Sustaining Sponsors of the CIMG

Dear CIMG Members,

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

Please be reminded that the next CIMG Monthly meeting will be held on Thursday 30 May at 4.00pm at the Swissotel. For more information please email Mary at mary@cimg.org.cn.

News from the last CIMG meeting held in April 2007

The last CIMG saw good attendence and the attendees were given two presentations. One was from the organisers of the Western Mining Summit in Chengdu and the other from the CIMG on observations on the recent CIMG mission to QInghai.

Nigel gave a brief update on the activities of the CIMG as well as an update on the activities of the CIMG Advisory Panel at the start of the meeting.   He mentioned that the Advisors had been been working with increasing the CIMG's involvement with the China Mining Congress in an advisory capacity. This was so to assist the congress in supporting the needs of the industry. The CIMG woud also be collaborating with the CMA on this.

The Advisors had also been in discussion with the CMA (China MiningAssociation) in regards to the development of the CIMG. He noted that some members had asked that the CIMG increase its international focus and to increase its engagement with domestic industry. In doing so, the Advisors are considering an option for the CIMG to align with the CMA and move from its current alignment with the Australian Chamber of Commerce.

He noted that Auslan had been in touch with CIMG member companies in relation to increasing level of governance in the CIMG. This would entail a third party provider to manage the book keeping and financial reporting. The next interim financial update for members will be at the July meeting.

Nigel then closed with some notes on some projects that the CIMG was currently undertaking. These included the CIMG's environmental dialogue in Chengdu (more details below) and a CIMG mission to Xinjiang in June (more details below). If you would like to get involved please contact the Auslan at the CIMG Secretariat at +86 10  65959252 ext 208 or by email to auslan@cimg.org.cn.

Afterwards a presentation was given by Nick Tan from GIS. This presentation focussed on  the progress of the Western Mining Summit in Chengdu. Nick outlined the main speakers, sponsors and the program. He also noted that the CIMG had been very helpful in the design of the program and that CIMG members who attend will be eligible for a 40% discount. Nigel added that the CIMG had organised an industry to government panel session on the second day of the summit to allow members to question the government on upcoming trends for FDI in the provinces. More information on the summit can be found by calling the CIMG Secretariat.

Following this a presentation was given by Auslan on the observations made during a recent CIMG mission to Qinghai. He noted that The CIMG in conjunction with CCPIT Qinghai Province, organized a trade mission for CIMG member mining companies to Qinghai Province. The CIMG mission visited Xining as well as Eldorado's Tanjianshan mine. The CIMG mission met with officials related to mining and FDI in Qinghai including representatives from the BGMR, Qinghai CCPIT, MOFCOM, Vice-Governor Li as well as senior mining executives from domestic companies such as Western Mining and Chalco.

There were a number of mixed messages regarding the acceptance of FDI in the mining and minerals sector in Qinghai Province. On the one hand overall messages were positive from MOFCOM and the Governor with respect to FDI but mechanisms to be employed as expressed by the BGMR officials were not perceived as positive. Moreover the mainstream domestic mining companies represented do not appear to welcome international investment at the current time. He also noted that the mission sought to enhance the understanding of mining in the provincial areas of China. It also sought to create a platform to increase investment and trade opportunities between foreign and domestic mining companies and those companies associated with the mining industry. Qinghai is regarded as resource rich province in China and the mission delegates explored business opportunities, established relationships with local partners and gained a better understanding of accessing opportunities in Qinghai Province.

The main points he covered were:
-Qinghai has been closed for new exploration licenses for 2 years
-Qinghai;s mineral sector appears to be moving towards a quasi monopoly with Western Mining being the key domestic player
-Local BGMR officials are hesitant to publicly list available tenements, but instead refer to a "you ask and we tell" process.
-There is an apparent lack of communication between local government departments regarding the promotion of FDI in mining. e.g. CCPIT and BGMR where the CCPIT is for FDI and BGMR not.
-Very strong tendency by local entrepreneurs to treat mining tenements as "real estate" rather for speculation than development.
-There is an apparent sentiment that local resources are to be reserved for domestic companies.
-Qinghai is resource rich with much of the territory still to be surveyed - only 15% has been mapped at 50,000 scale.
-There is very little to no interest for participation in greenfields exploration.

In closing he noted that there is FDI in mining in Qinghai as demonstrated by Eldorado'sinvestment that clearly shows the possibilities for foreign mining companies in this province. The attendees of the mission noted that such success is determined by the mode of entry to this province and the requirement of a very strong local partner.

