BHP Urged by Elliott to Unify Structure, Separate Petroleum 

BHP Billiton is being targeted for anoverhaul by sometimes-activist Elliott Management Corp., which
is urging the world’s biggest mining company to unify its corporate structure, spin off more assets and improve capital
returns.

The resources giant, which has two separate legal entities listed in Sydney and London that are run as one group, should
unify into a single Australian-headquartered company, Elliott said in a press release Monday. The New York-based hedge fund is
also urging BHP to seek a demerger of its U.S. petroleum business, which Elliott said is worth about $22 billion. Shares
of BHP surged 4.6 percent to A$25.73 at the close Monday in Sydney.

Elliott is arguing BHP, which has a market value of about $96 billion, should return capital through buybacks that would
maximize tax credits and discourage expensive cash acquisitions. The investment firm, which referred to talks already held with BHP management, said the changes could boost shareholder value by about 50 percent. Elliott said it owns about 4.1 percent of
BHP’s London-listed shares and has rights to acquire 0.4 percent of its Australian stock.
“Despite the first-class quality of most of BHP’s assets, BHP as an investment has underperformed,” Elliott said in a
letter to the company’s board. Most of that underperformance “has been driven by the incomplete status of management’s
streamlining and value-optimization of BHP’s group structure and asset portfolio.”
A Melbourne-based spokesman for BHP said he couldn’t immediately comment.

BHP has been slashing costs as it seeks to position for an era of meager demand growth amid cooling economic expansion in
China, the company’s top customer. Elliott, which manages about $33 billion, is adding BHP to a list of other companies it’s
recently targeted including Samsung Electronics Co., Marathon Petroleum Corp. and NRG Energy Inc.
Chairman Jacques Nasser in November 2015 defended BHP’s current structure as two listed firms, warning the costs of
changing the setup would likely be high. Under terms of the 2001 merger of BHP Ltd. and Billiton Plc that created the group,
holders of London or Sydney-listed shares receive equal cash dividends, according to the producer’s annual report. They
remain separate legal entities, with BHP Billiton Ltd. trading in Australia and BHP Billiton Plc listed in London.

Elliott said BHP “took an important first step towards streamlining” with the 2015 spinoff of South32 Ltd., which
included smaller operations across a suite of commodities and focused BHP around key assets in iron ore, coal, copper and oil.
The creation of Perth-based South32 reduced BHP’s portfolio from about 40 operations to 19 core assets.

Still, that move “actually magnified the inefficiencies” of BHP’s dual corporate structure, leaving its London entity
generating just 10.3 percent of revenue, Elliott said. The commodity producer should create a single company, which would
continue to be managed from Australia and retain BHP’s currentstock market listings, according to Elliott.

Competing Priorities

BHP, the largest overseas investor in U.S. shale, should seek a separate listing of its U.S. onshore petroleum and
offshore Gulf of Mexico assets on the New York Stock Exchange to realize their growth potential, the hedge fund said. The
business’s expansion opportunities are limited under BHP, which has competing priorities for capital allocation, according to
Elliott.

The investment firm is also arguing BHP could buy back shares effectively at a 14 percent discount by making better use
of about $9.7 billion accumulated franking credits, which offset taxes on Australian stock dividends. The proposed changes would
also “help management to avoid making badly timed acquisitions paid for in cash,” Elliott said, and “increase the scope for
management to pursue appropriate acquisition opportunities using unified BHP’s own shares.”

BHP lowered its dividend for the first time in 15 years in February 2016 amid weaker commodities prices and scrapped a
guarantee of continually rising returns. The company switched to a policy to provide payouts at a minimum of 50 percent of
underlying attributable profit.

Any separation of the petroleum business would mark a shift from the recent strategy under BHP Chief Executive Officer
Andrew Mackenzie, who has been in his post for nearly four years. The company said in February that oil and copper are
better placed in longer-term than materials including iron ore and coal. BHP will direct about three-quarters of capital
expenditure over the next five years to the two favored commodities, according to Macquarie Group Ltd. forecasts.
BHP in December outbid BP Plc to partner with Petroleos Mexicanos on the Trion oil field in the Gulf of Mexico. In
February, BHP approved its $2.2 billion share of spending on the Mad Dog Phase 2 oil project. The company earned about 20 percent
of its underlying profit from the global oil business in the six months ended December, less than half the proportion coming from
iron ore, data compiled by Bloomberg show.  Elliott, led by billionaire Paul Elliott Singer, makes
investments that typically involve complex legal analysis and corporate research. While most of its investments aren’t
activist -- where it amasses shares and seeks changes to boost shareholder returns -- it’s those campaigns that often attract
the most attention.

