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Geothermal Power Generation in Mainland Asia -- Resource Potential and Economics

Rick Allis

Energy and Geoscience Institute

University of Utah

Salt Lake City, UT 84108 USA

Tel: 801-581-7849 Fax: 801-585-3540 E-Mail: rallis@egi.utah.edu

Unable to Attend


Although high temperature geothermal systems in mainland Asia are rare, there are abundant hot spring systems with subsurface temperatures of 100 - 180° C.

Two regions with recent volcanic activity and intense hot spring activity occur in southern and eastern Kamchatka, where at least four major geothermal fields have been proven by drilling, and in west Yunnan, China.

No deep wells have been drilled into the central Rehai field of west Yunnan, but gas and water chemistry of the surface fluids are consistent with subsurface temperatures of 250 - 270° C. A temperature of 330° C at 2 km depth has been reported in northern Yangbajain field, and the lateral extent of high temperature and the characteristics of the permeability at depth are presently being investigated.

Existing geothermal power plants on mainland Asia are at Yangbajain (25 MWe nominal gross), Langjui (1 MW), Dengwu (0.7 MW), in China, at Pauzhetskaya, Kamchatka (11 MW), and Fang, Thailand (0.3 MW).

International encouragement for introducing low-carbon, alternative energy sources for electricity generation in Asia means that the viability on "mini-geothermal" binary power plants of around 1 MWe warrants further investigation. These plants could be sited on numerous hot spring occurrences in areas with poor electrification, and remote, distributed power centers. Their scale is such that environmental impacts are minimal, and relatively shallow wells mean smaller capital investment prior to committing to construction of the plant.

The track record of small-scale developments in Asia has not been good, so several pilot projects may be needed to demonstrate the feasibility, cost effectiveness, and reliability of the developments.

Improvements in the subsurface detection of feedzones to hot spring areas, prior to drilling, are needed.

Financial modeling of two hypothetical small power developments in Asia indicates that prevailing rates of tax and import duty could discourage investment.


Project Finance for Resource Developments in Emerging Markets -- The Role of the Multilaterals

Clive A. Armstrong, Senior Economist

International Finance Corporation, World Bank

Oil, Gas and Mining Department

2121 Pennsylvania Avenue, NW

Washington, DC 20433 USA

Tel: 202-473-2411 or 202-473-6677 Fax: 202-974-4330 E-Mail: Carmstrong@ifc.org

Economic liberalisation and privatisation in emerging markets, including those of the former Soviet Union, have opened up more of the world's natural resources to private investors. Emerging markets offer some of the most competitive investment opportunities in the mining and oil and gas sectors both in terms of exploration potential and in terms of known resources. Potential investors in such markets, though, may sometimes be concerned about the high political risks that they perceive to exist. Limited recourse project financing is one way that such risks can be managed, at least to some extent. However, in some cases, investors will find that loan finance is not available from commercial sources at a reasonable cost or for appropriate maturities.

The recent crisis in emerging markets has increased lenders and other investors perceptions of the risk of investing in emerging markets and in some cases has made finance even less available and increased its costs. Multilateral and bilateral development institutions, such as the International Finance Corporation (IFC), may be able to help by providing appropriate financing and helping investors mitigate risks. This presentation will provide a review of the potential role of the institutions in helping private sector resource development. It will illustrate key issues from the perspective of the experiences of IFC, an active provider of finance for emerging market mining and other resource development investments.


Metallogeny of the Gangdise Arc and Xigaze Ophiolite Belt,

Southern Tibet, China

Georges Beaudoin1 and Rejean Hébert

Département de géologie et de génie géologique

Université Laval

Ste-Foy, Québec G1K 7P4

Tel: 418-656-3141 Fax: 418-656-7339 E-Mail: beaudoin@ggl.ulaval.ca

Web-Page: beaudoin@ggl.ulaval.ca/personnel/beaudoin/Georges.Beaudoin.html

1Professeur agrégé et Directeur du programme de géologie


Wang C. and Tang J.

Chengdu University of Technology

Chengdu, Sichuan 610059

P.R. China

Tel: ... E-Mail: ...


The Gangdise Arc is a plutonic-volcanic complex that formed in two stages during the late Jurassic-early Cretaceous and the late Cretaceous-Tertiary in response to subduction of Tethyan oceanic lithosphere beneath the Lhasa block, accreted to the Asian plate. The central part of the Gangdise Arc, south of Lhasa, contains several porphyry Cu-Mo and Cu (Zn-Pb) skarn deposits. The Gangdise Arc is a metallogenic province of porphyry and skarn Cu-Mo-Zn-Pb-Ag-Au mineralization within an andean-type continental arc.

Jama is a Cu-Pb-Zn skarn at the contact between the Jurassic Duodigou Formation limestones and Cretaceous Linbuzong Formation pelites. The skarn cuts a large hornfelsic contact metamorphic aureole that is replaced by sericite and clays within a broad alteration zone. The massive Cu-Zn-Pb skarn is characterized by andradite garnet, wollastonite and diopside with disseminated and vein bornite and chalcopyrite, and lenses of silver-rich massive galena. The skarn is cut by later, unaltered, quartz-feldspar porphyries. These observations suggest that the Jama deposit contains buried porphyry-copper mineralization overprinted by an outcropping, younger, Cu-Pb-Zn skarn. The Nyemo deposit is a Cu-Mo porphyry hosted by coarse-grained granite in which feldspars are slightly argilitized and which contains epidote alteration zones. Mineralization is associated with thick, shallow-dipping, quartz-chalcopyrite-pyrite veins, and a stockwork of malachite veins. Near Zedang, the Chongmuda deposit is a reaction Cu-skarn developed at the interface between pelites and marble of the upper Cretaceous Bima Formation near the contact with a coarse-grained, feldspar porphyric hornblende granodiorite. The skarn is cut by E-W porphyry-style quartz-chalcopyrite veins (up to 30 cm) surrounded by inner albitic or biotite and outer sericitic and argillic alterations.

The Xigaze ophiolite belt along the the Yarlung-Zangbo suture of southern Tibet hosts the largest chromite deposit in China (Luobusa). Podiform massive chromitites are surrounded by dunitic envelopes within homogeneous harzburgite mantle sequence. The Cr# of the chromitites varies between 0.74-0.82 and the chromitites display relative enrichment in Os, Ir, and Ru compared to Rh, Pt, and Pd (Zhou et al., 1996).


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The Early-Precambrian Gold Deposits and their Mineralized Characteristics in Wutai Mountain Area, China*.

Chen Zhihong, Luo Hui and Mao Debao

Tianjin Institute of Geology and Mineral Resources

Chinese Academy of Geological Science

4th, Road 8

Dazhigu, Tianjin 300170


Tel: 86-22-24314293 E-mail: geology@shell.tjvan.net.cn


There are different kinds of Early Precambrian gold deposits within the Archean greenstone belt in the Wutai Mountain area. The main gold deposits can be divided into three types : Xiaobanyu-type BIF-hosted, Dongyaozhuang type, and Kangjiagou type.

