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PRESS RELEASE: Jinchuan International (02363.HK) Announces Annual Results for the Year Ended 31 December 2013

Revenue Increased by 21.2% to Approximately US$742.2 million

Profit Attributable to the Owners Increased approximately 354.7% to Approximately US$203.9 Million

Hong Kong, Mar 20, 2014 – (ACN Newswire) – Jinchuan Group International Resources Co. Ltd (the “Company”, together with its subsidiaries, collectively referred to “the Group” or “Jinchuan International”, Stock Code: 2362) today announced its annual results for the year ended 31 December 2013 (the period under review)*. For the year ended 31 December 2013, the Group’s revenue amounted to approximately US$742.2 million (2012: US$612.2 million), representing a significant increase of approximately 21.2%. This increase in revenue was due to the Group’s increased sales of copper from its operating mines and also the increase in trade volume from its international trade. Profit attributable to the owners of the company increased for approximately 354.7% to approximately US$203.9 million. Basic earnings per share was US cents 4.69 (2012: US cents 1.05 ). The Directors do not recommend final dividend for the year ended 31 December 2013.

Mr. Yang Zhiqiang, the Chairman of Jinchuan Group and the Chairman of the Board of the Directors and Chief Executive Officer of Jinchuan International said, “2013 was a landmark year for the Group’s transformation into a global metal mining company. To in line with the Company’s strategy to transform its business to the mineral and metal resources sector, the Group had completed acquisition from Jinchuan Group of a high grade copper and cobalt mining asset in Africa and had achieved turning its core business into a pure mining play, with its growing international metal related trading to support a steady revenue stream for the Group. The Group will continue to maintain high profitability through competitive differentiation strategies of copper business, to further optimize market segment and to broaden the scope of application of special copper metal.”

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Nickel Enters Bull Market as Supply Concerns Mount After Crimea – by Maria Kolesnikova (Bloomberg News – March 18, 2014)

http://www.businessweek.com/

Nickel entered a bull market on speculation Russian supplies will be disrupted at a time when some shipments are already banned in Indonesia.

Last year’s worst performer among industrial metals trading on the London Metal Exchange is this year’s best, gaining 16 percent and on track for the first annual gain since 2010. Prices fell 24 percent in 2011 after touching $29,425 a metric ton in February that year, the highest since April 2008. Indonesia, the biggest producer of mined nickel, banned ore exports in January.

The U.S. and the European Union slapped sanctions on Russia after a disputed vote in Crimea paved the way for President Vladimir Putin to annex the region from Ukraine. Russia’s OAO GMK Norilsk Nickel is the world’s biggest producer of the metal used to make stainless steel. The price reached a record $51,800 in May 2007.

“Nickel has enjoyed the support from expectations that a potential supply deficit is building,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. “Nickel suffered some of the biggest losses since the peak in 2011, and on that basis, many funds may view the upside potential as quite significant.”

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Nickel prices affected in wake of Ukraine-Russia crisis – by (CBC News Sudbury – March 18, 2014)

http://www.cbc.ca/sudbury/

A recent upswing in nickel prices is being attributed to Russian President Vladimir Putin’s policies towards Ukraine — and the threat of international sanctions against the Putin regime could have big ramifications for the commodity.

Monday’s sanctions by Canada and the United States were mostly aimed at individuals, but some observers suspect Russia’s nickel exporters, and other industries, will be next on the list.

Sudbury representatives for nickel mining companies like Vale declined a request for comment, but analyst Donald Rumball, a Toronto-based analyst who studies the Sudbury mining market, said the price fluctuation probably won’t last.

“Well, the problem with sanctions is very porous,” he said. “If Russia was stopped from selling nickel, what would stop it from selling to China and Indonesia and Vietnam and who else.”

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World Bank scornful of Indonesia’s mineral ore ban – by Jonathan Thatcher (Reuters India – March 18, 2014)

http://in.reuters.com/

JAKARTA – (Reuters) – The World Bank delivered a blunt assessment of Indonesia ban on mineral ore exports on Tuesday, warning that it would hit trade and government revenue and risked undermining already weak investor sentiment towards Southeast Asia’s biggest economy.

Implemented in January, five years after the law was initially passed, the ban has been met with confusion in the mining sector.

It was introduced to encourage mineral processing in Indonesia in order to increase the value of exports. But, one group of mining companies has mounted a legal challenge, warning that the ban on exports will force them out of business.

