Friday, June 29, 2007
[+/-] : Western Mining to float A-shares
Western Mining Co., Ltd. issued its prospectus on June 25, signaling it has started offering shares and will be listed on the Shanghai Stock Exchange.
According to the term sheet, it will offer no more than 500 million shares, representing less than 20.46% of the enlarged capital stock, with earnings per share of CNY 0.64.
The roadshow will be between June 25 and June 28. UBS Securities will be the lead underwriter, the first time for the broker to arrange shares offering in China.
Western Mining's main business is the selection and smelting of lead, zinc, copper and aluminium. It is China's second largest lead manufacturer, the fourth largest zinc producer and the seventh largest copper manufacturer. It has strong profit-making ability, owing to its possession of large amounts of mineral resources and prospecting advantages.
It plans to use the proceeds from the IPO to strengthen its control of resources and its smelting capacity.
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[+/-] : Henan Yuguan has no plan to cut lead output in '07
China's biggest lead producer by output Henan Yuguang Gold and Lead Co. (600531.SH) doesn't have any plan to lower production this year amid high ore prices, having secured ore supplies until at least September, company officials said Monday.
"It is impossible (to cut production,)" an official at the company's securities and investors department said.
"We have (production) goals this year, and we'll meet it – it's about the same as last year's (output)," said the official, who gave his surname as Zhang.
In 2006, the company's lead production rose 25% on year to 287,700 tons, or about 11% of the country's total.
With the introduction of a 10% export duty on refined lead since June 1, the company began to sell some of it exports in the domestic market.
"It's more profitable to sell domestically now, given the export duty," said a company sales manager.
Although exports remain profitable, it takes a longer period of time to realize profits due to more complicated customs procedures, he said.
Three-month London Metal Exchange lead price, which hit an all-time high of $2,560 a metric ton Friday, was about 165% higher than a year ago.
China's domestic lead prices were quoted around CNY18,000/ton Monday.
Meanwhile, Chinese smelters began to reduce ore orders, as high three-month LME lead prices and the shortage of ores will surely cap the country's total lead output growth this year, analysts said.
"With three-month LME lead heading towards $3,000/ton, smelters will be under rising pressure due to the scarcity of ores," said Feng Juncong, an analyst with metals research firm Antaike Information Development Co.
It's impossible for domestic output to rise as much last year, as the output in major production regions such as Henan, Anhui, Hunan provinces have been falling because some small smelters were closed by the government for environmental reasons, Feng said.
Data provided by China's National Bureau of Statistics showed that lead output in January-May rose 6.7% on year to 1.09 million tons.
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[+/-] : Lead prices hit record high due to lower exports from China
Tue, 26 Jun 07 – Lead futures on the London Metal Exchange soared to an all-time high last Friday at $2,540 a tonne amid concerns that China, the world's largest lead producer, will reduce its exports of refined lead, thus tightening the world's supply.
The LME's three-month lead futures price has surged by nearly 50% from the beginning of this year, and has shot up five fold from its lowest point in 2003.
Lead stockpiles still remain at low levels. Last Friday, the stockpiles rose by 1,925 tonnes to 44,825 tonnes from Thursday, but were down nearly 3,400 tonnes compared to a month ago.
Exports of refined lead sunk 21.9% year-on-year to 42,991 tonnes in May, while exports plunged 49.1% year-on-year to 130,245 tonnes in the first five months of the year, according to statistics released by the General Customs Administration last Friday.
Net lead exports in May were 40,753 tonnes. For the January to May period, there were a total of 118,287 tonnes of lead exports, plummeting 52% from nearly 245,000 tonnes during the same period last year.
Controlling Policies and High Lead Concentrate Price Pulling Down Exports
An official surnamed Wang with the import and export department of Anyang Yubei Gold & Lead Co. Ltd., the country's second largest lead smelter, said the company has reduced export volume to only 20% of total lead production since last year, while previously the export volume was 50% of total lead production.
"Governmental controlling policies raised export lead prices higher than international prices, which significantly reduced domestic smelters' profitability. Currently, the only exports our company does are based on our long-term contracts with clients, and some of our clients can split the increase of export cost with us," Wang said.
The central government cancelled tolling business of importing concentrate and re-exporting refined lead at the end of 2005, removed 13% value-added tax rebates for refined lead exports from mid-September 2006 and has imposed a 10% lead export tax since June 1 of this year.
Since 90% of lead concentrate for the company is imported, the company will plan on producing 120,000 tonnes this year under high concentrate imported prices, although the company is capable of producing 160,000 tonnes refined lead per annum.
When the company uses imported lead concentrate, it loses RMB 1,500 ($196.85) to RMB 2,000 to ($262.47) a tonne when selling refined lead in international markets, he added.
Charging a treatment charge (TC) is major source of revenue that lead smelters earn from miners when they import lead concentrate, as based on the LME's three-month lead price.
"The current TC, at $60 to $70, means no profit margin for smelters, forcing many lead smelters to shut down or reduce production," he said.
China's lead output amounted to 1.09 million tonnes in the first five months of this year, up 6.7% from the same period last year. Lead concentrate output rose by 10.1% to 284,500 tonnes in the first five months, according to statistics released by the National Bureau of Statistics.
Cash price of refined lead closed at RMB 18,100 ($ 2,375.33) a tonne yesterday in Shanghai's Huatong Platinum and Silver Nonferrous Metals Exchange.
Compared with sluggish exports, China's domestic lead demand is going up, which might be a major reason why lead smelters are retreating from the international market, Wu Tianxiao, an analyst with Shanghai Metalease, said.
"Nearly 80% of lead [in China] is used in the lead acid storage battery manufacturing industry. Supply in the domestic market is slightly tight now, as growth in lead production cannot catch up to the country's growth in demand," Wu said.
She added that 50% of the lead concentrate supply relies on imports, though the low-level TC is discouraging smelters from importing lead concentrate.
"Cash flow has been squeezed by higher concentrate prices. We have to pay $1,800 to $2,000 for one tonne concentrate import, nearly five times higher than in 2003. Although we have secured long-term supply contracts, the concentrate price we are offered rises drastically along with the LME lead future price," Wang from Yubei Gold & Lead said.
The company started production of secondary lead alloy since the beginning of this year to offset the high cost of lead smelting using ore concentrate, Wang said. It is now able to produce 100,000 tonnes of secondary lead alloy per annum.
Wu from Metalease anticipated that the LME's lead price will further rise in the coming months, as China's lead exports will continue to dip dramatically due to lower international prices and growing domestic market demand.
Wang from Yubei Gold & Lead believed the domestic lead cash price will soar to RMB 30,000 ($3,937) a tonne within the next two years.
"Booming downstream automobiles and electric bicycle production could mean a major boost in lead prices over the next two years. However, the cost of lead acid storage batteries is still a small part of the automobile and electric bicycle production cost, so higher lead prices might not slow down consumption from automobiles and electric bicycles," Wang said.
China's Lead Supply and Consumption Forecasts
As the world's largest lead producer, China contributed 34% of global output last year.
China will produce 3.15 million tonnes of refined lead this year, up 15% from 2.74 million tonnes last year. Lead concentrate output will grow 18% to 1.59 million tonnes in 2007, the China Nonferrous Metals Industry Association predicted.
Feng Juncong, a lead and zinc expert with Beijing Antaike Information Co. Ltd., a CNMIA-affiliated consultancy, predicted that the stable development of the lead acid storage battery industry would push up China's domestic lead consumption by 10.2% annually from 2007 to 2010, hitting 3.32 million tonnes in 2010.
From 1999 to 2006, China's refined lead actual consumption grew by an average of 14.3% per annum. The actual consumption of refined lead was 2.2 million tonnes in 2006, and is expected to hit 2.48 million tonnes in 2007, according to Feng.
She further forecasted that net exports of refined lead would be 500,000 tonnes in 2007, remaining unchanged from 2006.
The government is attempting to control redundant investment in the lead and zinc sector in order to maintain a balance of supply and demand.
By 2010, domestic refined lead capacity is set to be reduced to 4 million tonnes, and zinc capacity to approximately 5 million tonnes, as a result of eliminating outdated capacity. Zinc and lead recycling will be encouraged, with an aim to increase the consumption of recycled resources to 30% of total annual consumption
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[+/-] : LME zinc falls; other metals mixed
London Metal Exchange base metals were mixed Wednesday as investors digested poor U.S. economic data and there were ongoing concerns of risk aversion, but a period of consolidation may be in store over the near-term, said market participants.
Base metals came off moderately on the back of a weak session in Asia and weaker equities, said BNP Paribas analyst David Thurtell, adding some profit taking was seen as the market enters the summer slowdown.
Worries of an economic slowdown, triggered by growing concerns over U.S. and U.K. subprime mortgage defaults as well as weaker-than-expected durable-goods data, pressured metals prices, said a U.S.-based metals analyst.
