Rio Tinto’s and Chalco’s Guinea iron ore development may commence production ahead of schedule
Mining.com has reported that Hong Kong listed Chalco (02600) is to transfer its $1.8 billion investment in its Guinea iron ore project to its state-owned parent company. The possible transfer has been interpreted as a sign that China may be considering increasing its investment in the ambitious $20 billion project. The project is 51% owned by Rio Tinto, with Chalco having a 45% share. The remainder is owned by of the World Bank. The project located in Simandou in the Nzérékoré Region of south-eastern Guinea, aims to produce 95 million tonnes per year and has the potential to shift the balance in the global iron ore trade.
Last month the partners executed a draft agreement with the Guinean government in which it was contemplated that exports would commence by the end of 2018, however, it is now believed that the project could be operational a year ahead of schedule.
China’s imported iron ore stockpiles decline
Xinhua news has reported that iron ore stockpiles at 25 major Chinese ports declined in the week ending 23 September. According to the report inventories of imported iron ore stood at 74.32 million tons down 990,000 tons or 1.33% on the previous week.
China to increase purchases of rare earth
China Daily USA has reported that China is likely to increase spending on rare-earth minerals to bolster its strategic reserves. According to Du Shuaibing, an analyst with market trends firm Baichuan Information, this round of purchases will target medium and heavy rare earths, which are more valuable but less common than light rare earths.
According to the report, six Chinese companies – Baotou Steel Rare Earth Hi-Tech Co, China Minmetal Rare Earth Co; China Nonferrous Metal Industry’s Foreign Engineering and Construction Co; Chinalco Rare Earth Jiangsu Co; Rising Nonferrous Metals Share Co and Ganzhou Rare Earth Mineral Industry Co. – will act as purchasers.
The expected move is aimed at balancing market supplies of rare earths amid a decline in prices and demand this year and leading to expectations of higher prices. The news prompted a rise in the share value of NYSE listed rare earth miners.
Chinese Gold & Silver Exchange Society accepts first overseas firm
The Chinese Gold & Silver Exchange Society (CGSE) has accepted Swiss firm Finemetal Asia as its first overseas member. Finemetal Asia distributes precious metals products made by Swiss refiner Argor-Heraeus. Finemetal Asia will provide CGSE with 999.9 fine kilobar (gold) accredited by the London Bullion and Market Association.
As part of its efforts to expand its physical precious metal businesses in recent years, CGSE will issue up to five memberships by invitation to international metal companies. CGSE will look to enlarge its membership base with the recruitment of international bullion and silver dealers and precious metal fabricators. New international members will have access to a broader Asian platform for precious metal trading and the opportunity to strengthen relationships with Mainland China investors. At the same time, new members can provide additional and larger quantities of physical gold to the Hong Kong precious metal market.
China to invest 80 billion R MB in oil and gas explor ation in 2013
According to the Xinhua news agency Chinese investment in oil and gas exploration is expected to total approximately 80 billion RMB (13.07 billion U.S. dollars) in 2013. Chinese investment in the sector has risen steadily over the past decade as the country moves to reduce dependence on imports and ensure security of energy supply. Figures provided by China’s Ministry of Land and Resources shows that money spent on exploration of oil and gas fields rose from 19.0 billion RMB in 2002 to 67.3 billion RMB in 2011. From 2008-2011 some 5.01 billion tonnes of petroleum reserves and 2.6 trillion cubic meters of natural gas were discovered.
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