Xiaobanyu-type gold deposits are hosted in the banded-iron formation (BIF) that was formed in the Archean. All of them are stratabound gold deposits in concordance with the layers of BIF. They contain very simple mineral compositions. The main metal minerals were pyrite and chalcopyrite with minor gold and silver, except for magnetite and hematite which were derived from the BIF. The thicknesses of orebodies are from several centimeters to 1 m. All the orebodies of BIF-hosted gold deposits were reworked by two stages of folding deformation. The era of mineralization was ca. 2.3 Ga.

Dongyaozhuang-type gold deposits are strongly restricted within the ductile-brittle shear zone developed in a spilite-keratophyre sequence with diabase intrusions. This kind of gold deposit contains complex mineral compositions, such as pyrite, chalcopyrite, arsenopyrite, molybdenite, tourmaline, and so on, similar to the typical greenstone-type gold deposit outside China. The thickness of the orebody is >1 m. The grade of gold-bearing ore ranges mainly from 3 g/t to 5 g/t. The correlation between gold and arsenic is much stronger than between gold and sulphur. The Re-Os isotopic age of molybdenite of ore is 2422 Ma, which represents the ore-forming era.

Kangjiagou-type gold deposits are characterized by the formation of quartz-vein with pyrite, chalcopyrite. The origin of this kind of gold deposit was closely related to the formation of carbonatite intruded about 2170 Ma (from Sm-Nd isochron curve dating).

The formation of different types of gold deposits shows that the potential reserve of gold in this region is large.

*This paper is a product supported by the project 49703044 of National Natural Science Foundation of China (NSFC).


Mineralogical Types of Uranium Ores of Eastern Russia and possible Resources in China and Other East Asian Countries.

Andrej Andreevich Chernikov

Fersman Mineralogical Museum RAS

Russian Academy of Science

Leninskiy prospekt 18-2

Moscow, 117071, Russia

Tel: 095-952-00-67 Fax: 095-952-48-50

WEB-SITE: www.fmm.ru; E-Mail: min@minmuz.msk.su


The mineralogical types of uranium ores as studied by Russian mineralogists are as follows:

1. The brannerite type with native gold and/or molybdenite in the potassium feldspathic metasomatic zones of the long-lived fractures of the Elkon Horst, Aldan, Russia. Druzhnoe, Elkon Plateau, Kurung, and others are typical ore deposits. Pitchblende, coffinite and uranyl minerals are rare in these ores. The Antaeus deposit of the Streltsovskoe ore field (Transbaikal region, Russia) may be considered as Type 1A.

2. The brannerite-uraninite type in beresites and carbonate-albite zones in North Kazakhstan. Kamyshovoe, Chokpak, Molodeznoe, and others in the Chistopolsk ore field are the biggest deposits.

3. The uraninite-coffinite-pitchblende-brannerite type in the albitite, long-lived fractures of the Kirovograd fault block of the Ukrainian shield. The Michurinskoe, Severinskoe, Vatutinskoe are the biggest deposits. Nenadkevite, uranium-containing apatite, and malacon, supergene uranium products are present in ores.

4. The coffinite-brannerite type in chlorite-carbonate-albitite metasomatites in the area of the Volodarsk deep fault in the Kokchetav median mass, North Kazakhstan. Kosochinskoe and Kutuzovskoe are typical deposits.

5. The coffinite type with uranium-containing apatite in carbonate-chlorite-albite metasomatites («Acetes»-low-temperature sodium metasomatites) in the area of the Volodarsk deep fault in North Kazakhstan. Grachevskoe is the biggest deposit. Brannerite is present in a small amounts.

6. The uranium-containing apatite type with sooty pitchblende, rarely coffinite, and pitchblende in Ordovician carbonate phosphorite of the Tastykol-Koksor ore field, North Kazakhstan. Uranothorite, uranium-containing zircon (cyrtolite), and arshinovite are present in small amounts.

7. The coffinite-nenadkevite-uraninite-brannerite-pitchblende type in the magnetite-albite-carbonate (sodium carbonate) metasomatites of Krivoy Rog's Basin, Ukraine. Zheltorechenskoe and Pervomajskoe are the biggest deposits. Uranium-containing malacon and apatite are present in the ores.

8. The coffinite-pitchblende type in the phengite-phlogopite-roscoelite metasomatites of the Lake Onega region, Karelia, Russia. The complex (V, Pd, Pt, Au, U) ores of Verhnija and Srednija Padma, Tsarevskoe, and others are the type deposits.

9. The pitchblende type, in which it is possible to find carbonate-pitchblende, fluorite-pitchblende, quartz-pitchblende, argillite-pitchblende, sulphide-pitchblende, molybdenite-pitchblende, and other paragenetic mineral subtypes. There are the proper uranium (Type 9), molybdenum-uranium (Type 9a), sulphide-uranium (Type 9b), and other deposits. In the former USSR and some contiguous countries, the biggest molybdenum-uranium deposits are 1) the Kattasai-Alatanginsk`s ore field, 2) the Near Tashkent region of Uzbekistan, 3) Kyzylsay ore field and Botta-Burum deposit in the Chu Ili Mts. of South Kazakhstan, 4) Djydeli in Central Kazakhstan, 5) Streltsovskoe ore field in the southeastern Transbaikal of Russia, 6) Dorot group of deposits in the East Mongolia, and others. Proper uranium deposits include 1) Byk and Beshtau in the Caucasus Mineral Water's region of Russia, 2) Sernoe in Turkmenistan, 3) Dospat, Smoljan (Rodop central massif) Bukhovo, Priboinica, and other deposits in the west-central Balkan zone of Bulgaria, and 4) Zvezdnoe, Akkanbourluk, and other deposits of the West Kokchetav Massif of North Kazakhstan.

10. The uranium-containing apatite of bone fragments in pyrite-containing Oligocene clay. Melovoe, Tomaksk, Tasmurune, and others of the Mangyshlak Peninsula of Kazakhstan are typical deposits.

11. Sooty pitchblende as a major uranium constituent of the ore. Pitchblende, coffinite, and phosphates, containing quadrivalent uranium, are present in the ore. There are five subtypes of these deposits:

- a. Stratiform deposits in terrigenous sediments. Included are the Utch-Kuduk type deposits (Utch-Kuduk, Sabyrsay, Sugraly and others in Kyzylkum desert, Uzbekistan), deposits in the Chuiskaya and Iliyskaya depressions in South Kazakhstan and other regions of Kazakhstan and Russia.

- b. Deposits in sedimentary-volcanogenic accumulations. Included are the Olove deposit in the East Transbaikal region and others in Russia

- c. Vanadium-uranium deposits in Paleogene oil-carbonate sediments. Included are Mailisu, Mailisai, Shakoptar, and other deposits in Kirgizia.