Demand during May for durable goods in the transportation sector decreased 6.8%, after falling 1.8% in April. Orders for commercial planes tumbled 22.7%, while military aircraft orders rose 9.8%. Motor vehicles and parts increased 2.3% last month. These sectors are particularly important for the base metals complex.
The combination of market worries and poor data helped pressure European and U.S. equities Wednesday.
It remains to be seen just how widespread a problem the subprime mortgage jitters – triggered after failed investments in subprime mortgages by two Bear Sterns hedge funds last week – create for the rest of the financial system. However, "any sign of widening problems emanating from the U.S. mortgage market could trigger a second-leg to the current selloff across asset markets, although perhaps not until after the end of the month, quarter, and half-year," said Robin Bhar of UBS.
Traders said book-squaring and positioning ahead of the end of the first half of 2007 Friday has also added to trading volatility.
Consumers continue to wait on the sidelines for now, leaving markets at risk of a fresh leg lower, said an LME broker.
Three-month lead was under pressure for much of Wednesday following news efforts to ship some 9,000 metric tons of lead in concentrate stranded at Australia's Port of Esperance are making progress and it will be shipped within the next six weeks.
Elsewhere, the copper market continued to watch labor negotiations in key production sites in South America.
Striking workers at Southern Copper Corp.'s Peru units will decide whether to temporarily lift their strike after a meeting Wednesday with officials from the labor ministry, a union representative said.
Meanwhile, operations at Corporacion Nacional del Cobre de Chile, or Codelco, continue as normal despite a contract workers' protest.
Three-month zinc dropped another 2% on the day amid major losses in Shanghai zinc futures.
"The implications of tightening stocks might not be felt during the seasonally quieter summer period, but with supply-chain inventories being operated at minimal levels, it might kick in when buyers eventually return to the market," said Kevin Norrish of Barclays Capital.
In other news, a Russian government commission on duties decided Wednesday to annul the 10% import duty on primary aluminium.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Tuesday PM kerb
Copper 7360.0-7370.0 Up 0.5
Lead 2590.0-2595.0 Up 10
Zinc 3345.0-3350.0 Dn 55
Aluminium 2704.5-2705.0 Up 6
Nickel 37500.0-37600.0 Up 5
Tin 13925.0-13975.0 Unch
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[+/-] : Exports of Chinese zinc expected to rise as domestic prices fall sharply
Chinese zinc smelters and traders have been rushing to secure export contracts since last week, as a sharp fall of domestic prices made them more attractive, traders said Wednesday.
"Exports are now profitable, and contract volumes may total 30,000 (metric) tons in June," said an executive with a trading company in Tianjing.
Traders chose to remain on the sidelines when prices first began to fall, but now as they need positive cash flows, they began to sell on the domestic market, which further pressured cash values, he said.
Chinese zinc exports were slightly above 10,000 tons in April and May, as higher domestic prices kept the metal in the country instead of being exported.
With domestic prices now falling below smelter production costs around CNY27,000-CNY28,000/ton, smelters and traders hope to export to lock in profits, said a zinc trader in Shanghai.
Spot zinc was quoted around CNY25,350-CNY27,350/ton in Shanghai Wednesday.
The three-month London Metal Exchange zinc price was quoted at $3,360/ton at 0609 GMT.
Analysts said speculators have driven zinc futures traded on Shanghai Futures Exchange to an unreasonably high price after it was launched in end-March, while the domestic spot market is in a surplus.
"Since the futures were launched, physical trading has become more complicated, and the volatility of futures has turned the outlook (of exports) murky," said the trader in Shanghai, who has been trading nonferrous metals for more than a decade.
"It's hard to say whether the cash price will return back to the production cost in the near term, but the domestic market is under pressure to export," he said. – Hoovers
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[+/-] : U. S. Antimony announces increased antimony and zeolite production
United States Antimony Corporation (OTCBB “uamy.ob”) announced that it has increased antimony and zeolite production.
At Thompson Falls, Montana the increase in production will be at least 20% and the product will be sold as antimony oxide and metallic antimony.
In addition to normal supplies of raw material, the Company has resumed the processing of a legacy slag pile that it owns.
A major increase in antimony and silver and gold production is expected during the fourth quarter of this year from the Company’s Mexican mine, mill, and smelter. The smelter and mine have been permitted and most of the equipment is in place. The mill site is being purchased and the permitting for it will begin by June 2007. Most of the mill equipment is on hand in Mexico and Montana.
The Company’s Bear River Zeolite Co., Inc. subsidiary has increased its production on the two production lines it is currently operating to meet current demand for the product. The start up of the third line, which will make a very fine powder for the concrete industry and other applications is expected by July.
The current increase in production of both products will increase revenues immediately. This increase will be followed next by more revenues from the sale of fine powdered zeolite, and then by the sale of antimony, silver, and gold from Mexico
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[+/-] : China's antimony ingot prices remain steady; Jan-Apr exports down
China's antimony ingot prices have continued to hold steady at around $5,200-5,300/mt FOB China, China-based industry sources said on Tuesday, adding that prices had been capped by slowing demand.
An official from Beijing Antaike, the state-run nonferrous information provider, told Platts: "Ingot prices in China are now offering at around Yuan 40,000-41,000 ($5,226-5,357)/mt ex-plant," he said. "Both domestic and overseas demand has slowed due to prolonged high prices. Consumers are not buying much as some people are expecting prices may move down in the future should overseas demand continue to slow further."
One Hong Kong-based trader agreed that spot trade remained lackluster in China. He said: "Export prices are holding steady at around $5,300/mt FOB China. There is not much activity going on lately."
Latest figures from China's General Administration of Customs showed exports of unwrought antimony, waste and scrap during the January-April period dropped 57.2% year on year to 2,504 mt. Their value was also down 40.5% to about $11.75 million. The Antaike source added: "Reduced exports during the period are mainly due to continued high prices."
Meanwhile, an official from China's Yunnan Muli Antimony Mine, which produces about 6,000 mt/year of antimony trioxide, said: "Those smaller smelters in China may find it hard to make profits as prices for antimony concentrates remain high while ingot prices are steady but may see a downward trend soon." He added that tight antimony concentrate supplies in China had continued to firm the raw material prices. – Platts
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[+/-] : China to allow 120 mt/year export of indium products: sources
The Chinese government is expected to allow 120 mt of indium products to be exported annually, industry sources said Thursday.
Among 18 indium producers and traders in China that received export licenses from China's Ministry of Commerce on June 1, some received notices Monday stating the amount of indium they would be allowed to export annually. About three companies have not received official notices yet, sources said. A June 11 notice from the Ministry of Commerce said licensed exporters had to adhere to the assigned quota from June 18.
Four companies are likely to have been assigned a quota of above 10 mt/year, while the others are likely to have a quota of less than 10 mt/year, totaling 120 mt/year, said several sources in China and Japan.
The 18 companies who have been issued the indium export licenses are Liuzhou China Tin Group, Guangxi Intai Technology, Liuzhou Yinli, Liuzhou Indium Germanium Metals, Laibin Debang Industry, Hunan Zhuye Torch Metals, Hsikwangshan Twinkling Star, Zhuzhou Jinshi Industry, Hunan Zhengtan, Nanjing Germanium, Nanjing Sanyou, Jiangsu Sainty, Nanjing Foreign Economic & Trade Development, Wenzhou Smelter, Shenzhen Zhongjin Jingnan Nonfemet, Huludao Nonferrous Metals Group, Yunnan Chengfeng Non-Ferrous Metals, and China Minmetals.
The export quota system is believed to be a move by the Chinese government to further curb exports of rare metals to protect the country's available reserves. A similar system has been implemented for molybdenum products too. – Platts
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[+/-] : China's new indium exchange aims to be a price benchmark: CNMIA
Guangxi Indium Metal Exchange Center, established on May 9, aims to be a price benchmark for indium metal, said China Nonferrous Metals Industry Association on its website.
A new exchange for trading indium was established on May 9 in the Liuzhou city in Guangxi province of China. The new exchange has a mission to form a uniform price for indium and protect the rare resources, the CNMIA site said.
Liuzhou China Tin Group, Guangxi Intai Technology, Liuzhou Indium Germanium Metals, and Guangxi Tanghan Zinc & Indium initiated the move to establish the exchange, and has received support of the Liezhou city government, according to the CNMIA website.
Among the four companies, the first three are globally-known indium producers with annual output capacity of 30-50 mt/year. They actively export indium, and have been granted export licenses by the Chinese Ministry of Commerce on June 1.
Guangxi Tanghan Zinc & Indium, with no export license, was established in May 2000 and is based in the Nandan area of Guangxi.
A Chinese trader said the current exchange membership is five or more, composed of Guangxi-based producers, but this was not confirmed with the exchange.
China has rich indium reserves outside the Guangxi province. The Hunan and Yunnan provinces have indium deposits, and there are secondary indium plants in operation in the city of Nanjing. Of the 18 companies that have been granted export licenses, and therefore have been recognized by the Chinese government as active indium market participants, 13 are based outside the Guangxi province. Indium producers located outside Guangxi are not members of the exchange yet.
