China Mining News

Sandvik and Shandong Energy JV for underground coal equipment

Sandvik Mining and Construction and Shandong Energy Machinery in Xintai, Shandong Province, China, have signed an agreement to form a 50/50 owned joint venture for the production and sales of coal mining equipment. The joint venture is expected to be established within six months, following customary regulatory approvals.

Coal use in china shines light on growth

International coal prices hit $124 per ton this week, the highest levels in five months, as strong demand from reconstruction projects in Japan and reduced supply from flood-ravaged Australia has made coal supply tight.

China's Jinchuan silent on media reports regarding Lundin Mining bid

No word yet from China's Jinchuan Group as to whether the company is officially in the market for Canada's Lundin Mining. Canadian media reports claim a consortium headed by Jinchuan, which includes sovereign wealth fund China Investment Corp., was planning a takeover bid for the Canadian base metals miner.

China group in talks to buy Lundin: Globe and Mail

The months-long saga over the future of Lundin Mining took another interesting twist on Friday, when a consortium of Chinese companies jumped in with a potential bid, according to a story in The Globe and Mail. Lundin has been the target of two takeover bids, the first by Inmet Mining, which recently fell through, and the second by Equinox Minerals, which unveiled a $4.8 billion hostile takeover bid to counter the Inmet offer. That deal was derailed when China's Minmetals Resources tried to acquire Equinox, which has since been acquired by Barrick Gold, which presented a richer offer worth $7.3 billion.

28 People Arrested in Diamond-Smuggling Ring Bust

Chinese police said they have shut down a Hong Kong-based diamond-smuggling ring, in three months of arrests and confiscations. Twenty eight people were arrested between January and March and diamonds worth $31 million were confiscated, making it one of the largest busts in diamond history.

Super cycle? Or the endgame of cheap?

Back in 2005, we were asked by the esteemed journal, The Banker, to write an op-ed piece and we chose the topic "China and the End of Cheap." Memory of this came back to us recently with talk rising about how production costs and wages were rising in China, prompting manufacturers to shift production elsewhere (with the dilemma of where else to shift that was so absolutely cheap and yet could get the task done). We had posited in our note that China would follow the path of Japan, Korea, and Taiwan in ceasing to be the "cheap and cheerful" production sites for the world's knick-knacks. Read the full article.

Russian metals firms constrained by rail

Russia's two main rail lines into Asia and, in particular China, are increasingly overburdened which is causing a headache for metals firms looking to increase exports.

Japan rare earth imports from China jump 40% in March

Japan's imports of rare earths from China rose 40 percent in March from the previous month, Ministry of Finance data showed, with some observers saying demand is so far unaffected by last month's devastating quake though the outlook remains murky.

Chinese co secures MOU on Australian ferrovanadium project

TNG Ltd (ASX: TNG), which recently released a positive scoping study review of Mt Peake said today it had a memorandum of understanding (MOU) with a major Chinese engineering and development company. It was also now in discussions with other potential funding/development partners.

China tries to curb over-capacity in aluminium sector

China has called on central and provincial authorities to stop approving the construction of new aluminium smelting capacity as over-capacity in the industry is expanding. Nine ministries and departments jointly issued an urgent circular reinforcing Beijing's policy to restrict aluminium capacity expansion. The circular was published on the website of the Ministry of Industry and Information Technology on Wednesday. (www.miit.gov.cn). Picture, a German aluminium coin from the time of the hyperinflation, is from Images of Elements.

China planning to ‘protect’ strategic coking coal resources

Platts reports the Chinese government is planning to categorize coking coal as a strategic resource that will be “protected” via incentives to optimise production and industry consolidation, Deutsche Bank said in a report last week.

China supply, demand outlook for copper: The price correction continues

Reports from China indicate the Chinese economy grew 9.7% in the first quarter of 2011 with foreign exchange holdings rising to a record $3 trillion. This brought about a fresh round of speculation that the Chinese government will tighten lending further in an attempt to curb and control inflation after two years of record credit expansion. The central bank has already raised interest rates four times since October 2010 along with increasing reserve requirements for Chinese banks.

Is commodities boom nearing its end?

The commodity bull has shown little sign of running out of steam - until now. Prices began to stumble as soon as a note from Goldman Sachs, the American banking giant, whizzed around trading desks across the globe last week. The broker advised clients to close its profitable "CCCP" play, which involved investing in a basket of crude oil, copper, cotton, platinum and soybeans. The commodities team, led by Jeffrey Currie, argued that after gaining 25pc since December, the risks to the trade had changed.

