Dec. 18, 2008 (China Knowledge)
expansion of Beihai refinery
China Petroleum & Chemical Corporation Ltd (Sinopec), Asia's largest oil refiner, has commenced expansion at its Beihai refinery in southwestern China's Guangxi Zhuang Autonomous Region, in a bid to raise fuel supply in the area. 広西チワン族自治区北海市
Sinopec will install a RMB 4.15 billion polypropylene facility with an annual output of 200,000 tons for the upgrade project.
Previously, the Beihai
oil-processing plant had production capacity of 500,000 tons a
year, or 10,000 barrels per day, sources said.
The Beihai refinery is expected to produce 660,000 tons of gasoline, 800,000 tons of diesel and 324,000 tons of liquefied petroleum gas per year after completion. However, timetable for the construction is not available at present.
The Chinese company will also build auxiliary facilities for the project, including a 3-million-ton crude commercial storage facility and a crude terminal at Weizhou island, as per industry sources.
construction for PP and refinery relocation project in Guangxi
On Dec. 16, 2008, Sinopec and Guangxi Government held a ceremony for the PP and refinery relocation project in Tieshang Harbor (鐵山港) Beihai, Guangxi Province.
With total investment of USD 610 million (RMB 4.15 billion), the project includes a 200,000 t/a PP unit, a 3 Mt/a oil pre-processing unit, a 2 Mt/a catalytic cracking unit, a 3 million ton crude oil storage facility as well as other utilities. After the start-up, it will produce PP 180,000 ton, LPG 324,000 ton, gasoline 660,000 ton, diesel 800,000 ton, solvent oil 60,000 and marine fuels 435,000 ton.
The project was authorized by Guangxi Government in Nov. 2008. The expected date for start up is not disclosed.
Originally, Sinopec had planned a 8 Mt/a refinery project in Beihai, Guangxi Province, but the proposal was changed as PetroChina planned a large scale refinery in Qinzhou, where nearing Beihai. Following that, PetroChina and Sinopec set up a 70:30 jv which named as PetroChina Guangxi Petrochemical Co. to operate the 10 Mt/a jv proposed refinegy. Feedstock will be sourced from overseas, particularly from Sudan, where PetroChina has some stakes of oil resources and it can secure the supply of crude oil.
The Qinzhou jv refinery is under construction now and to be start up in 2009, delayed from the former expected H1 2008.
CCSCF Starts up Its First Phase Carbon Fiber Project
On December 3rd, 2008
China Composites Shenying Carbon Fiber Co., Ltd. (CCSCF), jointly
established by China Composites Group Co., Ltd., Lianyungang
Yingyou Textile Machinery Co., Ltd. and Jiangsu Aoshen Group Co.,
Ltd., commenced the production of its first phase 1 000 t/a
carbon fiber project in Lianyungang of Jiangsu province.
With a total investment of 3 billion, the whole project has a capacity of 10 000 t/a, and construction of the project was started on October 30th, 2007.
According to a source from CCSCF, the company¡¯s production capacity of carbon fiber will reached 10 000 t/a in the next 3-5 years.
Shenhua Ningmei starts
construction for POM project in Ningxia
On Dec. 15, 2008, Shenghua Ningxia Coal Industry Group (Shenhua Ningmei) started construction for its coal based POM(polyoxymethylene) project in Ningdong Energy Chemical Base, Yinchuan, Ningxia.
With total investment of USD 248.5 million (RMB 1.69 billion), the project has capacity of 60,000 t/a. Shenhua Ningmei got approval from local government for its POM project in Oct. 2008, and scheduled to start up the project in Dec. 2010. Methanol feedstock will be self provided with annual consumption 84,000 ton/year.
Shenhua Ningmei is a subsidiary of China Shenhua Group, the latter is the biggest coal producer in China and has 51% shares in Shenhua Ningmei.
The other POM producersare：
|Company||Capacity (kt)||Location||Start up||construction start|
|PTM (1)||60||Nantong , Jiangsu|
|Asahi-Dupont (2)||20||Zhangjiagang , Jiangsu|
|YunTianhua(3)||32||Zhaotong , Yunnan|
|20||Changshou, Chongqing||Sep. 2008|
|Bluestar(4)||40||Xinhuo, Shanghai||Mar. 2008|
|Tianjin Soda Plant||(40)||Tianjin||May. 2008|
|Yongmei Group||(20)||Kaifeng, Henan、河南省開封市||May. 2008|
Engineering Plastics(Nantong) 60千トン
POM (Zhangjiagang) 20千トン
(3) 云天化集団:YunTianhua Group 32千トン
(4) Blue Star (藍星グループ)の上海藍星新材料(上海藍星)は上海の浦東区Xinhuo
23日には全国から同集団の一級代理業者400人余りが同市に集まり、さきに発生した粉ミルクへの有害物質混入問題で実施したリコールで、数億元の返品費 用がかかったことが指摘された。ある代理業者の試算によると、このほか取次業者からの支払金、酪農業者の乳牛購入経費、パッケージや添加剤のサプライヤー への支払金、従業員の解雇にかかる経費などがあり、三鹿の負債総額は少なく見積もっても20億元に迫るという。
Huajin Tongda Plans to Issue Bonds for Ethylene Project
Liaoning Huajin Tongda Chemicals
Co., Ltd. (Huajin
Tongda 通称 盤錦エチレン) plans to issue up to RMB2
billion of convertible bonds with detachable warrants to finance
its 450 thousand t/a ethylene facility and related matching
Huajin Tongda is building the 450 thousand t/a ethylene facility, which is scheduled for startup in March 2009.
China PET producer Zhongheng Group facing insolvency
China's Zhongheng Group,
a major polyethylene terephthalate producer in Zhejiang, is
facing insolvency, the China Securities Web site reported
The group started off as a fiber-grade PET producer, but expanded its business interests to include metals, real estate, utilities and finance. Its director Yuan Bo Ren graced the billionaire's list with a fortune of Yuan 7 billion ($1.02 billion) in October, but the company's financial woes made headlines soon after.
Last Friday, government officials from the province, county and town set up offices at Zhongheng's headquarters to investigate the extent of the company's financial problems, China Securities reported. Initial findings showed that the group's assets fell far short of its debts, and it owed nearly Yuan 3 billion.
Industrial sources told Platts that Zhongheng's downfall was linked to the turbulence in foreign economies as well as a tightening of credit in China.
Major manufacturers of purified terephthalic acid, which is the feedstock for PET, have also faced financial difficulties. Hualian Sunshine stopped production September 29 after incurring massive losses in PTA futures and only restarted one out of three plants in November.
Dec 28, 2008 Reuters
After nursing Hualian Sunshine back to health, the Shaoxing government is now considering lending a hand to another troubled PTA maker, Zhongheng Group, whose businesses also include steelmaking and property.