Industry sources at Yunnan and Nanjing contacted by Platts said they have been aware of the exchange establishment, but they are not able to participate directly as they do not have business bases in the Liuzhou city. Some even believed that the exchange participation is actually limited to companies in Guangxi.
Chinese sources all agreed that initiatives to set prices by the Guangxi-based producers would have limited impact in the prices as they would not represent the whole market.
One Chinese trader, however, said: "Maybe this could be an important effect in the future, if the Chinese government uses it to buy indium metal and then set up national stockpile like Japan. A Beijing official mentioned this possibility in Liuzhou when he took part into the opening ceremony."
The indium traded at the exchange are 99.99% and 99.999% purity indium ingot, according to the Chinese trader. – Platts
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[+/-] : China to introduce export quotas for indium, molybdenum
China will apply export quotas and license management to two resource items – indium and molybdenum – beginning from June 18, said the Ministry of Commerce and the General Administration of Customs in a joint notice on Monday.
To export indium, molybdenum and products manufactured with both items, companies need to go to local commerce departments to get the license and export quota, and they need to present the license at the customs, according to the bulletin.
Both indium and molybdenum are unrenewable rare metals which are widely used in the defense industry, aviation and space sectors, information industry and the manufacturing sector.
The country will also introduce export licenses for standard sand from June 15, according to the two departments. – Asia Pulse
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[+/-] : China to Bolster Imports to 1 Trln USD by 2010
China is trying to bolster imports to more than $1 trillion by 2010 - up more than 25 percent from $792 billion last year - in an attempt to balance trade, the Ministry of Commerce said Thursday.
The projected 2010 imports figure is almost equal to the country's total trade volume in 2004.
To restructure the country's exports and narrow its widening trade surplus with major trade partners - which hit $177.5 billion last year - the government has adopted a range of measures to curb exports.
In the latest and boldest move yet to rein in exports, the country announced that it will eliminate or cut tax rebates for more than 2,800 export items effective July 1.
Export tax rebates for 553 categories, such as cement, fertilizer and non-ferrous metals, will be eliminated. Rebates for another 2,268 products, described as "easy to trigger trade frictions", will be slashed from 8-17 percent to 5-11 percent. They include garments, toys, steel products and motorcycles.
The reduction of export tax rebates on resource-intensive and polluting products is necessary for China's own development, Wang Xinpei, spokesman for the ministry, said.
"China has never pursued a big trade surplus. The current surplus is a result of international demand and supply."
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Thursday, June 28, 2007
[+/-] : Lead market bullish in China
BEIJING (Asian Metal) 29 Jun 07 – Chinese lead surged up by around RMB2,000/t (USD262/t) in the past two weeks, and the market is very strong, supported by the tight supply. Participants foresaw that the metal will continue the upward trend in the short term.
“Although lead price retreated on LME in recent two days, Chinese lead still keeps the strong trend,” a producer in Henan told Asian Metal. “Some producers quote RMB19,200/t (USD2,516/t) ex works for the materials, compared with RMB19,000/t (USD2,490/t) on Wednesday, but most deals are concluded at RMB19,100/t (USD2,503/t) ex works in the local market.”
According to the source, lead price jumped up from RMB17,200/t (USD2,254/t) half a month ago to RMB19,200/t (USD2,516/t), with the increase of RMB2,000/t (USD262/t). “The markup is so sharp that we can’t believe it, and some participants said that large amount of funds control the market to prompt the price to go up, but I think that it is impossible, as lead resources is not tight in the global market, and moreover, China is the major lead producer in the world, so it is difficult for a few people to operate the large market,” he stated.
The producer said that affected by the tightness of lead concentrate, some producers reduced the output, driving the metal to climb up. In addition, the demand increase from electrical bicycle industry also attributes to the price rise. “Chinese lead market will keep firm in the following days,” he said.
The smelter reduced the production to 1,000tpm from 3,000-4,000tpm in May for maintenance turnaround early June.
Another smelter with a capacity of 80,000tpy offer RMB19,200/t (USD2,516/t) ex works for lead, up by RMB200/t (USD26/t) compared with that on Wednesday. “Chinese lead market keeps bullish these days, supported by the tight supply and the firm market on LME,” he said, adding that they hold few materials on hand now.
According to the source, they are negotiating with a miner to sign a long-term contract. “We plan to fix the price of lead concentrate 60%min at RMB16,000/t (USD2,097/t), and in view of the strong trend in lead market, it seems difficult to reach an agreement in the following days,” he said. “It is still hard for Chinese producers to import the raw materials, due to high lead price on LME.”
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[+/-] : European antimony market remains stagnant
BEIJING (Asian Metal) 29 Jun 07 – In the passed week, European market participants told Asian metal that they were receiving lower antimony prices from China, however, consumers are still reluctant to buy.
A German trader disclosed that the offers of antimony he received is in the range of USD5,100-5,350/t CIF Rotterdam, and the price covers all grades. According to him, the suppliers who offered 99.65%min grade two low bismuth antimony ingot at USD5,100/t CIF Rotterdam is one of the biggest suppliers in China, and he considered the material source “legal and reliable”.
According to the trader, the only inquiry he received in the last few weeks was from a consumer who is looking for material for third and fourth quarter. “He asked price at under USD5,200/t CIF Rotterdam, and I actually think it is possible now as the offers from China is decreasing.”
The source thinks price is likely to go down further as there are few consumers in the market now as summer is already taken its toll in Europe. “If suppliers want to sell their material, they will have no other choice but to lower the prices again.”
A UK trader agreed with him that the price of standard grade two antimony ingot had already fallen to USD5,100/t CIF Rotterdam, and grade one or even grade zero are offered at around USD5,200-5,250/t CIF Rotterdam. “There is no business.” The trader thinks market will keep dull in the next 5-6 weeks, and recovers from the middle of August when people come back from holidays.
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Tuesday, June 26, 2007
[+/-] : Australian commodity exports forecast to rise 7% in 2007/08 – ABARE
Australian commodity export earnings are forecast to increase by 7 per cent to nearly $150 billion in 2007-08, according to the June issue of ABARE's Australian Commodities.
"While farm sector exports are forecast to rebound following the drought affected earnings of 2006-07, higher export earnings in 2007-08 from mineral resources will be the main contributor to commodity sector performance," executive director Phillip Glyde said.
The value of Australia's minerals and energy exports is forecast to be around $117 billion in 2007-08, a rise of 8 per cent from an estimated $109 billion in 2006-07.
The forecast increase mainly reflects the effects of higher export volumes for mineral and energy commodities.
Earnings from energy exports are forecast to increase by over 6 per cent to nearly $43 billion, supported by an increase in the value of thermal coal and crude oil exports.
The metals and other minerals industries are forecast to contribute nearly $75 billion – an increase of 9 per cent – to Australian exports in 2007-08.
Mineral commodities for which export earnings are forecast to increase significantly in 2007-08 include iron ore, gold and nickel.
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Wednesday, June 20, 2007
[+/-] : China to reduce or cancel VAT export rebate for steel pipe and aluminum products on July 1
Shanghai. June 19. INTERFAX-CHINA - China will cancel the current 13 percent value-added tax (VAT) rebate on welded carbon-steel pipe exports, as well as the rebate on aluminum rod and bar exports that is between 8 percent and 11 percent on July 1, according to a Ministry of Finance statement issued today.
According to the MOF statement, VAT export rebates on products in 2,831 tax codes will be either reduced or canceled on July 1 in order to alleviate pressure from the increasing trade surplus and to curb the export of highly polluting and energy-intensive products.
VAT export rebates will be canceled for welded steel pipe, tax code 7305 and 7306, as well as for aluminum rod, bar, and profile and aluminum alloy rod, bar and profile, tax code 7604 and 7605, on July 1. Aluminum strip and foil will be excluded from this policy.
VAT export rebates will be reduced from a current 13 percent to 5 percent for seamless steel pipe, stainless steel pipe, steel rail, welded steel angle and steel section.
Furthermore, VAT export rebates for semi-finished nonferrous metals products such as nickel and nickel alloy pipe, lead and lead alloy sheet, foil, bar, rod and profile, zinc and zinc alloy sheet, foil, bar, rod and profile, and tin foil, will be slashed from a current range of between 8 percent and 13 percent to 5 percent.
VAT export rebates on semi-finished minor-metals products including tungsten filament, wrought molybdenum rod, bar and profile, wrought titanium products, wrought magnesium, titanium alloy, and cobalt products will also be lowered from a current 13 percent to 5 percent.
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[+/-] : China to adjust export tax rebate policy to balance trade effective July 1 - MOF
Beijing. June 20. INTERFAX-CHINA - China will adjust its export tax rebate policy on July 1 in order to rebalance trade, the country's Ministry of Finance announced yesterday.
The adjustment is being made in order to exert further control over China's runaway export growth, to rein in its foreign trade surplus, prohibit the export of high energy-consuming and polluting products and ease trade frictions between the country and its trading partners.
The adjustment will affect 2831 products, or 37 percent of the total items listed in China's customs tax regulations.
