Resources boom further strengthens NSW/China ties

The New South Wales minerals sector is playing an increasingly important role in further strengthening ties between Australia, China and businesses based in both countries.

China’s demand for raw materials such as coal is leading to direct investment in NSW and a growing market for the export of mining technology and expertise.

China is the world’s powerhouse economy and the importance of its demand for our mineral exports cannot be underestimated.

The value of NSW mineral production in 2004-05 may reach as high as $9 billion, an increase of over 30 percent over the previous year – much of it driven by China.

NSW has hosted many high-level Chinese Government and business delegations, including:

• The People’s Government of Shanxi Province;
• The People’s Government of Shandong Province;
• Shanghai Industrial Investment (Group) Co Ltd;
• China Petrochemical Corp (Sinopec);

There are terrific opportunities for the development of close relationships in the areas of safety and education, mining technology and equipment.

The Chinese Government is determined to improve mine safety and productivity standards. In September last year the signing of a Memorandum of Understanding (MoU) on a joint venture between Singleton’s Australian Mining Services International (AMSI) and the State Administration of Coal Mining Safety (China) took place.

This deal was great recognition for the Hunter mining industry and is potentially worth hundreds of millions of dollars in export earnings for the Hunter and the State.

The Yanzhou Coal Mining Limited’s last year purchased the former Southland Colliery, at Cessnock in the Hunter Valley. An underground fire in early 2004 led to the mine’s closure, with the loss of 220 jobs.

Yanzhou was also granted an exploration licence for an area adjacent to the existing mine.

NSW is highly prospective for metals, especially copper and gold and industrial materials such as mineral sand and is recording high levels of exploration expenditure.

In the September quarter 2004, NSW mineral exploration expenditure of $17.2 million was the highest quarterly figure in NSW since June 1999.