- d. The bitumen-uranium Adamovsk deposit (Ukraine) in bituminous accumulations.

- e. The vanadium-uranium Uygursai deposit (Fergana, Uzbekistan) in Paleogene sandstones.

12. Ore bodies with uranyl minerals. Included are the beta-uranophane-zeolite type. The Berezovoe and Gornoe deposits and numerous occurrences in the Chikoy-Ingodinskoe Arch in the south of central Transbaikal are the typical deposits. The Severnoe deposit in the Severniy granite massif of the Chuckcha Upland of Russia may be considered as a member of this type.

So, there are 12 mineral ore types: one with brannerite, gold, or molybdenite (Type 1); three with brannerite, uraninite, coffinite, and pitchblende (Types 2, 3, and 4); one with coffinite and apatite (Type 5); two with uranium-containing apatite (Types 6 and 10); one with coffinite and pitchblende (Type 7); two with pitchblende (Types 8 and 9; there are many subtypes in Type 9); one with sooty pitchblende (Type 11; there are five subtypes of this type); and one with uranyl minerals as essential constituent of ores (Type 12).

In many deposits, some of which are presently of great economic interest, uranium mostly is associated with titanium (Types 1 and 1a) and forms large to superlarge deposits. Uranium is associated with phosphorus in Types 5, 6, and 10. Uranium is associated with molybdenum (Type 9a) in other large to superlarge deposits. Uranium is associated with vanadium in some deposits (Type 11). Uranium is associated with precious metals and other elements in Types 1 and 8.

As to prospective types of deposits for adjacent regions of China and other countries, it is necessary to notice Types 3, 4, 5, and 8. We assume that these are the more prospective types of uranium deposits for Chinese-Korean platform. Type 11 uranium deposits may be discovered in the sedimentary cover rocks of theGobi Desert in Mongolia and China. Pitchblende deposits with associated molybdenite are most likely in the eastern part of Mongolia.


A Review of the Energy Resource Potential of Natural Gas Hydrates

Timothy S. "Tim" Collett

U.S. Geological Survey

Denver Federal Center, Box 25046, MS-939

Denver, CO 80225 USA

Tel: 303-236-5731 Fax: 303-236-8822 E-Mail: tcollett@usgs.gov


The recent discovery of large gas hydrate accumulations in both Arctic permafrost and offshore marine environments have confirmed the possibility that gas hydrates may represent an important energy resource for the future. However, significant to potentially insurmountable technical issues need to be resolved before gas hydrates can be considered a viable energy resource option. Gas hydrates are naturally occurring crystalline substances composed of water and gas, in which a solid water-lattice accommodates gas molecules in a cage-like structure, or clathrate. Gas hydrates are widespread in permafrost regions and beneath the sea in sediment of outer continental margins. Whereas methane, propane, and other gases can be included in the clathrate structure, methane hydrates appear to be the most common. The amount of methane sequestered in gas hydrates is enormous, but estimates of the amounts are speculative and range over three orders-of-magnitude from about 100,000 to 270,000,000 trillion cubic feet. It is likely that the amount of gas in the hydrate reservoirs of the world greatly exceeds the volume of known conventional gas reserves. It is possible that gas hydrates may represent an inexhaustible energy resource. However, relatively little work has been done to assess the availability and production potential of gas hydrates. The primary objectives of our gas hydrate research efforts at the U.S. Geological Survey are to document the geologic parameters that control the occurrence of gas hydrates and to assess the volume of natural gas stored within the world's gas hydrate accumulations. In this presentation, I will describe the tools and methodology used to recently assess the natural gas hydrate resources of the United States. The assessment methodology developed in this study has been used by numerous international research organizations to estimate the gas hydrate resource potential of other hydrate-endowed countries, with the greatest interest coming from Japan and India. In this presentation, I will also examine the technology necessary to economically produce gas hydrates within the next 20 to 50 years. This presentation will end with an overview of the plans for production from gas hydrates in Japan and India.

Gas Hydrate Technical Review:

Under appropriate conditions of temperature and pressure, gas hydrates usually form one of two basic crystal structures known as Structure I and Structure II. Each unit cell of Structure I gas hydrate consists of 46 water molecules that form two small dodecahedral voids and six large tetradecahedral voids. Structure I gas hydrates can only hold small gas molecules such as methane and ethane, with molecular diameters not exceeding 5.2 angstroms. The unit cell of Structure II gas hydrate consists of 16 small dodecahedral and 8 large hexakaidecahedral voids formed by 136 water molecules. Structure II gas hydrates may contain gases with molecular dimensions in the range of 5.9 to 6.9 angstroms, such as propane and isobutane. At conditions of standard temperature and pressure (STP), one volume of saturated methane hydrate (Structure I) will contain as much as 164 volumes of methane gas. Because of this large gas-storage capacity, gas hydrates are thought to represent an important source of natural gas. Onshore gas hydrates are believed to be present in the West Siberian Basin and are believed to occur in other permafrost areas of northern Russia, including the Timan-Pechora province, the eastern Siberian Craton, and the northeastern Siberia and Kamchatka areas. Permafrost-associated gas hydrates are also present in the North American Arctic. The combined information from Arctic gas-hydrate studies shows that, in permafrost regions, gas hydrates may exist at subsurface depths ranging from about 130 to 2,000 m. The presence of gas hydrates in offshore continental margins has been inferred mainly from anomalous seismic reflectors that coincide with the predicted phase boundary at the base of the gas-hydrate stability zone. This reflector is commonly called a bottom-simulating reflector or BSR. BSRs have been mapped at depths below the sea floor ranging from about 100 to 1,100 m. Gas hydrates have been recovered in gravity cores within 10 m of the sea floor in sediment from the Gulf of Mexico, the offshore portion of the Eel River Basin of California, the Black Sea, the Caspian Sea, and the Sea of Okhotsk. Also, gas hydrates have been recovered at greater sub-bottom depths during research coring along the southeastern coast of the United States on the Blake Ridge, in the Gulf of Mexico, in the Cascadia Basin near Oregon, the Middle America Trench, offshore Peru, and on both the eastern and western margins of Japan.

