned work would last for three years.
 
Counselor Zhao Wenyu, Commercial Office of China’s Embassy at Laos, attended the meeting. (By Lian Changyun)

Deputy Minister Wang Min Had a Meeting with Minister Suy Sem of Industry, Mines and Energy of Cambodia
Source: Portal Website of Ministry of Land and Resources Citation: Portal Website of China Geological Survey Date: Dec. 20, 2011

Deputy Minister Wang Min and Minister Suy Sem executed a ministry cooperation memorandum of understanding

In order to further promote cooperation between China and Cambodia in the field of geological minerals, in response to invitation by Ministry of Industry, Mine and Energy of Cambodia, Deputy Minister of the Ministry of Land and Resources Wang Min (also Secretary of Party Leadership Group and Director of China Geological Survey) led a delegation to visit Cambodia and had a meeting with Suy Sem, Minister of Industry, Mines and Energy of Cambodia. At first, Wang introduced recent work of the Ministry of Land and Resources of China. To base on domestic power, make an overall planning, initiate new mechanisms to boost major breakthrough in domestic mineral prospecting and contribute to sustainable economic and social development, the State Council of China has approved the plan of prospecting breakthrough strategic actions. He pointed out that, there is a sound foundation and huge potential for mining cooperation between China and Cambodia. He expected to enhance bilateral high-level communication thereafter and have a regular meeting to promote cooperation by taking advantages of China-ASEAN Mining Cooperation Forum and CHINA MINING. He said that, both sides should enhance down-to-earth communication and cooperation in primary geological survey, personnel training and lab construction, and initiate to discuss cooperation in environmental and geological survey and geological disaster prevention and control. Both sides should strengthen communication, coordination and macro instruction, and jointly promote powerful Chinese enterprises to carry out mineral resource prospecting and exploitation in Cambodia so as to make contribution to green mining development and sustainable economic and social development in Cambodia. Besides, Wang invited Minister Suy Sem to attend China-ASEAN Mining Cooperation Forum and CHINA MINING next year. Minister Suy Sem introduced work of Ministry of Industry, Mines and Energy in the fields of mining and energy. Appreciating years of support from China, he expected to cooperate closely with China in personnel training, lab construction and primary geological survey. Meanwhile, Cambodia would offer active support and instructions to Chinese enterprises which are engaged in mineral prospecting and exploitation in Cambodia. Minister Suy Sem accepted the invitation from Deputy Minister Wang Min, promising that he would attend China-ASEAN Mining Cooperation Forum and CHINA MINING, which would be held in China next year. After the meeting, Deputy Minister Wang Min and Minister Suy Sem signed a ministry cooperation memorandum of understanding for the consensus agreed. (By Lian Changyun)

CHINA MINING Congress and Expo 2011 Review
Source: Portal Website of Ministry of Land and Resources Citation: China Mining News Date: Dec. 6, 2011

