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Volume
3, Issue 8| August 2008 | E-News
Archives
What's
in the the news?
Debates on New Gold Tax
(Source - Caijing Magazine)
China
is mulling a value added tax on gold, but opponents believe
the levy will hamper the industry at a key moment in its development.
China is considering re-imposing a value added tax (VAT) on
gold after a hiatus of 14 years. However, many stand apposed.
Insiders on the issue told Caijing that the Ministry of Finance,
State Administration of Taxation and General Administration
of Customs are hearing opinions on whether to re-levy VAT
on gold. But a consensus has not yet been reached, and some
departments involved in the gold industry are expressing dissent.According
to one source that asked to remain anonymous, opponents to
the VAT on gold include the National Development and Reform
Commission. They alleged that the levy of VAT on gold would
be too large an impediment to China's gold industry, which
is still in its nascent stage of development.
The Ministry of Finance currently could not be reached for
comment.
Wang Jinding, general manager of Zhongjin Gold Co. Ltd. (SSE:
600489), said most of the industry opposes the new tax since
it would discourage the development.
China exempted VAT on gold mining, smelting and sale in 1994,
while granting preferential taxation policies to gold material
imports, all in an effort to grow the industry.
Now as gold prices are climbing, major miners in China have
reaped huge rewards from these preferential policies. The
price of gold reached a record US$1032.56 per ounce on March
17, 2008, increasing 311 percent on the price of US$251 per
ounce on August 26, 1999. Annual reports from companies in
the gold industry show big gains.
Shandong
Gold-mining Co. Ltd (SSE: 600547) had a rate of return on
common stockholders' equity (ROE) at 23.58 percent in 2007.
In the same year, the figure of Zhongjin Gold Ltd. was 24.88
percent, while the ROE of Zijin Mining Group Co., Ltd. (SSE:
601899) was 10.27 percent in the first half this year.
However,
an industry insider said the profit margins of gold companies
ROE are still thin despite rising prices. "The costs
of exploration and exploitation are increasing alongside with
the increase of mining depth," said the source. The frequent
fluctuation of gold price will also create difficulty for
VAT levy.
An
industry insider who opposes the tax said the increasing costs
of gold mine exploitation after the tax levy will discourage
miners from digging small-scale mines in China and will cause
losses that outweigh the gain from the tax. According to the
source, based on the 2007 gold production of 270.5 tons in
China, a 200 million yuan per ton tax levy will create revenue
of 4 billion yuan for the government.
Wang
Jinding said the government should encourage gold companies
to exploit small and low-qualified gold mines in an environmental
friendly way. "A tax levy will discourage the companies
and restrain the development of the industry," said Wang.
Zijin
Mining signs MOU with Tajikistan
(Source - www.chinamining.org)
Zijin Mining has signed a MOU with the Tajikistan government
in Tajikistan on August 27, 2008. Mr. Rakhmon, the president
of Tajikistan and Mr. Hu Jintao, the president of China attended
the signing ceremony.
The
MOU was signed by Zijin's chairman Chen Jinghe and a Tajikistan
government representative. According to the MOU, Tajikistan
will be one of most significant areas for Zijin's overseas
investment
During
the Beijing 2008 Olympic games, Mr. Rakhmon, president of
Tajikistan met with Zijin's chairman Chen Jinghe. Mr. Rakhmon
said that Tajikistan government favored Zijin Mining significantly.
Photo:
Zijin's Chairman Chen Jinghe is shaking hand with China's
president Hu Jintao who is visiting Tajikistan at the signing
ceremony on August 27, 2008.
Anglo
Ashanti Gold to donate UAV to assist Sichuan earthquake relief
efforts
(Source - www.cimg.org.cn)
Anglo Ashanti Gold donated an unmanned aerial vehicle (UAV)
to Sichuan government officials at an official ceremony on
Wednesdy 27 October in Chengdu, Sichuan Province to help in
the assessment of earthquake damage caused by the recent earthquake
in Sichuan Province.
