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China to cut up to 200 million tonnes of coal capacity in 2017


China to cut up to 200 million tonnes of coal capacity in 2017

China's coal capacity-cut target for 2017 is expected to range between 150 million tonnes and 200 million tonnes, despite the Chinese central government's move to ease production controls in the second half, analysts told S&P Global Market Intelligence.

MMG selling Golden Grove polymetallic project for US$210M

MMG Ltd. conditionally agreed to sell the Golden Grove polymetallic project in Western Australia to EMR Golden Grove Holdings Pty. Ltd. for US$210 million. MMG Australia Ltd. will continue to provide services to Golden Grove for an agreed period following the completion of the transaction.

Chinese banks step up financial support for state coal, steel firms

China Construction Bank Corp. signed a framework agreement for 30 billion Chinese yuan worth of debt-for-equity swaps with state-controlled coal and steel companies in the eastern Anhui province, Reuters wrote, citing Xinhua News Agency. The bank signed deals with Huainan Mining Industry (Group) Co. Ltd., Huaibei Mining Group and Magang (Group) Holding, the parent of Maanshan Iron & Steel Co. Ltd., among others. Earlier this week, Industrial & Commercial Bank of China Ltd. also signed three debt-for-equity swaps with coal and steel producers in Shanxi province, with those deals also valued at 30 billion yuan.


* Xanadu Mines Ltd.'s Ulaanbaatar-based managing director, Andrew Stewart, told The Australian that the company hosted five visits in the past two months from cashed-up midtier Australian gold producers, among the host of mining firms, that were interested in learning about its early-stage copper and gold projects. The renewed interest is attributable to a shortage of new discoveries, an improving appetite for acquisitions and recent policy stability in Mongolia, the report added.


* North Mining Shares Co. Ltd. plans to purchase an aggregate of 65% of the entire issued share capital of Wealth Pioneer Group Ltd., which holds a 60% equity interest in the potassium feldspar mine in Shangluo city in China's Shaanxi Province, for HK$900 million.

* Chilean environmental authority SMA imposed a fine of 2.8 billion Chilean pesos on Lundin Mining Corp.'s Candelaria copper-gold-silver mine over a set of offenses including the failure to reduce the use of fresh water in operations, daily Pulso reported.

* Serbian state-owned miner RTB Bor, owner of the Bor Basin copper mine, is looking for a new management team to prepare the mine and smelter for privatization and repay up to US$1.05 billion of debt, Reuters reported. The country entered a €1.2 billion loan deal with the International Monetary Fund in 2015, which requires it to dispose of its remaining and mainly loss-making state enterprises.

* Queensland Mining Corp. Ltd. agreed with Chinova Resources Cloncurry Mines Pty. Ltd. to extend exclusive rights to explore six sub-blocks at the Young Australian prospect, part of the White Range copper-cobalt project in Queensland, until June 2020.

* Analysts see an extremely tough 2017 for Chinese zinc smelters due to depressed concentrate supply and lower demand growth for the metal, Metal Bulletin reported. Meanwhile, the competition for business amid higher smelting capacity is weighing on treatment charges, impacting profitability at the smelters.


* Centerra Gold Inc. received all the necessary permits and approvals for its 2017 mine plan for the Kumtor gold project in Kyrgyzstan.

* The Shanghai Gold Exchange plans to lower the offer limit to 500 kilograms from 1,000 kilograms on some spot gold contracts starting next year, Reuters reported.

* Metals X Ltd. spinoff Westgold Resources Ltd. started the development of a second underground mine at its Central Murchison gold project in Western Australia. The Comet underground mine hosts mineral resources of 2.85 million tonnes at 3.52 g/t of gold containing 323,000 ounces.

* Taung Gold International Ltd. selected MCC International Inc. Ltd. to negotiate an engineering, procurement and construction contract to develop the EL127 exploration license area in Pakistan's Balochistan province by Dec. 31, 2018. The Hong Kong-listed company recently acquired the EL127 exploration license for copper, gold and other minerals for HK$146 million.

* Aquila Resources Inc. secured two final permits from the Michigan Department of Environmental Quality for its Back Forty gold-zinc project. The company will now focus on completing its feasibility study, finalizing two remaining permits and raising the capital to fund the project through to commercial production.


* A collapse of mine waste at the Lalmatia coal mine, part of Coal India Ltd.'s Eastern Coalfields operations in Jharkhand, India, killed five people, and another 23 are missing, Reuters reported, citing a statement from the police.

* U.S. Steel Corp. said it will restart the Keetac plant in Minnesota, which has been idled since May 2015. Employee callbacks at Keetac will start in early January 2017, while production is anticipated to begin in March next year. The move comes as the company seeks to adjust its pellet production after signing agreements to supply iron ore pellets to third-party customers.

* Russia's OJSC Novolipetsk Steel will reduce its pig iron export volumes from January 2017 due to its own increasing need for raw materials, Metal Bulletin reported, citing a company spokesperson.

* Metallica Minerals Ltd. said there is a potential to increase the pretax net present value of the Urquhart bauxite project in Queensland to A$86.9 million from A$53.9 million through mining the inferred resource inventory and screening stockpiled transitional lower-grade material.

* The Urban and Rural Overall Development Co. agreed to exempt Chongqing Iron & Steel Co. Ltd. from its debt of 450 million Chinese yuan. The company was also granted a special fund of 21.1 million Chinese yuan by the Finance Bureau of the Management Committee of the Changshou Economic and Technological Development Zone for industrial development.

* NSL Consolidated Ltd. has no outstanding debt after Resources First agreed to convert the US$2.5 million principal amount of notes into fully paid ordinary shares of the company.

* Egypt's Ministry of Industry and Trade initiated an anti-dumping probe into imports of rebar and wire rod from Ukraine, Turkey and China last week at the request of Egyptian steel producers Ezz Steel and Suez Steel, Metal Bulletin wrote.

* Bahrain steelmaker Universal Rolling will resume rebar production in January 2017 after a production halt of about two years, Metal Bulletin reported.

* Despite claims by the Indian government regarding the rise in demand for the fossil fuel, the supply of coal to the power sector by state-owned Coal India Ltd. dropped 6% to 33.7 million tonnes in November, The Hindu reported.


* A new report released by the Australian Securities and Investments Commission in December revealed that an increasing number of mining companies went out of business in the 2016 financial year because of inadequate cash flow or poor business management. The number of insolvency reports filed increased to 193, compared to 166 in the 2015 financial year. Both represent about 2.0% of the total number of insolvency reports filed each year.

The Daily Dose is updated as of 7 a.m. London time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.