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Volume
3, Issue 6| June 2008 | E-News
Archives
What's
in the the news?
Sinosteel seeks Australian approval
(Source - http://www.chinamining.org)
Sinosteel
Corp, China's second largest iron ore trader, is seeking Australian
approval to take a "substantial" stake in Murchison
Metals Ltd, which may allow it to control a A$3 billion ($2.9
billion) mining project.
The
Treasury will study Sinosteel's plans to buy a "substantial
shareholding" and Murchison's assets for 90 days, according
to a government gazette. Sinosteel owns 2.4 percent of the
Perth-based iron ore producer, and is offering A$1.36 billion
for Australian mining rival Midwest Corp.
Taking
control of both companies may enable Sinosteel to speed up
the building of mines and a port to export to China, the world's
largest consumer of iron ore.
Both
companies are situated in the mid-west region of Western Australia.
Murchison, which has also bid for Midwest, fell 7 cents, or
2 percent, to A$3.49 at 4:10 pm Sydney time on the Australian
stock exchange, valuing the company at A$1.43 billion. Midwest
fell 18 cents, or 2.7 percent, to A$6.40.
Overseas
acquirers need approval from the government to own 15 percent
or more of an Australian company. OAO Magnitogorsk Iron &
Steel's investment in Australia's Fortescue Metals Group Ltd
was given approval in March after the government said it would
consider it last September.
Australia
welcomes foreign investment, Federal Treasurer Wayne Swan
said yesterday, according to an e-mailed transcript of a news
conference in Canberra. China may invest more than A$30 billion
in fiscal 2008, he said earlier this month.
"We
welcome it from everywhere, including China, but we will apply
decisions on a case-by-case basis in the national interest,"
he said yesterday. He would not comment specifically on Sinosteel's
application.
The
order from the Treasury prevents Sinosteel from buying more
than 15 percent of Murchison while it studies the application,
Murchison said yesterday. The order doesn't indicate how the
Treasurer will respond, the company said.
"Significant
foreign capital will be required to successfully develop the
mid-west region's new mines and supporting infrastructure
and Murchison notes comments yesterday by the Treasurer Wayne
Swan that the federal government continues to welcome foreign
investment," the company said in a statement.
Sinosteel
would have to contend with other shareholders of Murchison.
South Korea's Posco, Asia's third largest steelmaker, owns
9.8 percent, and Harbinger Capital Partners Ltd owns 19.7
percent. Murchison has a venture with Japan's Mitsubishi Corp
to build the mine and port.
Iron
ore prices have soared for six years to a record, raising
costs for Chinese steelmakers, the world's largest producers.
Australia,
the world's largest exporter of coal and iron ore, is delaying
investment approvals for Chinese companies, Beijing-based
Sinosteel said last month.
Sinosteel's
proposed acquisition of Midwest would be the largest overseas
metals takeover by a Chinese company, according to Bloomberg
data. It has bid A$6.38 a share for Midwest and owns a 43.6
percent stake in the Perth-based company.
Analysis:
China to become world's largest gold producer this year
(Source - www.chinamining.org)
With the gradual expanding of the gold production capacity
and improvement of the gold smelting technology, China will
take the place of South Africa to become the world¡¯s
largest gold producer this year.
Hou
Huimin, vice-president of the China Gold Association said
that China has surpassed the United States to be the world's
second largest gold producer just next to South Africa, with
the gold output in 2007 reaching 270.491 tons, up 12.67 percent
year on year. The gold output of South Africa was 272 tons
in 2007.
China's
gold output has grown 34.84 percent over the past five years.
It produced 240.078 tons in 2006, up 7.15 percent over 2005.
The
national gold output has been growing rapidly since 1978 and
it has entered into a stable growth stage and showed a trend
of accelerated growth in the past 10 years.
At
present, China's gold resource is estimated at 15,000-20,000
tons, and preserved gold reserve at 4,634 tons including 2,786
tons of rock gold, 593 tons of sand gold and 1,255 tons of
accompanying gold. Its proven gold reserve has ranked seventh
in the world.