---

Attached Files

Aluminium has been the best performer among the core industrial metals traded on the London Metal Exchange (LME) so far this year.

Currently trading around the $1,945 per tonne level, aluminium for three-month delivery is up 15 percent since the start of January.

LME stocks are falling at a fast pace and physical premiums are rising, although as ever with aluminium appearances can be slightly deceptive.

China's threat to force production capacity off-line over the winter heating season, starting around the middle of November, has upended a narrative of chronic oversupply.

There's still plenty of devil in the detail of what that will actually mean in seven months' time but there's no doubt the possibility of significant cutbacks has galvanized the previous underperformer of the LME complex.

No wonder the money men have been drawn into the action. Fund positioning on the LME aluminium contract is the longest it's been since the exchange first started publishing its Commitments of Traders Report (COTR) in July 2014.

That new-found enthusiasm for aluminium, however, has opened up a gap between London and Shanghai prices. The question now is how much Chinese metal might flow out through that export window.

Because while production cuts are still on the medium-term horizon, China right now is showing every sign of lifting run-rates with an accompanying surge of metal availability.

Graphic on fund positioning on LME aluminium:

MONEY MEN ARRIVE

The most recent LME COTR shows money managers holding a net long position of 203,550 lots as of Thursday, March 30.

It represents the highest level of long positioning by fund managers since the LME introduced its report in 2014.

Expressed as a percentage of total open interest, the position was equivalent to 21.9 percent, also a record high level.

The LME COTR is not everyone's favourite data series, given some well-flagged issues with how positions are allocated between categories.

But it broadly corresponds with an alternative assessment of speculative positioning published by LME broker Marex Spectron.

Marex estimates that funds were long to the tune of 215,000 lots, representing 41 percent of open interest, on the same day. That was close to a multi-year peak of 43 percent on March 2, 2017, it said.

Slightly different numbers but the message is the same. Funds have been building length in aluminium since the start of the year.

So far they have had no reason to trim their bets on higher prices.

In broad-brush terms, three-month aluminium has made steady upwards progress over the last few months, helped by sizeable activity on upside call options and a conspicuous lack of contrarian selling.

MIND THE GAP

The problem, though, is that the funds' exuberance has helped open up a gap with the Shanghai market.

While LME prices have risen by over 15 percent since January, the most actively traded contract on the Shanghai Futures Exchange (ShFE) has lagged behind with a more modest gain of just under 10 percent.

As a result the arbitrage window between the two markets is flexing wider.

That brings with it the threat of accelerated exports of semi-manufactured products.

Product exports in January and February were relatively subdued at 580,000 tonnes, down 1.5 percent on 2016.

That may have reflected the disruptive effect of China's Lunar New Year holidays as well as shifts in the product mix below the headlines.

There is the potential for a strong pick-up over the coming months.

Because while the market is fixated on the potential for Chinese cutbacks later this year, in the very short term there is no shortage of aluminium in the country.

There is a lot of noise in Chinese production figures around this time of year but the underlying trend is firmly upwards with national output rising by an annualised 925,000 tonnes over the November 2016-February 2017 period.

More is expected to come online in the new production hub that is the northwestern province of Xinjiang, while those producers that are in the firing line for winter cuts can reasonably be expected to maximise output just as much as they can in the intervening period.

ShFE stocks were looking depleted in the fourth quarter of last year but have rapidly rebuilt over the last few months.

They currently stand at 339,691 tonnes, up 238,969 tonnes since the start of January.

None of that metal can be exported without incurring the 15-percent tax on unwrought aluminium.

Products, on the other hand, are not only untaxed when leaving the country but qualify for a VAT rebate, which is why they have historically served as the release valve for domestic market surplus.

How much product is available for outbound shipment is dependent on several variables, not least the state of China's own usage, but the surge in availability of primary metal is a somewhat ominous sign.

STRUCTURAL IMBALANCES

The rest of the world needs Chinese exports.

There is little doubt that the market outside of China is transitioning to a state of supply shortfall.

China itself is still structured the other way round with a natural tendency towards overproduction and surplus.

The flow of metal between the two in the form of Chinese products is the balancing mechanism.