One option is a roughly 150 million yuan government aid package for Zhongheng in exchange for some of its property assets, the Shaoxing government official told Reuters.
"We are still discussing ways to help out Zhongheng. I am afraid we might have to intervene when other big taxpayers here fall apart. What else can we do?" asked the official.
China's polymer industry mulls anti-dumping proposal
The China Petroleum and
Chemical Industry Association said the country's petrochemical
sector might call for anti-dumping measures on polymers to
protect the local industry.
In addition to falling exports, China is also flooded with cheap petrochemical imports from LG, SK Energy, Samsung and other multinational companies, worsening the situation for domestic producers.
According to CPCIA, ethylene production in October fell by 3% while polyethylene plunged 33%. Domestic petrochemical giants Sinopec and China National Petroleum Corp. are severely affected and suffered major losses this year.
Consequently, many petrochemical companies have proposed anti-dumping probes on South Korean goods.
Taiwanese producers, meanwhile, are confident that their polymers will not be affected. "We will be protected by the 'one-China' policy. Anti-dumping measures against the South Koreans will actually benefit us," said a polypropylene producer. "The biggest threat will come from the Middle East."
Lurgi to build an Acrylic Acid Plant in China
Lurgi GmbH, Frankfurt, a company of Air Liquide, France, in November received a contract from CNOOC Energy Technology & Services Limited, a subsidiary of China National Offshore Oil Company, to build a plant for the production of acrylic acid from propylene.
The product will in turn
be used for the production of acrylates for paints and varnishes.
The acrylate technology is provided by China Petroleum
Engineering Company, Jilin.
The scope for the single-train plant with a capacity of 140,000 t/a of estergrade acrylic acid to be realized in Huizhou in the Chinese province of Guandong comprises the license, basic engineering, certain equipment as well as technical support. The total order value amounts to around EUR 38 million. The plant is scheduled to go on stream in spring 2011.
For Lurgi this is the first order for an acrylic acid plant in China utilizing the state of the art Lurgi / Nippon Kayaku Acrylic Acid Process. The state of the art catalyst produced by Nippon Kayaku, Japan as well as Lurgi’s experience in the field of process engineering will allow for an excellent product yield and on stream efficiency.
construction for Vinyl Acetate project in Chongqing
On Dec. 29, 2008, Sichuan Vinylon Works, a subsidiary of Sinopec, held a break-ground ceremony for its Vinyl Acetate project in Chongqing Chemical Industry Park, Changshou (長壽), Chongqing.
With total investment around USD 780 million (RMB 5.3 billion), the project has 300,000 t/a Vinyl Acetate, it also has 100,000 t/a Acetylene, 100,000 t/a Polyvinyl Alcohol, and 730,000 t/a Methanol.
The feedstock for Acetylene is natural gas, which will be supplied by Sinopec through the "Sichuan-to-East China Gas Pipeline" which is started from Puguang Natural Gas Field, Dazhou, Sichuan, and to Shanghai.
The Vinyl Acetate will be produced by Acetylene and acetic acid, and then the Polyvinyl Alcohol produced by vinyl acetate. The offgas of Acetylene production will be used for Methanol synthesis.
The project got the environmental nod by the former State Environmental Protection Administration in Dec. 2007 and got approval from Sinopec Group in Jan. 2008. The project is expected to complete construction in Oct. 2010 and start trial operation in Dec. 2010.
China's import of vinyl acetate is 215 Kt in 2006 and 279 Kt in 2007. The import in 2008 is estimated around 260 Kt.
Sinopec Sichuan Vinylon Works is located in Changshou, Chongqing, it has existing Acetylene 60,000 t/a, Methanol 350,000 t/a, Vinyl Acetate 200,000 t/a, Polyvinyl Alcohol 60,000 t/a, formaldehyde 50,000 t/a, Vinyl Acetate-ethylene latex 30,000 t/a and Vinylon 20,000 t/a.
plant - Yaraco has acetic acid 350,000 t/a and esters 80,000 t/a.
Yaraco：BP 51%、Sinopec Sichuan Vinylon Works 44%、地元 5%のJV
BP と Sinopec はYARACO で65万トンの酢酸の新工場建設の覚書に調印した。2011年に生産開始の予定。
Shenhua Inaugurates Production of DCL Project
On December 31st, 2008 Shenhua Group CTL & Chemical Company got through the whole process of its 1 million t/a direct coal-to-liquid (DCL) project in Erdos, Inner Mongolia, but further adjustments shall be made to achieve a stable commercial operation.
Tianjin Lugang starts
construction for rubber project
On Jan. 2, 2009, Tianjin Lugang Oil & Rubber Company （天津陸港石油橡膠）started construction its synthetic rubber project in Dagang, Tianjin.
With total investment of USD 368 million (RMB 2.5 billion), the project includes a 100,000 t/a Styrene-Butadiene Rubber (SBR) unit, a 60,000 t/a Butyl Rubber (BR), and a 50,000 t/a Isoprene Rubber (IR).
The feedstock of synthetic rubber project will be sourced from the Sinopec Tianjin Ethylene project, which is under construction. The rubber project is expected to start up by the end of 2009, similar with the startup date of Sinopec Tianjin 1 Mt/a Ethylene Project. Although in the period of economic downturn, the Tianjin ethylene project is expected to start up by Q4 2009.
Also, Sinopec and SABIC have already signed an agreement to form a 50:50 jv for a 1 Mt/a ethylene derivatives complex (600,000 ton PE and 400,000 ton MEG) to be set up in Tianjin that will receive all its ethylene feedstock from the ethylene cracker.
Lugang Oil & Rubber Co. is a Tianjin based private company; it is also the first private company to produce derivatives by integrated with Sinopec Tianjin ethylene complex.
Tianjin Lugang Starts SBR Project
On March 16th, Tianjin Lugang Petroleum & Rubber Engineering Company started to construct a 100,000 t/a styrene-butadiene rubber (SBR) project in Dagang of Tianjin. The construction contract was won by the No.4 Construction Company of Sinopec Group.
Tianjin Lugang plans to invest RMB2.5 billion to construct three phases of petrochemical projects in Dagang site. The total investment for the SBR project is RMB800 million.
Sinopec's construction company will complete their works by the end of September this year.
After completion, this facility will supply SBR to manufacture tire in Tianjin.
Tianjin Lugang starts up SBR project
In Mid Apr. 2011, Tianjin
Lugang Petroleum Rubber Company (天津陸港石油橡膠：This is the official name of the
company, it was named as Lugang Oil & Rubber in the earlier
report) has started up and produced on-spec Styrene-Butadiene
Rubber (SBR) procuct in Dagang, Tianjin.