China
discovered proven gold reserves of 650 tons in its southwest
Yunnan, Guizhou and Sichuan provinces and the Guangxi Zhuang
Autonomous Region, and its northwest Shaanxi and Gansu provinces
in 2006. Five large and super-large gold deposits were discovered
last year with proven reserves of 753.09 tons.
According
to the Industry Department of National Development and Reform
Commission (NDRC), the 11th Five-year Program (2006-2010)
for gold industry has put forward the plan of producing 1,300
tons of gold and adding 3,000-3,500 tons of basic reserve
in five years.
China
has formed a completed professional gold industrial chain
integrating prospecting, exploitation, processing and smelting,
with a strong technological capability. It has so far built
330 sizeable gold mines, with daily mining capacity of 110,000
tons and annual gold production capacity of more than 230
tons.
According
to Hou, as the entire scientific and technological level of
China¡¯s gold industry has upgraded obviously,
those metallurgical gold that is hard to be dressed in the
past can be fully processed with updated technology and reach
a high recovery rate. In addition, it has also made a big
breakthrough in the low-grade gold ore processing technology.
In
January-April of this year, China's gold output grew eight
percent year on year, and it is predicted to grow further
in the second half of this year.
While
the gold production capacity and exploitation technology achieved
progresses continuously, China's gold market also got improved
gradually. After the gold market was deregulated in 2001,
the Shanghai Gold Exchange was established on April 28, 2001
and started simulated operation in November of the year and
official operation one year later. The gold market became
fully open to investors. But it mainly engaged in trading
of gold commodity, spot trading and domestic market trading
at the first beginning.
In
January of this year, gold futures made a strong debut on
the Shanghai Futures Exchange (SFE). The contract offers China
a chance to become a key player in the global gold market.
It could also be a hedging tool for gold producers and a means
to absorb excess liquidity. It is predictable that the secondary
development of financial products based on gold spots and
derivatives will be net hot spot of the future gold trading,
and it will push the entire gold industry of China towards
more maturity.
The
restructuring of China¡¯s gold industry has revitalized
domestic gold enterprises and gradual improvement in gold
production technology and enterprise strength promoted the
gold production. Moreover, the new findings of gold mine resources
provided guarantee for China to become a strong gold producer.
Currently,
the industrial concentration degree is on the rise. The state
gives an energetic support to the gold enterprises to further
sharpen its competitive edge and raise independent development
capability and supports large and advantage enterprises to
become bigger and stronger, and it also actively supports
and encourages qualified enterprises to explore gold mine
resource abroad.
The
gold supply around the globe will be stable and show a trend
of small decline in the years to come as the gold output of
major gold producers like South Africa and the United States
drop. But the demand for gold will keep increasing. Gold will
remain undersupplied and gold price will remain high.
China's
gold consumption presented a strong growth momentum in 2007.
Gold sales in China including Hong Kong and Taiwan hit a record
high of 363.3 tons last year. In the mainland alone, the demand
for gold topped 326.1 tons, 26 percent higher than in 2006.
Its demand for gold for jewelry use reached 302.2 tons, breaching
300 tons for the first time in the past 10 years and making
China the second largest gold jewelry market of the world
after India.
The
gold transaction volume of the Shanghai Gold Exchange amounted
to 1828.13 tons in 2007, up 46.30 percent over 2006, setting
the peak record since its establishment. However, the transaction
volume only made up 0.93 percent of China¡¯s GDP.
It promises a broad growth space for Chinese gold market in
the future.
The
CIMG Secretariat emails daily a list of news headlines to
its members. To make sure you get your copy send an email
to Ivy at info@cimg.org.cn.
Please
remember to read the CIMG Update - Projects
and Member Updates section to make sure you are
abreast of the CIMG's upcoming projects, events and member
news.
News
from the last CIMG monthly meeting
This meeting focussed
on environmental policy in China. Presenting was
Ms. Feng Yan from the Policies, Laws and Regulations Department
of the
Ministry of Environmental Protection of China (MEP). Ms. Feng
Yang is a Director of the department and she talked about
environmental policy trends in China.
