[Federal Register Volume 76, Number 109 (Tuesday, June 7, 2011)]
[Notices]
[Pages 32951-32953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13921]



[[Page 32951]]

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 DEPARTMENT OF COMMERCE

International Trade Administration


Coal Mining Equipment, Technologies and Services Trade Mission to 
China and Mongolia

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service is organizing an 
Executive-led Trade Mission to China and Mongolia for U.S. companies 
operating in the coal and mining sector and manufacturing or 
distributing mining and mining-safety equipment. The trade mission, 
scheduled for October 23-28, 2011, will begin October 23 in Mongolia's 
capital of Ulaanbaatar, followed October 25-28 by the China portion of 
the mission, which will visit two cities--Xi'an and Beijing. The 
mission will include individual participant meetings tailored to each 
company's goals as well as appropriate government meetings. The mission 
will conclude at the China Coal and Mining Expo taking place October 
28-31, 2011 in Beijing.

Commercial Setting

China

    China is the United States' second-largest trading partner and the 
world's second-largest economy. Last year, U.S. manufactured exports to 
China were close to $92 billion. Since 2000, U.S. exports to China have 
more than quintupled. The Chinese government has announced an annual 
growth target of 7 percent over the next five years, which is regarded 
as a conservative estimate.
    China is the largest coal producer in the world, with about 45% of 
the world's total annual production. As energy demand increases for its 
rapid economic development, China's coal production is growing yearly. 
For the past three years, the country's coal production was 2.7 billion 
tons, 2.9 billion tons, and 3.2 billion tons respectively. It is 
expected to reach 4 billion tons in 2011. Coal currently accounts for 
between 65-70% of China's primary energy supply, and demand for coal is 
forecast to grow 3.2% annually through 2030.
    About 90% of the coal mining equipment used in China is produced 
domestically. However, Chinese companies are still behind 
technologically in mining equipment production.
    China is also the world's largest emitter of greenhouse gases 
(GHGs), responsible for over 20% of annual CO2 emissions from burning 
fossil fuels. Eighty percent of these emissions come from coal. 
Domestic scarcity of high-quality, cleaner-burning coal poses an 
additional challenge.
    While coal usage efficiency has improved in China, it remains low 
compared with developed countries. Power generation accounts for 48% of 
China's coal consumption and a large proportion of flue gas remains 
untreated prior to emission.
    China welcomes foreign participation in the clean-coal sector, 
including improving the efficiency and clean use of coal. However, 
significant challenges remain, particularly industry fragmentation, 
which limits both the quality of the coal that is mined and the ability 
of coal companies to invest in newer, cleaner technologies. Stronger 
and more uniform application of standards and incentives is also 
needed.

Mining

    U.S. companies enjoy their greatest competitive advantage in 
supplying heavy coal mining machines and systems. For underground 
mining operations, U.S. firms compete well in the following categories: 
long-wall shearers, stage-loaders, continuous miners, batch haulage 
vehicles, road headers, hydraulic roof support systems and conveyor 
systems. For open-pit mining, U.S. firms' best opportunities include 
electric mining shovels, walking draglines, blast hole drills, and 
heavy mining trucks.

Coal Mine Safety

    Coal mine safety remains a critical issue in China. In 2007, China 
saw 3,786 deaths in coal mine accidents. In order to address the issue 
of safety, the Chinese government closed 2,969 small coal mines (below 
30,000 tons of production capacity) considered unsafe.
    The Chinese government requires all coal mine sites to install a 
complete safety system, which includes a monitoring system, life 
shelters, communications system, personnel positioning system, and 
ventilation and water system. According to the State Administration of 
Coal Mine Safety Supervision, China is aggressively purchasing safety 
equipment for large state-owned coal mines. China will spend billions 
of dollars over the next five years to improve safety in its 10,000-
plus coal mines. Many analysts predict that China will need to invest 
over $151 billion in coal infrastructure by 2020. Part of this 
investment will cover improvements for coal mine safety.
    This creates significant opportunities for foreign companies to 
export coal-mine safety equipment to China. Best prospects also include 
gas control systems and fire and gas monitoring and control equipment. 
The industry will see continued consolidation and a push toward bigger, 
safer and more modern mines. This is part of the overall policy goal of 
increasing efficiency, safety and reducing waste.