CHINA MINING Congress and Expo 2011 has been closed, but it will still have a substantial, positive and profound influence at home and abroad. In comparison with the theme of “Cooperation, Responsibility and Development” of CHINA MINING2010, “Enhancing International Cooperation to Accelerate Prospecting Breakthrough” proposed in CHINA MINING2011 is more pertinent and practical. The domestic and overseas orientation helped provide a good communication and cooperation platform for both Chinese and foreign mining delegates. Many high-level foreign government delegates participated in this Congress and Expo, including 23 ministers and deputy ministers of mining departments and their delegations from 18 countries and regions like Australia, Canada, South Africa and Angola. Both minister and deputy minister of mining department of Australia, Canada, Nigeria and Greenland attended CHINA MINING2011. Apart from some traditional delegations from Africa, Canada and Australia, new markets like South America and Russia were expanded actively. Domestic and overseas mining cooperation project signing, negotiation and communication activities were the focus at this Congress and Expo, which further promoted substantial project cooperation between domestic and overseas mining enterprises. 425 negotiation projects were brought out during this Congress and Expo, increasing by 32.81% than last year (320 projects). On the signing ceremony, agreements of 55 projects were signed, amounting up to RMB 15.7 billion. It is RMB 4 billion more than last year (RMB 11.7 billion), increasing by 34.19%. Among them, there were 3 extra large projects worth more than RMB 3 billion and 8 large projects worth more than RMB 100 million. There were 12 domestic projects which amounted to RMB 5.5 billion and 42 offshore projects which amounted to RMB 10.2 billion. These projects were mainly distributed in 18 countries and regions, including Australia (16 projects, RMB 1.5 billion), Nigeria (3 projects, RMB 150 million), Sudan (2 projects, RMB 6.5 billion). Gold (31 projects, RMB 5.4 billion), copper (13 projects, RMB 470 million), iron (6 projects, RMB 5.3 billion), lead zinc (3 projects, RMB 3.3 billion) were the main minerals. Clear Chinese policies On this global communication platform, international participants were very sensitive to Chinese mining policies. The reform and opening up policy of Chinese mining in a new situation gave confidence to overseas markets. Vice Premier Li Keqiang sent a letter of congratulation and stated that, Chinese government would base on domestic power, actively participate in international cooperation which is mutually beneficial, and make better use of domestic and overseas markets and resources to play a constructive role in prosperous development of international market. We would persistently rely on technological progress and institutional innovation, intensify geological prospecting and compressive utilization of resources, improve guarantee capacity and utilization of mineral resources, and actively participate in international mining cooperation which is mutually beneficial. Premier Li also met multi-national ministers of mining departments in Beijing. He interpreted Chinese government’s standpoint, policies and measures in energy and resources in an all-round way from intensification of pragmatic cooperation in energy and resources, bilateral and multilateral common development, and sustainable development. He advocated that the international society should cooperate with each other, take benefits of both producers and consumers into account and jointly respond to new challenges in the fields of energy and resources. Minister of Land and Resources Xu Shaoshi addressed at CHINA MINING 2011 that, Chinese government would implement the strategy of “Giving Priority to Conservation”, make breakthrough in minerals prospecting, intensify institutional innovation and coordinate resource exploitation and environmental protection, to speed up transformation of development pattern, improve resource guarantee capacity, perfect market-based resource allocation mechanism and promote green, low-carbon and sustainable development of CHINA MINING industry. Also, he advocated international mining peers to make efforts together to create an environment-friendly, innovation initiative, inclusive and harmonious new international mining industry order. Prior to commencement of the keynote session, the journalist found that all Chinese mining policies related documentations placed on the stands were snatched up by domestic and overseas delegates in minutes. Many senior mining officials gathered there in hope of learning about more Chinese mining policies.   Overseas participants shows enthusiasm All overseas mining industry forum and promotion shows were also crowded with worldwide participants. As there was no empty seat, the journalist had to make use of every single space. Keynote Session, International Mining Minster Forum, Enterprise Development Summit Forum, 23 sub-forums and 7 project promotion shows were held at this CHINA MINING. At International Mining Minister Forum, persons in charge of mining affairs of Canada, Australia, Angola, India, Laos and Tajikistan made keynote address, introducing their respective mining development and investment situation. Minister of Natural Resources of Canada Joe Oliver addressed on the opening ceremony that, Canada could help China satisfy its resources demands for economic development, promote common development of bilateral economics and create more employment opportunities. Additionally, he committed that Canada would continue to maintain friendly trade relationship with China and strengthen mining cooperation. Also, Canada would continue to improve investment environment so as to attract more foreign investments. Prior to commencement of sub-forums, when receiving interview from reporter of CHINA MINING News, Joe Oliver stated that as from 2012, corporation tax of Canada would be reduced dramatically. Mineral resources survey and prospecting of north part of Canada were just launched, so there is a huge development potential. Minister of Resources, Energy and Tourism (AMMP) Martin Ferguson also welcomed Chinese investment on the opening ceremony and committed to establish a long-term bilateral relationship in mining with China. As China’s economic growth in the past 10 years greatly contributed to global resource demands, Australia has the opportunity to become the most important iron ore supply for China market, as well as the main supplier of cooper, aluminum, zinc and nickel. Moreover, Australia has global leading mining technology and mining safety practice and it expects to establish a closer cooperative relationship with China. At International Mining Minister Forum, Martin Ferguson of AMMP introduced that, Australian government approved Chinese investments up to 16 billion dollars in 2010 and most of them were related to mineral resources, which made China the third largest investor in Australia. From 2007 to 2011, Australian government approved more than 250 applications from China and mining investment application from China amounted to 43 billion dollars. Last year, Australia modified mining investment policies so that foreign investors may better invest in mining industry.      