Mining

India, China Vie for Australian Coal Fields

Sept. 21 – China and India, two emerging Asian giants boasting huge populations and rapid economic growth, are seen as the major drivers in the push to revive the world’s economy. However, the two countries’ needs for natural resources is growing at the same speed as their economies and, in an attempt to satisfy those needs, China and India have started a fierce competition to acquire natural resources.

The latest example of this is both countries’ interest in Australia’s second largest coal field – the northern Galilee Basin in Queensland. Although production on the field won’t begin for another three years, Indian and Chinese companies have already contracted all but 1.2 billion of the more than 20 billion tons of coal resources in the basin. Continue reading →

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Beijing Demands India and Vietnam Stop Oil Joint Venture in South China Sea

Sept. 16 – China, seemingly forgetting its policy of non-interference in other states’ affairs, has begun a public dialogue with India objecting to an agreement signed between India’s state-owned Oil and Natural Gas Corporation (ONGC) Videsh Limited and Vietnam’s Petro Vietnam for oil and gas exploration in the South China Sea.

Petro Vietnam has entered into a joint venture with India’s ONGC to develop Blocks 127 and 128 after ONGC bought BP’s assets in the project in 2006. However, China is claiming all of the South China Sea as its “indisputable sovereignty,” a position that would take China’s territory right up to the Vietnamese coastline. Continue reading →

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ConocoPhillips ‘Admits’ to Further Oil Leaks in Bohai Bay

Aug. 22 – On August 20, the China North Sea subsidiary of U.S.-based energy giant ConocoPhillips “admitted” that nine new oil spill sources were found on the northwest side of Platform C of the Penglai 19-3 oilfield in Bohai Bay, according to the North China Sea Branch of the State Oceanic Administration (SOA).

Other leaks had been discovered in June and early August at the same oilfield – which is operated in cooperation with state-run China National Offshore Oil Corp. – and now the amount of spilled oil has increased to 2,500 barrels, as the leaks have not been effectively dealt with. The oil has contaminated 4,250 square kilometers of sea, causing severe environmental damage. Furthermore, fishermen in the coastal provinces of Shandong, Hebei and Liaoning have suffered heavy economic losses as a result, state media reported. Continue reading →

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China Wins Approval to Explore Indian Ocean

Aug. 3 – China’s application to undertake deep-sea mineral exploration activities in the southwestern Indian Ocean has been approved by the International Sea-bed Authority (ISA), giving China exclusive rights to explore polymetallic sulphide ore and priority mining rights for future development programs.

“The [ISA] approved the application from the China Ocean Mineral Resources Research and Development Association (COMRA) to explore an area of the ridge for 15 years, covering about 10,000 square kilometers, on July 22,” Wang Fei, deputy director general of China’s State Oceanic Administration and president of COMRA, said on Tuesday during a press conference. Continue reading →

Posted in Featured, Mining, Politics, Science & Technology, Technology | 2 Comments

African Minerals Inks US$1.5 Bln Deal with China’s Shandong Steel

By Julia Gu

Aug. 2 – A US$1.5 billion agreement was signed between African Minerals and China’s Shandong Steel and Iron Group (SSIG), the world’s ninth largest steel producer, bringing the a long-awaited deal to a close. According to the agreement, SSIG will fund US$1.5 billion in three phases to acquire a 25 percent stake in African Minerals’ Tonkolili iron ore project in Sierra Leone.

The investment will grant SSIG the right to purchase 25 percent of Tonkolili’s future production at market value. In addition, SSIG will buy up to 10 million tons of iron ore in three phases, with discounts in each phase ranging from zero to 15 percent. Continue reading →

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Kazakhstan Concludes Mining and Metallurgy Conference

Jul. 13 – In an effort to increase production and investment into the country’s extensive mineral deposits, Kazakhstan’s government hosted its second international mining-metallurgical congress, “Astana Mining and Metallurgy 2011,” from July 4 to July 6 in the capital city of Astana.

Over 1,300 individuals attending the conference, ranging from government officials, private sector specialists, investment analysts and research scientists from 25 countries around the world. Attending representatives included individuals from the United States, China, India, United Arab Emirates, and South Korea. The congress focused on such topics as government regulations and how to adhere to them, new mining technologies, mining investment and financing strategies, and expanding the country’s metallurgical securities market. Continue reading →

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Mongolians Given Free Shares in Coal IPO

Jun. 3 – Every Mongolian has just been given shares in the Erdenes-Tavan Tolgoi IPO, as was suggested would happen by us earlier in the year. The offering, in a coal mining operation commonly referred to as “TT” (for Tavan Tolgoi), is designed to ensure every Mongolian national shares in the new wealth being created through the development of the country’s mining sector.

Income from the global mining sector is pouring into Mongolia, lifting the current rate of GDP growth to 12 percent this year with predictions of it rising to 30 percent by 2015. Mongolia’s stock exchange, which has recently entered into a partnership with the London Stock Exchange, is soaring to previously unheard of highs, while the Mongolian national currency, the togrog, is the world’s fastest appreciating currency unit. That is giving rise to concerns about inflation and fears that traditional industries such as agriculture and cashmere could face problems as costs rise in a competitive market. Continue reading →