Gas Hydrate Resource Assessment:

Because gas hydrates are widespread in permafrost regions and in offshore marine sediments, they may be a potential energy resource. World estimates for the amount of natural gas in gas hydrate deposits range from 5.0x102 to 1.2x106 trillion cubic feet for permafrost areas and from 1.1x105 to 2.7x108 trillion cubic feet for oceanic sediments. The published gas hydrate resource estimates show considerable variation, but oceanic sediments seem to be a much greater resource of natural gas than continental sediments. Current estimates of the amount of methane in the world's gas hydrate accumulations are in rough accord at about 7x105 trillion cubic feet. A major goal of our resource appraisal work in the U.S. Geological Survey is to estimate the gas hydrate resources in the United States, both onshore and offshore. Similar to the assessment of the conventional resources in the 1995 U.S. Geological Survey Oil and Gas Assessment, this appraisal of gas hydrates was based on a play-analysis scheme, which was conducted on a province-by-province basis. We have defined, described, and assessed all the gas-hydrate plays in the United States regardless of their current economic or technological status. Therefore, this assessment is concerned with the in-place gas hydrate resources--that is, the amount of gas that may exist within the gas hydrates without reference to its recoverability. In a play analysis method, prospects (potential hydrocarbon accumulations) are grouped according to their geologic characteristics into plays. The geologic settings of the hydrocarbon occurrences in the play are then modeled. Probabilities are assigned to the geologic attributes of the model necessary for generation and accumulation of hydrocarbons. In this appraisal method, geologists make judgments about the geologic factors necessary for the formation of a hydrocarbon accumulation and quantitatively assess the geologic factors that determine its size. In this assessment, 11 gas-hydrate plays were identified within four offshore and one onshore petroleum provinces; for each play, in-place gas hydrate resources were estimated. Estimates for each of the 11 plays were aggregated to produce the estimate of total gas-hydrate resources in the United States. Maps depicting the geologic data required for this hydrate assessment have been included in the U.S. Geological Survey 1995 National Oil and Gas Assessment CD-ROM. Maps of bathymetry, sedimentary thickness, total organic carbon content of the sediments, seabed temperature, geothermal gradient, and hydrate stability zone thickness have been published on the Assessment CD-ROM for all four offshore provinces assessed. Maps depicting the thickness of the onshore gas-hydrate stability zone in northern Alaska also are included on the Assessment CD-ROM. In-place gas resources within the gas hydrates of the United States are estimated to range from 112,765 to 676,110 trillion cubic feet of gas, at the 0.95 and 0.05 probability levels, respectively. Although these ranges of values show a high degree of uncertainty, they do indicate the potential for enormous quantities of gas stored as gas hydrates. The mean in-place value for the entire United States is calculated to be 320,222 trillion cubic feet of gas. This assessment of in-place gas hydrates represents those deposits that constitute the resource base without reference to recoverability.

Gas Production From Gas Hydrates:

Proposed methods of gas recovery from hydrates usually deal with dissociating or "melting" in-situ gas hydrates by either (1) heating the reservoir beyond hydrate formation temperatures, (2) decreasing the reservoir pressure below hydrate equilibrium, or (3) injecting an inhibitor, such as methanol or glycol, into the reservoir to decrease hydrate stability conditions. Gas recovery from hydrates is hindered because the gas is in a solid form and because hydrates are usually widely dispersed in hostile Arctic and deep marine environments. Fairly simple thermal stimulation models have been developed to evaluate hydrate gas production from hot water and steam floods, which have shown that gas can be produced from hydrates at sufficient rates to make gas hydrates a technically recoverable resource. However, the economic cost associated with these types of enhanced gas recovery techniques would be prohibitive. Similarly, the use of gas hydrate inhibitors in the production of gas from hydrates has been shown to be technically feasible. However, the use of large volumes of chemicals such as methanol come with a high economic and environmental cost. Among the various techniques for production of natural gas from in-situ gas hydrates, the most economically promising method is considered to be the depressurization scheme. The Messoyakha gas field in the northern part of the West Siberian Basin often is used as an example of a hydrocarbon accumulation from which gas has been produced from in-situ natural gas hydrates. Production data and other pertinent geologic information have been used to document the presence of gas hydrates within the upper part of the Messoyakha field. It has also been suggested that the production history of the Messoyakha field demonstrates that gas hydrates are an immediate producible source of natural gas and that production can be started and maintained by conventional methods. Long-term production from the gas-hydrate part of the Messoyakha field is presumed to have been achieved by the simple depressurization scheme. As production began from the lower free-gas portion of the Messoyakha field in 1969, the measured reservoir-pressures followed predicted decline relations; however, by 1971 the reservoir pressures began to deviate from expected values. This deviation has been attributed to the liberation of free-gas from dissociating gas hydrates. Throughout the production history of the Messoyakha field it is estimated that about 36 percent (about 183 billion cubic feet) of the gas withdrawn from the field has come from the gas hydrates. Recently, however, several studies suggest that gas hydrates may not be significantly contributing to gas production in the Messoyakha field.

International Research Activities:

In the last five years, government agencies in Japan, India, and South Korea have begun to develop hydrate research programs to recover gas from oceanic hydrates. One of the most notable gas hydrate projects is underway in Japan, where the Japan National Oil Corporation (JNOC), with funding from the Ministry of International Trade and Industry (MITI), have launched a five year study to assess the domestic resource potential of natural gas hydrates. In numerous press releases, MITI has indicated that "methane hydrates could be the next-generation source of producible domestic energy". In 1996, JNOC conducted seismic, gravity, and magnetic surveys off the northern and southeastern continental margins of Japan. JNOC also will drill a gas hydrate test well in the Nankai Trough area, near Tokyo, in 1999. As much as 1,800 trillion cubic feet of gas may be stored within the gas hydrates of the Nankai Trough. Recently, JNOC in cooperation with the Geological Survey of Canada and the U.S. Geological Survey drilled an onshore permafrost-associated gas hydrate test well in the Mackenzie Delta of northern Canada. India, like Japan, finds itself among the countries that have to pay a very high price for imported LNG. They also have initiated a very ambitious national gas hydrate research program. In March, 1997, the government of India announced new exploration licensing policies which included the release of several deep water (>400m) lease blocks along the east coast of India (between Madras and Calcutta). Preliminary interpretations of recently acquired seismic data have revealed evidence of widespread gas hydrate occurrences throughout the proposed lease blocks. Also announced was a large gas hydrate prospect in the Andaman Sea, between India and Myanmar, which is estimated to contain as much as 211 trillion cubic feet of gas. The government of India has indicated that gas hydrates are of "utmost importance to meet their growing domestic energy needs". The National Gas Hydrate Program of India calls for drilling of as many as five gas hydrate test wells. Despite the fact that we know relatively little about the ultimate resource potential of natural gas hydrates, recently completed resource assessment studies and the national gas hydrate research programs of Japan and India will contribute significantly to our understanding of the technical challenges needed to turn this enormous resource into an economically producible reserve.


Gas Hydrates in Messoyakha Deposits and in Baikal's Sediments.

Albert D. Duchkov, Deputy Director

Institute of Geophysics

pr. Koptyuga 3, Novosibirsk

630090, Russia

Tel: ... Fax: +7(383 2) 33-25-13 E-Mail: duch@uiggm.nsc.ru


Abstract Not Available


Geology and Coal Resources of the Thar Coal Field, Sindh Province, Pakistan

James E. Fassett

U.S. Geological Survey

Box 25046, MS 939

Denver Federal Center

Denver, CO 80225 USA

Tel: 303-236-0609 or 303-236-7550 Fax 303-236-0459 E-mail: jfassett@usgs.gov


Note: This abstract is taken directly from USGS Open-File report 94-0167, published in 1994.


