Short news minerals
September 4, 2014 Category Automotive Metals & Minerals, Short news minerals
- Chinese investment in the Australian mining sector this year is set to reach the highest level since 2011, when China poured in AUD11.7 billion. Major investments in recent years in Queensland include Yanzhou Coal’s AUD3.5 billion purchase of Felix Resources in 2009 and CNOOC’s agreement with BG Group to invest AUD1.93 billion in the QCLNG gas project in 2012. In May, Guangdong Rising Assets Management offered AUD1.46 billion for Brisbane-based miner Pan-Aust.
- Datang International Power Generation said it would sell part or all of its loss-making coal-to-chemicals and coal-to-natural-gas projects to state-owned China Reform Corp. The deal is expected to be completed by early next year. China Shenhua Energy’s coal-to-chemicals project in Inner Mongolia posted a net profit of CNY1.26 billion last year, but Datang’s Duolun project, also in Inner Mongolia, struggled to resolve technical problems after two years of trial operations.
- The Chinese government will offer subsidies to producers of rare earths to encourage them to improve their technology levels and use environmentally-friendly means of extraction. The subsidies include one-time awards to local governments that have completed supervisory and monitoring systems for rare earth exploration. Companies that have met national environmental protection standards for mining and refining rare earths will also receive awards.
- The government will increase exploration and production quotas for rare earth companies by 10% this year to bring output in line with the sector’s capacity, Huang Libin, an official at the Ministry of Industry and Information Technology (MIIT), said. Giving more quotas to the large companies will allow them to replace those that have closed during a campaign to consolidate the industry. The total quota for production is 105,000 metric tons this year. Baosteel got a production quota of 59,500 metric tons for light rare earths, an increase of nearly 20% from last year.
- China’s coal sector is taking steps to escape the triple trap of falling prices, weak demand and continued losses. Shenhua Group, the country’s biggest coal producer, raised its coal price to CNY489 a metric ton at the start of August, while China National Coal Group raised its price by 4% a ton for a range of coal products. Coal prices may have bottomed out and the supply-demand situation might become balanced in the short term. According to data from the China National Coal Association, 70% of coal companies are losing money. As of June 30, national coal inventories stood at a record high of 99 million tons.
- Australian exports of iron ore to China from Port Hedland, which handles a quarter of the world’s seaborne shipments, rebounded in July to hit a record high. Shipments to China rose 4.8% from June to 30.57 million tons, and 50% on July last year.
- China said it “strongly regrets” a decision by the World Trade Organization (WTO) to uphold its ruling that the country violated global trade rules by restricting exports of rare earth elements. The decision is final and, in principle, WTO member states are obliged to follow the ruling. China has argued that the export restrictions are related to the conservation of its natural resources, and are necessary for reducing the pollution caused by mining.
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