On 31 December 2014 the Chinese Ministry of Commerce announced details of its plan to replace the controversial quota system regulating the export of rare earths with a new resources tax. In August 2014, the World Trade Organisation (WTO) found the quota system to be inconsistent with China’s WTO obligations.

On 22 October 2014, Hong Kong Exchanges and Clearing Ltd (HKEx), the London Metal Exchange (LME), LME Clear Ltd, China Merchants Group Ltd (CMG) and China Merchants Securities Co. Ltd (CMS) signed a memorandum of understanding (MOU) in relation to a strategic alliance concerning product development and services for market users.

On 23 June 2014, following a six month review and consultation period, the London Metal Exchange (LME) announced it plans to maintain and further invest in its 137 year old open-outcry trading “Ring”. The Ring is a physical price formation venue that provides a transparent price discovery process and supports a unique prompt date structure.

Baosteel Resources Australia Ltd (Baosteel) has announced they will not improve their US$1.3 billion takeover bid for Australian explorer Aquila Resources Ltd (Aquila) after Australian miner Mineral Resources Ltd acquired 49 million additional shares in Aquila to take its stake to 12%. Baosteel and its Australian partner Aurizon Holdings Ltd have been seeking to acquire a 50% stake in Aquila’s stalled AUS$7 billion West Pilbara Iron Ore (WPIO) rail and port project and a coal mine in Queensland. The WPIO resource is estimated to be approximately 2 billion metric tons. The offer was made on 5 May 2014 and is set to close on 11 July 2014. (Source: www.mining.com11 June 2014 and The Australian 13 June 2014)

Hong Kong Exchanges and Clearing Limited (HKEx) have announced that it plans to launch its commodities business with four futures contracts that will be traded in its derivatives market.

Rio Tinto (Rio) has announced that it is pulling out of the Pebble Mine copper and gold project in the Bristol Bay region of Alaska. The project is wholly owned by Toronto and New York listed Northern Dynasty Minerals Ltd. (Northern Dynasty). Rio currently owns 19.1% of Northern Dynasty.

Glencore Xstrata PLC (Glencore) is in talks to convert US$900m of debt in Russian oil producer RussNeft OAO NK (RussNeft) into an equity stake of approximately 20%. If the proposed conversion proceeds it will make Glencore one of the largest foreign shareholders in the Russian oil industry. The deal which is subject to the finalisation of due diligence and valuation could complete by the end of 2014. RussNeft, which is owned by Mikhail Gutseriyev, is one of Russia’s largest oil producers. Glencore is RussNeft’s largest customer purchasing oil under a 20-year off-take agreement. (Source: www.ft.com4 March 2014)

Hong Kong listed SouthGobi Resources Ltd(SouthGobi) more than doubled its coal production in 2013 after the resumption of its Mongolian operations. Mining at SouthGobi’s Ovoot Tolgoi mine was halted in June 2012 following a failed takeover bid by Aluminium Corp. of China Ltd, deteriorating market conditions and a corruption investigation. On restarting production in March 2013 SouthGobi announced it had produced 3.06 million tonnes of the 3.2 million tonnes of semi-soft coking coal it had planned to produce by the end of the 2013 and that it expects sales volumes to decrease in the first quarter of 2014 compared to the fourth quarter of 2013 citing national holidays as the reason for the slowdown. SouthGobi is 56% owned by Turquoise Hill Resources Ltd., which is majority owned by the Rio Tinto Group. (Source: Bloomberg News 16 January 2014)

Hess Corp.(Hess) has entered into two separate agreements with a joint venture formed by Indonesian state-owned PT Pertamina and Thailand’s national petroleum operator PTT Exploration & Production Co. Ltd. to sell its interests in the Pangkah and Natuna A assets (Assets) offshore Indonesia for US$1.3 billion. The agreements are expected to close before the end of first-quarter 2014.

Serbian state-owned power utility company EPS has signed a US$715 million deal with China Machinery and Engineering Corp. (CMEC) to build Serbia’s first new coal fired power plant in 23 years.

November 2013. Hong Kong leading boutique law firm, Charltons, has been named Hong Kong’s top Independent Law Firm in the Euromoney Asia Women in Business Law Awards 2013 for the second consecutive year. Charltons was also shortlisted for the best independent Hong Kong firm for work-life balance. These awards recognise the achievements and advancement of women in the legal professional throughout the Asia region.

Malaysia’s PETRONAS Carigali (Petronas) plans to drill exploration wells at two upper Myanmar onshore blocks in January 2014. It acquired the two blocks RSF-2 and RSF -3 in a 2011 bidding round. Petronas’ General Manager Mr. Ahmad Lutipi Haron said “We have already finished early exploration and geophysical analysis and can start drilling exploration wells early next year.” The blocks might be operational by 2018. Petronas has exported 400 million cubic feet of natural gas through Thailand’s PTTEP from the Yetagun offshore block. ( From Weekly Eleven News, 21 October 2013)