The project was started construction in Jan. 2009. With total investment of RMB 2.5 billion, the project includes a 100 kt/a SBR, 60 kt/a Butyl Rubber (BR), and 50 kt/a Isoprene Rubber (IR).
The commissioned project this time of 100 kt/a SBR costs the investment of RMB 840 million, which is the first stage of the total rubber projects plan. While so far, there is not disclosed schedule for the BR and IR projects.
The technology of the project is sourced from Sinopec Qilu Petrochemical Company. The feedstock is sourced from the Sinopec Sabic (Tianjin) Ethylene project, which has capacity of 1 Mt/a ethylene and has been started operation since Q1 2010.
Founded in 2008, Lugang Petroleum Rubber Co. is a Tianjin based private company; it is also the first private company to produce derivatives by integrated with Sinopec Sabic (Tianjin) ethylene complex.
authority gave nod for Fujian PX/PTA relocation project
On Jan. 12, 2009, China's Ministry of Environmental Protection (MEP) approved the relocation project of PX and PTA project in Fujian Province.
With the total investment of USD 2.02 billion (RMB 13.78 billion), the PX project is owned by Dragon Aromatics (Zhangzhou) Co. and includes 800,000 t/a PX, 160,000 tonne/year OX, 228,000 tonne/year Benzene and utilities. Among them, the investment of environmental protection is USD 122 million (RMB 830 million).
Originally, the PX project was planned in Haicang, Xiamen, but later, On Dec. 20, 2007, the project had to relocate to Gulei, Zhangzhou, for the sake of environmental protection and safety concerns. The current investment is increased to USD 2.02 billion from the original USD 1.35 billion.
Besides the PX projet, the 2nd stage PTA project of Xianglu Petrochemical will also be relocated to Gulei. With the total investment of USD 729 million (RMB 4.96 billion), the 1.5 Mt/a PTA project will be conducted by Xianglu Petrochemical (Zhangzhou) Co. Among them, the investment of environmental protection is USD 103 million (RMB 700 million).
Normally, the two projects will start construction in 2009.
2009/2/4 CCR 発表
Sinopec Group Join Hands with COFCO
Sinopec Group signed an
agreement with COFCO and Novozymes to develop
bioethanol from agricultural waste. Together the three partners
cover the entire value chain of bioethanol production and
The three partners aim to develop a commercial-scale process for producing second-generation bioethanol - cellulosic bioethanol from one type of plant crop waste: corn stover.
Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries we create tomorrow’s industrial biosolutions, improving our customers' business and the use of our planet's resources.
With over 700 products used in 130 countries, Novozymes’ bioinnovations improve industrial performance and safeguard the world’s resources by offering superior and sustainable solutions for tomorrow’s ever-changing marketplace.
1923 デンマークのノーベル賞生理学者オーグストクロー教授は、カナダのトロント大学から北欧地城でのインスリン製造の権利獲得。ノルディスクインスリン研究所（ノルディ スク ゲントフテ社前身〉を設立。 1925 ノボ セラピューティクス研究所（ノボ インダストリ一社前身）を設立。 2000 ノボ ノルディスク社は、酵素部門とヘルスケア部門を独立させ、それぞれノボザイムズ社、ノボ ノルディスク社となり、ノボグループの会社としてスタート。
February 02 2009 Novozymes
Novozymes and Sinopec sign new second-generation framework agreement in China
Novozymes and Chinese partner COFCO enter a new partnership with the major Chinese oil and energy company Sinopec to develop bioethanol from agricultural waste. Together the three partners cover the entire value chain of bioethanol production and distribution.
The three partners aim to develop a commercial-scale process for producing second-generation bioethanol from one type of plant crop waste: corn stover.
Second-generation bioethanol is expected to be able to reduce greenhouse gas emissions by at least 90% compared to oil-based fuels. Cellulosic biorefineries will require little or no fossil inputs and are likely to return power to the grid.
Biofuel is the only currently available option to limit CO2 emissions from transport. The transport sector is currently responsible for about 25% of global energy-related CO2 emissions, and its share is rising.
Steen Riisgaard, CEO at Novozymes, says: "With this partnership Novozymes has once again demonstrated its position as the leader in developing enzymes able to convert waste to fuel. This puts us one step closer to being able to produce commercial quantities of bioethanol from agricultural waste. Second-generation bioethanol production in China holds vast potential for Novozymes as the technology leader, and we expect to be the first company with enzymes ready for large-scale production by 2010."
Together, the three partners cover the entire value chain of bioethanol production.
Novozymes, the world leader in industrial enzymes, has developed conversion processes and the state-of-the-art enzymes necessary for turning agricultural waste into second-generation bioethanol.
COFCO, China National Cereals, Oil & Foodstuff Corporation, is a leading producer and supplier of processed agricultural products. COFCO and Novozymes have cooperated for the past two years and as part of that agreement, COFCO runs a small-scale pilot plant that has been in operation for two years. COFCO will continue to operate the pilot plant and contribute its knowledge on grain processing and production of biofuel.
Sinopec is the world's third-largest oil refinery. It owns around 30,000 gasoline stations and has a 60% share in China’s refined-oil market. Sinopec has rich knowledge in petroleum refinery and distribution which will contribute to the three-party collaboration on biofuel roll-out.
Bold ambitions in China
In the coming decade as we approach 2020, the number of cars in China is expected to increase significantly, which will lead to substantial growth in the demand for vehicle fuels. To meet these rising demands the Chinese government has developed an ambitious bioenergy development strategy that will boost the production of biofuels from existing technologies and develop second-generation biofuels.
"The development of sustainable bioethanol in China is of great significance both for the global climate and for China's energy supply," Steen Riisgaard says. "We believe bioethanol is the first step towards a world that is not dependent upon the diminishing oil reserves. We imagine a future where our biological solutions create the necessary balance between better business, a cleaner environment, and better lives."
CNOOC acquires HBON to
strengthen downstream business
Recently, CNOOC has wholly acquired the HBON (和邦) Chemical to strengthen downstream business in east China of the off-shore oil company.
CNOOC has completed the deal through its subsidiary in Zhejiang - CNOOC Ningbo Daxie Petrochemical Co. (CNOOC Ningbo Daxie). Now, HBON is the wholly subsidiary of CNOOC Ningbo Daxie. However, the financial details are not disclosed.
Located in Daxie island Zhejiang Province, CNOOC Ningbo Daxie is a jv between CNOOC, Hong Kong based Lewin (利萬) Group and NIngbo Beilun Power fuel Co. Among them, CNOOC has 51% shares.
CNOOC Ningbo Daxie has an existing 2 Mt/a refining facility and it will put on stream for another 6 Mt/a refining facility in late Feb. 2009, and make total refining capacity to 8 Mt/a. So then it will provide the feedstock for HBON facilities.