Photo:
Photo of the donated UAV at the ceremony in Chengdu on August
27, 2008.
UAVs are aircrafts with no onboard pilot. They can be remote
controlled or fly autonomously based on pre-programmed flight
plans or more complex dynamic automation systems. UAVs provide
better perspective view on air with the ability to cover a
large ground surface area. The UAV to be supplied is made
in China and designed to collect information in disaster relief
situations. In these application, it can obtain detailed views
near ground level. In these situations, this detailed information
cant be obtained from high flying aircraft due to the vertical
obscuration of weather, trees, smoke, buildings or the clutter
of damage from natural disasters. This UAV will be a great
assest considering the current weather conditions in the earthquake
affected area and will allow safe and efficient assesment
that will lead to enhanced planning in the reconstruction
efforts.
The
CIMG Secretariat would like to thank Anglo Ashanti Gold for
the generous contribution for the people of the affected areas
of Sichuan Province. As well a donation was made by Eldorado
Gold and this donation will be used for school reconstruction.
Do
you have a comment on these articles? Email it to info@cimg.org.cn
CIMG
members are able to receive a translation of the policy. Please
email Mary Yu at the
CIMG Secretariat to recieve your copy.
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 gathering
At
this meeting we were fortunate to have, Professor Zhou Jinsheng,
Vice president of the Institute of Geological Survey of the
China University of Geosciences (Beijing) speaking.
He spoke on research Institute ofGeological Survey is currently
undertaking on the service for geological data in China. During
his presentation he also asked for input from CIMG members
on their viewpoints of availability, quality and possible
changes to the service for geological data in China.
During the presentation many questions were raised by the
CIMG members. Most of these questions focussed on the availability
of geological data in provincial areas. CIMG members mentioned
that at in some provinces maps were not available as stipulated
by the law. The reason given at provincial level was that
maps are not available for foriegn enterprises. Professor
Zhou was unable to comment on actions such as these at provincial
level. The CIMG members at the meeting were disappointed at
his reply, however he accepted the implementation of the regulations
pertaining to the availability of geological data should be
the same at all government levels in China, implying that
the maps sought after by the CIMG members should be available
to them irrespective that they are foriegn enterprises.
Professor Zhou asked CIMG members to fill out the survey (which
is attached) and to provide more comment here.
About
the speaker: Professor Zhou Jinsheng, Vice president of the
Institute Geological Survey of the China University of Geosciences.
He graduated from the Hebei Geology Institute and has read
the politics in the central party school in office graduate
student class. Since that time he has been engaged in open
country prospecting, resources economy research, and services
management.
If
you have any questions regarding this meeting please do not
hesitate to email Mary Yu
at the CIMG Secretariat
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
Thank
You - Sponsors - CIMG's Taxation White Paper 2008
The CIMG Secretariat would
like to thank the following sponsors for their support of
the CIMG's Taxation White Paper: Anglo
American, AngloGold
Ashanti, Continental
Minerals,
Griffin
Mining,
Rio Tinto and Tianshan Goldfields.
The
outcome of this taxation white paper 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 thankful for the sponsorship from
these members to help subsidise cost of this project.
CIMG events around China Mining
The CIMG Secretariat is planning
a number of events around China Mining 2008. As you are all
aware China Mining is one of Asia's premier mining conferences
and is hosted by China's Ministry of Land & Resources.
China Mining is now in its tenth year and last year had over
2,500 participants.
As you can imagine the China Mining is an important event
for China's mining industry and is a great platform for exchanging
information, building relationships and networking.
Previous
years has seen the CIMG host a number of great events around
China Mining and this year will be no different. This year
the CIMG Secretariat will provide a number of opportunities
for members to be involved as speakers, attendees and sponsors
in the planned events.
This
years CIMG activities at China Mining will comprise of the
following
events:
- CIMG
"Mining Provincial Mining Dialogue": 10 November
- This dialogue will focus on mining in provincial China.
This dialogue will have an intimate feel with speakers from
industry, government and academia. This will be a half day
event.