Ms
Yan mentioned higlighted the focus of the China to protect
the environment and that this has become a focal point for
policymakers. Efforts to control China's pollution problem
have become a top priority of the Chinese leadership. In March
1998, the State Environmental Protection Administration (SEPA)
was officially upgraded to a ministry-level agency, reflecting
the growing importance the PRC Government places on environmental
protection.
Beginning in 2006 the government greatly expanded expenses
into environmental protection and a series of new laws have
been passed. Enforcement of these laws is also being expanded.
The PRC has strengthened its environmental legislation and
made some progress in stemming environmental deterioration.
During the 11th 5-Year Plan (2006-2010), the PRC plans to
reduce total emissions by 10% and bring China's energy efficiency
up 20%. Beijing in particular is investing heavily in pollution
control as part of its campaign to host a successful Olympiad
in 2008. Some cities have seen improvement in air quality
in recent years. In the first half of 2007, China's total
energy consumption per unit of output improved 2.8% and China's
sulfur dioxide emissions fell by 0.6%, showing that these
new measures have the potential to slow down pollution growth.
In regards to mining she mentioned the overall EIA process
and mine rehabilitation funds as keys to enhancing environmental
protection in the mining sector.
The
Ministry of Environmental Protection of the People's Republic
of China, formerly State Environmental Protection Administration
(SEPA) is a cabinet-level ministry in the executive branch
of the Chinese Government (People's Republic of China). It
replaced the SEPA during the March 2008 National People's
Congress sessions in Beijing. The
Ministry is the nation's environmental protection department
charged with the task of protecting China's air, water, and
land from pollution and contamination. Directly under the
State Council, it is empowered and required by law to implement
environmental policies and enforce environmental laws and
regulations. Complementing its regulatory role, it funds and
organizes research and development. In addition, it also serves
as China's nuclear safety agency.
For
a full copy of the s Yan's presentation please contact the
CIMG Secretariat.
After the presentation Auslan provided a brief update on upcoming
activities.
Please
click this link CIMG Update - Projects
and Member Updates to veiw the CIMG's projects, events
and member news.
CIMG
Member Update - Projects and Member Updates
CIMG Projects
- Seeking your input and involvement
Update
- The MOLAR and CIMG Earthquake Assistance Donation Program
2008
As noted at the last CIMG meeting the
CIMG in conjunction with MOLAR, is working on a plan to mitigate
potential hazards created by the recent earthquakes in Sichuan
Province through donating a UAV. The
CIMG is happy to extend its thanks to Anglogold Ashanti for
their total donation of the UAV. The
main task of the UAV will be to take high resolution pictures
of hazardous areas to allow further assessment of damaged
areas in the earthquake zone. The CIMG Secretariat will keep
members informed of the handover ceremony to mark this occassion.
Seeking
Sponsors - CIMG's Taxation White Paper 2008 2008
Since 2003 the CIMG has worked
on creating a greater understanding of Chinese Taxation as
applied to the exploration and mining industry. The CIMG undertook
a number of workshops in 2003 and 2005 with the State Administration
of Taxation and MOLAR.
Members
indicated in the membership survey their wishes for the CIMG
to take on taxation as a key project for the CIMG's work in
2008. The CIMG has taken this on board and has been now completed
a proposal on how and what to lobby the State Administration
of Taxation on. This proposal will lead to a taxation white
paper, meetings with the State Administration of Taxation,
etc. The outcome of this work will be to enhance the understanding
and implementation of taxation and its implementation for
the mining industry.
The
CIMG Secretariat has been liaising with KPMG who will undertake
the work to complete the CIMG's Taxation White Paper. As you
can imagine the work to be undertaken is extensive and the
CIMG Secretariat is seeking sponsorship from member companies
to help subsidise costs of this project.
Those
sponsoring will be able to take part, learn and influence
the way taxation is applied to the mining industry.