In Apr. 2008, the company started up its aromatics project. With total investment around USD100 million, the project has 250,000 ton/year BTX (Benezene 50,000tpa, Toluene 80,000tpa and Xylene 120,000tpa) capacity. By using UOP aromatics technology, the project can process heavy oil as a feedstock, and the BTX products will provide to East China Market. It also has a 2.4 million t/a heavy oil cracking unit, and a 1.7 million t/a distillate oil hydrofining unit.
HBON Chemical is located in Zhoushan, Zhejiang Province. Before the acquisition, HBON was a jv of Hong Kong based Deji Investment Company, Ningbo Hongbang Petrochemical and Ningbo Kaifeng Petrochemical. Deji Investment holds 60% stakes in Hebang and the other two companies hold the rest 40%.
HBON was impacted by the economic crisis, which dispersing in the Q4 2008 and makes the company difficult to operate the business. According to industrial sources, the potential competitive buyers include Sinopec, PetroChina and CNOOC, while CNOOC is the final winner.
Currently in East China market, the gasoline, diesel and aromatics product are mainly supplied by Sinopec and PetroChina, So, the acquisition of HBON will help CNOOC to strengthen its downstream business in this area.
Russia, China sign $25b energy deal
Russia and China signed a $25 billion energy deal in Beijing on Tuesday that will see China secure oil supplies from Russia for the next 20 years in return for loans, Russia's state pipeline monopoly Transneft said.
As part of the broad energy supply deal, China will lend $15 billion to Rosneft, Russia's state-owned oil major, and $10 billion to Transneft, a vital boost for energy companies as they struggle to raise capital amid straitened lending conditions and plunging oil prices.
In return, Russia promised to guarantee annual oil supply of 15 million tons (300,000 barrels per day) for 20 years to its energy-hungry neighbor.
Igor Dyomin, Transneft's press spokesman, confirmed the outline of the deal.
The signing ceremony marks an end to months of talks between the neighbors after negotiations broke down amid disagreements over interest rates and state guarantees.
Russian crude will be supplied through a long-delayed pipeline project agreed to late last year. The pipeline, which extends from western Siberia to the Pacific coast, is to be linked to China from the Siberian city of Skovorodino, 70 km north of the Sino-Russian border.
ロシアの原油パイプラインは国営会社 Transneftが管理運営する。総延長は468,000ｋ ｍ， ポンプステーション395基， 貯蔵施設868基， 総輸送能力12.7百万立方メートルで，2010年ま でに9,000ｋｍの新設が計画されているが，一 方で10,000ｋｍについて改修工事が必要と見ら れている。パイプラインに関する計画の策定は Transneftが行う。
completes next 3 years planning for petrochemical
Recently, Sichuan Government has completed the next 3 years planning for petrochemical industry.
The draft named as "Sichuan Petrochemical Industry Revival Planning" has been completed. According to the government’s planning, in the next 3 years, Sichuan Province will mainly focus on 8 industrial chain, including
Natural Gas to Ammonia, with total investment RMB 10 billion
Natural Gas to HCN, with total investment RMB 4 billion
Natural Gas to Acetylene, with total investment RMB 2 billion
Natural Gas chemical integrated with Salt-halogen chemical to develop downstream products, with total investment RMB 10 billion
Natural Gas chemical integrated with Phosphor-Sulfur-Titanium chemical to develop downstream products, with total investment RMB 5 billion
Oil Refining, Ethylene cracker and derivatives (here means the PetroChina Sichuan Complex), with total investment RMB 38 billion
Natural Gas chemical integrated with Petrochemical to develop downstream products, with total investment RMB 1.6 billion
Petrochemical integrated with Glauber's salt （硫酸ナトリウム）to develop downstream products, with total investment RMB 3.75 billion
In 2009, the government
will ensure the startup of several important projects, including
40,000 t/a Iminodiacetonitrile of Hepu Chemical (禾浦化工) in Chengdu 重慶
600,000 t/a Calcined soda ソーダ灰 of Hebang (和邦) Corp. in Leshan 楽山市
100,000 t/a Melamine of Golden Elephant Chemical (金象化工) in Meishan 眉山市
4,000 t/a Fluoro-rubber of Zhonghao Chengguang (中昊晨光) in Zigong 自貢市
50,000 t/a Glyphosate 除草剤 of Fuhua (福華) Company in Leshan 楽山市
Also, the government will make sure the kick off of other important projects, including
10 Mt/a refinery and 800,000 t/a ethylene cracker of PetroChina Sichuan in Chengdu 重慶
60,000 t/a BDO and 46,000 t/a PTMEG of Sichuan Chemical in Luzhou 瀘州市
80,000 t/a TiO2 of Lomon (龍蟒) Group in Mianzhu 綿竹市
In 2008, Sichuan Petrochemical industry was impacted by both the earthquake in May and the economic crisis in Q4. So, the Provincial Government hopes to refresh the petrochemical sector through the revival planning.
Chi Mei starts up new ABS
in Zhenjiang, total capacity up to 700 kt
Recently, Zhenjiang Chi Mei Chemical Co. (Zhenjiang Chi Mei) has started up the new 100,000 t/a ABS project in Zhenjiang, Jiangsu Province, and makes its total capacity up to 700,000 t/a and strengthens the position of No. 1 ABS producer in China.
With total investment of USD 40 million, the new ABS project was started construction in Aug. 2007. Part of equipments were purchased from Sinochem Taicang (太倉）ABS project. Originally, Sinochem planned to build 60,000 t/a ABS in Taicang, Jiangsu Province, but later the project was stopped.
In 2008 Chi Mei merged GPPC's business in Zhenjiang. Before, GPPC（国喬石化） had 250,000 ton/year ABS capacity; Chi Mei had 350,000 ton/year ABS capacity. The new company named as Zhenjiang Chi Mei Chemical, and the total ABS capacity reached 600,000 t/a. After the new project start up, Zhenjiang Chi Mei has total ABS capacity 700,000 t/a now in Zhenjiang.
Originally, the new 100,000 ton/year project was expected to start up in H2 2008. But it is delayed to Q1 2009 for the sake of economic crisis and the sharply lower-down of ABS price. Since Jan. 2009, the ABS demand and price started to refresh, as China government announced the policy of "home appliances go to rural district"（家電を地方へ）to stimulate the internal market demand.
