Canada’s Dumas Contracting and JCHX Mining Management Co (JCHX), a leading Chinese mining contractor, have entered into a strategic alliance. The scope of the strategic alliance covers supporting Chinese clients with projects in Dumas’ core markets of Canada and Latin America. In addition, Dumas will provide its technical expertise in supporting JCHX on shaft-sinking projects in China.
Prices of the certain rare earths used in energy saving lightbulbs, lasers, nuclear reactors, magnets and plasma televisions more than doubled in the past two weeks as China, responsible for upwards of 95% of world supply, further tightens control of mining, trading and exports, research house Industrial Minerals said over the weekend.
China in recent months closed or consolidated more than 35 rare earth mines and cut export quotas sparking concerns in the US and other industrial nations about access to supplies and causing an exploration and mine development frenzy with over 250 projects on the go worldwide.
Chinese industrial executives say the world's supply of rare earth minerals will outstrip demand within five years, ending reliance on China's exports.
Wang Hongquain, general manager of China Nonferrous Metal Industry's Foreign Engineering and Construction Company (NFC), toldChina Daily more nations with large rare-earth deposits will resume exploration, which will lead to a global reallocation of the minerals.
Rising inflation in China and India's tenth interest rate hike since March 2010, is set to take a toll on consumers preference for the yellow metal, according to analysts and traders.
``Gold and silver will surely get pummelled in the near term with signs of a stronger US dollar and yet another rate hike in India. Investors have very little savings these days and prefer not to invest in gold,'' said Manoj Maheswari, bullion analyst at a brokerage firm here.
Gold rebounded on Tuesday after posting its biggest one-day loss in a month in the previous session on growing worries about another global economic downturn, but a weaker U.S. dollar and bargain hunting by jewellers offered support.
While signs of a cooling Chinese economy could weigh on industrial metals, dealers expect no change in China's appetite for bullion. Investors were also awaiting a trail of U.S. data later in the day which could set the tone for commodities.
The Australian reports Fortescue Metals' Chinese shareholder Hunan Valin Steel plans to triple its capacity through mergers and capital investment and is eyeing a listing on the Hong Kong stockmarket to raise up to $1.68bn.
The Chinese government last month began another push to consolidate the country's fractured steel industry and is planning to create six or seven mega-groups with the aim of boosting its negotiating power with iron ore giants including miners Rio Tinto and BHP Billiton. Hunan Valin is considered second-tier at the moment but wants to push production to over 30m tonnes/year, similar to industry behemoth Baosteel.
Baotou Steel Rare Earth (Group) Hi Tech Co, the world's largest rare earth producer, will consolidate 35 local miners this month and further unify the distribution and processing of the 17 elements. The Inner Mongolia autonomous region, the site of 97% of China's reserves, has drafted a plan to concentrate all resources under Baotou.
The move follows the announcement last week that the state-owned firm will set up the country's first rare earth products exchange to further regulate the market. China accounts for upwards of 95% of global supply. To combat China's domination of the market the US recently declared rare earth to be a strategic resource for the country.