“The long term gains are at best uncertain,” Jakarta-based World Bank economist Jim Brumby said, adding there were no success stories elsewhere in the world where countries had tried to impose similar bans.

Brumby was speaking at the launch of the Bank’s quarterly economic report. The World Bank estimated that for the period 2014-2017, the negative impact on net trade could be $12.5 billion because of the loss of export revenue while capital goods imports, to build smelting capacity, will have to rise.

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Nickel’s run rekindles sale hope – by Barry Fitzgerald (The Australian – March 17, 2014)

http://www.theaustralian.com.au/business

SURGING nickel prices have boosted interest in a planned sale by Chinese-controlled MMG of its mothballed Avebury nickel mine on Tasmania’s west coast, which was developed at a cost of $880 million.

Nickel’s price surge — brought on by Indonesia’s export ban on laterite nickel ores — has already prompted BHP Billiton to put out the feelers on a sale of its West Australian nickel business, valued at up to $1 billion, because of the strategy of chief executive Andrew Mackenzie to focus on the “four pillars” of iron ore, coal, copper and petroleum.

Unlike the rest of the metals, nickel has started the year strongly, rising 13 per cent to a 12-month high of $US7.14 a pound. The rise for the stainless steel ingredient is a response to the tightening in supplies caused by Indonesia’s mineral ore export ban taking effect in mid-January.

The ban is an attempt to compel more value-adding to Indonesia’s mineral exports through the development of onshore processing operations. The country is the world’s biggest exporter of nickel and is the main supplier of low-grade nickel laterite ores to China’s nickel pig iron industry.

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BHP workers brace for uncertainty – by Neale Prior (The West Australian – March 10, 2014)

http://au.news.yahoo.com/thewest/

Nickel West workers are bracing for a year of uncertainty as mining giant BHP Billiton embarks on a formal campaign to sell the underperforming mining and processing wing.

After slashing the book value of the operation by $US1.6 billion, BHP is believed to have appointed international investment bank Goldman Sachs to find a buyer.

The Goldman Sachs appointment leaked over the weekend via The Australian Financial Review after speculation building out of London last week that BHP was offloading its WA poor relation.

The nickel arm has been starved of capital and sits outside BHP’s favoured areas of iron ore, coal, petroleum and copper.

The sale push puts the jobs of up to 2000 employees and contractors in play and fans fears that BHP could close all or part of the division if it cannot reach acceptable sales terms.

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Norilsk Nickel Turns its Attention to the Environment and Tier 1 Assets – by Vladislav Vorotnikov (Engineering and Mining Journal – February 2014)

http://www.e-mj.com/

Something happened on the road to the Voronezh project; environmental activists backed by Putin convinced Russian nickel miners to clean up their act

MMC Norilsk Nickel, the largest mining company in Russia and one of the world’s largest nonferrous base-metal miners, faces very serious pressure from the community and Russian environmental protection organizations. They claim that the company’s activity harms the health of surrounding citizens and nature. These pressures combined with weaker prices for metals are raising future performance standards for the company.

In terms of total world production, Norilsk Nickel mines palladium (41%), nickel (17%), platinum (11%), cobalt (10%, concentrate) and copper (2%). Domestically, the company accounts for all of the platinum production, most of the nickel (96%), cobalt (95%) and a majority of the copper (55%). As an industrial leader, it plays a crucial role in the Russian economy, accounting for about 4.3% of all Russian exports, 1.9% of GDP, 2.8% of total industrial output and 27.9% of output of the non-ferrous metallurgy industry.

Recently Norilsk Nickel updated its development strategy, which, as confirmed by top management, dramatically changes its course for the coming years. The primary focus of development in accordance with the new plan will be on large assets, possibly including Voronezh, the last large non-developed nickel deposit in Europe.

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Update 1 – Vale back at work on Ontario nickel project – by Allison Martell and Euan Rocha (Reuters U.S. – February 3, 2014)

http://www.reuters.com/

(Reuters) – Vale SA’s Canadian unit has resumed work on its Copper Cliff Deep nickel project in the Sudbury basin and expects to complete a feasibility study by the end of the year, a company executive said on Monday.

The project is expected to cost somewhere in the range of a billion dollars to build and could be one of the unit’s lower-cost operations, said Kelly Strong, Vale’s vice president of Ontario and UK operations.