Export tax rebates will be eliminated for 533 products that require energy-intensive or environmentally damaging manufacturing, including salt, cement, fertilizer, metal carbide, leather, wood products and products derived from endangered animals and plants.
Export tax rebates will also be lowered on 2268 products that are likely to cause friction between China and its trading partners, such as clothes, shoes, caps, bags, toys, plant oil, plastics and furniture as well as various metal and iron products.
The structure of the export tax rebate system will also be adjusted, with the second lowest rebate rate to be raised from its current 8 percent to 9 percent. In full, the adjusted rebate levels will be 17 percent, 13 percent, 11 percent and 9 percent and 5 percent.
However, export taxes will be removed from 10 products, including peanuts, oil paintings, carved and decorative boards, stamps and fiscal stamps.
As there will be no transitional period for the adjustment, the government has announced the revised policy in advance so that enterprises can prepare for the new regulations.
According to a senior MOF official, China's soaring trade surplus has increased domestic liquidity and put upward pressure on the country's currency.
He said that in the long term, the changes made to the export tax rebate policy will help to accelerate the country's economic transformation and maintain sustainable development.
According to the General Administration of Customs, China's trade surplus for the January to May period stands at $85.72 billion. During that period, exports expanded by 27.8 percent year-on-year to reach $443.53 billion, while imports grew 19.1 percent to $357.81 billion.
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The adjustment is being made in order to exert further control over China's runaway export growth, to rein in its foreign trade surplus, prohibit the export of high energy-consuming and polluting products and ease trade frictions between the country and its trading partners.
The adjustment will affect 2831 products, or 37 percent of the total items listed in China's customs tax regulations.
Export tax rebates will be eliminated for 533 products that require energy-intensive or environmentally damaging manufacturing, including salt, cement, fertilizer, metal carbide, leather, wood products and products derived from endangered animals and plants.
Export tax rebates will also be lowered on 2268 products that are likely to cause friction between China and its trading partners, such as clothes, shoes, caps, bags, toys, plant oil, plastics and furniture as well as various metal and iron products.
The structure of the export tax rebate system will also be adjusted, with the second lowest rebate rate to be raised from its current 8 percent to 9 percent. In full, the adjusted rebate levels will be 17 percent, 13 percent, 11 percent and 9 percent and 5 percent.
However, export taxes will be removed from 10 products, including peanuts, oil paintings, carved and decorative boards, stamps and fiscal stamps.
As there will be no transitional period for the adjustment, the government has announced the revised policy in advance so that enterprises can prepare for the new regulations.
According to a senior MOF official, China's soaring trade surplus has increased domestic liquidity and put upward pressure on the country's currency.
He said that in the long term, the changes made to the export tax rebate policy will help to accelerate the country's economic transformation and maintain sustainable development.
According to the General Administration of Customs, China's trade surplus for the January to May period stands at $85.72 billion. During that period, exports expanded by 27.8 percent year-on-year to reach $443.53 billion, while imports grew 19.1 percent to $357.81 billion.
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Tuesday, June 19, 2007
[+/-] : Experts See Bright Future for Rubber Market
International experts and Cambodian officials have expressed confidence that the rubber market and revenues would rise significantly in the years to come, local press reported Saturday.
Cambodian Deputy Prime Minister Sok An told the Third ASEAN Rubber Conference that the market price for natural rubber has sky-rocketed over the last six years from 500 U.S. dollars per ton in 2001 to around 2,000 U.S. dollars per ton in 2007, the Cambodia Daily newspaper reported.
Natural rubber prices should remain strong so long as oil prices petroleum being used to create synthetic rubber continue to be high, Sok An was quoted by the newspaper as saying.
Cambodia has 500,000 hectares of land with soil conditions ideal for rubber trees, he said.
"We have potential with the land, but we have not used it well," he added.
Cambodia currently has around 70,000 hectares devoted to rubber cultivation, but substantial expansion of production is expected, Teng Lao, the secretary of State at the Cambodian Agriculture Ministry in charge of rubber, was quoted as saying.
"Our estimate for 2015, the planting areas in total can be up to 150,000 hectares, and production will be 150,000 tons," he said.
Hidde Smith, the secretary general for the secretariat of the UK-based International Rubber Study Group, said rubber prices will continue to increase due to rising demand for car tires in Europe, China and India.
Around 400 rubber experts, producers, buyers and sellers gathered here for the three-day conference, which ends Saturday, the newspaper said.
According to a recent study by the Association for Rubber Development in Cambodia, Cambodia exported 60,000 tons of natural rubber last year at a value of 83 million U.S. dollars, accounting for less than one percent of the rubber produced globally, it said.
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[+/-] : The government will eliminate or cut tax rebates for more than 2,800 export items from July 1
The government will eliminate or cut tax rebates for more than 2,800 export items from July 1 - in the boldest move yet to rein in exports since it joined the World Trade Organization in 2001.
The affected items account for 37 percent of all export products, the Ministry of Finance announced yesterday.
Export tax rebates for 553 "highly energy-consuming and resource-intensive" products, such as cement, fertilizer and non-ferrous metals, will be eliminated, the ministry said.
Rebates for another 2,268 products, described as "easy to trigger trade frictions", will be slashed from 8-17 percent to 5-11 percent. They include garments, toys, steel products and motorcycles.
Yesterday's announcement follows the imposition or raising of export tariffs on 142 categories of goods effective June 1. The products include steel billets and non-ferrous metal minerals.
Both steps are part of the policy package designed to control soaring exports and bloating trade surplus.
From January to May, exports surged 27.8 percent year-on-year to $443.5 billion; and the trade surplus rocketed 83.1 percent to $85.7 billion, according to Customs statistics.
The huge surplus has aggravated such problems as trade conflicts with other countries and pressures on China to revalue the renminbi, as well as excessive liquidity at home, the ministry said.
Liu Xueqin, a researcher with the Chinese Academy of International Trade and Economic Cooperation affiliated to the Ministry of Commerce, said: "The new policy will restrain exports because it affects a broad range of products."
Domestic producers say they are already feeling the pressure from the export control measures.
"Our steel companies are at threat (of losing foreign markets). But we can understand the overall significance of the policy," Qi Xiangdong, deputy secretary general of the China Iron & Steel Association, told China Daily.
The association predicted earlier that, as a result of the export disincentives, the country - the world's top steel producer - would this year export no more or even less than last year.
Steel exports totaled 43 million tons in 2006, a growth of 110 percent over 2005.
The finance ministry said the new policy will also help slow down investment in fixed assets and reduce over-capacity; and lead to sustainable development.
Many industrial sectors, such as steel, cement and motorcycles, are believed to have excessive production capacity in relation to domestic demand.
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[+/-] : American antimony trioxide market weakens
20 Jun 07 – Whenever summer approaches, market remains slow, and participants reported to Asian Metal that the price of antimony trioxide is dropping a little in America.
An executive from an American pigment producer told Asian Metal that the latest offer he received was USD2.48/lb d.d.p. and the price for the same material hovered at USD2.50-2.55/lb d.d.p. in the last five months. The material he inquiries is Twinkling Star 99.8%min antimony trioxide, and it has to meet certain specifications.
“This is the first time this year that we received price lower than USD2.50/lb d.d.p.” said the executive. As most manufactures will close plants for two weeks in summer, the plant is planning to close for maintenance in August.
A Chinese representative who is located in east coast said that the current price of standard 99.5%min antimony trioxide is in the range of USD2.30-2.40/lb d.d.p. The same material was sold in the range of USD2.35-2.40/lb d.d.p. at the beginning of June.
And yesterday, the Chinese Ministry of Commerce confirmed the cancellation of 5% export rebate for antimony trioxide. The news cheered the western antimony trioxide producers. However, the representative revealed to Asian Metal that he suspected lots of the material in the international market were smuggling materials and they make the legal material less competitive. The cancellation of export rebate will encourage the behavior in the future and lead the market further into chaos.
**********************
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[+/-] : Growth forecast for flame retardant chemicals
The introduction of new fire safety standards and environmental regulations will herald a period of growth for the flame retardant chemicals market and will affect industries as diverse as automotive, construction, electronics and plastics forecasts a new study from Frost and Sullivan. Flame-retardants play an increasingly important role in protecting life and property.
Experience with fires has been the key driver for improving the flammability performance of thousands of products such as electronic devices, furniture, vehicles and building materials.
A vast number of standards, including EU, national and local regulations have risen in response to market pressure and litigation.
In addition, advocacy groups, like the Alliance for Consumer Fire Safety in Europe (ACFSE), are becoming more effective in raising awareness of fire safety among industry participants and decision-makers.
So, more stringent flammability standards are being introduced, such as performance-based codes in the building industry, and voluntary actions that improve fire safety in consumer products.
This has resulted in greater demand and changing requirements for flame-retardants, favouring low smoke and fume products.The broad discussion on the environmental impact of flame-retardants is finding its way into the regulatory framework.