ABS producers and capacities in China (kt/a; as of Feb. 2009)
|Zhenjiang Chi Mei||700||Zhenjiang, Jiangsu 江蘇省鎮江|
|LG Yongxing （LG甬興化工）||500||Ningbo,Zhejiang 浙江省寧波 （LG Chem 75%/甬興化工 25%）|
|Ningbo Formosa||250||Ningbo, Zhejiang|
|PetroChina Jilin||190||Jilin City, Jilin 吉林省吉林|
|PetroChina Daqing||105||Daqing, Heilongjiang 黒龍江省大慶|
|Shinho Changzhou 新湖(常州)石化||70||Changzhou, Jiangsu 江蘇省常州|
|Huajin Group （華錦化工集団）||50||Panjin, Liaoning 遼寧省盤錦|
|PetroChina Lanzhou||50||Lanzhou, Gansu 甘粛省蘭州|
Shinho(Changzhou) Petrochemical was established with investment from SH Energy & Chemical of Korea, Changzhou Plastic Group and Changzhou Xingang Economic Development Co.,Ltd,.
SH Energy & Chemical ← SH-Chemical ← Shin Ho Petrochemical
2000年にShinho(Changzhou) Petrochemical を設立、韓国からABSプラントを移設。
February 18, 2009 Xinhua
Sinopec Yizheng Fiber agrees on taking over Unifi's stake in JV
Sinopec Yizheng Chemical Fiber Co., Ltd. announced Wednesday that it agreed to take over the remaining 50 percent stake of its joint venture with Unifi Inc. for 9 million US dollars.
The two companies established the joint venture Yihua Unifi Fibre Industry Co., Ltd. in 2005, each taking a 50 percent stake. The venture produces, processes and sells polyester filament by using equipments and resources of Yizheng Fiber in China.
Headquartered in Greensboro, NC, Unifi, Inc. is a leading producer and processor of multi-filament polyester and nylon textured yarns.
Luzhou North Starts up 30 000 T/A Silicone Monomer Project 四川省瀘州市
Luzhou North Chemical
Industries Co., Ltd. (Luzhou North) recently commenced the
production of the 30 000 t/a silicone monomer project in Luzhou city of Sichuan
With an investment of RMB 430 million, the 30 000 t/a silicone monomer project is the first phase of 100 000 t/a silicone monomer project.
Besides, Luzhou North has began construction of the second phase 70 000 t/a silicone monomer project and the second phase is expected to go on stream in June 2010.
Verenex enters into acquisition agreement with CNPCI
Verenex Energy Inc.
announced that it entered into a definitive agreement on February
24, 2009 whereby a wholly-owned subsidiary of CNPC International
Ltd. ("CNPCI") has agreed, subject to the terms of the
Agreement, to make an offer to acquire all the outstanding common
shares of Verenex by way of a take-over bid (the
"Offer") for C$10.00 per share in cash.
The aggregate value of this transaction will be approximately C$499 million.
contains customary provisions prohibiting Verenex from soliciting
any other acquisition proposal but allows the Verenex Board of
Directors to accept and recommend a superior proposal upon
payment of a break fee of C$15 million (subject to a right to
match provision in favour of CNPCI).
Verenex is a Canada-based, international oil and gas exploration and production company with a world-class discovered resource base and exploration portfolio in the Ghadames Basin in Libya. Under the EPSA terms for Area 47, Verenex is the operator and holds a 50% working interest in the initial 5-year Exploration Period which reduces to 25% for any commercial developments retained in a subsequent 25-year Exploitation Period. These working interest levels reflect the Company's required share of capital funding during the periods. In any commercial development scheme, Verenex would fund 25% of capital expenditures and 6.85% of operating costs and receive an initial production allocation (free of all taxes and royalties) of 6.85%. A more complete description of the Area 47 contract terms is included in the Company's various filings on www.sedar.com.
IGCC Polygeneration Conference will be held in Shanghai, China
ASIACHEM Consulting and Shanghai Petroleum Society will jointly organize a conference about the Integrated Gasification Combined Cycle (IGCC) Polygeneration in China. in which the main chemical product is methanol.
IGCC can increase
efficiency and reduce emissions and is the keyof future advanced
coal-based poly-generation (power, H2, chemicals and fuels)
system. Integration of the IGCCand coal chemical industry as well
as poly-generation of fuel or chemicals such as methanol will be
the mainstream of future energy and chemical development.
"IGCC POLYGENERATION IN CHINA 2009” will be held in Mar. 26-27th 2009 in Shanghai. This conference offers top industrial experts, decision makers and market players to discuss trendsand challenges ahead. CO2 capture and utilization are also discussed.
Welcome to join the grand gathering to catch up the industry dynamics and explore the blue-ocean business opportunities.
Registration fee is USD 960/person For more information, please see: http://www.chemweekly.com/asiachem/igcc.pdf
Hubei Xingfa Kicks off 180 000 T/A Silicone Project
On February 15th, 2009
Hubei Xingfa Chemicals Group Co., Ltd. began the construction of
000 t/a silicone Project in Yichang of Hubei province.
According to the plan, a wholly owned subsidiary of Hubei Xingfa will invest RMB596.21 million in the two-year project.
After completion of the project, the sales revenue will be added by RMB725.36 million a year for the company.
Mar 8, 2009 Reuters
Sinopec unit gets $336
mln subsidy for refining loss
Sinopec Shanghai Petrochemical Co received over 2.3 billion yuan ($336 million) in subsidy from China in 2008 to help offset refining losses caused by low state-set fuel prices.
Cangzhou Dahua starts up
new TDI project in Hebei
Recently, Cangzhou Dahua (滄州大化) Group has started up its new TDI project in Lingang Chemical Industry Park (臨港化工區), Cangzhou, Hebei Province.
Now, the company has two TDI production sites with total capacity TDI of 80,000 t/a. One is the existing 30,000 t/a TDI plant in Cangzhou City. Another is the new completed project with 50,000 t/a capacity, which is originally planned to be started up in the end of 2008 in Lingang Chemical Industry Park, where is a development zone nearing the sea harbor.
Also, Cangzhou Dahua is preparing to expand the capacity in Lingang to 100,000 tonne/year by building a second line with capacity of 50,000 tonne/year. After the expansion, Cangzhou Dahua will have total TDI capacity 130,000 tonne/year.
In Feb., 2008, Cangzhou Dahua and SK (China) Investment Co. signed a Letter of Intent (LOI) for setting up a jv to conduct the ongoing TDI project and build other projects in Lingang Chemical Industry Park. But up to now, there is nothing further information about this proposed jv project.
According to the industrial sources, the 60,000 ton/year DNT has been started construction in Jul. 2008, and the design work of 160,000 ton/year caustic soda, and a 100,000 nitric acid project also has been started at the same time.
Cangzhou Dahua Group is a subsidiary of ChemChina, in 2006, ChemChina acquired 60% share from Cangzhou Dahua Group. Now, Cangzhou Dahua has capacities of 580,000 t/a urea, 300,000 t/a ammonia, 35,000 t/a H2O2 ans 70,000 t/a caustic soda.
China imported 128 kt and exported 8.4 kt TDI in 2007, and imported 96.7 kt exported and 14.4 kt TDI in 2008.