The Thar coal field is located in the Thar Desert of southeast Pakistan in eastern Sindh Province. The coal field area covers about 9,000 square kilometers with dimensions of 140 km (north-south) by 65 km (east-west); the field area is bounded by the Pakistan-India border to the north, east, and south. The field area is covered by northeast-trending longitudinal stabilized sand dunes with topographic relief of up to 100 m.

The Thar is essentially roadless with tracks through the sand being the principal transportation routes mandating four-wheel drive vehicles. The Mirpur Khas- Khokhropar Branch Railroad traverses the desert just northwest of the field area.

Total coal tonnage for the field is 78,269,762,092 metric tons. The coal is lignite B in rank with an average as-received heating value of 5,333 Btu, as received sulfur percentage of 1.57, and as-received ash percentage of 8.83 percent. The average dry and ash-free heating value for the Thar coals is 12,322. Average as received moisture content is 48.57 percent.

Nine drill holes in the south-central part of the field contain more than 24 m of total coal; six of these nine drill holes contain coal beds greater than 20 m thick. Drill hole TP-3 contains a bed of coal 27 m thick containing only three partings in its upper part measuring 1.05 m, .9 m, and .41 m thick. The shallowest coal in the field lies at a depth of 123 m; the deepest coal (depth to 1st coal bed) is at 245 m. The field contains 3,962,385,900 metric tons of coal at a depth of less than 150 m.

All of the drill holes in the field were located in interdune areas at the lowest elevation possible; because the surface relief of the sand dunes of the Thar Desert is as much as 100 m, the Thar coals between drill holes will probably be covered, on average by an additional tens of meters of dune sand.

A structural dome in the south-central part of the Thar coal field has elevated the thickest coals in the field closer to the surface. A north-easterly trending fault forms the boundary of the Thar field in the southeast part of the field area; east of this fault, the coal-bearing rocks were uplifted as much as 150 m and were probably eroded prior to deposition of the overlying alluvium. The Rann of Kutch fault zone probably represents the maximum southern extent of minable coal in the field area.

Thar coals thin greatly northward, eastward, and westward in the northern half of the field area; to the south, relatively thick coals may be present west of the presently-drilled area.

On the basis of paleontological information the Thar coals are Paleocene to Eocene in age; probably early Eocene. Available evidence indicates that the Thar coals may have been deposited in a raised-bog environment landward of a north-trending coastline of a sea to the west.


Gold Mineralization in SE Asia: Tectonic Setting, Main Types, Outlook for the Development of the Mineral Base.

Yu. G. Gatinsky1 and A. Ya. Kochetkov2

1Vernadsky State Geological Museum

Russian Academy of Sciences, Mokzhovaya 11, Bldg. 2

Moscow, 103009 Russia

Tel/Fax: (095)-292-05-86 E-Mail: yug@sgm.ru


2State Enterprise "Aerogeologiya"


Moscow, Russia

Tel: ...-...-.... Fax: ...-...-.... E-Mail: kochet@airgeo.msk.ru

Unable to Attend


The gold mineralization has a wide distribution trough the territory of SE Asia. Gold-bearing deposits are known in most countries of the region: Cambodia, China, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Vietnam. Total reserves of the gold mount in these countries (without China) to 4994 t, incl. 4940 t in Indonesia and the Philippines. The latters are also the main producers of the gold in SE Asia (101.4 t and 32.5 t, respectively, out of 140.9 t produced in the region in 1997 without China). At the same time in SE Asia the level of the knowledge of the gold mineralization is much lower in comparisson with other metals (tin, base metals a.o.). This notwithstanding already known data permit to forecast an essential increasing of the gold reserves in the region. It seems that at least a part of such increasing will be provided by the discovery and exploration of deposits of the new or yet poorly investigated types.

The manifestations of the gold mineralization are noted within different tectonic structures of SE Asia. Followings are main among them. i) Blocks of the pre-Cambrian continental crust (Yangtze - North Vietnam, Cathaysia, Indosinia, Sinoburmania or Shan-Tai, West Kalimantan and more small others). They are characterized by the development of relatively shallow-water or terrestrial sedimentary formations over the crystalline basement, predominance of German-type tectonics and S-type granites which have as linear as areal spreading, mainly high temperature metamorphism and repeated manifestations of the rejuvenation processes in rocks of the basement and cover. ii) Phanerozoic mobil belts dividing the mentioned blocks (Arakan, Yunnan - Thai-Malayan, Lao-Vietnamese a.o.). It is typical for them the absence of the pre-Cambrian basement, the wide distribution of rather deep-water formations incl. black-schist and ophiolitic ones, the Alpine-type tectonics with linear folds and thrusts, development of mostly I-type granites, which have a linear spreading, high pressure metamorphism in certain zones. iii) Superimposed Mesozoic and Cenozoic volcano-sedimentary depressions related to paleorift structures with the bimodal often subalkaline volcanic association (Anchau, Songhien a.o.) or to active continental margins with the differentiated calc-alkaline volcanic association (Irrawaddy, Sumatra, SE Vietnam a.o.). iv) Cenozoic island arcs with the differentiated calc-alkaline and tholeiitic associations (Java, Banda, the Philippines a.o.). The analysis of the deposit distribution and ore composition shows that each of the structure types is characterized by somespecific types of the mineralization. Seven of them can be noted.

1. The gold-sulphide-quartz type is one of the most wide-spread in the region. In most cases it is confined to blocks of the pre-Cambrian continental crust, at first to Indosinia. Occurences are represented by veins and concordant lodes as a rule without the direct connection with granitoid massifs. There are some relatively perspective deposits of this type containing significant hypothetical resources: Bongmieu, Camtam and Paclang in Vietnam, Bokham and Pnomdek in Cambodia, Kyaukpasat in Myanmar a.o. Rarely the deposits of the type are situated in the Phanerozoic mobil belts, e.g. Raub in West Malaysia, Agusan in the Philippines. Occurences of this mineralization have many similarities in the structure and mineral composition with stratiform deposits of other regions, so it can be expected to discover rather large targets among them.

2. The gold-antimonite type is close in the main to the previous and characterized by the more complete connection with the pre-Cambrian blocks, especially with Yangtze in South China and North Vietnam. Complex ores are usual for this type. They contain the gold and minerals of the antimony, arsenic, mercury, tungsten and silver. The majority of occurences are represented by veins, lenses and concordant lodes in slightly metamorphosed rocks of the block basement and cover. Some large and medium (in reserves) mining targets belong to the type: Woxi, Lendiaxi, Xikuangshan a.o in China, Langvai in Vietnam, Packhan, Phacadat in Thailand, Naking in Myanmar. There are the most favourable backgrounds for discovering new such deposits in North Vietnam and North Thailand.