This discussion has resulted in increasing demand for more environmentally acceptable materials, which represents one of the biggest challenges for flame retardant producers.
Max Crosetti Frost and Sullivan Research Analyst explains: "in 2000 the market for Flame retardant chemicals was worth $509.5 million.
By 2007 we predict market revenues will reach $671.7 million.
The key driver for this growth will be fire safety and environmental regulations, which will demand the use of these chemicals in many more industries than today.
This new legislation will also result in end-users changing the type of flame retardant they purchase to meet the latest specifications.
Which in turn will have a knock-on effect to the producers who will be forced to develop new products to keep pace and to serve the new markets and applications that will be covered."
By far the largest market for flame retardant chemicals is plastic, which represent more than 80% of unit shipments.
The European Plastics Industry is committed to developing plastics that make use of flame retardant chemicals to meet higher safety standards.
This, combined with the growth in the use of polymers worldwide and their increasing use in higher value, technical and durable applications is another key driver in the growth of the flame retardants market.
In all flame retardants markets price competition is fierce, and increasing competition from the Far East is exacerbating overcapacity.
The report recommends that producers develop new strategies to meet growing price competition and to limit product switching by customers.
The report contains research for eight of the most important flame retardant types; brominated compounds, phosphorus-based chemicals, aluminium trihydrate, antimony trioxide, melamine-based flame retardants and chlorinated compounds.
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Experience with fires has been the key driver for improving the flammability performance of thousands of products such as electronic devices, furniture, vehicles and building materials.
A vast number of standards, including EU, national and local regulations have risen in response to market pressure and litigation.
In addition, advocacy groups, like the Alliance for Consumer Fire Safety in Europe (ACFSE), are becoming more effective in raising awareness of fire safety among industry participants and decision-makers.
So, more stringent flammability standards are being introduced, such as performance-based codes in the building industry, and voluntary actions that improve fire safety in consumer products.
This has resulted in greater demand and changing requirements for flame-retardants, favouring low smoke and fume products.The broad discussion on the environmental impact of flame-retardants is finding its way into the regulatory framework.
This discussion has resulted in increasing demand for more environmentally acceptable materials, which represents one of the biggest challenges for flame retardant producers.
Max Crosetti Frost and Sullivan Research Analyst explains: "in 2000 the market for Flame retardant chemicals was worth $509.5 million.
By 2007 we predict market revenues will reach $671.7 million.
The key driver for this growth will be fire safety and environmental regulations, which will demand the use of these chemicals in many more industries than today.
This new legislation will also result in end-users changing the type of flame retardant they purchase to meet the latest specifications.
Which in turn will have a knock-on effect to the producers who will be forced to develop new products to keep pace and to serve the new markets and applications that will be covered."
By far the largest market for flame retardant chemicals is plastic, which represent more than 80% of unit shipments.
The European Plastics Industry is committed to developing plastics that make use of flame retardant chemicals to meet higher safety standards.
This, combined with the growth in the use of polymers worldwide and their increasing use in higher value, technical and durable applications is another key driver in the growth of the flame retardants market.
In all flame retardants markets price competition is fierce, and increasing competition from the Far East is exacerbating overcapacity.
The report recommends that producers develop new strategies to meet growing price competition and to limit product switching by customers.
The report contains research for eight of the most important flame retardant types; brominated compounds, phosphorus-based chemicals, aluminium trihydrate, antimony trioxide, melamine-based flame retardants and chlorinated compounds.
**********************
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Tuesday, June 12, 2007
[+/-] : LME base metals mostly higher; could retreat next week
London Metal Exchange base metals pushed generally higher across the board Friday, but prices could retreat on profit-taking and seasonal weakness early next week, said market participants.
A broker said speculative buying and short-covering have largely been behind the support seen Friday, but "whether this will be a lasting trend into next week is really a question."
The first week of June is seasonally a weaker time because of speculative liquidation and thin trading liquidity, said metals analyst Jorge Vazquez of Harbor Intelligence. Recent strength in the U.S. dollar and bearish technicals may pressure base metals prices early next week, he added.
Three-month copper traded up to a high of $7,528 a metric ton before retreating to a PM kerb of $7,440/ton. A drawdown in Shanghai and LME copper inventories Friday, combined with supply concerns in Chile, provided strong underlying price support, brokers said.
Chile's state copper giant Corporacion Nacional del Cobre de Chile, or Codelco, will begin negotiations with outsourced workers June 1 over pay and conditions, in hopes of avoiding a potential strike scheduled for June 8.
Over the longer-term, LME copper should find strong support due to low inventories and substantial supply side risks, said Deutsche Bank. Adding to copper price support, Chinese copper demand growth continues to be underestimated, it said.
Three-month lead extended recent gains to hit another record high of $2,395/ton earlier Friday, due to speculative and fund buying triggered by a drawdown in LME lead inventories, brokers said.
Ongoing supply concerns also provided solid underlying support. Around 9,000 tons of lead in concentrate at Australia's Port of Esperance will stay stranded for at least another month pending approval from the Western Australian Department of the Environment and Conservation, or DEC.
The metal has been stranded since March 12 when the DEC revoked the port's export license after thousands of birds died in the area as a result of lead poisoning, with dust emissions from the port thought to be the source.
Adding to price support, China said last week that from June 1 it will add export tariffs to lead, among other metals. Analysts said this is bullish for prices as the profitability of exporting will decline, raising the possibility of fewer exports and therefore higher prices in the West.
Furthermore, an ongoing force majeure at Xstrata's U.K.-based Northfleet refinery since Feb. 12 has compounded supply side pressure in a world market already in deficit.
Elsewhere, three-month nickel climbed to above $50,000/ton due to medium-sized fund and speculative buying, said a broker, despite an increase in nickel stocks Friday.
In metal news, Xstrata said Friday it was on track to convert its McArthur River zinc mine in Australia into an open-pit operation. However, the company said it launched an appeal to clarify a court ruling that suspended development at the mine in April. Current capacity at the mine is at 160,000 tons of zinc, or about 2% of global output.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Thursday PM kerb
Copper 7440.0-7450.0 Up 65
Lead 2371.0-2372.0 Up 41
Zinc 3760.0-3770.0 Up 65
Aluminium 2787.0-2788.0 Dn 2
Nickel 47400.0-47500.0 Up 1400
Tin 13900.0-13905.0 Dn 195
– Hoovers
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[+/-] : Xstrata to lift force majeure on lead deliveries from U.K. plant
Xstrata Plc, the world's third-largest lead producer, will resume deliveries from its U.K. plant next month after a five-month disruption, easing a shortage of the metal that sent prices to a record.
The force majeure, or halt, on deliveries from the Northfleet refinery will be lifted and production figures for the six months to June will be given at the end of July, Xstrata's Brisbane-based spokeswoman Sue Sara said today.
Xstrata said Feb. 12 the refinery may miss shipments due to lower concentrate supplies from its Mt. Isa mine in northern Australia. The price of lead, used to make auto batteries, reached a record last week after China, the world's largest producer, said it will raise export taxes to curb overseas sales.
"If the (Northfleet) situation resolves, that will take some pressure off the supply and take heat out of the price,'' Andrew Harrington, a commodities analyst at Australia and New Zealand Banking Group Ltd., said in Sydney.
Lead futures on the London Metal Exchange reached a record $2,395 a ton on June 1, and closed at $2,370 a ton yesterday. They've risen 42 percent this year.
Lower Supply
Northfleet, located outside London, produced 162,000 metric tons of lead last year, compared with 161,000 tons in 2005, according to the Zug, Switzerland-based company. The lower lead supply from Mt. Isa was because the mine was moving to another type of ore, Xstrata's Chief Executive Officer Mick Davis said March 6.
BHP Billiton Ltd. and Doe Run Resources Corp. were the world's largest and second-largest lead producers in 2005, followed by Xstrata, according to information compiled by BHP and the British Geological Survey. Xstrata last year bought Canada's Falconbridge Ltd., adding a smelter in Canada.
Force majeure is a legal clause allowing a company to default on sales contracts due to circumstances beyond its control.
Mining companies produce about 3.5 million tons of lead a year compared with global consumption of 8 million tons, with the balance coming from recycling, said Gerard Burg, a minerals economist at National Australia Bank Ltd., in Melbourne.
"The market for lead is looking tight with the supply disruptions, and it's going to be in deficit this year,'' instead of an earlier forecast of a surplus, Burg said.
Lead supplies were also dented when Toronto-based Ivernia Inc. halted exports from a mine accounting for 3 percent of global production. It had to stop exports from its Australian lead mine in March due to an investigation into lead poisoning at the port of Esperance in Western Australian state. – Bloomberg
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[+/-] : Lead concentrate stranded at Australia port, Ivernia says
Around 9,000 metric tons of lead in concentrate at Australia's Port of Esperance will stay stranded for at least another month pending approval from the Western Australian Department of the Environment and Conservation.
Magellan Metals Ltd. is preparing a proposal to move the lead, stranded since March 12 when the DEC revoked the port's lead export license after thousands of birds died in the area as a result of lead poisoning, with dust emissions from the port thought to be the source.