Clean Coal

    Clean coal solutions can be divided into three categories based 
upon the stage of energy production: pre-combustion, conversion and 
combustion, and post-combustion. U.S. suppliers enjoy good prospects in 
all three categories.
    Pre-combustion: advanced and energy efficient coal-mining 
equipment, coal blending, coal screening and scrubbing.
    Conversion and combustion: coal liquefaction, gas-turbine 
technology, Integrated Gasification Combined Cycle (IGCC), Ultra 
Supercritical Power Generation (USPG), Underground Coal Gasification 
Combined Cycle (UCGCC).
    Post-combustion: Carbon Capture and Sequestration (CCS), Flue Gas 
Denitration (De-NOx), Flue Gas Desulphurization (De-
SOx), Particulate Matter (PM) removal.

Mongolia

    Mongolia is a vast country with rich natural resources, including 
coal, copper, molybdenum, tin, tungsten, and gold, making mining the 
most important sector for Mongolia's economic development. Its world-
class mineral deposits have attracted considerable investment in recent 
years--over $600 million in direct foreign investment in 2010. The 
landmark Oyu Tolgoi Copper-Gold Mining Project Investment Agreement 
signed in 2009 between the Mongolian government, Ivanhoe Mines and Rio 
Tinto has so far brought over $2 billion into Mongolia.
    Mining is crucial to Mongolia's development and the mining sector 
has been a major contributor to the country's GDP. Once major mining 
projects go into production, Mongolia should see a significant increase 
in GDP growth, estimated at over 13% for 2011-12. This development 
undoubtedly will be accompanied by a surge in mining-related imports of 
plant and machinery. Furthermore, the expansion of the mining sector 
will have a far-reaching effect on other sectors.

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    Mongolia has enormous coal reserves estimated at some 100 billion 
metric tons. In addition, Mongolia's immediate proximity to the world's 
largest consumer of coal--China--makes the country's coal exploration 
prospects very attractive, as Mongolia's role in the world coal market 
grows in importance.
    In 2010 coal overtook copper as Mongolia's most important export, 
accounting for 30% of exports. The country's coal output is projected 
to grow at an annual average rate of 62.3%, reaching 16.2 million tons 
per annum by 2015. The Mongolian Government recently invited tenders 
for two contracts associated with Tavan Tolgoi, one of the world's 
largest coal deposits. Companies from Russia, Australia, South Korea, 
Japan, the U.S., India and China are reported to be among the consortia 
bidders. Licenses for the mine will be held by the state-controlled 
Erdenes Tavan Tolgoi. The government is preparing for an initial public 
offering (IPO) for this firm. The IPO is likely to raise several 
billion U.S. dollars that will help to fund the development of the mine 
and associated infrastructure.
    Mongolia has improved its business environment over the past 
decade. Most important, the government recently rescinded the 68% tax 
on windfall profits on Mongolian copper and gold, which was a great 
impediment to foreign investment into the country.

Mission Goals

    The goals of the mission are to help participating companies 
initiate or expand their exports to China and Mongolia through 
introductions to industry representatives and potential partners, 
networking opportunities, current market information and policy 
discussions with national, provincial and municipal authorities.
    This trade mission will permit U.S. companies to showcase 
effective, state-of-the-art equipment and technologies and to 
understand underlying issues in their market sector.

Mission Scenario

    U.S. firms will need to work with key players, including government 
regulators, academicians, industry associations, financial 
institutions, major clean-coal operators (coal, power, and oil and gas 
companies) to make sure to get a firm foothold in the market. The 
mission will begin with the stop in Ulaanbaatar, then proceed to Xi'an, 
capital of Shaanxi Province, one of China's lead coal-producing 
regions, and conclude in Beijing. At each stop participants will meet 
with provincial officials and potential private-sector partners. The 
mission will end in Beijing, where participants will meet with central-
government officials of the State Administration of Coal Mine Safety 
and National Energy Administration, and with private-sector 
entrepreneurs at the China Coal & Mining Expo trade show.
    The participants will attend policy, market and commercial 
briefings by the U.S. Commercial Service as well as networking events 
which offer further opportunities to speak with local business and 
government representatives. Participation in the mission will include 
the following:
     Pre-travel briefings/webinar on subjects ranging from 
business practices in China to security;
     Pre-scheduled meetings with potential partners, 
distributors, end users, or local industry contacts in Ulaanbaatar, 
Xi'an and Beijing;
     Meetings with government officials in Ulaanbaatar, Xi'an 
and Beijing;
     Airport transfers in Ulaanbaatar, Xi'an and Beijing;
     Meetings with state government and municipal officials in 
Mongolia and China; and,
     Networking receptions.

