KGI Securites Opinion: China’s Steel Production Rose 8 Percent, Above The 600 Million Tons

Growth in China's industrial sector is always getting attention from mining companies world mining companies non maupu, because the growth of industrial sector affects the growth of the global industrial sector.

Growth in demand for raw materials mining and mineral production in China is very high, so many mining companies interested in investing in the development of mining exploration in China.

Steel production sector is the sector that experienced very high growth in the year 2009, so the demand for imported iron ore and coking coal to China experienced tremendous growth.

KGI Securities analyst in Taipei, making the analysis of the growth of steel production and coking coal demand in 2010.

"China's crude steel production will grow 8 percent, crude steel production is estimated that more than 600 million metric tons. The growth of crude steel production will push the demand for primary raw material production of crude steel, coking coal, at high levels. Coking coal supply in China will remain tight in 2010, while gross margin coking coal suppliers will hover around current levels. We estimate the price of coking coal increased from 10 to 15 percent in the spring of 2010 as the steel sector to enter the peak season, improving gross margin coking coal maker. Coal coking increased imports by China will begin to change the landscape of global coking coal trade in 2010. Like the European Union and North America increased demand for coking coal for steel production is higher, the global coking coal supply will continue to close, raising the price. "

Australian Talison Lithium Begin Mining Operations At Val D’or Lithium Mine, Quebec

Estimating the industrial sector will increase the demand for lithium from year to year, Predict the industrial sector will increase the demand for lithium from year to year, because the lithium to be the main element in the development of electrically powered cars.

Prospects for the development of the use of lithium-powered electric car, making some companies to invest in mining exploration in some states of lithium.

Australia Talison Lithium, the world's largest producer of lithium, plan to start mining operations in the north of lithium Val d'or, Quebec in 2011. Lithium financing mining operations, Lithium Talison will sell new shares to 35 million new shares with a value of U.S. $ 181 million. Lithium Talison new shares will be listed on the Toronto and Sydney.

Talison lithium lithium estimates world demand will rise six percent in the next four years, more conservative than Lithium Canada Corp. 's projection.

Virginia Mining Company To Start Drilling Gold Mine In James Bay, Quebec

Virginia Mining Corp. is a mining company that has spread outside the drilling area in the Quebec region.

In the near future Virginia Mines begin drilling a gold mine in James Bay, Quebec. This mining company will drill six holes in a gold mine with an estimated drilling time for six months, the total area of 16,500 meters of drilling.

Drlling gold mines will be held in the company 100% owned Poste Lemoyne Extension, La Grande Sud, Lac Pau and Anatacau-Wabamisk project. Through partnership with Odyssey Resources, Virginia also plans to start drilling in the FCI Auclair and gold projects.

The Poste Lemoyne Extension property is host to the Orfee zone containing 88,588 tonnes of resources grading 9.44 grams per tonne gold in the measured category and 114,895 tonnes grading 18.4 grams per tonne gold in the inferred category.

Drilling program will test several new gold performances found on the surface during the summer of 2008 and 2009 field programs. Drilling will include a minimum of 20 drill holes totaling more than 2,500 meters. New Genesis gold values up to 52 g / t Au in taking samples and up to 20.98 g / t Au over 2 meters in the sample channel and spread across more than 37 miles along the corridor that contains gold.

In Virginia's La Grande Sud project, the company has started eight hole program aimed at total of 2150 meters. La Grande Sud property is host to 32 gold-copper mineralization zone reported 4.2 million tonnes of 2.1 grams per tonne gold and 0.2% copper in the spring of 1999.

Drilling program will mainly test the possibility of extension of Zone 30 which has produced several historical crossroads that contain gold from various long-grading between 3.89 grams per tonne and 13.5 grams per tonne. Drilling program will also test other targets on the property.

Gold Prices Declines From Record in Asia as Rally Encourages Selling

Gold prices fell for the first time in three days in Asia as some investors sold the metal to lock the profit after the rally to a record and as the dollar advanced.

Bullion's 14-day relative strength index has been held in more than 70 since 13 November chart signal that gold prices can be set down. Gold for immediate delivery reached an all time high of $ 1174 per ounce yesterday and advanced 5.6 percent in the past seven days as the dollar fell 0.6 percent against a basket of six major currencies.