Sponsorship
Package and Benefits:
The CIMG Secretariat is seeking 10 sponsors, where each sponsorship
is
valued at 43,200RMB. The CIMG Secretariat will also be making
a contribution
to this project of 48,000RMB. Benefits for Sponsors:
- Exclusive
attendance to meetings with SAT and other government
ministries
- Will
receive all content in full including Taxation Paper, etc
(please note that CIMG other members will receive a short
summary only)
- Recognition
of in White Paper as a key sponsor
For
more information, a full proposal of the project or to register
your
sponsorship interest in this project, please call Auslan or
Mary at the CIMG
Secretariat or by email at mary@cimg.org.cn
UBC:
The NBK Institute of Mining Engineering at UBC - Internship
opportunities
"UBC: The
NBK Institute of Mining Engineering" at UBC in Vancouver
is pleased to announce a new internship opportunity for international
applicants to its innovative Master of Engineering Program.
Four qualified international applicants will be offered an
eight-month internship with Wardrop Engineering of Canada.
Successful applicants will begin the Mining Engineering MEng
program in August, undertake nine months of intensive study,
and then work at one of four Wardrop Engineering offices across
Canada. Interns will work as part of a team developing mining
projects. Internship salaries will range from $3000 to $5000/month
and interns will be considered for fulltime employment in
Wardrop's Beijing office, or in Canada. Applicants must have
an applicable undergraduate engineering degree, good marks
and strong English abilities. For more information, please
contact AJ Gunson at ajgunson@interchange.ubc.ca,
or visit our website at http://www.mining.ubc.ca/MEng.html.
CIMG
and Chinese Media - CIMG Member Submissions 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.
CIMG
News Links
Members are being emailed news
links each day 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. If you have news
that you would like to add please email, Ivy Ma, who will
be looking after this at info@cimg.org.cn.
CIMG
Member Update - Member News, Events and more
Welcome New Members
The CIMG would like to make a warm
welcome to:
Established in Mongolia in
April 2004, Australasian Independent Diamond Drilling (AIDD)
is an exploration drilling company, the core business being
the exploration of water and minerals as well as geotechnical
drilling. A dedicated and experienced team has ensured the
Company's rapid growth in Central Asia, with operations now
also in China and Kazakhstan.
Contact: James Polson
Address:#501, Unit 1, Building D, Central Park, 33 Xichang
Road, Kunming City, Yunnan Province, China 650034
Telephone: +86 871 5531 326 - 206
Email:enquiries@aidd.mn
Website:http://www.aidd.mn
Spaceframe is an Australian
based steel structure design detailing and fabrication company
servicing noth the construction and mining processing industries.
Experienced in the design and supply of process buildings,
pipe bridges, conveyor structure, etc. Customers include Ivanhoe
Mines (Mongolia), Harmony Gold (Papua New Guinea), Jinchuan
Group and Quay Group.
Contact:
David Martin
Address:Room A501, No.1 Building Zhubang 2000 Business Center,
No.100 Balizhuang Xili, Chaoyang District, Beijing,China 100025
Telephone: +86 10 6556 2554
Email:davemartin@spaceframe.com.cn
Website:http://www.spaceframe.com
Mitsubishi Corporation (MC)
is Japan's largest general trading company (sogo shosha) with
over 200 bases of operations in approximately 80 countries
worldwide. Together with its over 500 group companies, MC
employs a multinational workforce of approximately 54,000
people. MC has long been engaged in business with customers
around the world in virtually every industry, including energy,
metals, machinery, chemicals, food and general merchandise.
Contact:
Man Jiang
Address:Mitsubishi Corporation China Commerce Co.,Ltd, 8f
Office Tower 2,Henderson Centre,18,Jianguomen Nei Avenue,Dongcheng
District,Beijing,China
Telephone: +86 10 65183030-298
Email:jiang.man@mitsubishicorp.com
Website:http://www.mitsubishicorp.com
Regulatory Update
Please find below the lastest
updates for 2007/8.
CIMG
Sustaining Sponsors
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