But the speed of flow is determined first and foremost by the arbitrage between London and Shanghai. That arbitrage is moving to a level were exports should accelerate strongly in the coming months.

Whether they do or not is going to be an interesting test of the state of the Chinese domestic market.

An even more interesting test will come in November, when we get to see whether Beijing's war on pollution translates into a war on aluminium.

Before then, though, it's probably going to be business as usual, namely higher production and higher exports.

Funds betting on Chinese tightness later in the year may have to weather a potential storm of Chinese glut beforehand.

http://www.reuters.com/article/aluminium-funds-ahome-idUSL8N1HF35F

Qixing incident behind: Shandong private enterprises Baotuan mutual Zouping aluminum dream frustrated

Translation of a Chinese news article:

Capital break, the debt of billions of dollars, Qi Xing Group, the establishment of nearly 30 years of Shandong Province, Binzhou City, Zouxian private enterprises tend to dump the trend.

Qixing Group where the Zouping County is located in the central part of Shandong Province, northwest of the Yellow River, from Jinan long-distance passenger station to the northeast direction drove less than 2 hours can be achieved. This is a small town in the Lu, known for the aluminum, Shandong is rare in several national "hundred counties", but also China's cotton textile city, the Chinese sugar, but also because of "Wei Bridge model" put on mystery The

Qixing Group debt crisis to the local private enterprises between the Baotuan "mutual protection" chain surfaced. "Mutual insurance", in virtually Zouping many companies formed a dominoes trend, and now, Qixing Group may be about to fall the first piece of dominoes.

March 30, surging news (www.thepaper.cn) visited the vortex center of the Qixing Group Zouping Aluminum Company and Qixing Group Building. At that time the weather was dark, Qixing Group headquarters building from the outside almost no light, only the roof hanging Qixing Group four red characters, "Qi" and "Mission" are traditional characters. Look from the outside, Qixing Group Aluminum Company is also a stagnant scene, almost do not see the staff out and lights flashing.

In fact, Qixing Group Aluminum Company on March 15 has been issued to suspend the aluminum production half a year notice. In the electrolytic aluminum industry, less than a huge loss of this last resort, the enterprise will not choose to stop working. An electrolytic aluminum industry to the surging news that the electrolytic aluminum business even if the night is still bright, because once the suspension, the molten state of aluminum will be cooling, crystallization, the entire production to stop. The cost of the restart is not only time-consuming at least 1-2 months, and the cost is so high.

Stagnant not only its electrolytic aluminum plant. Surging news (www.thepaper.cn) found Qixing cable factory, although still parked vehicles, but the whole plant without lights, empty. Zouping said the local, years ago, the local has been in the "Qixing to bankruptcy." Qixing debt crisis is also associated with Zouping County, the phenomenon of mutual protection of ordinary people exposed. West Wang Group, Zouping County power supply companies and other enterprises to enter the list of mutual insurance. "Cross-linked chain" worries, the West King Food [ stock ] (000639), Qi Star Tower [ stock ] (002359) and other Zouping listed companies are in the capital market has been tumbled. Even if the current has not yet entered the "mutual protection chain," the Weiqiao venture, Zouping County, "origin" also brought no small trouble, its enterprises in the inter-bank bond market has been sold for two consecutive days.

However, even if the outside world has been talking about this county, its internal but still maintain the surface of calm. A taxi driver in the surging news about the local aluminum industry, still quite proud to talk about Weiqiao venture, but also deliberately filed Wei Bridge, chairman of the board is the richest man in Shandong, or the country NPC deputies.

The taxi driver continues to show the local "business card". He said that in Zouping this place, there are four companies, the boss is Weiqiao venture, and then the West Wang Group and Zouping County, Shandong Town, Shandong Samsung Group, the last is Qixing Group. "Many local people are working in these companies, foreigners are also quite a lot, the Northeast, Sichuan, Anhui, Henan and other places have, many college graduates after graduation." However, The taxi driver said frankly, the locals now feel that the Qixing Group has been declining. As for the reason, he can only be mentioned in general, "the bank has not given it a loan, the feeling is management, poor management."

World "Al Valley"

Zouping County is located in Lu, under the Binzhou City, Shandong Province, China's comprehensive strength for the top 100 counties.