                           Proposed Timetable
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------------------------------------------------------------------------
Saturday, October 22, 2011.............  Ulaanbaatar
                                             Participants arrive
                                             in Ulaanbaatar via Beijing
                                             or Seoul/check-in and rest
                                             overnight.
Sunday, October 23, 2011...............  Ulaanbaatar
                                             Welcome briefing at
                                             hotel.
                                             Morning and
                                             afternoon free.
                                             Evening reception.
Monday, October 24, 2011...............  Ulaanbaatar--Beijing
                                             Group meetings with
                                             government officials and
                                             Mongolian companies.
                                             Evening departure
                                             for Beijing.
                                             Overnight in
                                             Beijing (airport hotel).
Tuesday, October 25, 2011..............  Beijing--Xi'an
                                             Morning travel to
                                             Xi'an.
                                             Afternoon meetings
                                             with government officials
                                             and Chinese companies.
                                             Evening reception.
Wednesday, October 26, 2011............  Xi'an--Beijing
                                             Meetings with
                                             government officials and
                                             Chinese companies.
                                             Afternoon travel to
                                             Beijing.
Thursday, October 27, 2011.............  Beijing
                                             Meetings with
                                             government officials and
                                             Chinese companies.
                                             Optional set up for
                                             expo participants.
                                             Evening reception.
Friday, October 28, 2011...............  Beijing
                                             Opening ceremony of
                                             China Coal & Mining Expo.
                                             Trade show tour.
                                             Meetings with
                                             government officials and
                                             Chinese companies.
                                             Official end of
                                             trade mission.
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Participation Requirements

    All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. 
The mission is designed to select a minimum of 15 U.S. companies to 
participate in the mission from the applicant pool. U.S. companies 
already doing business in the target

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markets as well as U.S. companies seeking to enter these markets for 
the first time should apply.

Fees and Expenses

    After a company has been selected to participate in the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required.
    For the entire mission (China and Mongolia), the fee will be $6,245 
for large firms and $5,475 for small and medium-size enterprises 
(SMEs,\1\ i.e., companies with no more than 500 employees).
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations. 
See http://www.sba.gov/contractingopportunities/owners/basics/whatismallbusiness/index.html. Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008. See http://www.export.gov/newsletter/march2008/initiatives.html.
---------------------------------------------------------------------------

    For China only, the fee will be $4,995 for large firms and $4,500 
for SMEs. The fee for each additional participant per company will be 
$725.
    For Mongolia only, the fee will be $1,250 for large firms and $975 
for SMEs. The fee for each additional participant per company will be 
$200.
    Expenses for travel, lodging, most meals, and incidentals will be 
the responsibility of each mission participant.

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the U.S. Department of 
Commerce receives an incomplete application, the Department may reject 
the application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least 51 percent U.S. content of the value of the finished 
product or service.

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the U.S. Department of 
Commerce receives an incomplete application, the Department may reject 
the application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least 51 percent U.S. content of the value of the finished 
product or service.

Selection Criteria for Participation

     Suitability of the company's products or services to the 
Chinese and/or Mongolian markets and targeted sector.
     Consistency of the applicant's goals and objectives with 
the stated scope and design of the mission.
     Applicant's potential for business in China and/or 
Mongolia, including likelihood of exports resulting from the mission.
    Diversity of company size, type, location, and demographics, may 
also be considered during the review process.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Selection Timeline

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register (http://www.gpoaccess.gov/fr), posting on ITA's trade mission calendar--http://www.trade.gov/trade-missions--and other Internet Web Sites, press 
releases to general and trade media, direct mail, broadcast fax, 
notices by industry trade associations and other multiplier groups, and 
publicity at industry meetings, symposia, conferences, and trade shows.
    Recruitment for the mission will begin immediately, and conclude 
August 12, 2011, unless extended by the Department of Commerce. 
Applications received after August 12, 2011, will be considered only if 
space and scheduling constraints permit.
    The U.S. Department of Commerce will inform applicants of selection 
decisions as soon as possible after August 12, 2011.

Contacts

U.S. Commercial Service--HQ

    Mr. Louis Quay, International Trade Specialist, U.S. Commercial 
Service, HQ, Tel: 202-482-3973, E-mail: [email protected].

U.S. Commercial Service China

    Mr. Andrew Billard, U.S. Commercial Service, Beijing, Tel: 86-10-
8531-3589, E-mail: [email protected].

Elnora Moye,
U.S. Department of Commerce, Commercial Service Trade Mission Program, 
Tel: 202-482-4204, E-mail: [email protected].
[FR Doc. 2011-13921 Filed 6-6-11; 8:45 am]
BILLING CODE 3510-FP-P