3. The gold-quartz type is also one of the wide-spread in the region but it is mainly distributed in mobile belts, more rarely in margin parts of stable blocks. Ore occurences are represented by veins, vein zones, stockworks and as a rule have small reserves. Destructing by the erosion they very often supply numerous auriferous placers. Following ore-placer nodes can be adduced for examples: Bocu and Langmo in Vietnam, Paclay in Laos, Myitkyina in Myanmar, Kalai in Malaysia.

4. The gold-sulphide type is very interesting and perspective one. So far it is established in China and Vietnam, where is characterized by the association of the gold with minerals of the copper and rare earths. This mineralization is connected with Cenozoic alkaline massifs and carbonatites intruded in more ancient mafic-ultramafic complexes within mobil belts in their contact with pre-Cambrian blocks. The Sinhquyen deposit in North Vietnam possesses mineable reserves of the gold, copper and TR. It seems not long ago discovered the Laowangzhai-Donggualin deposit in South China belongs to the same type. It is superlarge one in reserves of the gold. There are perspectives of new such deposits' revealing in China, North and Central Vietnam, Laos andNorth Thailand.

5. The gold-silver-chalcedony type is wide-spread in the island part of the region, especially in West Indonesia (Sumatra, Java), to a lesser extent in the Philippines. Its occurences are represented by veins, mineralized zones and stockworks in Cenozoic volcano-plutonic complexes of the modern active margins and island arcs. The mineralization has the distinct epithermal character. It is noted often the presence of sulphides and tellurides. Such perspective mining targets can be mentioned as Minahasa, Lebong-Donong, Batu-Hayju, Gunung-Pongkor in Indonesia, Lepanto, Antamok, Aroroi in the Philippines. Deposits of the same type are distributed in Indochina, where they are connected with volcano-plutonic complexes of Mesozoic and even Paleozoic active margins and superimposed rift structures. Napai, Dalat, Nhatrang, Chauthoi in Vietnam, Attopy in Laos are the most interesting among them. There are favourable backgrounds for discovering new deposits of the type in NE and South Vietnam, South Laos and NE Cambodia.

6. The gold-bearing porphyry copper type is also confined to the Cenozoic volcano-plutonic complexes of island arcs and active margins, especially in the Philippines (the Masbate, Sibadat, Marcopper, Santo-Tomas, Atlas, Didipio mining deposits a.o.). Its presence is possible in West Myanmar, where the gold mixture is noted in ores of the Monywa porphyry copper deposit. Discovering new deposits of the type is very likely in the same territories.

7. The gold-bearing skarn type has sporadic spreading through the territory of SE Asia and as a rule doesn't form perspective deposits. But sometimes, when it is connected with the porphyry copper type, it is of great significance, as in East Indonesia. There the Ertsberg-Grasberg superlarge deposit is mined. It is composed by massive magnetite and chalcopyrite ores with an essential mixture of the gold.

In conclusion it is possible to ascertain most perspective types of the mineralization for the future development of the mineral base of the gold mining industry in SE Asia. They are 1 and 2 for the continental part, 5 and 6 for the island part. In our opinion just these types have the greatest backgrounds for discovering new large targets. Among poorly investigated or unknown (in the region) types it seems 4 is the most perspective. It is possible also to discover a new type of gold-carbonate-quartz (jasperoid) stratiform deposits in carbonate rocks of the cover of the pre-Cambrian blocks. The Langneo deposit in Vietnam can be a probable representative of this type. In addition to the said it will be useful to investigate the gold-containing in the gossans on some sulphide deposits. An electronic data base on main mineral deposits of SE Asia (continental part) is at the authors' disposal.


Analyzing Gemstone Type and Quality

Bruce Geller

Advanced Geologic Services

700 Vista Lane

Lakewood, CO 80215 USA

Tel: 303-237-2947, E-Mail: brucegeller@hotmail.com


Gemstones pose unique challenges to mineralogists/gemologists who seek to identify and/or analyze them, in that gems are rare and aesthetic materials of intrinsically high value, which one would not purposely wish to damage. This talk will discuss some of the non-destructive tests generally applied to gemstones, along with other less conventional methods that are also non-destructive, but not generally available to the average analyst, such as X-ray fluorescence, scanning electron microscopy, and other physico-chemical methods.

Fortunately, most gems are adequately characterized using routine mineralogic methods involving their specific gravity, index of refraction, reactions to ultraviolet light, observations under the stereo microscope, etc. Occasionally however, certain stones require further study, using some of the more sophisticated instrumentation mentioned above. In addition, where there are multiple samples of the same material and destructive testing is permitted by the client, a whole range of methods can be implemented that would otherwise be avoided including X-ray diffraction, wet chemical analysis, and petrographic studies.

The exact value of any given stone is a complex function of its scarcity, aesthetics, and durability. Although there is a fair amount of subjectivity in gemstone valuation, professionals are quick to recognize a stone's superlative value, especially when compared with other stones in a particular lot.


Rubies, Diamonds, Emeralds and other Gemstones of Asia

Bruce Geller

Advanced Geologic Services

700 Vista Lane

Lakewood, CO 80215 USA

Tel: 303-237-2947, E-Mail: brucegeller@hotmail.com

Note: Bruce Geller prepared and presented this paper because the original speaker, Ronald Pingenot, was unable to attend, due to serious illness in his family.


I.Introduction & Acknowledgments


II. Commonly used mineral/chemical "tests" applied to finished gems


III. Asia/Pacific Gemstones


IV. Summary


Asia/Pacific Gemstone Observations & Conclusions:

  1. Major source for diamond, corundum, spinel, zircon, exotics, charoite, jadeite, lapis, opal, coral, pearls, shell, synthetics
  2. Major source of jewelry findings
  3. Major stone cutting/carving region
  4. Regardless of size, Sri Lanka is global source for faceting gemstones - also Myanmar
  5. Australia and India are major sources for cabbing/carving gemstones
  6. Expect further growth in gemstone production in larger countries like Russia and China - also synthetic gems
  7. Expect serious gemstone exploration in SE Asia as governments stabilize
  8. Horror stories & travel tips


Business Application of Natural Gas Hydrates through Incubation Development

Jack Givens

Business Incubator Program Developer

1330 Ponder Point Drive

Sandpoint, Idaho 83864 USA

Tel: 208-265-4013 E-mail: jackg@netw.com

Unable to Attend


Gas hydrates in support of economic development in third world economies could stand as the single most important source of energy for the 21st century. Business incubation is viewed as one of the most practical vehicles to advance a stalled economy or to initiate entrepreneurial development.

A business incubator is a system or program that assists communities in the creation of business. This concept can be applied to a variety of economical conditions: rural, urban or cosmopolitan. The business incubator is designed to function as a central system of resource and support operations to enable a new business to get started or to advance a newly developed business.