According to what Martin Ferguson AMMP stated when receiving interview from reporter of China Mining News, as from July 2012, Australia would implement mineral resource rent tax (MRRT), which would not exert a great impact on foreign investors. After adoption of this taxation policy, Australia still has large numbers of resource investment projects approved, such as BHP Billiton’s and Rio Tinto’s projects in Pilbara. Minister of Geology and Mines of Angola Joaquim Duarte Da Costa David stated at the forum that, Angola is carrying out nationwide geological survey and geophysical and geochemical prospecting activities presently, and they expected cooperation with foreign companies in prospecting projects. He introduced that, Angola has examined and approved many iron ore prospecting right. It is believed that, in the coming three or four years, many prospecting projects will turn to mining projects and more mines will be constructed. He also promised that Angola will improve mining investment environment, complete legal system, actively follow international conventions to attract foreign investment. State Secretary of Ministry of Mines Shri S. Vijay Kumar said India unveiled a series of policies that make for mining industry development in recent years. In August, Indian Parliament reviewed and adopted Mineral Resources Amendments Act. Geological Survey of India is now making a nationwide geological survey and a 1:50000 geological mapping has been completed. Up to date, India has adopted the proposal of High Technology Reconnaissance and Exploration License (HTREL). Deputy Minister of Energy and Mines Somboun Rasasombath said, in the past five years, Laos always maintained an annual GDP growth of 13.87%, to which, mining industry made a great contribution. In 2009, mining industry exports accounted for 60% of total exports of Laos. Chinese companies also made undeniable contribution to development of Laos’ mining industry. Furthermore, a new department has been set up under Ministry of Energy and Mines to enhance mining industry administration. Chief Head of Geology Administration under the Government of Tajikistan Azim Ibrohim introduced that, Tajikistan government recently formulated and unveiled a series of policies, and stated explicitly that they are going to further develop mining industry and increase input in geological prospecting and mineral exploration. Tajikistan presently has more than 1,000 mineral deposits under development and production and has issued over 50 mineral rights related licenses to foreign mining enterprises. The country would work out policies to increase input in geological mineral prospecting and serve economic development. Also he expected to enhance cooperation with foreign companies in intensive processing of mineral products. During International Mining Minister Forum, seven project promotion shows were held, namely, Canada Mining Forum, Australia Mining Forum, Greenland Mining Forum, Argentina Mining Forum, Africa Mining Investment Forum, Asia Mining Investment Forum and Oceania Mining Investment Forum. Present governmental sectors attached a great important to them. Ministers of mining or ambassadors to China introduced investment opportunities of respective country and recommended mining cooperation projects. Minister of Minerals and Petroleum of Greenland Ove Karl Berthelsen stated that, some large mineral projects (such as iron, zinc and rare-earth metals) of Greenland have entered a critical phase. Greenland expects to launch some mineral projects (such as gold, copper, molybdenum and PGE) via international cooperation and build necessary and close relationship with some mining companies. However, mineral prospecting and exploitation in Greenland must comply with relevant policies and laws, and concerned information shall be disclosed to the public. Peruvian Minister of Energy and Mines Carlos Herrera Descalzi stressed in his address that, Peru would ensure a safe investment environment by means of stable legislation regime. Exports of metallic and nonmetallic minerals account for 62% of total exports of Peru. Taxes in mining industry account for 33% of total taxes. Peru would continue to encourage mining investments and expects investors to enhance protection of society and environment during mining investment. After a sub-forum, South African ambassador in China Langa said when receiving interview from reporter of China Mining News, all countries expect resources development to bring benefits to the country and would maintain safety of resources, but this does not mean resources protectionism. He said South Africa welcome investment from China. Last year, South Africa implemented new mining policies, especially amendment of Charter of Mining Industry, in order to fulfill predetermined objectives and enhance mining development. Deputy Minister of Mineral Resources and Energy of Mongolia B. Ariunsan together with his interpreter intentionally attended Asia Mining Investment Forum and Oceania Mining Investment Forum. He explained clearly that, Mongolia would unveil a plan recently to further cooperate with foreign investors in preliminary and intensive processing of mineral products. They plan to further carry out preliminary processing of iron ores and intensive processing of coal in the coming three years. Additionally, Mongolia expects to communicate and cooperate with China in the fields of environmental protection, labor protection, social responsibility, laws and regulations, and taxation as well.   Executive Director of Russian Mining Advisory Council Nikolay Matyash elaborated their prospecting and exploitation opportunities and laws and regulations related to mining industry, and explained the subsequent influence of Russia’s redefinition on strategic mineral products. Russia would encourage investment in prospecting and exploitation by altering fiscal and taxation policies and modify rules about cancellation of existing licenses in order to provide sound guarantee for investors. Besides, it would ensure open and transparent bidding procedure. More open and transparent geological information would be available to investors. To create a bright future together Despite the uncertainties in international economic situation, major mining countries all showed their intention to cooperate with China. They are generally positive about China’s development and its influence on international mining markets. After Mining Industry and Macroeconomics Forum, participants would have a clear grasp of China’s development direction and confirm their investment confidence. Present delegates generally believed that, as a fundamental industry for economic and social development, mining industry would have positive prospect in a long term. Senior Economist of the Organization for Economic Cooperation and Development (OECD) Vincent Koen predicted at the meeting that, global economic growth would have increased to more than 4% by 2014 and international mining industry would have a new prosperity period. Some experts held that, after the first two development circles resulted from U.S. and European industrialization, global mining industry is now in the third super cycle as some emerging economies represented by China are developing rapidly. However, China has to follow the global development step, adjust mining policies and promote better mining development. Research Director of Development Research Center of China Geological Survey Wang Wen pointed out, Chinese mining must maintain sustainable development. According to the “Twelfth Five-Year Plan”, we must improve development and utilization of technology, transform the mode of production relying on high consumption, and construct a green mining industry. Mining development must aim at livelihood improvement. To realize transnational operation and international and industrialized development, mining enterprises must abide by international mining rules. Now many countries have started to enhance oversight of resources security, levy more taxes and fees, and raise social responsibility for mining exploitation. Nevertheless, as Chinese mining enterprises go out in a more steady way, with sufficient capitals in hands, there is still a huge space for international cooperation. (By Wang Hongfeng)

