In the Spotlight
Monthly Meeting
 Member Update
 Feature Article
Regulatory Update

Upcoming Events
July 26
CIMG Monthly Meeting

Time: :4:00PM - 6:00PM
Location: Swissotel



Register by Email
or contact
Ivy at
+86 10 6595-9252
For more infomation on the CIMG please visit: www.cimg.org.cn

Volume 2, Issue 6 | June 2006 | E-News Archives

In the SpotlightVisit the CIMG's new website
Date: Friday, September 29th

at www.cimg.org.cn
Location: Online

see the new CIMG website and learn more about the CIMG's activities and projects

News from the last CIMG monthly meeting
The last monthly meeting focussed on CSR (Corporate Social Responsibility) and two presentations were given. At the end of the presentations Nigel and Auslan made a note on the current status of the CIMG projects as well as the CIMG mission to Xinjiang.

The first presentation was given by Mr Alex Robin - Director, International Affairs from the Asia Charity Forum. He spoke about the future trends for CSR in China. He noted that the The Asia Charity Forum was established in January 2007 by Chinese citizens and has a core full-time staff of fourteen in their Beijing office as well as a rapidly expanding network of Chinese and foreign advisors and cooperating Group, the Asia Charity Forum stands poised to be a leading capacity building organization in China.

The second presentation was by Felicia Pullham from APCO who will talked on the trends of CSR in China. Felicia Pullam leads APCO Worldwide's Corporate Responsibility (CR) practice in Asia. As an associate director based in Hong Kong, she specializes in assisting corporations with stakeholder relations, partnership building, and program design. Felicia works closely with APCO's communications and government relations consultants to develop programs that contribute to and fit organically with each client's overall strategy.

For both of these presentations please contact the CIMG Secretariat. Auslan gave some commentary on the CIMG mission to Xinjiang. He noted that the group visited:

  • Xinjiang Non-ferrous Group
  • Xinjiang Non-ferrous Metals Geological Exploring Bureau
  • Department of Land and Resources. Xinjiang
  • Foreign Trade & Economic Cooperation Bureau of Xinjiang
  • China Council fro promotion of International Trade Xinjiang Sub-Council
  • Xinjiang Bureau of Geology & Mineral Resources Exploration & Development
  • Gold Mountain
  • Axi Gold Mine

Auslan as well gave thanks to Grant from Gold Mountain for his and his teams assistance. Auslan commented on his observations on the mission, that were:

  • There is a push for FDI in Xinjiang
  • Implementation of the Mineral Law appears to be more in line with BJ
  • 15% of the province had been extensively surveyed (geochem, etc)
  • Still issues on tenements and the local bureau is attending to this, however slowly
  • Comments for a preference now for FDI as opposed to domestic investment
  • Brings experience
  • Good technology
  • Goog practices

He also noted that the White Paper 2007 will soon be drafted. Those interested in participating please contact him. He made note on the new website as well as mission to Ningxia Province and that more details on the mission will be emailed to members soon.

Nigel noted as well that the Advisors had been working closely with CAEFI (Chinese Association of Enterprises with Foriegn Investment) to act as the umbrella organisation for the CIMG. It was noted that CAEFI would be ideal for this given that they are aligned with MOFCom and would add value to members by being a bridge to domestic enterprises as well as being a conduit for advocacy to National Peoples Congress. Auslan added that the CIMG now has an MoU in place with the Mongolian National Mining Associaton. The MoU is in place to assist in information sharing on best business practice in mining. Lastly Auslan noted that the CIMG has formed an alliance with the IZA (International ZInc Association) and will work closely together promote eachothers information and projects.


Member Update
CIMG Golf Day
Just a quick reminder to mark your dairies for 21 September, which is the date of the CIMG's first Golf Day. This will be one day not to miss. More information to follow shortly.

CIMG News Links
In the next few days members will begin to recieve news links from the CIMG Secretariat. In an effort to keep members informed of the latest developments in the mining sector in China you will recieve on a regular basis an excel file with links of mining news in China. Please note this is a CIMG member only service and will provide only links to the news with a short headline translation. There will be no commentary or analysis of the news. The CIMG Secretariat would also like to take this time to introduce a new staff member, Ivy Ma, who will be looking after this as well assisting Mary with the CIMG activities.

