Inner Mongolia eases rules on coal firms
Sep-04-2014 By : fcccadmin
China’s top coal-producing region Inner Mongolia said that coal miners no longer need local government approval for corporate transfers or for merger and acquisition (M&A) deals. Coal miners are being encouraged to restructure their businesses and get involved in upstream and downstream industries including electric power, chemicals and building materials. The coal mining sector has been hit hard by high transportation costs. The low calorific content of the region’s coal has also made it less competitive. As of April 30, one-third of the mines in the region, most of which were small, had shut down or suspended production, according to the Inner Mongolia Coal Mine Safety Bureau. The province’s coal output slid nearly 10% year-on-year to 302.74 million metric tons during the first four months. Administrative and environmental fees were suspended or reduced.
Chinese demand for Indonesian coal increases
By : fcccadmin
Agritrade Resources, a coal miner in Indonesia with China as one of its top markets, aims to raise output and sales by 30% despite slowing Chinese consumption because of rising demand for less polluting coal. Ng Xin-wei, Chief Executive of the Hong Kong-listed company, said it planned to mine and sell 4.5 million to 5 million tons of coal during this financial year to March, up from 3.8 million tons and 2.8 million tons in the past two financial years. “Indonesia is close to both India and China, and its coal production cost is among the lowest in the world as 99% of its output is from surface mining,” Ng told the South China Morning Post. “It is cheaper to import seaborne coal into south China than from north China via railways.” But slower growth in electricity output is leading to lower coal demand as some 75% of the nation’s power is generated by coal. China imported 57.6 million tons of brown coal – with a relatively low heating value – from Indonesia last year, up from 50 million tons in 2012 and 35.7 million tons in 2011. Despite the lower heating value, most of the coal imported from Indonesia is blended with domestic coal to reduce pollutants. Agritrade Resources earlier this month posted a net profit of HKD115.2 million in the year to March, more than double the profit of HKD53.5 million in the previous year.
Coal conversion projects cut back
By : fcccadmin
China’s National Energy Administration (NEA) has told local authorities to curb the irrational development of coal-to-oil and coal-to-gas projects, after new technology sparked an investment spree without regard to environmental and economic realities. The country will ban coal-to-gas projects with an annual output of less than 2 billion cubic meters, and coal-to-oil projects that produce 1 million metric tons or less. Projects larger than those will be subject to regulatory approval from the central government. Data show that nearly 70% of energy consumed in China comes from coal, a ratio much higher than in most developed countries. Coal-to-oil and coal-to-gas projects will be banned in provinces that have a net import of coal. The excessive or improper use of water resources will also be strictly prohibited. The NEA also said it is working with the National Development and Reform Commission (NDRC) on two separate documents to guide the orderly development of coal-to-oil and coal-to-gas projects. The documents will be released soon.
End of rare earth patent expected to boost exports
By : fcccadmin
Some Chinese producers of rare-earth magnets are seeking to use the expiry of a key patent held by Hitachi Metals to expand exports of the micro magnets used in products from motors to smartphones. The expiry of a 17-year-old patent that defines the structure of such magnets paves the way for previously blocked Chinese producers to sell to U.S. customers, Shenyang General Magnetic Chairman Sun Baoyu said. Shenyang General has formed an alliance with six other Chinese producers to promote their products and fight Hitachi over other patents, which the Japanese company says largely prevent rivals from making magnets. The end of the patent will pit the seven producers in the alliance and potentially others who try to tap into the market against Hitachi and eight Chinese companies that have paid for the right to make and ship the magnet. An increase in exporters of the magnets could potentially cut prices of the product used in Apple’s iPhones and Toyota hybrid-electric cars. Hitachi holds more than 600 patents for rare-earth magnets globally, some of which it acquired after taking over Sumitomo Special Metals in the 2000s. Chinese magnet makers are struggling with overcapacity after an earlier price boom spurred a flood of investments. Japanese companies hold most of the world’s rare-earth magnet patents, while China produced about 90% of the global supply. China exported 18,800 tons of magnets last year.
The government has approved two major rare earth producers to become conglomerates by the end of this year in order to further consolidate the sector, combat smuggling and alleviate overcapacity in production. Xiamen Tungsten Co and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co have been approved by the Ministry of Industry and Information Technology (MIIT) to form the two rare earth groups. Xiamen Tungsten will integrate rare earth mining, separating and manufacturing within Fujian province in the south, excluding what is owned by China Minmetals Corp by the end of 2014. Baotou Steel will set up China North Rare Earth High Tech Co, consolidating rare earth mining, separating and processing within the Inner Mongolia autonomous region and Gansu Rare Earth Group Co in the north. These two companies are among six groups encouraged to consolidate earlier this year. The other four groups are: China Minmetals Corp, Aluminum Corp of China, Ganzhou Rare Earth Group Co and China National Nonferrous Metals Industry Guangzhou Corp. Chinalco has received written approval from MIIT to use subsidiary China Rare Metals and Rare Earth as a foundation to form a large-scale rare earth firm that will consolidate mining and smelting rivals in Guangxi, Jiangsu, Shandong and Sichuan.
Changsha hosts China Mineral and Gem Show
Jun-05-2014 By : Gwenda
Changsha, capital of Hunan province, hosted Asia’s largest mineral-themed exhibition from May 15 to 20. The China (Changsha) Mineral and Gem Show offered 2,000 booths on a floor space of 65,000 square meters for exhibitors to showcase minerals, fossils, meteorites and handicrafts. Hunan has 22 world-class geological parks. It has reserves of non-ferrous metals that account for two thirds of the country’s total and one third of the world’s total. The province also discovered more than 90% of the world’s antimony deposits. Hunan is home to 141 types of minerals with diverse colors and unique shapes, including some rare and iconic species. The expo attracted huge attention at its first session last year because “collectors and exhibitors across the world have fully recognized the value of Hunan mineral resources and see the profit potential in Chinese markets,” industry insiders said. 1,200 exhibitors from 54 countries and regions and 150,000 visitors attended the exhibition in 2013, where CNY1 billion worth of deals were signed.
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