-
CIMG "Morning Speaker Sessions": Daily in the
morning during China Mining - These sessions are designed
as a platform for members to speak to the industry on their
perspective of the state of the industry, their projects,
topical issues and upcoming trends. These sessions will
not be open to the media and only CIMG members will be able
to speak.
- Mining
CEO Networking Drinks: 10 November - A much look forwarded
to networking drinks session held the night before the opening
of China Mining in association with the organisers of China
Mining.
- Also
in planning is a CEO lead mine safety event. More details
on this will come in the coming weeks.
Will
your CEO, COO or President be attending China Mining 2008?
Will you have a department head/expert in town during China
Mining? If so, then please accept an invite for them to come
and speak at CIMG Morning Sessions Speaker Sessions.
There
are also a number of opportunities for CIMG member companies
to sponsor these events. For more information on the packages
please contact either Mary or Auslan at the CIMG Secretariat.
We
do hope that you will be interested in supporting the CIMG
and being part of these events. If you have any questions
please do not hesitate to call or email Mary or Auslan at
the CIMG Secretariat.
China
Mining 2008 - Congress
Information:
CHINA
MINING Congress & Expo 2008 will be held at Beijing International
Convention Center on November 11-13, 2008.
CHINA MINING Congress is hosted by the Ministry of Land &
Resources, China and supported by domestic & international
governments, associations as well as organizations including
the World Bank Group, China Mining Association, Australian
Embassy and Canadian Embassy. As one of the world's top four
mining events and the biggest Asian platform for mining exploration
and exploitation, the event provides an important channel
for communication and exchanging information among global
mining enterprises, while building relationships.
After a very successful event last year, CHINA MINING Congress
& Expo is now approaching its 10th anniversary. More than
3000 registered delegates, 300 exhibitors and 30 sponsors
from 45 countries and regions participated in last year's
CHINA MINING Congress & Expo.
With a larger exhibition space and more conference streams
we are expecting even more attendees of the world wide mining
community to celebrate the 10th anniversary of CHINA MINING
Congress & Expo in this year.
Contact: Tel: +86 10 5822 1789 Fax: +86 10 5822 1797 Email:
info@mining-expo.com
Contact: Alan Feng on +86 10 5822 1789 or info@mining-expo.com
China
Mining 2008 - CHINA MINING Awards Nomination
CHINA
MINING Awards are being presented in five different categories.
They recognize and promote innovation and co-operation achievements
in China. Focusing on exceptional success stories in exploration,
mining, technical innovation and sustainable behavior, they
reward industry leaders for forward looking business strategies.
The CHINA MINING Awards focus on joint ventures that are leading
the way in China's mining industry.
CHINA
MIING Awards will be presented in the following categories:
Prospector/Explorer of the Year Award
The recipient will be a company or person who discovered
a significant mineral deposit in a new or previously exploited
area.
Mine
Development Award
For a company (foreign or domestic) that has successfully
completed a feasibility study and is preparing to go into
production.
Mining
Environmental Protection Award
This award will be given to a project in China which has demonstrated
outstanding initiative, leadership, innovation and accomplishment
in protecting and preserving the environment in the interests
of sustainable development while exploring or operating a
mine
Technological
Innovation Award
The recipient will be a domestic company that has executed
the most successful facility expansion or new technology adoption
in the past 12 months.
Governmental
Support Award
The award will be given to the Department of Land & Resources,
which provides the best support for foreign companies in that
province.
You
are invited to participate in CHINA MINING Awards by nominating
a company for an Award in one of the five categories. Please
contact us at conference@mining-expo.com
Deadline for nomination is September 15th, 2008.
CHINA
MINING Awards Nomination
CHINA MINING Awards are being presented in five different
categories. They recognize and promote innovation and co-operation
achievements in China. Focusing on exceptional success stories
in exploration, mining, technical innovation and sustainable
behavior, they reward industry leaders for forward looking
business strategies. The CHINA MINING Awards focus on joint
ventures that are leading the way in China's mining industry.