Data show that in 2015, Zouping County GDP of 81.847 billion yuan, a growth rate of 9.8%, in Binzhou City, the county ranked first in the county, accounting for 34.7% of the city's regional GDP. Zouping County's economic strength and other districts and counties in Binzhou compared to the advantages are more obvious, almost ranked 2,3,4 districts and counties of the sum of GDP.

Among them, the aluminum industry has contributed an important force for Zouping economy.

Data show that in 2015 Zouping County tax list of the top ten enterprises, involving aluminum enterprises, including Shandong Weiqiao, West Wang Group, Shandong innovative metal, Qixing Group. Among them, Shandong Weiqiao to create a total tax of 4.359 billion yuan, the national tax, land tax were 2.971 billion yuan and 1.389 billion yuan.

At present, Zouping County has become China's most important aluminum production base, aluminum industry is mainly concentrated in the Zouping Economic and Technological Development Zone, which is the first in Shandong Province at the county level national economic and technological development zone. Zouping County, the backbone of enterprises to reach 21, known as the formation of the "thermoelectric - alumina - aluminum - aluminum liquid processing - aluminum deep processing" more complete industrial chain.

Zouping county government leaders also said in 2015, Zouping County will strive to pass 2-3 years, built products with high added value, strong product innovation, high market share in the world has a strong influence of 200 billion Characteristics of high-end industrial clusters, and strive to build the world "Al Valley", and actively seize the future development of the right to speak of aluminum, aluminum in the global development of the real "Zouping voice."

Zouping County want to pass the "Zouping voice", the most intense than Wei Bridge business. Weiqiao venture is the only one in Shandong Province to enter the world's top 500 private enterprises, its chairman Zhang Shiping is the richest man in Shandong Zhang Shiping. According to the latest release of "Forbes" 2017 Rich List, Zhang Shiping family to 67 billion US dollars ranked No. 209 in the world, China's wealth list ranked 28.

Weiqiao venture's electrolytic aluminum production capacity has now expanded to 6.8 million tons, more than the same industry central enterprises in the aluminum and global electrolytic aluminum predators RUSAL. This volume on the total production capacity of electrolytic aluminum in China, accounting for about 16%.

Zouping County in the local, Wei Bridge and Zouping basic business can be equated with aluminum. Surging news (www.thepaper.cn) visit Zouping County, a reference to the aluminum company, the taxi driver immediately asked whether the "two companies" or "three companies." The so-called two companies and two companies are Weiqiao venture aluminum company. So that in the surging news to go to Qixing Group of aluminum companies, the driver mistakenly thought to go to the Weiqiao venture aluminum plant, because the general mention of aluminum, are the first thought of Weiqiao venture The

The taxi driver said, Weiqiao venture factory area and the number of Zouping should also be the most. Surging news also noted that in Zouping County, near the third road in the distribution of the Wei River Bridge, the first two industrial parks in several production areas, at the same time in the immortal two road also distributed with the completion of the time and soon of the staff of Weiqiao

https://finance.sina.cn/2017-03-31/detail-ifycwyxr8895730.d.html?from=singlemessage&HTTPS=1

Translation:

At the _insect country one color Jin Hu Gongye mark meeting the color cooperates the light letter character
 (2017)
 Stops up on the 48th]"About against huai and should the Qu Fang animal pen of inch headed by US card...(Admires the aluminum industry related suggestion the letter industry and informationization department office: As Chinese aluminum profession catches the development quickly,
 Especially from
 In 2001 surpassed the US becomes global electrolytic aluminium produces the first great nation, 2006
 The year surpasses the US becomes the global electrolytic aluminium disappearing match first great nation, 2008
 Since the year has surpassed Germany and US becomes the global aluminum material exports the first great nation, the US-led Western country never stops to the suppression and accusation of Chinese aluminum profession.
 In 2009, EU starts to originally made in the Chinese aluminum foil collection high quota anti-dumping tax. In 2009,
 In 2010,
 In 2011, Australia,
 Canada and US start one after another to originally made in the anti-dumping of Chinese aluminum molding collection high quota,
 Counter-subsidy tax. Since US new presidential election,
 The Sino-US trade problem once again becomes the market key concern.
 To the Chinese aluminum industry looks from nearly two years of US's development surrounding motion,
 Presents from the economic level promotion to the political height,
 From the bilateral contradictory deduction side contradictory, from the trade sanction expands to the entity industry at most,
 From attacking the entire profession the situation at the same time various ' defeating to the monomer enterprise, attacks the way also presents the characteristics of diversification: In the first half of 2016, US in Hangzhou
 During G20 summit, proposed the Chinese electrolytic aluminium capacity had seriously surplus, the United States International Trade Commission to start in view of the US aluminum profession competitive power investigation
 (" 332" investigation >,
 The regulations are to unite the Western country complain China together.
 In the second half of 2016, US many senators on the grounds of harming US national security,
 Prevents the loyal prosperous group to purchase the US to like urging the aluminum business company.
 In 2017, US government to WTO
 (WT0 > appealed to the Chinese government subsidy electrolytic aluminium industry.
 It is reported that
 The US aluminum profession to will launch the anti-dumping trade relief investigation in the near future originally made in the aluminum foil product of China,
 Further limits the Chinese aluminum product to export to US.
 In addition,
 We also find most newly,
 A US tomb analysis agency to the global most dog electrolytic aluminium enterprise Shandong Wei Qiao undertaking group that goes on the market in Hong Kong issued repeatedly makes the spatial report,
 Makes the company faced with forcing to stop the sign,
 Even has the cash flow break,
 Risk that the management stops,
 To company
 16 ten thousand staff stable,
 Industry chain upstream and downstream enterprise normal production,
 Bank debt refunding,
 As well as regional financial risk and other aspects produce major impact o
 Above
 "Combination fist"
 Will have the heavy dog influence to the Chinese aluminum industry inevitably. In summary obviously,
 We face international trade bad boundary complex ` that
 The uncertainty is even more evident,
 Yan Suoxing and pressing that the domestic aluminum profession must fully understand the current international situation. Therefore,
 We must first promote industrial all-round strength,
 Sharpens the withstand risk ability.
 Carries out supplies side constitutive property to change the grass in the expensive penetrating
 "Three fall makes up"
 Key task at the same time,
 Also must complete to strengthen the self-discipline,
 Standard export order,
 Strength stubborn energy conservation and emission reduction,
 Raises the environmental consciousness,
 Strengthens the capital market to manage,
 Guard financial crisis and other work.
 While the profession strengthens the self building,
 Suggested that the government gives the great concern,
 And supports the profession,
 The enterprise actively guards against and deals with the US-led Western country to Chinese aluminum industry entire aspect 2 surrounding.
 The concrete proposal is as follows: First, comprehensive study and deployment countermeasure.
 US's surrounding to Chinese aluminum industry started,
 Suggested that relevant state departments carry out the comprehensive study and deployment as soon as possible,
 The formulation comprehensive nature deals with the plan,
 Including formulation counterattacking plan,
 Gives the forceful blow. Second, supplies the information timely,
 Completes the early warning work.
 Promptly to profession and enterprise notification international trade situation and overseas industrial real-time trend and other information,
 The collection of especially diplomatic mission overseas field information, provides for a rainy day,
 Shifting to an earlier time plan. Third,
 Strengthens the instruction, coordinates the problem that the solution has promptly.
 Suggestion to profession and enterprise, in dealing with the US-led Western country surrounds the issue that in the work comes across to give coordinated and instruction, sharpens the response capability,
 The promotion deals with the effect,