Business Incubator programs can be found in a variety of locations around the world. Each program is designed to meet the specific requirement of the particular area served. Our concept is that once the incubator has been developed to a stage where it is sustainable by the host parties it will be the complete responsibility of such parties, with only requested participation from outside interests.

All such incubators will require some form or source of energy in order to function. Gas hydrates have the potential of providing the required energy. Givens Associates will enter into a cooperative venture with a Mongolian development enterprise to allow for such development.


Countertrade and Barter: Alternative Financing System to Offset Nonconvertability Problems.

Jack Givens, President

InterTrade Systems

1330 Ponder Point Drive

Sandpoint, Idaho 83864 USA

Tel: 208-265-4013 E-mail: jackg@netw.com

Unable to Attend


How can countries deal with a nonconvertability currency problem? Many engage in the nonconventional financial arrangements identified as countertrade and barter.

Countertrade refers to a whole range of barterlike agreements by which goods and services can be traded for other goods and services. Countertrade can make sense when a country's currency is nonconvertable. How important is countertrade internationally? One estimate is that 20 to 30 percent of world trade in 1985 involved some form of countertrade agreement. Other estimates were that by 1990 more than 40 percent of the world trade by volume involved countertrade. By the year 2,000 it could rise to 50 percent.

Although these numbers may seem very high, and they are difficult to verify due to a lack of hard data, they are perhaps not that far off, given the large number of countries whose currency remain nonconvertable.

The above problem is primarily the result of government restrictions in an effort to preserve foreign exchange reserves to service international debts and to purchase critical imports. In the 1990s more that 90 countries had major restrictions on the ability of residents and nonresidents to convert domestic currency into foreign currency, while another 30-plus countries had limited convertability restrictions.

Countertrade has evolved into a diverse set of activities that can be categorized into five distinct types of trading arrangements: barter, counterpurchase, offset, switch trading, and compensation or buyback. Many countertrade transactions involve not just one arrangement, but elements of two or more.

Given the importance of countertrade as a means of financing world trade, it is apparent that many countries will continue to use this technique from time to time. Many Developing Nations may have no other way of doing business in a 21st century global economy.


An Environmental Database for China

David A. Hastings and David C. Schoolcraft

NOAA National Geophysical Data Center

325 Broadway

Boulder, CO 80303 USA

Tel: 303-497-6729 Fax: 303-497-6513 E-Mail: dah@ngdc.noaa.gov


The National Geophysical Data Center has been integratinng environmental/scientific data on a global scale for about a decade. The most recent integration (involving scientists worldwide, but supported at NGDC) was the Global Land One-kilometer Base Elevation digital elevation model (http://www.ngdc.noaa.gov/seg/topo/globe.shtml), arguably the most thoroughly designed, developed, reviewed and documented global dataset to date. Based on a cooperative agreement signed in 1994, NGDC and the Institute of Geography, Chinese Academy of Sciences, have been cooperating to develop and release a database for China. Data include such layers as base map details (provinces, counties, roads, railways, canals, waterways), land surface characteristics (topography, soils, glaciers, waterways), and economic features (stable lights indicating population and economic activity, human developments such as airports, dams, and other major civil works). Sources have been Institute of Geography digitizations of Chinese maps, the GLOBE elevation data noted above, Digital Chart of the World, and satellite imagery. The data will be described, as will be their scientific and technical aspects of their possible use.


Geology of the Solton Sary Gold District, Kyrgyzstan (Former Soviet Union).

Vladimir O. Ispolatov, Matthew T. Heizler and David I. Norman

New Mexico Institute of Mining and Technology

Department of Earth and Environmental Science

Socorro, NM 87801 USA

Tel: 505-835-5994 Fax: 505-835-6436 E-Mail: vlad@nmt.edu


The mesothermal Solton Sary gold district (Kyrgyzstan, CIS) belongs to one of the richest metallogenic provinces of Eurasia. The district is situated on the southern flank of the Paleozoic Kazakstan-Tien Shan fold system, close to a major regional strike-slip fault. The stratigraphic section consists of a Cambrian-Ordovician island arc succession unconformably overlain by subaerial Devonian-Carboniferous conglomerates and sandstones. Gold-bearing quartz veins and stockworks are associated with a swarm of concordant planar intrusions of lamprophyres and syenite-porphyries.

40Ar/39Ar dating of hydrothermal phases revealed that the auriferous veins were formed at 395-390 Ma (i.e. Early Devonian). Samples of K-feldspar and muscovite produced 40Ar/39Ar spectra with age gradients characteristic of 40Ar loss due to post-crystallization heating. Mineralization and the abrupt onset of conglomerate deposition appear to be related to regional tectonic reactivation. Post-mineralization 40Ar loss resulted from the deep burial of the hydrothermal system under clastic sediments. Thermochronologic modeling of K-feldspars showed that the burial caused heating up to 260-300°C at ca. 330 Ma.

Mineralization of the Solton Sary district is significantly older than several structurally correlative gold deposits. Economically important hydrothermal activity at the southern flank of the Kazakstan-Tien Shan fold belt occurred episodically from the Early Devonian to the Permian. Temporal association of mesothermal gold mineralization and deposition of conglomerates implies a potential for gold paleoplacers in Devonian-Carboniferous clastic rocks.


Strategy for development of oil and gas resources in the Republic of Sakha (Yakutia)

Kliment E. Ivanov

JSC NOGC "Sakhaneftegaz"

Yakutsk, Republic of Sakha (Yakutia)


Tel: 011-7-4112-45-52-35 Fax: 011-7-4112-42-52-35 E-Mail: sng@saha.ru


SAKHANEFTEGAZ National Oil and Gas Company is authorized to represent the interests of the Republic of Sakha (Yakutia), the Russian Federation, in all the issues related to the development of oil and gas deposits. In the Republic of Sakha there are 31 fields of oil and gas discovered. These reserves along with forecasted resources make the mineral base, which is sufficient not only to meet the republic's forecasted needs in natural gas, oil and their processed products, but to export hydrocarbons to neighboring regions and abroad.

In this respect the Talakan gas and oil and Chayanda oil and gas condensate fields are of the greatest interest. These fields are considered to be the basic objects in future development of the republic's oil and gas complex. Development of oil and gas resources requires considerable investments. So attracting investments is one of the most important trends in the activity of the Company. Results of preliminary economic appraisal of the Talakan and Chayanda fields development show that they are profitable and that the projects can be realized provided the projects are financed.

Investment project for development of the Talakan field stipulates production of oil of more than 3 million tons annually, 1 million tons of what will be processed in a refinery, which will be built in the republic. The oil products will be used in the republic and about 2 million tons will be exported. For the project implementation about 700-800 million USD of investment is required. Results of 20 year economic efficiency analysis of the project show that internal rate of return will be 26-28%. The discounted net profit for an investor will reach 220-250 million USD.