On-site scenes of CHINA MINING 2011
Source: Office of CHINA MING    Citation: Office of CHINA MING Date: November 9, 2011

Exhibition zone of Ministry of Land and Resources,PRC Leaders and foreign mining ministers are visiting the exhibition area On-site scene of CHINA MINING exhibition zone On-site scene of media work place
Breakout Session of CHINA MINING 2011: Commodities Demands & Supply Trends Breakout Session of CHINA MINING 2011: “The progress and achievements in geological survey in China” Foreign guests are on a Haihe River tour at night in Tianjin A promotional and decorative mascot of the Australian exhibition booth Large mining equipments in the equipment exhibition area

International Mining Industry in Post Financial Crisis Period
- Sidelights on CHINA MINING 2011 Summit Forum
Source: China Land and Resources News Citation: China Land and Resources News Date: Nov. 9, 2011

As time goes by, global financial crisis fades away, but Europe’s debt crisis is increasingly intensified. Mining industry recovered quickly after a heavy toll from financial crisis. Like a supernova with extraordinarily strong light, the industry is showing new changes and trends to the world.   Information disclosed by senior mining officials of participating countries is different from a year ago at CHINA MINING 2011 Summit Forum. The trend in international mining industry is changing gradually. Chinese Mining brings promise to the world For many countries which just got over financial crisis, the struggle is really hard in the past year. However, those countries owing abundant mineral resources and taking mining industry as pillar industry bore much less economic recovery stress. Mining industry sent a dose of confidence to their economic recovery. And the strong demand from China in the recent years largely benefited every country that cooperated with China in mining. Just as Angolan Minister of Industry, Geology and Mines Joaquim Duarte Da Costa David said, “Chinese mining brings promise to the world.”
As a matter of fact, not only in financial crisis period, Chinese mining always persisted in harmonious co-existence and common development with every partner from its first step into international arena. Especially for those developing countries with rich mineral resources, inflow of Chinese capitals helped them go out of the dilemma that they do not have enough financial power to develop these mineral resources. China’s strong capital strength, advanced technologies, responsible attitude and profound humane care brought them not only leapfrog development in mining industry and substantial GDP growth, but also improvement of infrastructure, community environment and educational quality as well as other major changes. Senior mining officials from developing countries all expressed their gratitude to Chinese mining enterprises at the forum this year. Azim Ibrohim, head of Geology Administration under the Government of Tajikistan made a speech entitled Contribution of Chinese Mining Enterprises and Other Concerned Foreign Enterprises to Mining Industry of Tajikistan. He commented that, Chinese mining enterprises made a great contribution to the mining industry of Tajikistan. “In last four or five years, I always actively participated in CHINA MINING and took advantage of the conference to make extensive communication with our peers. Chinese enterprises know well what we need and what we want to do. Many Chinese enterprises entered Tajikistan market and the number is increasing year by year from a dozen to several dozens, and now we have hundreds of them back in my country.” Laos is a mining country which is quickly rising. In the past five years, Laos maintained an annual GDP growth of 13.87%, to which, mining industry made a great contribution. In 2009, mining industry exports accounted for 60% of total exports of Laos. Chinese companies also made undeniable contribution to the development of Laos’ mining industry. Deputy Minister of Energy and Mines of Laos Somboun Rasasombath said, there are more than 60 Chinese companies that have invested about 110 projects in Laos, 18 in exploration stage, 50 more in detailed exploration stage and 42 are under mining now. The Minister of Mineral Resources of South Africa Susan Shabangu confessed straightforwardly that, rapid GDP growth of South Africa in recent years has undeniable connection with China. Enthusiastically Introduce and Recommend Resources and Welcome Foreign Investment Inflow of foreign capitals offered many mining countries, especially developing mining countries, a chance to enjoy a prosperous economy. At the summit forum this year, ministers of mineral from each participating country also welcomed mining investment and enthusiastically introduced and recommended abundant mineral resources they behold. Abundance of mineral resources is a core factor in attracting mining investment. In their addresses, senior mining officials intensively introduced resources endowment of their own country and the solid foundation laid for the mining industry. Joaquim Duarte Da Costa David said, Angola has rich natural resources and the government is carrying out a nationwide geological survey and geophysical exploration, so probably more natural resources reserves will be explored in the future. Besides, Angola has examined and approved many iron ore prospecting right. It is believed that, in the coming three or four years, many prospecting projects will turn to mining projects and more mines will be constructed. He also promised that Angola will further improve mining environment, complete legal system and optimize national political institutions so as to accommodate foreign countries’ mineral resources development.   