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 28 June 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 May 2007

The last CIMG meeting saw good attendance and the attendees were given two presentations. The two presentations where:

1. Scott Sloane- Intertek:Presentation focussed on proper sampling and sample preparation
2. Bruce Gardiner - Leighton: Presentation focussed on the contract mining boom in Asia and soon to be China.

To download the presentations please click the link here

Auslan updated the attendees on the activities of the CIMG.. He noted that an announcement was made by the top legislature approved the nomination of Xu Shaoshi as head of the Ministry of Land and Resources, replacing Sun Wensheng. China's top legislature approved the cabinet nomination of Xu Shaoshi as the country's new minister of land and resources in Beijing, on April 27, 2007. Click here to see the full release

He also made note of the CIMG's Environmental dialogue in that was held in Chengdu on 23 May. A full report will be issued to members within a couple of weeks he said. There was a lot of debate on the subject of sustainable mining practices at the dialogue. A focus from the attendees were there solutions of how to enhance sustainable mining in China. One of the main comments on this was financing and that capital markets as found in other countries are a suitable tool to ensure sustainable investment. Auslan made a special thanks to China Central Goldfields for their kind sponsorship and the speakers as well as moderators for their contributions.

In closing he mentioned the 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.

Member Update

CRU Steel Conference
10th World Stainless Steel Conference
4-6 November 2007, Shimao, Taiyuan, Shanxi, P.R. of China

THE MOST PRESTIGIOUS INDUSTRY EVENT
FOR THE GLOBAL STAINLESS STEEL COMMUNITY

Over the last two decades, the consumption of stainless steel has grown faster than those of zinc, aluminium, copper, lead and carbon steel. A faster rate of growth is likely to be maintained in the years ahead. But it may have resulted in global over-investment in production capacity, jeopardising the industry's prospects.

The most prestigious industry event for the global stainless steel community will cover all the latest key issues. Senior executives from the most influential global and Chinese stainless steel companies will be taking part and sharing their vision for the industry in Taiyuan this year.

For more information please visit the CRU website

CRU Silicon Conference
2nd China Silicon Conference
19-21 September, 2007, Traders Hotel, Shenyang, P.R. of China

THE WORLD'S AUTHORITATIVE SILICON METAL INDUSTRY EVENT

CRU Events is delighted to once again join the China Silicon Association in hosting the annual China Silicon Conference taking place this year in the famous historical city of Shenyang at the Traders Hotel. Both international and local players in the industry will contribute once again to this leading silicon metal industry event.

As the world's leading producer and exporter of silicon metal, China has a pivotal role in the industry. The state of demand, supply and production costs in China have profound implications worldwide.

For more information please visit the CRU website

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.

Back to top

Feature Article

Interview: Nickel Institute comments on the future of the industry in China
Source Interfax

Shanghai. April 30.

Executives from the Nickel Institute shared with Interfax their insights on nickel use, the growth of nickel demand in China and the development of the nickel recycling industry.

Stephen Barnett, president of the Nickel Institute, and Peter Cutler, European director of market support and development, visited China in late April for an internal meeting and to meet with China's nickel heavyweight, Gansu Jinchuan Group. They hope the Chinese firm will join the organization, and also expressed their opinion that there is plenty of future growth potential for nickel use in China, especially in the drive to create cleaner power stations, as opposed to the more traditional uses such as in engineering works, food and construction industries.

Demand in China will be increased by the growing demand for nickel-hydrogen batteries and aside from its use in the chemical, pharmaceutical and other industries, nickel will also play a significant role in pollution controlling emissions-cleaning equipment and waste water treatment facilities.
As nickel is the seventh most common element on the planet, the Nickel Institute is very optimistic that the metal will continue to be in use globally for the foreseeable future.

With main offices in London and Toronto, the Nickel Institute is a non-profit organization established in 2004 through the merger of two organizations, the Nickel Development Institute (NiDI) and the Nickel Producers Environmental Research Association (NiPERA). It represents the interests of most of the world's major nickel producers, and its members are responsible for 88 percent of all nickel production worldwide.

Interfax: In China, more than 65 percent of nickel production serves the downstream stainless steel industry. However, stainless steel makers face great pressure from soaring nickel prices, and many stainless steel makers, even major ones such as Baosteel Group and Taiyuan Iron and Steel Group (TISCO), plan to decrease nickel consumption through the development of new ferritic stainless steel products (non-nickel contained) or low nickel-contained stainless steel. Chinese experts are optimistic about consumption of ferritic stainless steel in the nation, which hopefully will increase to 40 percent of total stainless steel consumption. What are your opinions on this issue?