2009/3/19 Shanghai 関連情報
PDVSA to build large scale refinery in Guangdong
On Mar. 12, 2009, PetroChina and Guangdong Provincial Government signed a strategic cooperation agreement, to build a large scale refinery in Huilai (惠来), Jieyang City 掲陽市, Guangdong Province.
With the estimated total investment of USD 8.1 billion (RMB 55 billion), the proposed refinery project will have 20 Mt/a capacity of oil processing. The feedstock will secured by PDVSA of Venezuela. PetroChina and PDVSA will jointly build the refinery and the share of PetroChina will not be less than 51% in the proposed jv project.
The project is now in the stage of feasibility study and the proposal will be sent to NDRC this year, and it is expected to get god from NDRC in H1 2010. So, PetroChina will start construction in 2010 and complete it in 2013. According to the industrial sources, PetroChina has a long term planning to expand the 20 Mt/a to 50 Mt/a in the future, and also build a new 1 Mt/a ethylene in the same site, to make Huilai to become an important petrochemical base of PetroChina, like the Sinopec Zhenhai in Zhejiang Province.
Also in Guangdong, the 12 Mt/a new refinery of CNOOC has completed the construction, and it is expected to start trial run in the coming days.
日量万バレルｘ 58＝ 年間 万キロリットル
日量万バレル ｘ 53＝ 年間 万トン （石油の比重が0.9の場合の重量トン）
CNOOC starts up 12Mt
refinery in Daya Bay
Recently, CNOOC has started up its refinery in Daya Bay, Huizhou, Guangdong Province.
With total investment of the RMB 17 billion, the refinery has oil processing capacity of 12 Mt/a (250,000 barrels/day), and the feedstock of crude oil is sourced from CNOOC's Penglai offshore field in Bohai Bay(渤海湾の蓬莱油田).
CNOOC got the approval from government for this refinery project in 2004, and start construction in Dec. 2005. Originally it was expected to start up in H1 of 2008, but delayed for the sake of economic crisis and the market demand drops of refined oil products.
It will take around one-and-half months to start up all its 16 processing facilities, before the new refinery can enter normal operations, according to CNOOC. And the new refinery will be run in a rate of 70-80 percent of operations as the market is not good enough from May 2009, and it is estimated that the average operations rate of main Chinese refineries should be near 90 percent this year.
The refinery will provide 1.5 Mt naphtha per year for the cracker of CNOOC-Shell, and 7.3 Mt refined oil products (high quality gasoline, diesel and kerosene meeting the requirement of EURO III and IV standards) and 800,000 tons of PX for the market of Guangdong Province.
(Currently, CNOOC-Shell uses condensate imported mainly from Iran and Qatar.)
Also, CNOOC has planned to expand the refinery to 20 Mt/a from the 12 Mt/a by 2011, and build a new ethylene project with capacity of 1 Mt/a.
The refinery and the new ethylene project are still in the feasibility study. Up to now, there is no disclosed information shows CNOOC will jointly conduct the plan with Shell.
Once Shell wanted to join this refinery, in the original proposal, the refinery was integrated with the ethylene project.
But firstly, the NDRC only approved the ethylene project.
(The reasons are sensitive and complicated; one of them is CNOOC had not the license plate of selling refined oil products at that time).
Later, NDRC approved the refinery, while Shell did not join the project as it need a long time for the decision from headquarter of Shell, but CNOOC need conduct the refinery as soon as possible.
Yitai Starts Up 160 000 T/A Indirect CTL Project
On March 20th 2009, Inner
Mongolia Yitai Co., Ltd. (Yitai) starts up its 160 000 t/a
indirect CTL (coal to liquid) project and get the on-spec first
barrel of oil product in Dalu New Distrct, Erdos, Inner Mongolia.
ASIACHEM believes in that it is a symbol of the commercialization
of the CTL process of Chinese intellectual property.
Hanbon (Jiangyin) Received Loan to Finance PTA Project
Hanbon (Jiangyin) Petrochemical Co., Ltd. 漢邦（江陰）石化有限公司 signed an agreement with banks on March 18th to get consortium loan of RMB1.2 billion for financing its ongoing purified terephthalic acid (PTA) project in Jiangyin, Jiangsu province.
600,000 tonne/y PTA project kicks off in China
Hanbon (Jiangyin) Petrochemical Co Ltd, a 85:15 joint venture between Jiangyin Chengxing Industrial Group Co Ltd 江陰澄星実業集団and Hong Kong Hanbon Petrochemical Co Ltd, 香港漢邦石化有限公司is to spend about RMB Yuan 2.77 bn on a 600,000 tonne/y purified terephthalic acid (PTA) project at Jiangyin in Jiangsu province, China.
The project, which will use PTA technology and processes imported from overseas, is scheduled to start up in 4Q 2009. Completion of the project is expected to generate sales of more than RMB Yuan 6 bn/y and help to ease the tight supply situation for PTA in eastern China.
江蘇澄星燐化工はグループの中核企業で、リン酸化工製品の生産経営に従事しております。年間総合生産能力は50万トンを超え、主な製品は黄リ ン、リン酸、ナトリウムトリポリ燐酸(STPP)、第二リン酸カルシウム(DCP)、ポリリン酸、ピロリン酸ナトリウム、ヘキサメタリン酸ソーダ (SHMP)、二リン酸カリウム、炭酸カルシウムとその他の金属ナトリウム、カルシウムとリン酸二カリウム等です。製品は工業、食品、薬品などの分野で幅 広く使用されています。
Sichuan Xinwanxing Kicks off 1 000 t/a Carbon Fiber Project 四川省新萬興瓷業
(Group) Ceramics Co., Ltd (Sichuan Xinwanxing) recently commenced
the construction on the 1 000 t/a carbon fiber project in Leshan
of Sichuan province.
With a total investment of RMB1.2 billion, the project occupies an area of 40 hectares and is expected to go on stream in December 2010.
After completion of the project, the sales revenue will be added by RMB5.0 billion a year for the company.
2009/4/10 Asia Chemical Weekly
IGCC Mechanical Construction Completed in Fujian
3rd of 2009, China’s first Integrated
Gasification Combined Cycle (IGCC) unit was
mechanically completed and handed over to the owner, Fujian Refinery & Ethylene
Project. This is also the first completed
large capacity gas/power/chemical multiple cogeneration project
in China of great environment and energy conservation
As a utility facility in Fujian Refinery & Ethylene Project, the IGCC unit is critical to operation of the whole refinery & ethylene complex. Designed based on Shall Partial Oxidation (POX) process, construction of the IGCC unit was contracted to Sinopec Ningbo Engineering Co. The unit will, based on feed from a solvent deasphalting plant, supply part of hydrogen, most of SHP steam and part of electricity needed by the whole complex. The unit is designed of 280MW power generation in addition to 8000Nm3/h hydrogen capacity, as well as by-produced nitrogen and oxygen to meet the newly added demand from process units.