 Conscientiously safeguards the legitimate rights and interests of Chinese Enterprise. Appendix: Shandong Wei Qiao undertaking group about dealing with US Organization makes the urgency of spatial matter partner to report that since Shandong Wei Qiao undertaking group about dealing with US machine ju will have made the spatial event reports Chinese non-ferrous industry Association = urgently in the near future '
 Makes the spatial influence from US in view of Shandong Wei Qiao undertaking group
 < Under called "Wei Qiao group"
 > In Hong Kong capital market makes spatial motion '
 The influence is specially serious
 Possibly initiates the huge risk,
 Presently on form '
 Reported urgently as follows: First, this time makes spatial event seriously affects Wei Qiao group,
 Situated in Shandong Binzhou,
 Is the world
 500 strong enterprises,
 National villous themeda enterprise first three '
 In 2016 the group sale income achieves
 3750 hundred million Yuan.
 Wei Qiao group has the textile and aluminum electricity two service plates,
 These two plates are the world are largest,
 The profit is strongest.
 Is centered on Wei Qiao group,
 In the area
 < Binzhou >
 Has formed the textile,
 The aluminum business two big industry clusters, have covered the entire industry chain,
 Two the enterprise in big colony has
 More than 2000 '
 Comprehensive annual production
 500 billion Yuan,
 The sum total solution employment is near
 30 ten thousand people
 < Wei Qiao group own employee
 160,000 people,
 Upstream and downstream company worker
 10 ten thousand people)
 , Is the local area
 < Binzhou)
 Has contributed more than half total outputs directly,
 Occupies the local finance organization more than half credit overall scales. This time makes the spatial event,
 Named does spatially,
 Actually strangles to death Wei Qiao group in two listed companies in Hong Kong [Hongqiao and Wei Qiao textile.
 We speculated that direct cause of this hostility, begins in
 In 2015,
 Wei Qiao group completes the construction after the bauxite mine in African Guinea and goes into production ' this mine to go into production '
 US aluminum,
 Lito lost quickly has directly touched its basic commercial interest in the raw material fixed price machine of global market. This time makes the spatial motion to begin in
 In 2016 11
 Month
 ' Twice issued that makes spatial report,
 And uses the rule and international accounting standards of Hong Kong stock market maliciously,
 Through anonymous reporting,
 Provides the mislead material,
 Launches malicious public opinion attack and other ways,
 Forces the auditor of Wei Qiao group ~ the Ernst & Young accounting firm is carrying on 2016
 When annual audit,
 Has extreme conservative and prudent stance.
 If continues the laissez faire to make the attack of spatial influence from the US,
 The two listed companies of Wei Qiao group will certainly unable to complete the annual report audit work promptly,
 Finally falls into by Hong Kong Securities Regulatory Commission,
 Stock Exchange puts a case on file and begins investigations '
 Stops the sign for a long time, and is unable to carry on the normal production financing event the dangerous situation. Once makes the spatial influence to realize the above goal,
 Will certainly have the following serious influence: 1st, local two big industry clusters will come under the fatal blow,
 Directly affects China
 10% textile market sum
 20% aluminum business markets '
 Chinese Enterprise will fall in the raw material fixed price power that in the international market won to recent years once again by the US aluminum business,
 Lito is in the American fund enterprise hand of representative. 2nd, two big industry clusters directly involve
 2000 hundred million domestic bank loans]
 Deals improper,
 Definitely will initiate the regional systematic financial crisis. 3rd, two big industry clusters involve
 30 ten thousand people
 < Contains Wei Qiao group
 16 ten thousand staff >
 Direct employment)
 Once the risk spreads, will cause the fierce social agitation inevitably. The goal of if making the spatial motion prevails,
 Then will certainly initiate the change of global aluminum industry market,
 The unusual fluctuation as well as domestic regional system of financial crisis Hong Kong capital market,
 But from profession angle analysis '
 His biggest beneficiary is beautiful aluminum and other US Enterprises. Second, support 1, adjuration industry association that the adjuration industry association gives,
 Invites,
 Coordinated relevant authority,
 With Hong Kong Securities Regulatory Commission,
 Stock Exchange of Hong Kong establishes smooth communication channel,
 Gives correct information promptly '
 Avoids appearing while Wei Qiao group deals with makes the spatial influence must deal with the unfavorable situation of administration and criminal probe of Hong Kong. 2nd, adjuration industry association,
 Invites,
 Coordinated relevant authority,
 With listed company the Asia-Pacific region manager partner in auditor Ernst & Young accounting firm,
 Establishes the urgent dialog consultation mechanism, early reaches the agreement, 'during practical solutions writes,
 Strives for the listed company annual report to issue normally. 3rd, adjuration industry association,
 Invites `
 Coordinated relevant authority,
 And needs to central concerned leader to reflect that in accordance with the situation this event possibly bends|Serious influence that sends,
 Early obtains related labor han to instruct for the first time that to help taking the risk preventive measure promptly,
 Completes the financial stability and social stability work. This event,
 Being important,
 The situation is urgent,
 The adjuration industry association gives related instruction rapidly.