A report of the mission will be emailed shortly to all members.

Member Update

Congratulations to SinoGold

The CIMG would like congratulate one of its long time members, SinoGold for the succesful opening of their operation in Jinfeng on April 16. The official opening ceremony at Jinfeng was attended my many local officials, Beijing officials as well as the Australian Ambassador to China. There were also a number of the local popluation in attendance. Mr Gao, the Standing Vice President from the CNIA said that this operation is a leading example for the future of the development of China's mining sector. He noted that the operation had demonstrated commitment to management, technology and and local community.

CIMG 2007 Environmental Roundatable
23rd May to 23rd May 2007 
 
Venue: Chengdu, Sichuan Province - Currently the Chengdu University of Technology
Time(s): 9:00am - 12:00pm 

The CIMG is planning in conjunction with  Sichuan academia and Sichuan provincial officials, will organize an environment dialogue for mining companies and those companies associated with the mining industry in South West China.

We are hoping that members in Sichuan at this time will be eager to attend and we look forward to your RSVPs.

The dialogue seeks to enhance the understanding of sustainable mining practices in the provincial areas of China. In this case the Southwestern provinces. It also seeks to create a platform to increase information sharing between foreign and domestic mining companies and those companies associated with the mining industry on the opportunities of sustainable mining. The South West of China is regarded as resource rich area in China those attending the dialogue will explore not only  establish relationships with local partners but create solutions to issues related to sustainable mining in the provinces.

This dialogue invites experts to join together with the mining executives, academics and china policy makers, discuss and develop platforms to engage in sustainable investment in the south western provinces of China. This dialogue will have 40-50 both international and domestic.
This dialogue is being organized at the most opportune time when the government is looking forward to expanding the developing the mining sector in both ferrous and nonferrous metal industries of the country. It will attract a high quality audience; provide a unique networking platform and an exceptional educational opportunity for attendees. The guiding mission is to promote challenging and timely investment issues facing the mining community, and convene regional roundtable sessions to debate and discuss contrasting perspectives surrounding these issues.

This dialogue we will be exploring how our concepts of sustainable mining are changing and how we can alter our views to embrace and build upon the opportunities that greater understanding of risk can bring. Specific focus will be placed on how those involved in the mining process can systematically identify the risks they face, including those hidden risks that are often overlooked and new risks that are emerging, how to mitigate these to the benefit of the community as a whole.

For more information on this event you can contact Auslan Ishmael on +86 10 65959252 ext 208 or email auslan@cimg.org.cn.

CIMG Mission to Xinjiang
20 June to 24 June 2007 

The CIMG in conjunction with CCPIT and BGMR Xinjiang Province, will organize a trade mission for mining companies and those companies associated with the mining industry in China to Xinjiang Province. The mission seeks to enhance the understanding of mining in the provincial areas of far western China. It also seeks to create a platform to increase investment and trade opportunities between foreign and domestic mining companies and those companies associated with the mining industry. Xinjiang Province is currently positive in its sentiment to FDI in its mining sector is regarded as resource rich province in China. The mission will explore business opportunities and establish relationships with local partners.

For more information and the pricing ofthis mission you can contact Auslan Ishmael on +86 10 65959252 ext 208 or email auslan@cimg.org.cn.

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 auslan@cimg.org.cn.

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Feature Article

Taking Biodiversity into Account
In order to take into account various aspects of biodiversity, an environmental impact assessment should:
-consider all the relevant levels of biodiversity – bioregional, landscape, ecosystem, habitat, communities, species, populations and (when appropriate) individuals and genes; consider connections between the levels of biodiversity by looking at structural and functional relationships (such as connectivity, fragmentation and disturbance, hydrologic and demographic processes) and their relationship to biodiversity study areas likely to be affected by different impact types;
-collect more detailed abundance and distribution data on certain aspects of biodiversity without necessarily surveying everything in detail, but focusing on key biodiversity receptors; consider the full range of potential impacts, including indirect, cumulative and induced impacts;
-consider the social dimension – the importance of community and indigenous knowledge of local biodiversity aspects, traditional uses of resources and habitat and stakeholder participation; and set out clear criteria to judge the extent, magnitude and importance of impact.