News reports quoted managing director Patrick Scott as expecting the approval process to take at least another month.
A DEC spokeswoman said it had not yet received a formal proposal to safely move the lead, which is bound for a Chinese customer.
Magellan Metals, wholly-owned by Canada's Ivernia Inc. (IVW.T), started shipping lead through Esperance in 2005, and was scheduled to produce 84,000 tons of lead in concentrate this year. The mine is slated to eventually produce 100,000 tons of lead per year, or 3% of global demand.
The suspension of lead exports until further notice forced Ivernia to place Magellan on care and maintenance, and exports will remain suspended until at least mid-August pending the outcome of a parliamentary inquiry in Western Australia state.
Disruption at Magellan has pushed lead prices to record highs on the London Metal Exchange and prompted analysts to move forecasts from surplus to deficit for this year.
LME benchmark three-month lead last traded at $2,220/ton, unchanged on the Friday afternoon kerb after hitting a fresh all-time high of $2,225. – Hoovers
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[+/-] : Lead hits record high on supply worries
London Metal Exchange base metals were mixed Wednesday with lead pushing to a record high on supply worries, and further sideways-to-higher trading is expected across the complex over the near-term, market participants said.
Three-month lead jumped to $2,290 a metric ton, a record, before retreating to an afternoon kerb close of $2,240/ton, as supply concerns continued to dominate.
LME lead hit the high as news of further delay in supply from Ivernia Inc.'s (IVW.T) Magellan mine in Western Australia spurred speculative buying, said a London-based broker. Moreover, trade and consumers have also come into the market to buy in anticipation that prices may continue to push towards new highs.
Around 9,000 tons of lead in concentrate at Australia's Port of Esperance will stay stranded for at least another month pending approval from the Western Australian Department of the Environment and Conservation, or DEC.
Magellan Metals, wholly owned by Canada's Ivernia, is preparing a proposal to move the lead. The metal has been stranded since March 12 when the DEC revoked the port's export license after thousands of birds died in the area as a result of lead poisoning, with dust emissions from the port thought to be the source.
The company started shipping lead through Esperance in 2005, and was scheduled to produce 84,000 tons of lead in concentrate this year. The mine is slated to eventually produce 100,000 tons of lead a year, or 3% of global demand.
In addition, China said last week that from June 1 it will add export tariffs to lead, among other metals. Analysts said this development is bullish for prices over the coming months as the profitability of exporting will decline, raising the possibility of lower exports and therefore higher prices in the West.
"Individual hedge fund types have become increasingly selective in recent months" with their investments, having gotten "bored" with gold while nickel "begins to fade," said Stephen Briggs, analyst with Societe Generale. "Now lead is at the top of the list."
In related news, U.S. lead mine production reached 33,900 tons in February, down 11% from the previous month, the U.S. Geological Survey said.
Meanwhile, the base metals markets only witnessed limited downside reaction to equity weakness in China, triggered by news the Chinese government raised a stamp duty on share trading.
The news helped to pressure the Dow Jones Industrial Index at the open, but the index has since recovered.
"China's news hasn't had as much impact on the metals or equities markets as some would have thought," said one New-York based trader.
However, Edward Meir of Man Financial doesn't find this surprising, saying equities and metals markets are entirely different and should react to widely separate themes. Instead, metals should still push slightly higher over the next day or two, as support levels that held from last Friday are still intact, Meir noted.
Zinc also fell in line with the other markets, but should regain ground and push towards $4,000/ton due to strong fundamentals and an oversold price situation, said Kevin Norrish of Barclays Capital.
Elsewhere, copper fell due to speculative-type selling but should stabilize this week as Chinese buyers return to the market, said a broker.
Adding to underlying copper price support, market participants continue to monitor the developments out of Chilean state copper giant Nacional del Cobre, or Codelco, and its El Teniente mine. On Tuesday, union leaders representing contract workers blocked the access road to the mine; however, Codelco said output hasn't been impacted.
Contract workers at Codelco's five divisions are threatening a general strike June 8 if the mining giant doesn't meet union leaders' demands.
Three-month tin jumped above the $14,000/ton price level following reports that Indonesia's Bangka Belitung police seized tin ingots destined for export.
Indonesia produces about 120,000 tons of tin a year, around one third of global supply. Indonesia's Ministry of Trade in January imposed new regulations governing tin exports and has said all tin producers must demonstrate that they can meet all the conditions to be granted new licenses, which they need to be able to export tin.
The Indonesian police increased vigilance following a clampdown last October on tin smuggling in the sector in Bangka Belitung.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Tuesday PM kerb
Copper 7205.0-7206.0 Dn 55
Lead 2285.0-2290.0 Dn 1360
Zinc 3590.0-3595.0 Dn 55
Aluminium 2757.0-2758.0 Dn 14
Nickel 46650.0-46655.0 Dn 950
Tin 14025.0-14100.0 Up 175
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DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
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[+/-] : Macquarie: Lead the pick of base metals in '07; copper in '08
Macquarie Research foresees higher prices for copper in coming years as mine output is unlikely to increase as quickly as previously thought and global demand, led by China, will remain robust, it said in a report Monday.
The Australia-based research group picked copper as the base metal of 2008, and forecasts an average price of $7,000 per metric ton for 2007, up 22% from its previous estimate, rising to an average price of $7,165 in 2008 before steadily declining until 2011.
"We have become increasingly bullish about the copper outlook for the 2008-2011 period due to the pushing back of projects we had previously included in our base-case forecasts and because of increased uncertainty about the timing of others," Macquarie said.
Macquarie expects demand in the U.S. to recover from its sluggish pace toward the end of the year, although it now believes U.S. copper demand will not be as strong over the next five years.
It raised its demand growth rates for China and other emerging countries, which it believes should limit inventories from rising above four weeks of consumption before 2011.
Macquarie said it expects lead and zinc prices to remain underpinned in the short-term by their low inventory levels, before easing in 2008.
It increased its 2007 forecast for lead by 20% to $1,936/ton, and more than doubled its supply deficit estimate to 70,000 tons. However, since temporary supply problems at lead mines such as Magellan Metals and Xstrata PLC's (XTA.LN) Mount Isa mine in Australia have been the leading drivers behind lead's high prices this year, Macquarie expects prices to ease to $1,433/ton by 2008.
The group raised its 2007 price forecast for zinc by 5% to $3,950/ton. Macquarie expects prices to ease afterwards, owing to new projects in South America coming on stream between 2007 and 2009.
Macquarie is less bullish on nickel and aluminium in the next two years. It expects nickel prices to trend lower the rest of the year as the record high prices bite into demand from the stainless steel sector and continue to spur rapid growth in China's nickel pig iron output.
Nevertheless, stocks should remain extremely tight by historical standards, and prices in 2007 should average only slightly below current levels at $40,124/ton, before falling sharply to $29,211/ton in 2008.
Macquarie said aluminium prices will remain on their steady but unexciting sideways path from 2007 to 2011. While Chinese aluminium and aluminium products output will probably continue to rapidly expand, demand, especially Chinese, has been surprisingly strong, Macquarie said.
"We would not go so far as to say that we are turning bullish on aluminium, but we think that it will come under less downward pressure than we had previously believed, and we are forecasting a flat profile for prices for the next five years," it said.
On Monday, three-month copper was trading at $7,447/ton, up $7 from the London Friday afternoon kerb; lead was last quoted at $2,350/ton, down $21; zinc was down $40 at $3,760/ton; nickel was untraded in Asia and last quoted at $46,900/ton, down $600; and aluminium was $1 higher at $2,788/ton. – Hoovers
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[+/-] : China to cut export tax rebates on metals products July 1
BEIJING (XFN-ASIA) - China will further cut or remove export tax rebates on a wide range of products, including steel and other metal products, from July 1, industry website Mysteel.com reported, citing an authoritative source.
The export rebate for all steel products, except for that on pipes for oilfield use which will be maintained at 13 pct, will be cut to 5 pct from the current 13 pct, the report said.
The rebates on some nickel, lead, zinc and tin products will be cut to 5 pct from the current 8 pct or 13 pct, while the rebate on aluminum products will be removed.
For most chemical products, cement and fertilizer, the rebates will be also removed, the report said.
The rebates on textile products will be cut to 11 pct from the current 13 pct, while rebates on diesel engines, coke ovens, motorcycles, watches, toys and furniture will be cut to 9 pct.
Earlier, the central government introduced a licensing system for exports of some steel products. In addition, the government also cut or removed export tax rebates on over 80 steel products.
China has been seeking to discourage the export of some products in a bid to avoid friction with its major trading partners. The moves on rebates are expected to help reduce the country's trade surplus, which stood at 22.45 bln usd in May.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
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[+/-] : China's Gazhou Nonferrous to raise bismuth output in 2007
China's Ganzhou Nonferrous Metal targets to further increase its bismuth metal output to about 1,000 mt in 2007 compared with an output of around 600 mt reported a year ago, a company official told Platts on Tuesday.
