Welcome to the fourth html e-news that we hope will be a useful platform to share news to you and others interested in China's mining sector.

In this edition we have included some interesting news, events, information and articles.

Please be reminded that the Secretariat of the CIMG is now located within the AustCham Beijing Office. We welcome all members to come and visit. As well, the office has three workstations for non resident Beijing CIMG companies that may need a space to work from time to time. If you do need a workstation please book the required times with the Secretariat by sending an email to Auslan or Mary.

News from the last CIMG meeting

The last CIMG meeting with 35 attendees was held at the Swissotel on 31 March.

Nigel opened the meeting and welcomed all the attendees. He noted that the past month had been a busy one with many conferences as well as the CIMG presenting at the Asia Mining Congress 2006.

Jan Klawitter from TBG then presented and made comment on PDAC where he was part of a delegation that included Vice Minister Wang Min. He mentioned that China was still very much a focus at PDAC and there had also been much interest from the Chinese side to invest in the mining sector in Canada. As well, China Mining 2006 sponsored some events at PDAC and one cocktail event with over 300 attendees. Vice Minister Wang Min also met with a number of senior Canadian officials and executives. If you would like a copy of Jan’s presentation please call him on 13911866105.

Nigel then gave an update on the Asia Mining Congress 2006 that was held in Singapore at the end of March. He noted that the event was not as big as PDAC and was attended by 300 attendees. Nigel presented on the investment climate for China that focussed on the development of policies and issues pertaining to FDI in the mining sector in China as well as developments in relation to safety and environment. He said that the feeling on China was positive and this augmented by the presentations given by Leyshon Resources and Griffin Mining. On the same day there were presentations on other Asian economies that all cited China in their presentations. Again as at PDAC China is a focal point for mining due to its need for resources. Nigel also outlined some of the other areas of discussion at the Congress and in particular Enterprise Risk Management and that seminars on this for the CIMG would be invaluable.

Greg Wickham from EGL then presented on the “Importing for Miners�. EGL specialize in the moving of oil, gas and mining equipment and have clients such as Shell, BHPBilliton and Rio Tinto. As many of you have experienced the importing of equipment into China is not easy and nearly impossible for used equipment. To date there has been only known one instance of used drill rigs being successfully imported into the China (Glenn Sheldon made this comment). Greg noted that regulations for oil and gas in relation to this matter seemed not be as strict and that some companies had used the Free Trade Zones to import equipment. He did note that those using the Free Trade Zones refurbished equipment to a new standard before it exited the Free Trade Zone. Greg will prepare some more information to be presented at the next meeting. For those of you who have questions for Greg, please email him at Greg.Wickham@EagleGL.com.

Glenn Sheldon from TVI raised a question for those attending the meeting about the military approvals for WOFE’s . Usually it will be the JV partner who will undertake the approval. In the case for a WOFE the process is not so clear. For those of you who can assist please email Glenn at glenn_Sheldon@yahoo.com.

Auslan made note of the new members of the CIMG:

The new members included – Weber Shandwick, Alliance Pacific, Hunter Dickinson, NGIS

He also made a special note of thanks in regards to the 8 Sustaining Sponsors: Asia American Coal, BHPBilliton, Anglo American, Anglo Ashanti, Munduro, Sustainability and te Swann Group. Many thanks to these members for their support!! Please note that there are only 2 spaces left.

Tina Meng then presented on the Anglo’s CSR initiative in combating HIV aids in the markets that it operates and urged CIMG members to take part in this activities. For more information please contact Tina on tmeng@angloamerican.cn.

As a final note in the meeting Peter Arkell from the Swann Group asked that members take part in the Industry Survey and that he would be contacting members direct. This survey is the first of its kind and information generated from the survey will be available to all members.

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Member Update

2006 Environment Workshop, April 14 2006:
The CIMG (China International Mining Group) is pleased to report the successful completion of its Environment Workshop held in Beijing today. The seminar was attended by 60 participants from the international mining industry and their Chinese government and private sector counterparts. The focus of the seminar were issues and approaches used by the international mining community and how it would use its experience to realize its commitment to implement sustainable mining practices in China. The seminar including participants from the State Environmental Protection Agency (SEPA), the Ministry of Land Administration and Resources (MOLAR), the China Mining Association and speakers from a number of local and international advisory firms. Speakers from the SEPA and MOLAR detailed government policies and laws as they are applied to the environment and mining in China. The importance of these policies is to implement sustainable practices and develop harmonious society were stressed by many of the speakers.The workshop was supported by Mundoro Mining, which is a Canadian mining company with a gold project in China. It was also supported by the Canada-China Business Council and the China-Australian Chamber of Commerce in Beijing.The CIMG also outlined its member’s commitment to sustainable mining. CIMG Deputy Chairman, Auslan Ishmael explained, “CIMG’s resource companies and their technical advisers are committed to design, construct and operate their projects in a manner that is environmentally friendly and economically viable. In the past these two approaches were perceived as being opposite. The current thinking of the industry that the proper balance of these two needs is a better long term approach and also not restrictive of economic performance.�

Pat Powers, the Vice President of Mundoro stated:   “It is important to work worldwide and naturally in China starting at the exploration stage by adhering to the guidelines “E3â€� promulgated by PDAC and then later at a planning and design stage plans to operate a mine based on the Equator principals of sustainable mining. These guidelines also highlight a commitment to understand and adhere to the national laws of the country where a company is committed to invest in a resource project.â€� He also explained that public companies are also governed by the laws of their country of origin and are required by shareholders and financial markets to apply the strictest standards of governance to environmental issues.â€�

This initial workshop has lead to a number of working relationships with SEPA, CCII and MOLAR which will involve further smaller workshops in the near future.

Meeting with NDRC:
As noted above this initiative is moving ahead and the CCII will be our partner in producing a working paper in relation the providing a review on China Coal Law. As well the Secretariat had a successful meeting the CCII, NDRC and NIOS last week. The CIMG has been asked to work with the CCII and to provide commentary on 5th Edition Coal Law. If you are interested in contributing please contact Mary.

Media Engagement
The CIMG is now contributing regularly to the MINING JOURNAL CHINA and WORLD NON FERROUS METALS. The Secretariat is seeking content related to Environment, Community, Safety and Technology. Articles should be case studies, in Chinese and 2 pages long. This is a unique chance to share information and promote the international mining community in China. If you are interested in submitting an article, please send your article as a word document to admin@austcham.org by the first week of the month to be published the following month.
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Feature Article

A new agreement between China and Australia would set up measures to boost safety in coal mines in China.China’s Ambassador to Australia, Madam Fu Ying, and the Australian Resources Minister, Mr Ian Macfarlane,  last week in Canberra signed a Memorandum of Understanding (MOU) to establish a joint Coal Mine Safety Task Force.The signing, at a ceremony in Parliament House, was witnessed by Australia’s Prime Minister, Mr John Howard and Mr Wen Jiabao, Premier of the State Council, of the People’s Republic of China, who was in Australia for a four-day visit.Mr Macfarlane said the MOU would enable both countries to work together to exchange expertise and experiences and foster improved coal mine safety practices. “The agreement reflects the strength of the bilateral relationship between Australia and China on issues affecting the coal mine industry,â€� he said.“Our ultimate goal is to improve safety for the people who work in coal mines by sharing   information like operational measures, as well as physical equipment which can improve mine safety.â€�In 2005 nearly 6000 deaths were reported in Chinese mines in more than 3300 incidents.The new Coal Mine Safety Task Force would be led by a joint steering committee of Australian and Chinese officials who will set the strategic direction and plans to maximise cooperation in training, technology, management and equipment.Under the MOU, Australia and China will also establish a joint working group to:•  Set a work program to address coal mine safety issues of mutual interest;

•  Exchange information and experiences in developing and implementing legislative models and policies to regulate the coal mine industry;
•  Organise activities to enhance coal mine safety, such as seminars, forums and exhibitions that focus on legislation, management, technology and equipment; and;
•  Encourage and support economic/trade cooperation projects in the related fields between Australian and Chinese enterprises. As a first step, Australia is planning to host a bi-lateral workshop in June 2006 to identify priorities for cooperation and develop a program for future work.“Many natural synergies exist between Australia and China on energy and resources.   The Government of Australia is committed to forming strategic industrial, export and technology development partnerships with China,â€� Mr Macfarlane said.

DFAT
Canberra
04 April 2006

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Regulatory Update

Provisional Regulation on Disciplining Dereliction of Duty in Environmental Protection Activity -SEPA -issued date: 20030228

Notice of Further Regulating Exploration Licenses and Mining Licenses Granting/Transfer Process Management

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Classifieds

There are no classifieds as this time

NOTE: If you are interested in placing a classified-hiring, buy or sell (looking for staff, equipment, etc) please contact the Seccretariat. This service is FREE for CIMG members

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