Energy Insider: China to Sell 7.38 Million Barrels From Crude Reserves

In today’s Caixin energy news wrap: Chifeng Jilong Gold Mining to invest $1.46 million in MetalsTech; Aluminum prices reach 15-year high in China; China-Africa sea-rail transport service in operation; supplier withdraws $74.5 million of orders with CATL; Tianqi Lithium resumes listing plan in Hong Kong; China’s coal production rises 0.8% in August.

China to release 7.38 million barrels crude to lower oil prices

China will auction off 7.38 million barrels of crude oil from strategic reserve Sept. 24. The unprecedented move by the world’s top oil importer is an attempt to intervene in the global oil market to push down prices, which rose roughly 40% this year. Besides oil, China faces surging costs for coal and natural gas.

Chifeng Jilong Gold Mining to invest $1.46 million in MetalsTech

Chifeng Jilong Gold Mining signed a strategic investment agreement via a subsidiary with Australian mining services provider MetalsTech Ltd. to invest A$2 million ($1.46 million) in exploration of the Sturec Underground Gold Mine in Slovakia. It’s another move by Chifeng to invest overseas. It planned to buy the Bibiani mine in Ghana from Australian gold miner Resolute last year, but the acquisition was canceled when the mining lease was terminated.

Aluminum prices reach 15-year high in China

Chinese aluminum prices climbed more than 50% since the start of this year to a 15-year high of 24,000 yuan ($3,720) per ton. Aluminum is extensively used in lithium-ion batteries, and demand is surging amid a boom in the electric vehicle industry. Production is affected by tightening output limits in China, which reinforced worries about an aluminum shortage. Last week, China’s southwest Yunnan province, a major aluminum producer, told local smelters to slash output to reduce greenhouse gas emissions.

China-Africa sea-rail transport service in operation

China-Africa sea-rail transport service started operation Wednesday. Goods are delivered by freight trains from Central China’s Hunan province to ports in the Greater Bay Area and then transferred by ship to Africa. The new service shortens logistics time to East Africa by 10 days compared with traditional river-sea transport.

Supplier withdraws $74.5 million of orders with CATL

Jingshi Electromechanical Technology Co. Ltd., a wholly owned subsidiary of lithium-ion battery material supplier HNAC Technology Co., withdrew 480 million yuan ($74.5 million) of orders with Contemporary Amperex Technology Co. Ltd. (CATL). Jingshi said it dropped the orders because of a change in project locations and technical conditions and lack of production capacity.

Tianqi Lithium resumes share sale plan in Hong Kong

Leading lithium producer Tianqi Lithium Corp. resumed a three-year-old plan to sell shares in Hong Kong. The company plans to issue stock equal to as much as 20% of its total issued share capital and use the funds to increase capacity, cover operating costs and pay debt. Tianqi Lithium planned to raise as much as $1 billion on the Hong Kong Stock Exchange three years ago but called off the listing because of a lower-than-expected valuation.

NDRC calls for actions to stabilize coal supply

The National Development and Reform Commission (NDRC) urged provincial governments and state-owned enterprises in a recent meeting to secure coal supplies. If necessary, local governments should organize power generation and heating plants to sign additional medium and long-term coal supply contracts.

China’s coal production rose 0.8% in August

China reported coal production of 340 million tons in August, swinging from a year-on-year drop of 3.3% in July to a 0.8% rise, data from National Bureau of Statistics shows. Coal imports soared 35.8% to 28.05 million tons.

Jilin Power to buy part of State Power unit

Jilin Power Share Co. Ltd. (000875.SH) plans to acquire some of the clean energy business of China Power International Development Ltd., a Hong Kong-traded subsidiary of State Power Investment Corp. Ltd., one of China’s “Big Five” state-owned power generators. Jilin Power intends to issue new shares to China Power, which will become its controlling shareholder under the plan.

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