Barnett: I think the market responds on a supply and demand balance basis. People select different grades of stainless steel containing a nickel alloy that is most appropriate for use in a particular application, which is driven by the cost of the material and also by its properties, whether it is recyclable or not and the total value that material brings, such as in maintenance issues. The nickel industry reached an all time production high last year of 1.4 million tons of primary nickel and a total of over 2 million tons including scrap. The nickel industry is investing billions of dollars in new capacity, most notably in Australia, Brazil, Canada and New Caledonia, which will come online over the next few years. The nickel industry is totally confident in reaching a balance, responding to the market by building new capacities.

Interfax: Do you think the high price is restraining China's nickel demand?

Barnett: It's a supply-demand balance. It's like any other market, the supply and demand are balanced by whatever the price of the material. That's how economics works. The costs will rise until the supply and demand are in balance. It's that simple.

Interfax: What is driving up China's nickel demand?

Barnett: China's industrialization is the main force driving up nickel demand. In China, nickel plays a large role in building and infrastructure construction, and a significant role in aircraft engines, power stations and pollution control devices used to improve power station emissions, all of which have a great demand for nickel. In China, nickel is most widely applied in the architecture, construction and food industries. We've also noticed there is an increasing demand for nickel-contained stainless steel water-treatment equipment and pipes in China. There will also be a strong growth in demand for nickel-hydrogen batteries as China's automobile demand increases, which will be a huge potential market for nickel demand in China, such as the recent purchase of a large number of Prius automobiles for use in the Shanghai World Expo site. This means a lot of nickel will be needed for batteries.

Interfax: What percentage of nickel can be recycled in the world and also in China?

Barnett: Last year, over 600,000 tons of nickel was recycled from scrap, out of a total of 2 million tons of nickel produced. Nickel recycling is almost exclusively done via stainless steel and nickel plated goods. The use in stainless steel means it potentially has a long life. When you look at nickel recycling, you have to look back at the life cycle of stainless steel. A study we carried out with Yale University indicated that 88 percent to 89 percent of nickel can be recycled, making it one of the most recyclable materials in the world. More importantly, secondary nickel does not degrade, and its properties remain the same as primary nickel. China produces huge amounts of stainless steel, but you can't recycle this material until 20 to 60 years later, depending on its life span. The fact is that in China, the local scrap market cannot meet the growth in stainless steel capacity, and the country needs to import scrap from overseas to make up the supply shortfall.

Cutler: Besides being a long life product, another major reason is the growing market. Looking at it historically, the total amount of stainless steel products 20 years ago was much less than that of today. Due to the life cycle of the product, this means that products available for recycling depend on what was produced 20 years or so ago.

Interfax: What role does the Nickel Institute play among nickel producers and nickel end-users?

Barnett: There are three main purposes of the institute. Firstly, developing science to improve environmental protection in the nickel industry, using that to provide guidance to nickel users as to what are the appropriate ways to use nickel and what are the inappropriate ways. Secondly, launching activities to promote the end-uses of nickel, including workshops in lots of countries such as China, and in Europe and North America. Thirdly, we also have a role in developing nickel products and moving them into a sustainable industry.

Interfax: What efforts has the institute made in China so far to promote appropriate nickel use?

Barnett: The institute has 16 or 17 members worldwide, representing approximately 88 percent of the world's primary nickel production, and they make up the world's major nickel producers. We have an on-going dialogue with Gansu Jinchuan Group, the largest nickel producer in China. We are discussing this week how we can work together to further develop nickel products and promote the appropriate use of nickel in China. Jinchuan will hopefully become our first Chinese member.

Cutler: We opened our Beijing office in 1996. We work with partners such as the China Stainless Steel Council, and we give workshop presentations to engineers and users. We cover the use of stainless steel and nickel alloy in workshops for the water industry, architecture and construction industries, the power industry, and the food industry. We have translated technical publications into Chinese, talking about how to select materials, how to fabricate and how to get the best from the product. This year, we gave presentations to the water industry and manufacturers and later this year, we will have workshops on architecture and building construction.

Barnett: In the region including China, Taiwan, South Korea and Thailand, we've already spent $400,000 [this year], and our budget in total is $11 million [globally].

Back to top

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

Back to top

Classifieds

Back to top