Chinese group makes billion-dollar bet on B.C. coal: Globe

A coal project in northeastern B.C. that is being developed by a Chinese consortium could produce up to 2 million tonnes of met coal annually for the next 30 years, the Globe and Mail reports: A Chinese group is making a $1-billion bet on coal in British Columbia to secure a key raw material for its steel making industry, the latest in a series of moves this year by international companies to stake a claim on Canadian resources.

Update on regulatory approvals for Consolidated Thompson Iron Mines arrangement with Cliffs Natural Resources

Consolidated Thompson Iron Mines announced that Cliffs Natural Resources has received approval under the Investment Canada Act for completion of the plan of arrangement pursuant to which Cliffs will acquire all the outstanding common shares of CLM. The closing of the Arrangement remains subject to certain other customary conditions, including obtaining approval of the MOFCOM filing with the Anti-Monopoly Bureau of the Ministry of Commerce of the People's Republic of China.

China’s Equinox play part of deeper strategy in Africa: Globe and Mail

Rita Trichur, writing in Saturday's Globe and Mail, goes behind the headlines in discussing the $6.3 billion bid by China Minmetals to take over TSX-listed Equinox Minerals. The bid, Trichur writes is emblematic of an emboldened, more savvy China, as the country seeks to gain control over mineral resources in Africa.

China tests home-grown coal refuge chamber at Changcun mine

Lu’an Group, a large Shanxi-based coal producer, completed what was, according to state newsletter People’s Daily Online, China’s first manned test of an underground refuge chamber on April 10. A team of 80 miners, rescue workers and researchers stayed in a permanent refuge chamber in the company’s Changcun coal mine for 48 hours. Read more

Moly Mines Limited: China Development Bank approves US$500 million project finance facility for the Spinifex Ridge molybdenum/copper project

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce it has been advised by Hanlong Mining Investment Pty Ltd (“Hanlong”), that the China Development Bank (“CDB”) has approved US$500 million in project finance facilities to develop […]

China reselling SA coal into Europe

At least four capesize cargoes of South African coal have been sold back to the original sellers by Chinese buyers during the past month and all are coming to Europe, said sources familiar with the deals. The South African coal is being stockpiled in Amsterdam-Rotterdam-Antwerp and at power plants either for sale into Europe or to be burned at the main buyer's own power plants.

Moly Mines Limited: China Development Bank approves US$500 million project finance facility for the Spinifex Ridge molybdenum/copper project

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce it has been advised by Hanlong Mining Investment Pty Ltd ("Hanlong"), that the China Development Bank ("CDB") has approved US$500 million in project finance facilities to develop the Spinifex Ridge Molybdenum / Copper mine. CDB have agreed to expand their commitment from the US$250 million, announced on 1st February 2011, to US$465 million and make available US$35 million in further working capital facilities to meet Hanlong's US$500 million financing commitment to Moly Mines. A formal commitment letter is expected to be issued by CDB within the next two weeks.

Caterpillar to form venture to build transmissions

Caterpillar Inc. said Friday it agreed to form a joint venture with a Chinese transmission manufacturer that will build drivetrain systems and other components for Caterpillar machinery and produce a line of automatic transmissions for […]

China tests home-grown coal refuge chamber at Changcun mine

chinaminer460.jpg Lu’an Group, a large Shanxi-based coal producer, completed what was according to state newsletter, People’s Daily Online, China’s first manned test of an underground refuge chamber on April 10. A team of 80 miners, rescue workers and researchers stayed in a permanent refuge chamber in the company’s Changcun coal mine for 48 hours.

The China REE import debate.

April 7, 2011 (Robin Bromby, Editor www.RareMetalBlog.com) - China is going to be a net importer of REE from about 2015, right? Well, that seems the latest consensus.

Australian regulator halts Regent Pacific's attempt to drop BC Iron bid

Hong Kong-based Regent Pacific Group Ltd said it would consider reinstating debt funding for its original bid for Australian iron ore producer BC Iron Ltd. This move follows a decision by Australia's Takeovers Panel declaring a case of "unacceptable circumstances" for Regent's "purported termination" of its takeover scheme with BC Iron.

China's Minmetals makes surprise C$6.3 bn offer for copper miner Equinox

Equinox's hard-fought battle for Lundin may be aborted by a financially superior hostile bid for Equinox by China Minmetals' subsidiary Minmetals Resources.