"With the increase in price as we have seen in two weeks, there must be small corrections along the way, especially when the resilience of the dollar signs," said Steven Zhu, head trader at Shanghai Futures Co. Tonglian "appetite of investors will be able to keep momentum at least until end of the year. "

Soon-bullion delivery fell as much as 0.7 percent to $ 1,158.28 an ounce, and traded at $ 1,159.74 at 9:49 pm Singapore time. December-delivery gold on the Comex division of the New York Mercantile Exchange was trading 0.4 percent lower at $ 1160 per ounce after yesterday reached a record $ 1174.

15 dollar rose against the currencies of the 16 most-active as traders took the bet to decrease before the U.S. Thanksgiving holiday this week, and before the release today of revised gross domestic product data expected to show the U.S. economy grew more slowly than expected in the initial velocity the third quarter.

Ownership in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, rose yesterday to 1,121.46 metric tons, the most since June 29. Investment demand for the metal as a haven against the dollar falling and inflation expectations have been boosted gold prices by 32 percent this year.

Among other precious metals for immediate delivery, silver was little changed at $ 18.545 an ounce, platinum fell 0.6 percent to $ 1,450.50 an ounce, while palladium fell 0.1 percent to $ 371.50 an ounce at 9:42 in Singapore.

source: bloomberg.com

Glencore Will Buy Back Prodeco Coal Mines Assets From Xstrata Mining Company

Glencore is a mining company that operates mines Prodeco. Prodeco coal mines located in the territory of Colombia. Prodeco mining assets sold to Xstrata in January, when the weakened financial companies.

Prodeco sales of $ 2 billion are allowed to subscribe to Glencore rights issues Xstrata, the London listed global miner where Glencore has a 34 percent stake.

Since then, Xstrata has Prodeco important for financial recovery. Assets alone Xstrata lifted production of coal, the most profitable commodity, the company's first quarter and third quarter.

Along with improving corporate financial, mining companies plan to buy back the coal mines of Xstrata Prodeco.

Glencore can make a call option to buy back Prodeco for $ 2.25bn before March 4. But before the third-quarter earnings reports remaining concerns that the buy-back, even if affordable, not in the interests of improving the value of Glencore credit.

Miriam Hehir, a credit analyst at RBC Capital Markets in London, gave a statement "We're hoping to buy back from Glencore related Prodeco Xstrata options before ending in early March. The minimum price was $ 2.25bn, but we could see it again changed hands for several hundred million on top of this, Glencore could reduce the need for funds associated with the minority partners may be involved, or disposal elsewhere.

US-China Enhance Cooperation Use Of Clean Coal Technology : “21st Century Coal”

China and the United States is the country's largest coal energy users in the world. Growth of industrial sector in both countries is causing the energy use of coal increased in both countries.

Increased use of coal as an energy source to make the two countries plan to use coal technology and the exploration of coal as an environmentally friendly energy.


Meeting of leaders of both countries, Barack Obama and Hu Jintao called on all mining and energy development company that sourced from coal to find solutions that clean coal technology. The agreement committed both countries to develop clean coal technology, called "'21st Century Coal".

The announcement the president of what is called "21st Century Coal" consists of a variety of partnerships:

- Some of the partnerships seeking cost effective ways to reduce the synthetic gas from coal. General Electric, for example, will continue its joint venture with Shenhua Group to develop technologies and business models related to coal gasification. United States Trade and Development Agency will also support a feasibility study of integrated gasification combined cycle (IGCC) power plant in China that will use technology developed in cooperation with the U.S. China Power Engineering and Consulting Group.

- In another project, St. Louis-based Peabody Energy is a coalition working with energy companies in China GreenGen, a project to develop "near-zero emissions coal power plant," according to DOE.

- A partnership between a subsidiary of AES and Shenzhen Dongjiang Environmental Recycling Songzao Electric Power and Coal and tried to use the methane recovered from coal mines to generate electricity.

- Two others involve the U.S. National Energy Technology Laboratory studied the feasibility of carbon capture and storage, or CCS, coal-based facilities in China in cooperation with Shenhua Group and Shaanxi Institute of Energy Resources and Chemical Engineering.

Chinese Mining Companes To Promote Clean Coal Technologies

10 Chinese coal producers have joined a United Nations program to promote the development and deployment of clean coal technologies. This step aims to reduce emissions and environmental pollution. But some analysts believe it will take time for China to reduce reliance on coal.

Last year, China consumed 2.7 billion tons of coal.