Fujian Refinery & Ethylene Integrated Project is located in Quangang District of Quanzhou City, Fujian Province, and invested by Sinopec, Fujian Province, ExxonMobil and Saudi Aramco as joint partners. The project can be divided into the three major sections of ethylene, IGCC and PX. Total investment on the IGCC unit was more than CNY4bn. The unit occupies an area of around 9.81 hectares and consists of the sub-units of air separation, POX and COGEN etc.
BASF delays ethylene
expansion and MDI project in China
Recently, a senior official of BASF told Chinese media that the company will delay two proposed projects - the jv ethylene expansion project in Nanjing, Jiangsu Province and the greenfield MDI in Chongqing.
According to the company, because the global economic crisis and the weak market demand, BASF will delay the two proposed projects, but the new schedule for these projects is not disclosed.
The jv ethylene expansion project is operated by YPC-BASF, which was planned to expand ethylene capacity to 750,000 ton/year from 600,000 ton/year by H2 2009 or H1 2010.
The proposed MDI project is located in Chongqing Chemical Industry Park (CCIP) Chongqing, which has capacity of 400 kt/a crude MDI to meet growing demand for this product in China. BASF has signed a MOU for the MDI project in Jun. 2007 with Chongqing Chemical and Pharmaceutical Holding (Group) Company and local authorities. And the project was expected to start up in 2012.
For the Chongqing MDI project, BASF also faced with the argument about the environment issues.
On Jan. 2009, BASF got environmental approval from China’s Ministry of Environment Protection (MEP) for its proposed MDI project in Chongqing, with total investment of USD 1.18 billion, the project includes 400,000 t/a nitrobenzene, 300,000 t/a aniline, 400,000 t/a crude MDI and refining facility, 20,000 t/a MDI pre-polymer, storage facility and other utilities. According the BASF, the MDI project will use the most advanced technologies in environmental protection and met China's standard for discharge of pollutants.
But after the environmental approval disclosed, some Medias and environment protection organizations argued that if there is a huge risk of water resources safety as the MDI project may impact the Yangtze River and the Three Gorges Reservoir area.三峡ダム
It is reported that BASF will suspend expanding capacity on a large scale of a petrochemical project in Nanjing, China. The Chairman, Mr He Binjie, said that they decided to suspend the expansion scheme of ethylene cracking plant in Nanjing, considering there would be no rebound in the global chemical market this year.
The executive director of BASF, Pu Mule who is responsible for the East Asian market stressed that BASF has not given up plans to expand capacity, but has only decided to delay the pace of investment due to the current market conditions and will review the expansion as soon as the situation improves.
The project is a joint venture in Nanjing with China Petrochemicals entailing an investment of US $900 million aimed at expanding the ethylene cracker capacity from current 600,000 tons per year to 750,000 tons.
1 MLN T/A Refinery Came
on Stream in Jilin Province
Jilin Nong'an Xinda Oil Group Co., Ltd. put a 1 million t/a refining facility into operation on April 8th.
Xinda Oil, located Nong'an County, Jilin province吉林省農安県, plans to expand the refining capacity to 5 million t/a in the next five years.
Sinopec Qilu starts up
SBR project in Shandong
In mid Apr. 2009, Sinopec Qilu Petrochemical started up its new SBR project in Zibo, Shandong Province, and makes the company’s total SBR capacity reached 250,000 t/a.
The project was started construction in Mar. 2008, with the total investment about USD 88 million (RMB 600 million), the project has designed capacity of 100,000 t/a, which help the total SBR capacity of Sinopec Qilu expanded to 250,000 t/a from the previous 150,000 t/a.
Earlier, in Dec. 2008, Bridgestone (Huizhou) Synthetic Rubber Company (BSRC) a whole subsidiary of Bridgestone Group has started up 50,000 t/a SBR project in Daya Bay, Huizhou, Guangdong Province.
In 2008, the production of SBR of China is around 765 kt, and the net import is around 183 kt.
SBR producers and capacities in China (kta, as of 2009.4.21)
PetroChina Jilin Petrochemical
Jilin City, Jilin
PetroChina Lanzhou Petrochemical
Sinopec Maoming Petrochemical
Sinopec Qilu 斉魯 Petrochemical
Sinopec Gaoqiao Petrochemical
Shenhua Chemical Industry
Bridgestone (Huizhou) Synthetic Rubber
Note: The official website of Sinopec Beijing Yanshan Petrochemical shows that the company does not produce SBR now, it produces BR and SBS.
Bridgestone (Huizhou) Synthetic Rubber Co., Ltd.
能力 ：SBR 約50千トン
備考 ：総投資額約1億米ドル 2008年上期生産開始予定
＊ 北米には２工場（Firestone Polymers）
このうち、Shenhua Chemical Industry（申華化学）
Yankuang Cathay starts
construction for new Acetic Acid project
On Apr. 18, 2009, Yankuang Cathay Coal Chemical Co., Ltd (YCCC) started construction for its new Acetic Acid project in Tengzhou, Shandong Province.
This is the 3rd stage project of YCCC. With total investment around USD 540 million (RMB 3.68 billion), the project has designed Acetic Acid capacity of 400,000 t/a.
In Nov. 2005, YCCC put on stream its 1st stage Acetic Acid project with capacity 200,000 t/a. Later, the company had expanded it to 300,000 t/a.
In Aug. 2007, YCCC started construction for its 2nd stage Acetic Acid project in the same site. With the investment of USD 240 million, YCCC built a new 300,000 t/a Acetic Acid and 100,000 t/a ethyl-acetate project. It was started up in Oct. 2008, ahead of the originally planned H2 2009.
After the startup of the 3rd stage project, YCCC will have total Acetic Acid capacity of 1 Mt/a in Tengzhou, Shandong Province.
YCCC is a 70:30 jv of Yankuang Group and US based Cathy Coal chemical Holding Co. Yankuang Group is a large scale state-owned company focusing on Coal production and Coal chemical industry.
China produced 1.71 million ton and imported about 0.31 million ton Acetic Acid in 2008.
Capacity of AA in China is as follow. (thousand tons)
Jiangsu Sopo 江蘇索普
BYACO 500kt/a AA is expected to start up in 2009.
**Celanese is building the second 600kt/a AA in Nanjing, to expand total capacity to 1.2 Mt/a in 2009 or 2010.
*** Yankuang Cathay 3rd prjoect (400kt AA) is expected to start up in 2012.
能力の →XX は2009/11現在
Xinjiang Liye Tianfu Kicks off Large Methanol Project
Xinjiang Liye Tianfu
Energy Co., Ltd. recently held a ceremony for starting the
construction of a 2.4 million t/a coal-based
in the North Industrial Park of Shihezi Development Zone,
With a total investment of RMB12.0 billion, the project is planned to be completed within five years. The first phase with an investment of RMB1.4 billion has a capacity of 300 000 t/a methanol, and is expected to be completed and go on stream in 2011.
