Poor geological conditions in Sichuan region, which frequently suffers landslides and flooding due to the precipitous slopes and poor ground stability, are now facing worse conditions due to mining.
Copper traders and analysts are the most bullish since August on speculation prices at a one-year low will spur China, the world's largest buyer, to build stockpiles.
AFP reports a blue-and-white Ming vase fetched nearly $22 million in Hong Kong on Wednesday, setting a new record at auction for porcelain from the 15th century Chinese dynasty.
The vase went for more than double the lower pre-sale estimate, but at Sotheby's jewels and jadeite auction held at the same time the 9.27-carat Golconda Pink diamond with an estimate of $13 million – $19 million went unsold. Hong Kong is now the world's third-largest auction centre after New York and London, thanks to China's rapidly growing number of millionaires.
John Garnaut identifies a disturbing trend for iron ore exporters, with Chinese steel prices falling and iron ore prices expected to follow, he writes in the Sydney Morning Herald.
Garnaut quotes Chinese analysts saying that capacity utilization is declining because steel demand and prices are falling, while the prices for raw materials used in steelmaking — namely coal and iron ore — remain high.
The steel and iron ore markets were bracing for "volatility on a declining trend", said Yin Jimei, an analyst at Iron & Steel Information Website in Tangshan.
Xu Xiangchun, at Mysteel in Shanghai, said market anxieties over the global economy have coincided with softening domestic demand including a decline in railway construction due to a series of scandals in the Ministry of Railways.
As the price of copper drops to a 14-month low on speculation of sluggish demand for industrial metals, the chief executive of Codelco — the world's largest copper producer — said buyers in China should take advantage, Bloomberg reported.
A Chinese company has made another bid to secure iron ore and other metals beyond its borders.
On Tuesday Hanlong Mining said it will buy Perth-based Sundance Resources for US$1.57 billion. AFP reported that Hanlong will acquire Sundance through a scheme of arrangement, after lifting its offer to 57 cents cash per share from 50 cents back in July.
IDEX reports on Wednesday Sotheby's is auctioning a 9.27-carats fancy vivid pink emerald-cut diamond at a sale that will likely attract collectors that have not seen such stones auctioned for a while.
Collectors and dealers have paid top prices for exceptional diamonds at auctions in Hong Kong, repeatedly setting record prices, but offerings like the rare VVS1 clarity pink diamond carrying a pre-sale estimate price of $12.8-$19.2 million, have been scarce recently. If the gem sales at the upper end of the range it could set a new per carat record of $2 million-plus.
The Hang Seng Index was down 4.38% and S&P/ASX 200 slid 2.78% over fears of euro zone contagion and the risk another recession may be looming.
Gold is up and at $1657/oz. It closed last week at $1624/oz.
Hang Seng was also hit by worries about the casinos in Macua. There is less credit available from China, which may dampen revenue from gambling.