To combat the negative impacts, many domestic coal producers will now collaborate with the United Nations Global Compact Program. The Company has adopted a business model that emphasizes 0 emissions and no pollution.

Laohu song, GN, Shanxi Huangling Mining Group, said, "clean coal technologies can help us reduce solid waste by almost 300 thousand tons per year. Sulfur dioxide and emissions, we can also be reduced by 500 tons per year."

Adoption of clean coal technologies require a large mountain of capital injections. High initial costs have raised fears the feasibility of the investment pay off in the future. But belive people in the technology industry can accelerate their earnings growth.

Song also said, "Recycling can reduce the company's dependence on rail transport. So, there will be no emissions, no waste and no solid waste disposal. And our earnings will also be encouraged."

Georg Kell, Executive Director of UN Global Company, said, "I am very ... ... .. We encourage companies ... .."

The first 10 Chinese coal producers group of companies to join the UN Global Compact Program. They are entitled to use the UN as a platform to work with leading companies world to exchange information on technologies and business models.

Coal export quota of 150 Million Tonnes per Year

To meet the needs of domestic coal continues to increase the government plans to restrict the export quota of 150 million tons per year. It is estimated that coal demand will increase following the completion of the project 10,000 MW of electricity acceleration.

Government policy is to prioritize the fulfillment of coal for domestic needs they need to export restrictions. Following the completion of the acceleration of 10,000 MW project Phase II, coal demand for power will increase by 65-70 million tons per year. Export restrictions will be conducted after the government regulations as mandated by Law No. 4 Year 2009 on Coal Mining and the targeted completion later this year, Minister of Energy and Mineral Resources said in a press conference after reviewing the exhibition "The Energy & Mining Indonesia Series 2009". Wednesday (14/10).

"We are optimistic that coal production could be increased because of Indonesia coal reserve reaches 20 billion tons, with potential for 90 billion tons, so actually there is great potential that could be developed depending on size of investment that we can do to convert the potential of the 90 billion tonnes," continued the Minister

Currently Indonesian coal production said Director General of Mineral, Coal and Geothermal Bambang Setiawan Department of Energy and Mineral Resources, this year is estimated to reach 230 million tons, designated for the domestic needs of 68.5 million tons, and approximately 45-46 million tonnes of which was allocated for power needs .

Alexi Mineral To Start Gold Mine Exploration in Rouyn-Noranda

Alexis mining companies have started exploration projects, gold mining in Pelletier Lac Rouyn-Noranda, Quebec. Alexis mining companies have been excavating two mining zones of the four gold mine plan. Alexis expects mining companies than 40,000 tons of samples can produce 9400 tons of gold. It is expected that in 2010 the ore milling project will be completed next company will make plans to conduct exploration of gold mines.

Lac Pelletier gold mine is located 4 km southwest of Rouyn-Noranda, Quebec, in Abitibi Mining Camp productive, historically one of the world's top gold-producing region. Lac Pelletier Gold Mine is expected to generate more than CDN $ 20.7 million in free cash flow of approximately 118,100 oz Au (109,300 ounces recovered) more than the estimated project life of at least 3 years.

All requests submitted permit full production, and the Company expects to receive confirmation of this before the end of 2009. A feasibility study began in mid-October and is expected to be completed on reconciliation results of 40,000 tons of milling most of the samples in February 2010.

Alexis' management expects to make a positive production decision in the first week of March 2010 subject to the results of bulk samples and feasibility studies. With the production of Lac Pelletier, gold companies will increase total output by 2010 to an annual level of between 75,000 and 80,000 ounces of gold per year, including production from Lac Herbin gold mine. This will be another important step achievement of the new Corporate Strategy to develop mid Alexis gold mining company's production level.

Galaxy Resources Opens Lithium Mine Project at Ravensthorpe in Western Australia

Australian mining companies will make lithium mining exploration Ravensthorpe, Western Australia. Ravensthorpe mine in the area once used by the mining company BHP Billiton nickel mine exploration, but exploration of the nickel mines closed, so that the people in the Ravensthorpe area lost their jobs. Re-opening of mining exploration activities in the area of lithium Ravensthorpe mine gave good news to the residents agree, because the area around Ravensthorpe I will get the job.
Galaxy Resources Director Iggy Tan said, "that this project will provide significant benefits to the region Mt Cattlin using a workforce housing, with a flow-on effects to local industries and businesses. In 2010, I'll Mt Cattlin second largest in spodumene world of hard rock producer, and will be one of the three current lithium minerals mined commercially, together with petalite and lepidolite. "

Independent research house Stock Resource, said in a research note this week that the Galaxy and Orocobre Ltd is the only Australian listed on the stock exchange companies that offer investors exposure to lithium, with a focus on Orocobre argentina.