Safety in China Asia Miner Supplement
In their 4th Quarter 2007 publication, ASIA Miner, Asia-Pacific's leading bilingual resources feature in the centre of the magazine. This special feature will be a handbook of case studies, tools and procedures already implemented at various workplaces to give the reader valuable knowledge regarding better safety practices within an already safe company.ncluded in this feature will be a focus on Safety in China offering proactive positive approaches to finding solutions to the problems faced by China's mining industry.

There will also be a discussion on the safety tools and philosophies each company implements, with the theme:

Safe companies and the tools they use to be even better

Each article will include a list of tools the company featured in that article has employed to make safety better within their organization or on-site.

Sponsoring Opportunity

You are invited to become a sponsoring party by advertising your company in The ASIA Miner 'Safety in China' feature. Advertisements from all supporting companies and colleagues will be at a discount price of:

quarter-page - US$1,700; half-page - US$2,600 and full page - US$4,00000

You will also be invited to submit 250 words or arrange an interview time with The ASIA Miner editor Yolanda Torrisi for an editorial on your company's commitment to achieving better safety, to accompany your advertisement. The ASIA Miner team will make contact with you when your booking is confirmed for the editorial content. Your editorial will be presented in English and Chinese.

Distribution of the Safety in China Feature

This edition will be read by The ASIA Miner magazine's regular subscriber readership and a special electronic stand-alone edition will be distributed to The ASIA Miner's e - news service readers and the electronic version will remain on The ASIA Miner website for 6 months.

Attendees at leading mining conferences listed below will receive a free copy of the magazine:

  • PT Pamerindo Buana Abadi Trade Event Electric Indonesia 2007 - Jakarta - October 31-November 3 2007
  • China Coal Expo in Beijing - November 6-9 2007
  • Discover Mongolia 2007 - 5th International Mining Investors Forum in Ulaanbaatar - November 8-10 2007
  • China Mining in Beijing - November 13-15 2007
  • IME 2008 Mining Exploration and Mineral Processing Technology Exhibition Kolkota - January 17-20 2008

Deadlines
Advertising bookings: Friday, July 27
Advertisement submission: Wednesday, August 15

All advertisements are to be: 300dpi, either jpeg or PDF format
Editorial material: Friday, July 27

Contact details:
The ASIA Miner magazine
1 Sevenoaks Street, Balwyn, Melbourne, VICTORIA 3103, Australia
Phone: +61 422 811 261

This is an excellent opportunity to make safety better and promote your company's skills and experience in China and across Asia. Salzer Consulting and its associated partners in safety in China will be participating and would welcome your involvement. Please feel free to contact me on +852 6682 0217 or Kim Cox on the number above to discuss this initiative in more detail.

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

2nd China Silicon Conference
19-21 September, 2007, Traders Hotel, Shenyang, P.R. of China
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 New Members
We would like to welcome a number of new members to the CIMG. These members are:

Alastair Neil - HDI Neavy Minerals
Dennis Robertson - Centerra Gold Inc.
Sherry Xia - Linatex China
Sang Jianhua - South China Resources
Andre Gauthier - Maxy Gold Corp.
Malcolm Powell - Ausino Drilling Services Pty Ltd

Please welcome them to as part of our community and their details are listed in the member directory section of the CIMG website.

CIMG Member Sumbissions Wanted
The CIMG is now contributing to a number of publications. 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.


Feature Article

Automation enables underground transport from surface
Automation and industrial information technology is changing the way companies do business. For Sandvik, this means that this technology can also be used on their equipment to improve safety and productivity in the underground mining environment.

In an operating mine, automation is defined as a computerised tool that is used to improve mine performance which will result in significant benefits to the entire mining process.

Each customer's goal is to recover product from his or her mine as safely, efficiently and profitably as possible. Automated mining solutions and associated software innovations are essential for reaching these goals, whether it is a small or large-scale underground mining operation.

Sandvik has been developing automation technology for the past 15 years, along with long-term research and development programmes in collaboration with international mining companies. Sandvik is the first mining supplier in the world to introduce mine automation systems for underground hard-rock mine production.