The Tajikistan government recently formulated and unveiled a series of policies, stating explicitly that they are going to further develop mining industry and increase input on geological prospecting and mineral exploration. Azim Ibrohim introduced that, well endowed with various resources, Tajikistan presently has more than 1,000 mineral deposits under development and production and has issued over 50 mineral rights related licenses to foreign mining enterprises. B. Ariunsan, Deputy Minister of Mineral Resources and Energy of Mongolia, said that Mongolia’s economic growth and development are derived from open economical cooperation, so they hope a continuous cooperation with China and they always see China as the biggest partner for Mongolian mining. India showed a good faith in foreign mining investment at this forum. Shri S. Vijay Kumar, State Secretary of the Ministry of Mines said, this is their second participation in CHINA MINING and the delegation is much expanded compared with last year. Many Indian companies take part in it and many cooperation agreements are concluded. He also elaborated abundant natural resources in India and stressed that India unveiled a series of favorable policies for mining industry development in recent years. For example, the natural resources policy introduced in 2008 encouraged investments of private companies in mining industry. Geological Survey of India is now making a nationwide geological survey and a 1:50000 geological mapping has been completed. Many spatial data, gravimetric data and geochemical data were released on public website so that mining companies may apply for prospecting right accordingly. Even Australia, which has implemented “super” mining tax, also welcomes Chinese investors. Minister of Resources, Energy and Tourism Martin Ferguson AMMP stated that, Australia offers national treatment for all companies from participating countries. Meanwhile, it amended unnecessary contents in mining investment policies last year and foreign investors can make better mining investment. Higher mining investment threshold Although many countries explicitly promise to be open to foreign mining enterprises, they seem less urgent than last year when they still suffer from financial crisis. Indeed, after undergoing resources-relied development, every mining country is bound to actively protect domestic resources and increase value added of mineral products as possible as they can. From another perspective, scarcity of mineral resources make national protectionism in mining industry a sensitive and subtle factor for parties involved in international mining industry to balance. According to the information from the summit forum, a common appeal is to carry out mineral product intensive processing in the home country. B. Ariunsan said that, the government would implement a new plan to further cooperate with foreign investors in preliminary and intensive processing of mineral products. They plan to further carry out preliminary processing of iron ores and intensive processing of coal in the coming three years. Steel making and copper smelting are also listed in the plan. Azim Ibrohim early stated his desire to conduct intensive processing of mineral products in Tajikistan at CHINA MINING of last year. He emphasized again that, Tajikistan expects mineral resources to be intensively processed as end products in the country and it would like to intensify cooperation with foreign companies in this field. Continuous unveiling of new mining industry policies is another feature at CHINA MINING this year, which brings more uncertainties to foreign investment in mining industry. For instance, Australia recently threw out a mineral resource rent tax (MRRT), which will be implemented from July 2012. This taxation ensures that Australia obtain returns via tax levy. Martin Ferguson said that, this taxation policy will also make for foreign investors, because if the project guarantees a long-term and stable return, they need not pay the tax. However, for foreign investors, there are numbers of factors out of control in the process of maintaining long-term and stable return. Moreover, in order to better protect and develop mining industry, many countries are amending mining laws and acts. In August, Indian parliament reviewed and adopted Mineral Resources Amendments Act. Shri S. Vijay Kumar said the Act will manifest its impact on mining industry in the future years. The Ministry of Energy and Mines of Laos even set up a new department, which sufficiently proves its stress on mining industry administration. For Chinese mining enterprises, some depressing information was conveyed at this forum. Although Martin Ferguson said Australia would offer national treatment to all companies from participating countries, merely 7 out of over 3,000 Chinese investment proposals were eligible in the past several years. By this token, there are a lot to be done for Chinese mining enterprises in the process of foreign mining investment.