If it goes ahead, the revised project, now dubbed Copper Cliff Mine, would be another boost for the Sudbury basin in northern Ontario, where Vale recently opened Totten, its first new mine in more than 40 years. “It’s going to look a little bit different than the original project – it’s going to be three phases,” said Strong.

The project would merge and expand what are now two separate mines. Its earlier incarnation was put on hold in the wake of the 2008 financial crisis. In 2010, Vale Canada said it was re-evaluating the project, though work did not proceed.

The first of the three phases could start producing within the next two to three years, Strong told Reuters. A final go-ahead will depend on the project securing a green light from Vale’s board in Brazil.

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Vale Sees Nickel Over $20,000 a Ton on Indonesia Ban – by Liezel Hill (Bloomberg News – February 25, 2014)

http://www.bloomberg.com/

Nickel will climb significantly in 2015 and may advance to more than $20,000 a metric ton in the next few years because of Indonesia’s ban on ore exports, said Vale SA (VALE5), the world’s second-biggest producer.

The restrictions that Indonesia put in place last month probably won’t be eased, Peter Poppinga, executive director for base metals at the Rio de Janeiro-based company, said in a Feb. 21 interview. Big price movements are unlikely this year because of the high level of stockpiles in China, he said.

The largest nickel-ore producer banned the export of unprocessed ores in January as it tries to transform itself into a maker of higher-value products. Nickel, used to make stainless steel, climbed 3 percent this year, beating all other base metals in London as Barclays Plc forecast that the curb will help to shift the global market to a deficit from 2015. Vale last week opened its Totten nickel mine in Ontario after investing about C$760 million ($686 million) in the project.

“Next year I see the nickel price jumping quite significantly,” Poppinga said in the interview at the mine. “It is about Indonesia today, everybody knows that. The ore ban is in place and it’s holding, and I think the authorities in Indonesia are very reasonable and very serious about that.”

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Vale’s Totten Mine opens after three-year delay – by Jonathan Migneault (Sudbury Northern Life – Feb 21, 2014)

http://www.northernlife.ca/

It started as a hole in the ground, but after a $760-million investment, Vale’s Totten Mine had its official opening Friday.

Dignitaries from around the province, including Ontario Premier Kathleen Wynne, Sudbury Mayor Marianne Matichuk, and Michael Gravelle, the province’s minister of Northern Develoment and Mines, gathered around the ceremonial ribbon to welcome Vale’s sixth mine in the Sudbury region, and its first to open in nearly 40 years.

Subury MPP Rick Bartolucci, Ontario’s former minister of Northern Development and Mines, had was not present at the ceremony due to a prior commitment. “The 200 jobs that are being created as a result of the Totten Mine will support families and will fuel the economy of this region,” Wynne said at the grand opening.

The premier said the provincial government has an important role to play in developments like the Totten Mine by creating a regulatory environment that encourages businesses to invest and prosper.

The mine was supposed to open in 2011, but a number of factors, including the global economic crisis in 2008 and 2009, slowed Vale’s progress.

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Vale ‘Not in Hurry’ in Over Canada Glencore Negotiations – by Liezel Hill and Juan Pablo Spinetto (Bloomberg News – February 22, 2014)

http://www.bloomberg.com/

Vale SA (VALE5), the world’s second-biggest nickel producer, said it’s not in a rush to reach an agreement with Glencore Xstrata Plc to combine operations in Canada’s Sudbury basin.

“We are studying and we are talking but we are not in a hurry,” Peter Poppinga, Vale’s head for base metals, said yesterday in an interview.

Vale and Glencore, the world’s third-largest refined nickel producer, last year initiated talks on jointly operating mines, mills and smelters in the Sudbury area, about 400kilometers (250 miles) north of Toronto, Poppinga said in November. Vale Chief Executive Officer Murilo Ferreira told reporters on Dec. 18 his Rio de Janeiro-based company expected to make a decision on a possible combination in the first quarter.

Poppinga said yesterday he didn’t expect an agreement “early this year,” and declined to comment further on the talks. Glencore declined to comment on the state of talks with Vale in an e-mail statement.

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Accent: Sudbury’s [Vale] Totten a space-age mine – by Laura Stricker (Sudbury Star – February 22, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

In major mining centres, the opening of a new mine is no small feat. Especially when that mine is a company’s first to open in the area in more than four decades – and took seven years to get production-ready.