Liye Group 深セン立業集團有限公司 is a large investment holding company based in Shenzhen, who enters a cooperative investment agreement with Tianfu 天富 Thermal Power Limited to set up Liye Tianfu Energy Co Ltd with the business scope involving mainly the production of coal chemicals and sales and marketing of relevant products. Liye Group and Tianfu own 60% and 40% of the JV’s registration capital of CNY400mn respectively.
China Daily 2009/4/27
CNOOC, Datong to build coal-to-gas plants
A unit of China National Offshore Oil Corp (CNOOC) plans to build plants to turn coal into natural gas, oil products and other chemical products, in partnership with Datong Coal Mine Group大同煤鉱（集団）有限責任公司, the Datong city 山西省大同市 government said on Monday.
Through the project, the firms aim to produce 4 billion cubic meters of coal-based natural gas a year, in addition to diesel, gasoline and other chemical products, a statement on the city government website said.
The total investment in the project, to be located in Datong, China's "coal capital", is estimated at 30 billion yuan ($4.39 billion), the statement said. But it did not give details, including a timeframe for construction or on shareholding in the project.
China Daily 2009-05-06
CNOOC in 30b yuan coal-to-gas enterprise
CNOOC New Energy Investment Co Ltd, a wholly owned subsidiary of China National Offshore Oil Corp (CNOOC), and Datong Coal Mine Group will invest 30 billion yuan in a coal-to-gas project in Datong, Shanxi province.
CNOOC, China's top offshore oil and gas producer, said the investment would go towards building the coal-to-gas plant with an annual capacity of 4 billion cu m of natural gas, and construction of supporting projects including two coal mines each with an annual output of 10 million tons, relevant coal washing mills and coal gangue-fired power plants.
Apart from natural gas, the plant will also produce diesel, gasoline and other chemical products, the company added.
It is estimated that the coal-based clean energy project will pull in roughly 26 billion yuan in sales for CNOOC and Datong combined.
But, the company has not disclosed a detailed timetable for the construction and operation of the plant.
The project aims to tap Datong's vast coal reserves and increase the supply of clean and reliable natural gas to Shanxi province and the Bohai Bay Rim area, which covers regions such as Shandong, Liaoning, Hebei and Tianjin, China's engines of growth.
The company said the project would also boost the energy structure in those regions, as more clean energy would be supplied.
Jilin Connel Starts up 150 000 T/A Aniline Project
On April 5th, 2009 Jilin
Connel Chemical Industry Co., Ltd. (Jilin Connel) commenced the
production of 150 000 t/a aniline project in Jilin
Economic-Technological Development Zone, Jilin city, Jilin
With an investment of RMB850 million, the project is the first phase of 300 000 t/a aniline project.
On March 28th, 2007 Jilin Connel held the ground breaking ceremony for its 300 000 t/a aniline project.
The whole production line in the company includes nitrobenzene nitrobenzene, C6H5NO2, very poisonous, flammable, pale yellow, liquid aromatic compound with an odor like that of bitter almonds.
The 300 000 t/a aniline project will be executed into two phases. The first phase is expected to be completed at the end of 2007 to achieve the capacity of 150 000 t/a aniline and some aniline downstream products. With an investment of nearly RMB400 million, the second phase will construct another 150 000 t/a aniline production line, which is expected to be completed at the end of 2009.
China added to its shopping cart of Australian mining assets Friday, with China Nonferrous Metal Mining Co. set to pay A$252 million ($184.2 million) for a majority stake in rare-earth mineral miner Lynas Corp., a producer of special materials found in products ranging from fluorescent light bulbs to flat-screen televisions and hybrid cars.
Lynas will issue 700
million new shares at 36 Australian cents each to China
Nonferrous, pending approval by regulators, the miner said in a
statement filed Friday with the Australian Stock Exchange.
As part of the deal, China Nonferrous will provide guarantees to help Lynas secure financing from Chinese banks for two loans worth $104 million and $80 million. Lynas said the second loan is not needed immediately but is to be made available at the request of its board. About 655 million Lynas shares are already on issue.
Lynas' shares jumped 51% on the news in Sydney Friday, ending at A$0.45.
The Sydney-headquartered miner said the share sale and loan guarantees should bolster its capital resources by a combined A$522 million. About $286 million in funding will go towards developing the first phase of the Mt Weld rare-earths deposit in Western Australia. The deposit, which the miner says is the world's richest ore body of rare-earth minerals, holds deposits in titanium, niobium and scandium, among other ores.
Friday's announcement of China's growing ambitions to secure stakes in Australian resource assets comes amid mounting political fire. The leader of Australia's main opposition Liberal-National coalition party, Malcolm Turnbull, said Friday his party opposes the $19.5 billion investment bid by Aluminum Corp. of China Ltd., or Chinalco, for a sake in Rio Tinto
China Nonferrous Metal Mining Co.
At present, the projects both under development and operation include: Chambishi Copper Mine of Zambia, Tumurtin-Obo Zinc Mine of Mongolia, Vietnam Taknon Aluminium Project, Letpadaung Copper project of Burma, Mongolia Oyu Tolgoi Copper-Gold Project , etc. The project resource volume under operation includes 31 million tons of copper, 580 tons of gold, 2.67 billion tons bauxite. CNMC is the enterprise which develops the most overseas nonferrous metal resources in China.
Apr 20, 2009
Arafura and Chinese partner seal $24m investment deal
The $24 million equity
investment agreement between Arafura Resources Limited and the
Jiangsu Eastern China Non-Ferrous Metals Investment Holding
Company was sealed at a formal signing ceremony in Darwin today.
The investment delivers the Chinese company, a subsidiary of the East China Exploration & Development Bureau (ECE), up to a 25% interest in Arafura.
Arafura Managing Director Alistair Stephens confirmed Arafura will direct the proceeds from the ECE investment to actively progress the development timetable for the company s Nolans rare earths-phosphate-uranium project in the Northern Territory.
Mr Stephens paid tribute to the many years of dedicated promotion by the Northern Territory Government to involve Chinese companies in the exploration and development of assets in the Territory.
It is pleasing that the ceremony to confirm the strategic partnership between Arafura and the ECE was held in Darwin in the presence of Northern Territory Minister for Primary Industry, Fisheries and Resources, the Hon. Kon Vatskalis, he said.
Arafura respects ECE as a highly strategic and influential partner with renowned expertise in mineral exploration and development.