To make a nomination please visit this link: http://www.mining-expo.com/en/cm_awards.aspx
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
Speakers for Monthly Meetings
The CIMG Secetariat
is seeking speakers to speak at the monthly meeting. If your
company would like to make a presentation and a chance to
share information and promote the international mining community
please contact Auslan at auslan@cimg.org.cn.
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:
CECC
CCEC Ltd was established in BVI in September 2006. CCEC Ltd¡¯s
objective is to establish a China-focused coal company with
significant resource based on which to build a coal company.
In December 2007, CCEC Ltd was acquired by Regent Pacific
Group (HK stock code: 0576) and became a 100% owned subsidiary
of Regent Pacific Group.
Contact: Dacre Purchase
Address:1807, Nci Tower, No.12a Jian Guo Men Chao Yang District
Beijing China, Chao Yang District China, 100022
Telephone: +86 10 65694988
Email: nzong@chinacec.net.cn
Website: http://www.chinacec.net.cn
China Fibow International
Construction Group Co., Ltd
ChinaFibow is an international Chinese construction and trade
company with long experience and strong ability to develop
the overseas construction market. ChinaFibow can undertake
all kinds of projects in China and overseas. We are searching
for more partners in view to develop international market
together.
Contact: Jean-Michel Floch
Address:102 Unit 1, Building 6, Julong Garden No 68 Xinzhongjie
DongCheng District Beijing China
Telephone: +86 10 65516931
Email: jean-michel.floch@cic-china.net
Website: http://www.chinafibow.com
Yuxin Conveyance Machinery
Company Ltd
Established in Jiaozuo City, Henan Province, in 1998, Yuxin
produces a diverse range of conveyors and quality conveyor
components for the mining industries in China and abroad.
Yuxin is highly focused on building human capital, incorporating
best practices and new technology, and forging strategic relationships.
Contact: Delbin Dan
Address:2008 Yingbin Road Jiaozuo City Henan Province, China
Telephone: +86 15039110698
Email: danbelbin@yuxinhn.com
Website: http://www.yuxinhn.com/english/index.html
Aspermont
Limited
Aspermont Limited is the publisher
of Mining Journal, Mining Magazine, Australia's Mining Monthly
and MiningNews.net, Aspermont is the global mining industry's
most trusted source of news and information.Now with Chinese
language magazine Australia-China Mining Review and a suite
of market-leading conferences, Aspermont offers industry a
full suite of print, online and conferencing options.
Contact: Grey
Tubby
Address: 613-619 Wellington Street, Perth WA 6000
Telephone: +61 8 6263 9149
Email:Greg.Tubby@aspermont.com
Website:www.aspermont.com
Jobs4mining Ltd
Jobs4mining.com was launched by minesite.com to advertise
mining jobs around the world. It provides a cost effective
on line tool for promoting jobs to mining professionals with
technical and specialist skills, candidates search and apply
free.
Contact:
Janet Bewsey
Address:Lower Mill Offices, Old Basing, Hampshire, RG24 7AT,
United Kingdom
Telephone: +44 (0)845 621 6463 (MINE)
Email:Janet.Bewsey@jobs4mining.com
Website:http://www.jobs4mining.com
Coal
Projects Seeking Investors
A CIMG member is searching for investors:
1)
Mine # 1 - mine for sale 120 million ton reserve. Situated
in Armand Hammer- Island Creek.
2)
Mine #2 - Price 300,000,000 RMB - 11,500,000MT in Reserve
- 4 Layer of Coal - 6 Meter of coal per layer - Currently
only mining from layer #9 - Fully licensed set of 6 Certificates
- 6000+ Cal / Premium Coal - Low Gas Content - Coal per
sold @ 700RMB per ton.
For
more information please contact: Jean-Michel Floch
Telephone: +86 10 65516931
Email: jean-michel.floch@cic-china.net
Website: http://www.chinafibow.com
Regulatory
Update
Please find below the lastest
updates for 2007/8. (Some of these sections members will need
their password to access the CIMG area on the CIMG Website)
CIMG
Sustaining Sponsors
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