"Our new production line which has an output capacity of 600-700 mt is all ready for full production and our output this year is set to further increase," the official said. "Adding up to our original production line with a bismuth metal output of about 300-400 mt/year, we should be able to achieve a full output of around 1,000 mt this year." The official added that majority of the company's output is exported.
The Ganzhou official added that spot offers in China were heard quoting within a range of $8.5-8.8/lb on a CIF basis. "Prices are high but very little spot business is concluded lately as more people want to watch the market further, due to much higher prices so far this year." He added that domestic prices were also up to the current level of around Yuan 150,000 ($19,276)/mt.
Prices for bismuth metal were quoted at around Yuan 110,000-130,000/mt late last year and Yuan 80,000/mt in mid-2006. – Platts
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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Sunday, June 10, 2007
[+/-] : Safety (MSDS) data for JIEFU antimony trioxide
Company Name: Dongguan Jiefu Flame-Redarded Materials Co., LTD. (东莞市杰夫阻燃材料有限公司)
General Information
Synonyms: antimony (III) oxide, antimony white, antimony bloom 100A, atox B, atox F, bluestar RG, bluestar Z, diantimony trioxide, FireShield H, flowers of antimony, thermoguard B, antimony sesquioxide, numerous further trade names
Use: fire retardant
Molecular formula: Sb2O3
Molecular Weight: 291.5
H.S. Code: 2825.8000
CAS No: 1309-64-4
Physical data
Appearance: white powder
Melting point: 655 C
Boiling point: 1425 C
Vapour density: 10 (air = 1)
Vapour pressure:
Density (g cm-3): 5.7
Flash point:
Explosion limits:
Autoignition temperature:
Water solubility: slight
Stability
Soluble in hydrochloric acid, insoluble in water, stable when dry, nonflammable.
Health Hazard Information
Physical Hazards: stable when dry
Acute Hazards: no
Fire and explosion
Neither flammable nor explosion
Precautions for safe handling and use
Steps if material released: wear gloves. Sweep up place in a bag and hold for disposal.
Other precautions: avoid contact with eyes.
Control Measures
Protective euiipment: gloves and working clothes.
Other protective equipment: safety shower.
Work hygienic practives: launder contaminated clothing before it is requested. Wash thoroughly after handling.
This advice is given by Dongguan Jiefu Flame Retarded Materials Co., Ltd who accepts no legal liability for it. The information herein is based on the present state of our knowledge and is intended to describe our products from the point of view of safety requirements.
Date: 2007-01-01
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DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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Thursday, June 07, 2007
[+/-] : Lead prices stabilize in China
3-month lead firmed at USD2,370/t on LME this Monday, and Chinese lead deals are concluded at RMB16,800-16,900/t (USD2,196-2,209/t) this Tuesday, almost unchanged compared with that on the previous day. Market sources predicted that lead price may lack upward power in the short term in China.
“We sold around 500t and 50t of lead at RMB16,800/t (USD2,196/t) and RMB16,900/t (USd2,209/t) ex works respectively on Monday,” a lead producer in Inner Mongolia with a capacity of 30,000tpy reported to Asian Metal. “Our quotation is at RMB16,800/t (USD2,196/t) this Tuesday, almost the same compared with that on Monday.”
According to the source, lead price stood at USD2,370/t on LME on Monday, dip by USD1/t compared with that last Friday, supporting Chinese lead price to stabilize at around RMB16,800/t (USD2,196/t). “It may keep steady at the current level in Chinese market in the following days, after a great increase last week,” expected the producer.
The source disclosed that the price of lead concentrate 60%min is offered at as high as RMB14,500/t (USD1,895/t) in the spot market, and the supply becomes tight.
A consumer in Harbin said that they purchased lead normally, and the price kept stable in recent days. “We purchased a batch of the materials at RMB16,800/t (USD2,196/t) from a lead producer in Liaoning,” he said. “Our sale of lead acid battery is good now, and we must purchase the raw materials almost every day.”
The source predicted that lead price may not rise in Chinese market in the short term, as the strong rising trend slows down on LME at press time, and it will not change much in the rest of this week.
The company consumes 40,000-50,000t of lead per year.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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[+/-] : Chinese suppliers' views about REACH Regulation
The new European law on chemicals, REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), entered into force on 1 June 2007. Chinese suppliers worry that the Regulation will affect their business of vanadium pentoxide with European traders. At this point, Asian Metal exchanged views with some Chinese suppliers about the Regulation.
A Sichuan-based producer, with an output of 150tpm of ferrovanadium and vanadium pentoxide, usually exports vanadium pentoxide and ferrovanadium to European markets, believing that it is difficult to predict how much the Act will affect their business. "If European traders import vanadium pentoxide or other chemical products from foreign markets, they must register and pay a few dozen thousand Euro to the government," said the producer.
According to the source, Chinese suppliers who sell vanadium pentoxide to European consumers directly must register and pay the money, but suppliers who sell to European traders need not to do that.
Selling vanadium pentoxide for USD7.3-7.4/lb and ferrovanadium 80% for USD37/kg in export market, the source thinks the Regulation will make European market to be shared by some big traders, and small traders will have to exit the market in future.
Meanwhile, a Liaoning-based supplier who usually exports 3-4 containers of vanadium pentoxide to Europe each month also heard the Regulation, but believes that the Regulation will not affect their business greatly. "We do not only export the material to traders but also consumers directly, but the consumers will register, and we need not to worry about it," said the trader. But the source worries that European buyers will ask them to bear a part of the money they handed in to the government.
Selling vanadium pentoxide flake for USD7.4/lb in export market, the source thinks the market will move down slowly in the coming weeks.
However, participants believe the Regulation will not affect the business of Chinese suppliers greatly, because they can export vanadium pentoxide to the countries in East Europe firstly. The countries in East Europe are not restricted by the Regulation.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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Wednesday, June 06, 2007
[+/-] : Antimony market sluggish
Antimony ingot market has kept dull for several weeks without any signs of recovery, market sources told Asian Metal today.
A Hunan-based producer reported that few deals were concluded during the past two weeks, and consumers are inactive in purchasing. "We lowered our offer from RMB39,500/t (USD5,170/t) ex works to RMB39,000/t (USD5,098/t) ex works for grade two antimony ingot last week, but there are still few buyers coming into buying," said the source, revealing that some producers concluded deals at around RMB38,800/t (USD5,079/t) ex works for 99.85% antimony ingot.
Due to the sluggish market, the smelter is running at half of its capacity of 200tpm.
"Antimony ingot prices keep softening on weak demand, but raw material prices hold high. Therefore, we have been enduring great hardships," another Hunan-based producer said.
According to the source, it is hard to sell standard grade two antimony ingot at RMB39,000/t (USD5,098/t) ex works while many producers lower offers to around RMB38,500-38,800/t (USD5,039-5,079/t) ex works to stimulate demand. "I don't think the market will drop further given the high-held price for antimony concentrate," said the source. "Smelters will be forced to halt production if their profits shrink further."
Industry insiders believe that the market will not pick up in the short term. However, in view of shortage of antimony concentrate and the high price of the material, there will be limited room for antimony ingot to drop in the near future.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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A Hunan-based producer reported that few deals were concluded during the past two weeks, and consumers are inactive in purchasing. "We lowered our offer from RMB39,500/t (USD5,170/t) ex works to RMB39,000/t (USD5,098/t) ex works for grade two antimony ingot last week, but there are still few buyers coming into buying," said the source, revealing that some producers concluded deals at around RMB38,800/t (USD5,079/t) ex works for 99.85% antimony ingot.
Due to the sluggish market, the smelter is running at half of its capacity of 200tpm.
"Antimony ingot prices keep softening on weak demand, but raw material prices hold high. Therefore, we have been enduring great hardships," another Hunan-based producer said.
According to the source, it is hard to sell standard grade two antimony ingot at RMB39,000/t (USD5,098/t) ex works while many producers lower offers to around RMB38,500-38,800/t (USD5,039-5,079/t) ex works to stimulate demand. "I don't think the market will drop further given the high-held price for antimony concentrate," said the source. "Smelters will be forced to halt production if their profits shrink further."
Industry insiders believe that the market will not pick up in the short term. However, in view of shortage of antimony concentrate and the high price of the material, there will be limited room for antimony ingot to drop in the near future.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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[+/-] : Zinc concentrate price keeps firm in China
BEIJING (Asian Metal) 7 Jun 07 – Zinc ingot market kept dull in recent days, but zinc concentrate prices remained firm, as the demand for the material is still strong and miners have little intention of lowering quotation, market sources reported to Asian Metal.
An official from a Gansu-based zinc smelter reported that although the current zinc ingot market is very sluggish, with zinc ingot price dipping slightly, due to the great pressure from large stockpiles in the Chinese spot market, zinc concentrate price remains stable at RMB22,000/t (USD2,877/t) ex works in the local market.