Translation

 "" The Qu Fangbian home on the irresolute and should be headed by the US card. (MU aluminium Industry relevant recommendations of the Ministry of Industry and Informatization Office: With the rapid development of China's aluminium industry),
Especially since
More than 2001 years the United States becomes the world's largest producer of electrolytic aluminium, 2006
More than the United States become the world's electrolytic aluminum extinction tournament the first big Country, 2008
More than Germany and the United States became the world's largest importer of aluminium exports, the US-led Western countries have never ceased to suppress and accuse China's aluminium industry.
2009, the EU began imposing high anti-dumping duties on Chinese aluminium foil. 2009,
2010,
2011, Australia,
Canada, the United States began to impose high anti-dumping on Chinese aluminium profiles.
countervailing duty. Since the new presidential election in the United States,
Sino-US trade issues have become the focus of market attention again.
From the past two years in the United States to carry out the Chinese aluminum industry containment action,
Presenting the economic level to political heights
From bilateral contradictions to multilateral contradictions, from trade sanctions to the entity industry,
From the attack on the whole industry at the same time to the individual enterprises to break the situation, the blow way also presents a diversified characteristics: the first half of 2016, the United States in Hangzhou
During the G20 summit, there was a serious excess of the production capacity of electrolytic aluminium in China, the United States International Trade Commission launched an investigation on the competitiveness of aluminium industry in America
("332" Investigation &gt;,)
In fact, the joint Western countries are accusing China.
In the second half of 2016, several United States senators were made to undermine U.S. national security.
To prevent loyal to Wang Group to acquire the United States love reed aluminum companies.
2017, the United States government to the World Trade Organization
(WT0 &gt; Complaint Chinese government subsidies electrolytic aluminium industry.)
It，
The Alcoa industry will shortly initiate anti-dumping trade relief surveys on aluminium foil products originating in China,
Further restrictions on China's exports of aluminum products to the United States.
In addition，
We have a new understanding of,
A mass analysis agency in the United States has repeatedly issued short reports on the world's most canine electrolytic aluminium company, Shandong Wei Qiao, which is listed in Hong Kong.
To make the company face compulsory suspension,
There is even a cash flow break,
The risk of running a standstill,
Will be on the company
160,000 employees Stable,
Industrial chain upstream and downstream enterprises normal production and operation,
Bank debt Repayment,
and regional financial risks, and many other aspects of great impact O
Above
"Combination Fist"
It is bound to have heavy dog effect on aluminium industry in China. Fully on the visible,
The complexity of international trade in the bad environment
The uncertainty is increasingly prominent,
The domestic aluminium industry must fully realize the current international situation of strict and urgency. For this，
We must first enhance the overall strength of the industry,
Improve the ability to resist risk.
To implement the supply side structural modifications in your own
"Three goes down one supplement"
While focusing on tasks,
Also do to strengthen the industry self-discipline,
Regulate export order,
Strong energy saving and emission reduction
Raising awareness of environmental protection,
Strengthening the management of capital markets,
Guard against financial risks and other work.
While the industry strengthens its own construction,
Suggesting that the government should pay high attention,
and to support and guide the industry,
Companies actively guard against and respond to the United States-led Western countries to China's aluminum industry in the total 2 of the containment.
Specific recommendations are as follows: first, comprehensive research and deployment of countermeasures.
America's containment of aluminium industry in China has started,
Recommending that the relevant national authorities undertake a comprehensive study and deployment as soon as possible,
Develop a comprehensive response plan,
Including the development of anti-system plans,
Give a forceful comeback. Second, provide timely information,
Do well early warning work.
Timely informing the industry and enterprises of international trade situation and foreign industry real-time dynamic information,
In particular overseas agencies of the collection of information industry, proactive,
Early plan. Third，
Strengthen guidance, timely and coordinated solution to the problems.
Advising industry and enterprises to coordinate and guide the problems encountered in the containment work of the Western countries headed by the United States, and to improve their coping abilities,
To improve the coping effect,
Earnestly safeguard the legitimate rights and interests of Chinese enterprises. Appendix: Shandong Wei Qiao Venture Group Emergency report on the coping with short company of American institutions Shandong Wei Qiao Venture Group on the emergency report of the US machine to deal with the short incident China nonferrous Metals Industry association = recent since
Shorting forces from the United States targeting Shandong Wei Qiao Venture Group
Hereinafter referred to as "Wei Qiao Group"