Volunteer Mobilization Meeting for CHINA MINING2011 is successfully held
Source: Office of CHINA MINING Citation: Office of CHINA MINING Date: November 4, 2011

On the morning of November 4, 2011, the Volunteer Mobilization Meeting for CHINA MINING 2011 was successfully held at Meijiang Convention and Exhibition Center. The meeting was presided over by Director of CHINA MINING Tianjin Exhibition Service Center and Deputy Director-General of On-site Command Post Shen Hong. Director-General of On-site Command Post of CHINA MINING 2011 Lu Hong, Secretary of Party Committee of Tianjin Land Resources and House Vocational College Huang Kejing and Deputy Secretary of Party General Branch of Graduate Department of Tianjin Foreign Studies University Tian Hongwu were present at the meeting and gave speeches. 420 outstanding young volunteers from Tianjin Foreign Studies University and Tianjin Land Resources and House Vocational College attended the meeting. At the meeting, Director-General of CHINA MINING Lu Hong presented a flag to the congress volunteer service team. All the team members took an oath in front of the team flag and a representative made a speech on behalf of the volunteers to express their determination. Secretary Huang Kejing and Deputy Secretary Tian Hongwu respectively put forward specific requirements and slogans of action for the members of the volunteer team: “Service guarantee implies responsibilities. I must Ensure no problem arises from myself; I will spare no effort to devote myself to CHINA MINING and strive to become an outstanding volunteer!” Finally, Director-General Lu Hong gave an important speech which firstly recognized the contributions made by the volunteers of previous events, and then introduced general information on this congress and the significance of successfully organizing the congress. Meanwhile she required the volunteers, firstly to fulfill their oaths and practice the ideas; secondly to accomplish their duties and stick together; thirdly to try their best to help each other; fourthly to comply with the regulations and provide quality service; and fifthly to seize the opportunity to discover growth chances in life. Let the smiles of our volunteers become the best name cards of China Mining.  (By Wang Bojue)

Project matching signing ceremony of CHINA MINING 2011 Launched
Source: Office of CHINA MING    Citation: Office of CHINA MING Date: November 8, 2011

The project matching signing ceremony of CHINA MINING 2011 was held at Meijiang Convention and Exhibition Center. Minister of the Ministry of Land and Resources Xu Shaoshi, Vice Minister of the Ministry of Land and Resources Wang Min, Chief Engineer of the Ministry of Land and Resources Zhang Hongtao, Vice Chairman of Tibet Autonomous Region Dong Mingjun, Vice Mayor of Tianjin Xiong Jianping as well as many Chinese and foreign delegates to the Thirteen CHINA MINING attended the ceremony. Based on the previous sessions, the congress concentrates on organizing activities such as contract signing, negotiation and exchange on mining cooperation projects to promote substantial project cooperation carried out by Chinese and foreign mining enterprises. It is learned that there are a total of 55 projects contracted at the signing ceremony with contract value amounting to RMB 15.7 billion. Among them, there are 12 domestic projects with a total value of RMB 5.5 billion; 43 overseas projects with a total value of RMB 10.2 billion. The projects are mainly distributed in 18 countries and regions including Australia, Nigeria and Sudan and related to aspects such as cooperation on mineral exploration and development, financial market cooperation and strategic framework cooperation, mainly involving mineral types such as gold, copper, iron and lead zinc. (By Wang Bojue)