Alexi Mineral To Start Gold Mine Exploration in Rouyn-Noranda

Alexis mining companies have started exploration projects, gold mining in Pelletier Lac Rouyn-Noranda, Quebec. Alexis mining companies have been excavating two mining zones of the four gold mine plan. Alexis expects mining companies than 40,000 tons of samples can produce 9400 tons of gold. It is expected that in 2010 the ore milling project will be completed next company will make plans to conduct exploration of gold mines.



Lac Pelletier gold mine is located 4 km southwest of Rouyn-Noranda, Quebec, in Abitibi Mining Camp productive, historically one of the world's top gold-producing region. Lac Pelletier Gold Mine is expected to generate more than CDN $ 20.7 million in free cash flow of approximately 118,100 oz Au (109,300 ounces recovered) more than the estimated project life of at least 3 years.



All requests submitted permit full production, and the Company expects to receive confirmation of this before the end of 2009. A feasibility study began in mid-October and is expected to be completed on reconciliation results of 40,000 tons of milling most of the samples in February 2010.



Alexis' management expects to make a positive production decision in the first week of March 2010 subject to the results of bulk samples and feasibility studies. With the production of Lac Pelletier, gold companies will increase total output by 2010 to an annual level of between 75,000 and 80,000 ounces of gold per year, including production from Lac Herbin gold mine. This will be another important step achievement of the new Corporate Strategy to develop mid Alexis gold mining company's production level.

CGE Participated In Joint Venture Agreement Underground Coal Gasification In Mongolia

Project underground coal gasification in Mongolia will be conducted by a joint venture. This project will explore coal 1.8 billion tons of coal deposits in Mongolia. Companies that participate in the projects of coal gasification, among others: Yusenjiayu Environmental Protection Technology Beijing, Inner Mongolia, Xin Gu Goldbridge Clean Energy Mines and Tech.

The JV plans to make capital-raising activities for projects in the Hong Kong Stock Exchange not less than $ 120m and debt financing not more than $ 280m.

CGE is a mining company that will join the joint venture underground coal gasification in Mongolia. CGE will design, operate and manage the UCG plant.

Before the list, initial $ 1m fund to be donated by the JV partners in proportion to each party shareholder. CGE had to chip in $ 350,000, which will be funded from existing cash reserves.

Mesa Uranium Obtain Exploration Lithium Mining Project in Utah

Mesa Uranium is reported to have received the rights Seluar exploration mining projects lithium 10 square miles in Utah. Lithium mining project will be managed by Mesa for the anticipated growth in demand and supply of lithium carbonate, industrial lithium-ion batteries, electric hybrid and electric cars will increase in 2012.

Lithium mining project that will excavated from oil exploration wells proyel Green Energy. More than two dozen oil exploration wells have been drilled in the Green Energy project, five of these wells have the analytical data for lithium.



The results of the analysis, Lithium occur in large projects with high value of 1700 ppm lithium (0.9% Li2CO3) in saturated salt water. Salt water was discovered in the 1960s when oil exploration wells encountered a blow-out drilling in Bed # 31 of the Paradox Formation. Free-flowing salt water pressure during drilling operations and is considered annoying, are rarely analyzed chemically or flow-rate testing.

Lithium brine mining more economical to mine and process than conventional open-pit or underground mines. Given the favorable climate of solar evaporation area can be used to concentrate the water projects to improve the economy of salt.

World-class lithium brine mine in the class ranged from 150 ppm to 1,200 ppm of lithium and employ proven solar evaporation concentration techniques.

Mesa now evaluating all the available new and historic exploration drilling logs. A professional engineering firm will be involved to evaluate the data of drilling, reservoir potential and extraction methods on the Green Energy project.

Although the Company has no reason to doubt the historical accuracy of the results, the data can not be relied upon until confirmed by the Company's own exploration. History and results of their work to produce effective pre-dates National Instrument 43-101 and in accordance may not meet policy requirements. There are 43-101 mineral reserves or mineral resources in the Green Energy lithium project. Potential quantity and value shown above is conceptual in nature and have been provided for illustrative purposes only.