Short action in Hong Kong capital markets
Especially serious
May cause enormous risks,
Now on the relevant situation ′
The emergency report is as follows: first, the serious impact of the short incident Wei Qiao Group,
Located in Binzhou City, Shandong Province,
is the world
500 Strong Enterprises,
Chinese people naoto the first three strong ′
2016 Group sales revenue reached
375 billion yuan.
Wei Qiao Group has two business plates of textiles and aluminium electricity,
These two plates are the largest in the world.
The strongest profit.
With Wei Qiao Group as the core,
In the local area
Binzhou &gt;
Formed the textile,
Aluminum industry clusters, covering the whole industry chain,
The companies in the two clusters have
More than 2000 ′
Comprehensive annual output
More than 500 billion RMB,
Total settlement of employment near
300,000 persons
The Wei Qiao Group's own staff
160,000 people,
Upstream and downstream enterprise staff
More than 100,000 persons
, for the Local
Binzhou City
Directly contributing more than half of the gross domestic product,
To occupy more than half of the local financial institutions of the total credit scale. The short event,
The name is short,
It is the two listed companies that strangle Wei Qiao Group in Hong Kong [China Macro Bridge and Wei Qiao Textiles.]
We speculate that the direct inducement of this hostile action begins with
2015,
Wei Qiao Group completed construction and commissioning of bauxite mines in Guinea, Africa
Alcoa,
Rio Tinto soon lost its raw material pricing machine in global markets directly to its fundamental business interests. The short action began with
2016 11
Months
Twice before and after issuing short reports,
And maliciously exploit the rules of the Hong Kong stock Market and international accounting standards,
Through anonymous reports,
Providing misleading information,
Launching a malicious public opinion attack and so on,
Forcing the auditor of Wei Qiao Group ~ Ernst &amp; Young to conduct 2016
The annual audit,
Take an extremely conservative and cautious stance.
If you continue to indulge in attacks from US shorting forces,
Wei Qiao Group's two listed companies will not be able to complete the annual report audit work in time,
Eventually caught in the SFC,
Investigation of SEHK's filed
The long-term suspension and inability to carry out the normal production and operation of the risk of financing activities. Once the shorting forces achieve the above,
will have the following serious impact: 1, the two major local industrial clusters will suffer a fatal blow,
Direct impact on China
10% of the textile market and
20% of Aluminium Market ′
The pricing power of raw materials acquired by Chinese enterprises in the international market in recent years will fall again to the US aluminium industry
Rio Tinto is the representative of the U.S.-funded enterprises. 2, two major industrial clusters directly involved
More than 200 billion of domestic bank loans
Improper coping,
A regional systemic financial risk is inevitable. 3, two major industrial clusters involved
300,000 persons
Including the Wei Qiao Group
160,000 Employees &gt;
Direct employment
Once the risk spreads, it is bound to trigger violent social unrest. If the aim of the short action succeeds,
Will trigger the global aluminum industry market pattern Change,
Abnormal fluctuations in Hong Kong's capital markets and systemic financial risks in China,
From the industry angle analysis ′
The biggest beneficiaries are American companies such as Alcoa. Second, urge the industry association to give support 1, solicit industry associations,
On behalf of the business please,
Coordinating the relevant departments,
and the SFC,
Hong Kong SEHK establishes a smooth communication channel,
Timely delivery of correct information ′
Avoid appearing in the Wei Qiao group to cope with shorting forces while responding to the adverse situation in Hong Kong's administrative and criminal investigations. 2, implore Industry Association,
On behalf of the business please,
Coordinating the relevant departments,
The Asia-Pacific partner of the auditor, Ernst &amp; Young, with the listed company.
Establishing an emergency dialogue and consultation mechanism, reaching an early consensus, ' practical solution,
The annual report of the listed company is issued normally. 3, implore Industry association,
On behalf of the business please '
Coordinating the relevant departments,
And as the case needs to reflect the central leadership of the event may bow | The serious impact of the hair,
Early to receive relevant work Shan first indication, in order to take risk precaution measures in time,
Good financial stability and social stability work. This event,
Matters，
Things are urgent,
Urge the industry association to give the relevant instructions promptly.

China has discovered a reserve believed to contain 203 million tonnes of manganese ore which local authorities said was the largest in Asia, state news agency Xinhua reported on Saturday.

The reserve in China's southwest Guizhou was discovered by the province's geology and mineral exploration bureau, Xinhua said citing the local government.

The reserve has a potential value of more than 100 billion yuan ($14.50 billion), it said.

Manganese is used in steel production and for making batteries.

"The newly discovered ore deposits make up 60 percent of China's total proven reserves and will greatly reduce the country's reliance on imports," Chen Yuchuan, a geologist and academic at the Chinese Academy of Engineering, told Xinhua.

http://www.reuters.com/article/us-china-manganese-idUSKBN17A0FA