The Importance of Starting Early
Ideally, assessments should be done at the exploration stage. However, the inherent redundancy of the process (only 0.1 per cent of targets represent potentially economic mineral deposits) means that there is resistance to spending survey money when the odds are that the area will be released with no further interest. On the other hand, early knowledge of critical biodiversity issues in a given project would provide very pertinent insights and should have some weight in the decision balance of the sustainability of the development project. (In fact, some money could be saved by stopping the project at an early instead of a later stage.) It is important to distinguish between the different stages of exploration and when an EIA is most likely to be triggered. General understanding of biodiversity issues in an area before bidding on exploration licences can be important.
An important step in gaining an understanding of how the system might be changed by a proposed project is to survey existing conditions – the baseline environment. The baseline survey should provide the necessary information on the site-specific environmental setting of the project. It should cover the different seasons, migrations, breeding and so on and should be, if feasible, long enough to establish pre-project trends. One important challenge in assessing baseline conditions is the limited time frame for a thorough assessment. Biodiversity field surveys require sufficient time and resources. And to be of significant value in the EIA, survey work needs to be initiated early in the process. There should be scope to take as long as necessary and appropriate to cover aspects such as migrations, breeding seasons, rainy seasons and so on.

Six Important Roles for Companies
Companies should demonstrate a high-level commitment to the integration of biodiversity aspects into decision-making processes and to the maintenance and enhancement of important and protected habitats and species. They should commit to addressing biodiversity at ecosystem, species and genetic levels as appropriate and to integrating associated social aspects.

The interrelationships between biological/ecological systems and human systems should be identified and the impacts on these relationships addressed in a local, regional, national and international context. In adopting an ecosystem approach, ecosystem functions and structure should be maintained.
The diversity of species or richness of ecosystems at the future project site should be understood, alongside related cultural and social aspects. Impact assessments should identify if a site is important and why. Does it contain or lie within a protected area? Is it a sensitive or vulnerable site with high biodiversity values? Is it a site of cultural importance? There should also be recognition of and respect for specific local biodiversity values and uses as well as for local, traditional and indigenous knowledge of the area.

Impact assessment should be viewed as a process, not a product. Direct, secondary and cumulative impacts on biodiversity should be assessed in a phased approach, both early in the project and throughout the life of the mine. Impact assessment should also take into account social, economic and health impacts. The open and iterative process should actively seek and allow time for stakeholder input. Biodiversity data gathered in baseline studies, impact assessments and subsequent monitoring should be shared with and validated by stakeholders, including local communities, academics, conservation organisations and other companies.

Impacts on biodiversity should be avoided wherever possible, minimised where they cannot be avoided, and mitigated where there are residual impacts. During the development phase of a project, there should be a rigorous assessment of all options. Offsets may be useful in mitigating residual impacts, and preference should be given to in situ offsets that are aligned with local, regional, national and international conservation strategies and goals and that bring a net positive benefit for biodiversity conservation.

Last, companies can manage risk around biodiversity and maximise positive contributions by working in partnership with government, communities and others. Community involvement in biodiversity assessment should be implemented at an early stage, and sufficient time should be allowed for government, industry and other stakeholders to understand, evaluate and discuss biodiversity concerns throughout the process.

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Regulatory Update

Latest Updates:

CIMG Information - China's unification of company income tax

China to end tariff exemptions on some imported equipment - Jan 2007

China to Implement One Mine, One Company Policy - Jan 2007

State Council Number 4 - Notice to Government Departments to seek better harmony for FDI in Mining - Jan 2007 (In Chinese)

MLR Beijing issued 2 new regulations. The CIMG was recently informed that MLR Beijing issued 2 new regulations that will come into affect on the Jan 1 2007:
1.       Notice By MLR Regarding Furthering Reform of the Exploration/Mining License Issuance
2.       Equity Method for Paying for Exploration/Mining License

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

Notice of the People's Government of Yunnan Province on new four laws including Management Rules of Yunnan Province for Rights of Exploitation and Mining. Laws in Yunnan were released that focus on the Rights of Exploitation and Mining, Interim Procedures of Yunnan Province for Levying and Management of Fees for Compensated Use of Mineral Resources, Interim Procedures of Yunnan Province for Management of Mineral Property Transaction, and the Interim Procedures of Yunnan Province for Management of Deposit for Security for Rehabilitation and Governing of Mine Geologic Environment. For those wishing to make comment or if you would like a copy of the laws please contact Auslan at auslan@cimg.org.cn

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Classifieds

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