On Friday, Vale’s Totten Mine, located in the mineral-rich Sudbury Basin, officially opened to great fanfare. The $760-million mine is the company’s sixth in the basin and its first to use the newest, state-of-the-art mining technology.

“It integrates many of the advances that have been developed since the last Vale mine was built 40 years ago. These technical advances will continue to position Sudbury hard rock miners as among the most productive and competitive in the world,” said mining analyst Stan Sudol. “It also ensures that the Totten Mine is at the lower end of the cost curve.

“This is very positive for the Sudbury Basin. Totten confirms that Sudbury is still the richest mining district in North America, bar none. Because so much high-tech innovation has been included in the development of Totten, it also indicates Sudbury’s becoming a global Silicon Valley of underground knowledge, expertise and research and education.”

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New Sudbury mine ‘very important’ to Vale – by Carol Mulligan (Sudbury Star – February 22, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Vale will continue to invest in Canada despite bad market conditions and low nickel prices because of the strength of its assets, and those assets aren’t just its ore bodies and its operations, said Peter Poppinga.

Vale officially opened its newest Sudbury operation Friday, the $760-million Totten Mine, a nickel and copper producer. Totten is state of the art, fully automated, has an outstanding safety record and excellent environmental standards.

“But Totten for us actually means much more,” said Poppinga, president and chief executive officer of Vale Canada, and executive director of Vale Base Metals and Information Technology for Vale SA.

“When I (say) asset I don’t mean only ore, I don’t only mean mines or surface facilities. I actually also mean the people, the workforce, the motivated workforce, and I also mean the stability of the business environment and the regulatory environment.

“This is very important for us,” Poppinga told more than 100 invited guests in the warm room of Worthington mine, 40 minutes west of Sudbury.

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NEWS RELEASE: Vale opens first new mine in Sudbury in over 40 years

(L to R) Cutting the ceremonial ribbon at the official opening ceremony of Totten Mine on February 21st, 2014 are: Conor Spollen, Vice-President, North Atlantic Projects, Vale; Rick Bertrand, President, United Steelworkers, Local 6500; Bob Booth, Totten Mine Manager, Vale; Hon. Marianne Matichuk, Mayor, City of Greater Sudbury; Kelly Strong, Vice-President, Ontario & UK Operations, Vale; Hon. Kathleen Wynne, Premier of the Province of Ontario, Hon. Michael Gravelle, Minister of Northern Development and Mines; Province of Ontario; Peter Poppinga, CEO of Vale Canada and Executive Director of Vale’s Global Base Metals; Chief Paul Eshkakogan; Rob Assabgui, General Manager, Mines & Mill, Vale.

http://www.vale.com/canada/EN/

Canada NewsWire – SUDBURY, ON, Feb. 21, 2014 /CNW/ – Vale celebrated the official opening of Totten Mine today in a ceremony with the Honourable Kathleen Wynne, Premier of Ontario, the Honourable Michael Gravelle, Minister of Northern Development & Mines, members of the Sagamok Anishnawbek First Nation and many other community leaders.

“Totten Mine is Vale’s first new mine in the Sudbury Basin in more than 40 years and represents a significant investment in the future of our operations in Ontario and across Canada,” said Peter Poppinga, President & Chief Executive Officer of Vale Canada and Vale’s Executive Director of Base Metals and Information Technology.

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Environment takes precedence at Sudbury Vale’s Totten mine – by Lindsay Kelly (Sudbury Mining Solutions Journal – November 25, 2013)

Sudbury Mining Solutions Journal  is a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the December, 2013 issue.

Water, emissions priorities for mine design

More stringent environmental oversight of new mine development means more work. But instead of a challenge, it’s actually made the pro­cess easier at Totten Mine because it allows Vale to meet industry expectations and be creative in its approach, said senior environmental specialist Allison Merla.

“There’s the opportunity here to do it right, right away,” said Merla, who acted as the environmental co-ordinator for the mine, ensuring Vale’s permits and requirements met current industry standards.

“If you’re looking at a legacy site that has always done something a certain way for years, and they’re working on some of the older permits or legislative requirements, it takes a while to instill that change. Here, we’ve built it right and we’re going to do it right.”

Every aspect of Totten was designed with the envi­ronment in mind, starting with its overall footprint. The headframe and main operations have been laid out on top of previous mine workings, while the Victoria Creek pumphouse, from which Vale gets its domestic water, has been retrofitted and upgraded to meet today’s standards.

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