“In fact, the zinc concentrate supply is not very tight in the local market, but many miners insist on their quotation of RMB22,000/t (USD2,877/t) for zinc concentrate 50%min,” said the source. “If zinc ingot price continues to drop, our profit will shrink further.”
According to the source, the zinc smelter will upgrade its production capacity from the current 20,000tpy to 60,000tpy in June. The source said that as the zinc concentrate supply is limited in the local market, the local government prevents local zinc mines from selling zinc ore or concentrate to other regions, in order to meet the strong demand from local zinc smelters.
A zinc concentrate supplier in Shaanxi said, “Our zinc concentrate 55%min price remains steady at RMB22,500/t (USD2,941/t) ex works, the same level compared with last week.”
The producer said that different from the sluggish zinc ingot market, zinc concentrate market remains active, as smelters have to replenish stocks to maintain operation.
The plant’s zinc concentrate output is about 600tpm, holding few stocks on hand now.
The two sources believe that supported by the high cost of raw materials, zinc ingot price would continue to consolidate at about RMB30,000/t (USD3,922/t) in Chinese market, and the price of zinc concentrate 50%min will remain firm at RMB21,000-22,000/t (USD2,745-2941/t) in Chinese market in the near term.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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An official from a Gansu-based zinc smelter reported that although the current zinc ingot market is very sluggish, with zinc ingot price dipping slightly, due to the great pressure from large stockpiles in the Chinese spot market, zinc concentrate price remains stable at RMB22,000/t (USD2,877/t) ex works in the local market.
“In fact, the zinc concentrate supply is not very tight in the local market, but many miners insist on their quotation of RMB22,000/t (USD2,877/t) for zinc concentrate 50%min,” said the source. “If zinc ingot price continues to drop, our profit will shrink further.”
According to the source, the zinc smelter will upgrade its production capacity from the current 20,000tpy to 60,000tpy in June. The source said that as the zinc concentrate supply is limited in the local market, the local government prevents local zinc mines from selling zinc ore or concentrate to other regions, in order to meet the strong demand from local zinc smelters.
A zinc concentrate supplier in Shaanxi said, “Our zinc concentrate 55%min price remains steady at RMB22,500/t (USD2,941/t) ex works, the same level compared with last week.”
The producer said that different from the sluggish zinc ingot market, zinc concentrate market remains active, as smelters have to replenish stocks to maintain operation.
The plant’s zinc concentrate output is about 600tpm, holding few stocks on hand now.
The two sources believe that supported by the high cost of raw materials, zinc ingot price would continue to consolidate at about RMB30,000/t (USD3,922/t) in Chinese market, and the price of zinc concentrate 50%min will remain firm at RMB21,000-22,000/t (USD2,745-2941/t) in Chinese market in the near term.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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Monday, June 04, 2007
[+/-] : China's Gazhou Nonferrous to raise bismuth output in 2007
China's Ganzhou Nonferrous Metal targets to further increase its bismuth metal output to about 1,000 mt in 2007 compared with an output of around 600 mt reported a year ago, a company official told Platts on Tuesday.
"Our new production line which has an output capacity of 600-700 mt is all ready for full production and our output this year is set to further increase," the official said. "Adding up to our original production line with a bismuth metal output of about 300-400 mt/year, we should be able to achieve a full output of around 1,000 mt this year." The official added that majority of the company's output is exported.
The Ganzhou official added that spot offers in China were heard quoting within a range of $8.5-8.8/lb on a CIF basis. "Prices are high but very little spot business is concluded lately as more people want to watch the market further, due to much higher prices so far this year." He added that domestic prices were also up to the current level of around Yuan 150,000 ($19,276)/mt.
Prices for bismuth metal were quoted at around Yuan 110,000-130,000/mt late last year and Yuan 80,000/mt in mid-2006.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
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"Our new production line which has an output capacity of 600-700 mt is all ready for full production and our output this year is set to further increase," the official said. "Adding up to our original production line with a bismuth metal output of about 300-400 mt/year, we should be able to achieve a full output of around 1,000 mt this year." The official added that majority of the company's output is exported.
The Ganzhou official added that spot offers in China were heard quoting within a range of $8.5-8.8/lb on a CIF basis. "Prices are high but very little spot business is concluded lately as more people want to watch the market further, due to much higher prices so far this year." He added that domestic prices were also up to the current level of around Yuan 150,000 ($19,276)/mt.
Prices for bismuth metal were quoted at around Yuan 110,000-130,000/mt late last year and Yuan 80,000/mt in mid-2006.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
Tel: 86-755-83474911
Fax: 86-755-83474980
Mobile:13929211059
E-mail: xubiao_1996(at)hotmail.com samjiefu(at)gmail.com
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[+/-] : Norilsk Nickel could start building Chita mines in 2008
MMC Norilsk Nickel (RTS: GMKN) could start building four mines in the Chita region late this year or early 2008, Alexander Tarabarko, chairman of the region's natural resources committee, told Interfax.
"Norilsk Nickel has nearly finished designing the mines," Tarabarko said. The company continues to carry out reserve appraisals at the mineral deposits, he said.
"The company's specialists are working at the Bystrinskaya, Lugokan and Kultuninskaya properties, thought to hold large copper, gold and iron resources, and at the Solonechenskoye antimony deposit, Kurunzulai molybdenum, copper and tungsten deposit, Bugdai molybdenum deposit, the Ildikanskaya property and the Bystrinsko-Shirinskoye vein gold deposit," the official said.
Norilsk Nickel could invest 1.4 billion rubles in the region this year, the regional administration said.
Norilsk Nickel has set a directorate up in Chita to oversee the construction of the mines and the Naryn-Lugokan tail track, Gennady Shevchuk, head of Norilsk Nickel's locally registered Vostokgeologiya subsidiary, told Interfax.
The overall cost of the project will be 167.77 billion rubles. Some 48.32 billion rubles for construction of the rail line will come from the state investment fund. Norilsk Nickel plans to invest 119.5 billion rubles in the project, including 21.7 billion rubles directly in the construction of the line and 97.7 billion rubles in the development of deposits.
The resources committee told Interfax that the Naryn-Lugokan rail track would link deposits in the Chita region's southeast to the Trans- Siberian Railway.
It said the Bystrinskoye field contained a probable 1.7 million tonnes of copper and around 200 tonnes of gold. This, combined with the other properties, would constitute a resource similar to that of Udokan, one of the world's biggest copper deposits, which is also in the Chita region.
The committee said that tenders among contractors for the rail track and mines were planned for the beginning of 2008.
Maxim Finsky, a Norilsk Nickel deputy CEO, viewed the sites by helicopter on Tuesday.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
Tel: 86-755-83474911
Fax: 86-755-83474980
Mobile:13929211059
E-mail: xubiao_1996(at)hotmail.com samjiefu(at)gmail.com
Add: jiefu industrial park shuiping industrail district dalang town dongguan GD,P.R.C
blog:http://antimony-trioxide.blogspot.com
website:http://www.jiefu.com
...
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"Norilsk Nickel has nearly finished designing the mines," Tarabarko said. The company continues to carry out reserve appraisals at the mineral deposits, he said.
"The company's specialists are working at the Bystrinskaya, Lugokan and Kultuninskaya properties, thought to hold large copper, gold and iron resources, and at the Solonechenskoye antimony deposit, Kurunzulai molybdenum, copper and tungsten deposit, Bugdai molybdenum deposit, the Ildikanskaya property and the Bystrinsko-Shirinskoye vein gold deposit," the official said.
Norilsk Nickel could invest 1.4 billion rubles in the region this year, the regional administration said.
Norilsk Nickel has set a directorate up in Chita to oversee the construction of the mines and the Naryn-Lugokan tail track, Gennady Shevchuk, head of Norilsk Nickel's locally registered Vostokgeologiya subsidiary, told Interfax.
The overall cost of the project will be 167.77 billion rubles. Some 48.32 billion rubles for construction of the rail line will come from the state investment fund. Norilsk Nickel plans to invest 119.5 billion rubles in the project, including 21.7 billion rubles directly in the construction of the line and 97.7 billion rubles in the development of deposits.
The resources committee told Interfax that the Naryn-Lugokan rail track would link deposits in the Chita region's southeast to the Trans- Siberian Railway.
It said the Bystrinskoye field contained a probable 1.7 million tonnes of copper and around 200 tonnes of gold. This, combined with the other properties, would constitute a resource similar to that of Udokan, one of the world's biggest copper deposits, which is also in the Chita region.
The committee said that tenders among contractors for the rail track and mines were planned for the beginning of 2008.
Maxim Finsky, a Norilsk Nickel deputy CEO, viewed the sites by helicopter on Tuesday.
**********************
DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Sam Xu
Tel: 86-755-83474911
Fax: 86-755-83474980
Mobile:13929211059
E-mail: xubiao_1996(at)hotmail.com samjiefu(at)gmail.com
Add: jiefu industrial park shuiping industrail district dalang town dongguan GD,P.R.C
blog:http://antimony-trioxide.blogspot.com
website:http://www.jiefu.com
...
read more
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