Sandvik AutoMine is an automated loading and hauling system for underground hard-rock mining, which has succeeded in transforming mining practices for the twenty-first century. AutoMine is a flexible modular system that can successfully be adapted to small-scale operations, as well as massive block caving operations. Moreover, the system incorporates functions and applications that allow it to interface with other third-party information technology systems at the mine site.

Sandvik's AutoMine system is a highly innovative automation system where operators who would normally drive a single heavy-duty machine underground can now sit in the comfort and safety of an air-conditioned control room on the surface, and simultaneously monitor the movements of a fleet of driverless loaders or trucks hundreds of meters below the surface.

Sandvik loaders or trucks navigate their way between the load and discharge points under the control of a supervisory system which is managing the traffic and monitoring the machines. AutoMine is equipped with a number of intelligent functions; for example, if one of the machines strikes a large rock in the roadway, the system would then place a restriction on the speed in that area to ensure that machines following behind either slow down or stop at the obstacle, thereby reducing potential damage to the equipment.

Mine automation provides several benefits, mainly increased fleet use, improved working conditions and safety, increased production, reduced maintenance costs, as well as favourable tramming speeds and smoother equipment operation.

Increased fleet use ensures constant performance-level enhancements and the best use of the workforce. In other words, there are no breaks during shift changes, and increased productivity is achieved through a continuous process enabling integration of information on site. This automated system provides 'real-time' information to assist with the mine's planning processes by measuring, controlling and reducing bottleneck areas, in addition to providing super- visors and management on surface with a complete window into the mining operation.

AutoMine's greatest effect on improved production control has resulted in the accurate execution of the production plan, production supervision, the tracking of draw-point status, and accurate collection of production data. This translates into significant financial and safety improvements.

AutoMine is a modular system that can be adapted to specific customer requirements. The production control system is for planning, obtaining the best production execution and reconciliation of production inputs and outputs, especially for block cave mines. The mission control system is a supervisory system controlling and monitoring the autonomous operations, including traffic management, and provides the remote operator's user interface.

MineLAN is a broadband, highspeed, data/video communication system for connectivity to automated underground loaders and trucks and associated equipment. Onboard automation systems are for machine control, monitoring, and navigation while the access control system is used for isolating the autonomous operating area to ensure the safety of personnel.

There is still a lot to do in the field of developing mining processes and automation. The priority needs to be focused on disciplined operations with expanded service to customers by adapting new technologies and skilled personnel. This applies not only to automated operations; it also includes fleet and utilisa- tion management with manually operated equipment. A new series of loaders with new control systems, that are automation compatible, will be a major addition to our offering in the field of mine auto- mation, says Sandvik's Under-ground Hard Rock Mining president Pekka Vauramo.

AutoMine technology exists today in the production environment at Finsch, a De Beers-owned mine in South Africa, as well as at other international locations.

The motivation behind the development and installation of the revolutionary ore transport system in the De Beers Finsch mine in the Northern Cape is aimed primarily at reducing capital equipment costs and increasing efficiency and productivity in underground operations, says Strategic Business Development head Mike Brown.

De Beers is a leader in the implementation of automated ore transportation. Brown believes that the introduction of automated trucks at the Finsch mine Block 4 projects is a first in underground mining.

Six TORO 50 trucks operate in a dedicated high-speed tramming loop on 63 level, where seven manu- ally operated TORO 007 Large Helical Devices (LHD) load from draw points in the block cave and tip directly into the trucks at one of five tipping points. Draw point assignment, location and production tracking of the manually operated LHDs is also provided by the system. This is an important feature for managing draw control of the block cave. The goal is to automate the entire operation.

The system was not designed as a labour-saving exercise. The advantage of automation is that one achieves increased efficiencies. We also believe that maintenance costs on our trucks will be lower because they are controlled by a computer, eliminating human error and bad driving habits. The introduction of automated trucking in the new Block 4 section of the mine was the first step towards automating the entire ore transportation system from removing ore from the draw points to dumping it into a crusher before it is hoisted to the surface in a skip. The first phase was to automate the trucks and the next step is to automate the LHDs, which extract ore from the draw points and deposit it into the trucks.

In conclusion, Brown states, By mid-2007, we expect to be able to extend the automation programme to the main production area, where eight automated LHDs will operate.


Regulatory Update
Please find below the lastest updates for 2007.

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. 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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