The project of the Chayanda field development with reserves of 755 billion cubic meters of gas is considered as the basic object for gas export of the Republic of Sakha (Yakutia). The necessary investment for the project provided maximum annual capacity of gas production of more than 21 billion cubic meters for 35 years amounts to 1.9 billion USD. If the project is executed in accordance with the Agreement of production sharing, it will get the highest indices of effectiveness. The internal rate of return of the project will be 37%, while accumulated present value will be more than 1.6 billion USD.

Projects implemented by production sharing agreement are considered the most attractive form of investment in development of the oil and gas complex of the republic.


Note: The local (in Canada & the USA) representative of Sakhaneftegaz is Ivan V. Rojine, Trade Commissioner & Adviser to the Chairman of the Republic of Sakha. Mr. Rojine's address is: 885 Don Mills Road, Suite 203, Toronto, Ontario, CANADA M3C 1V9, Tel: 416-443-8771 Fax: 416-443-0084 E-Mail: tcscnd@netscape.net.


Doing Business with Japan and Japan's View on Asia.

Takeoshi Kawaguchi, Chief Executive Director

Japan External Trade Organization (JETRO)

1200 17th Street, Suite 1110

Denver, CO 80202

Tel: 303-629-0404 Fax: 303-893-9522 E-Mail: MooneyT22@aol.com


The following topics will be covered during Mr. Kawaguchi's presentation:

1) Overview of the Japan External Trade Organization

2) How to do business with Japan and how JETRO can help

3) Japan's view on Asia

a) The financial crisis

b) The future of East Asia

c) Natural resources issues in Asia in the 21st Century


Multi-Disciplinary Techniques and Methods for Very Shallow Exploration Targets.

Donald F. Kidd, President & CEO

EastWind Exploration, Ltd.

3673 East Nichols Avenue

Littleton, CO 80122

Tel: 303-773-3751 Fax: 630-578-1829 E-Mail: donkidd1@psn.net


Delineation of very shallow structure, stratigraphy and lithology is recognized as being very difficult, while the need for extremely high resolution data has increased. The need for thorough understanding of the stratigraphy in the upper one hundred (100) feet or less is the norm in most environmental and engineering projects. The area of interest for mining is again from the grassroots down to several thousand (1000+) feet. The oil & gas industry is beginning to re-evaluate the shallow depths for the presence of Gas Hydrates for both hazard prediction and potential resource development. Each of these objective "zones of interest" can be adequately imaged in a cost effective manner with the proper selection and application of today's modern technology. This may include the use of more than one technology or discipline.

This poster session will discuss various data sets acquired to specifically address some of the needs noted above. The use of multi-disciplined data sets is specifically discussed in some of the case histories along with examples demonstrating the need for proper selection of methodology as well as the digital acquisition and recording techniques used in the field.

Data examples will include the following:


Geology of the Ti-Deposits in the Hadong Area, Korea.

Won-Sa Kim

Department of Geology, Chungnam National University

Taejon 305-764

Republic of KOREA

Tel: 82-42-821-6428 Fax: 82-42-822-7661 E-Mail: kimw@hanbat.chungnam.ac.kr


As a result of detailed geological surveys together with analysis of minerals and drilling exploration, launched in 1986, large titanium ore deposits recently have been discovered in the anorthositic rocks distributed in the Hadong and Sancheong area of the Province of Kyungsangnamdo, in the southern part of the Korean peninsula.

The overall shape of the anorthosite body resembles a mushroom, and the upper part of it locally is called the "Sancheong mass" and the lower elongated one the "Hadong mass". The intrusion of the rock has been determined to be 1.7 b.y.. So far, investigation of the southern half of the Hadong mass has been completed.

The anorthositic rocks are zoned lithologically, on the basis of mineral composition and their texture, into four types: 1) massive, 2) layering, 3) intercumulate, and 4) lineation. Their boundaries run nearly in a N-S direction. The massive-type body consists mainly of labradorite plagioclase and is colored grey or greyish white. The weathered surface of this rock forms the most important traditional kaolin deposits of the country. The layered-type one is characterized by the repetition of light- and dark-colored layers of igneous origin. The light-colored layers are made up mainly of plagioclase and the dark ones of hornblende, epidote, sphene, and ilmenite. Dark-colored minerals fill interstices of plagioclase crystals. They are hornblende, actinolite, and ilmenite. The lineation-type mass is represented by nearly parallel arrangement of aggregates, N45°E-N20°W in direction, consisting of hornblende, biotite, actinolite, chlorite, epidote, and sphene.

The principal titanium ore mineral is ilmenite (FeTiO3), and very minor amounts of magnetite, hematite, rutile, sphene, and pyrite also are associated. Ilmenite occurs in three ways: fine disseminations, layers, and massive concentrations. Among these, only the massive concentration ore is important, and its occurrence is confined to the intercumulate-type anorthositic rocks.

Ore bodies consist of a few sets of mineralized layers and strike N15°E-N20°W and dip 30°-80°NW or SW, concordant with the general attitude of the host rock. So far, titanium ore deposits confirmed on the surface extend about 16 km, with a maximum thickness of approximately 100 m. Continuation of the ore bodies down to 300 m were confirmed through a drilling survey and is expected to continue further downward. The TiO2 grade ranges from 0.25-21.20 wt% for the samples from mineralized outcrops and reaches 43 wt% for the ores from the recently developed Okjong tunnel. Ti-mineralization is assumed to have formed in the later stage of the anorthositic magma differentiation, probably under temperatures below 600°C and an oxygen fugacity of 10-17 atm.


A Gas Hydrate Database for the International Community.

J. Klerkx and the GASHYDAT-Team

International Bureau for Environmental Studies


Brussels, Belgium

Tel: ... Fax: ... E-Mail: gashydat@africamuseum.be


The recent discovery of large gas hydrate accumulations in permafrost and in off-shore marine regions has caused a boom in the gas hydrate research and in the general interest to gas hydrates all around the world. This evolution demands for an improved communication within a broad gas hydrate community and crossing many borders. The GASHYDAT project has been started to collect worldwide the available information on gas hydrate research, and to enhance the exchange of data across different disciplines, across different societies, and across different nations. An online Gas Hydrate Database has been initiated that aims for the following features: (1) A database containing all data relevant to gas hydrates and their environmental and economical aspects, and a network for collecting, accessing and exchanging these data. (2) A network that facilitate the exchange of data across different disciplines: geologists, chemists, physicists, ecologists, technologists and engineers. (3) A network that serves as an interface to the international community of researchers, industrials, and decision makers. (4) A network accessible for everyone and worldwide as a fast and user-friendly on-line information system on the WWW. (5) A database containing bibliographical data and meta-data, and in particular factual data.

The Gas Hydrate Database has an own website with information concerning the project (temporal address: The online database is aimed to be operational at the beginning of the year 2000. The database will be available for everyone interested in gas hydrates, and everyone is kindly invited to submit data to the database. If you wish to contribute, please contact the project manager J. Poort at gashydat@africamuseum.be or the GASHYDAT-project partner within your specific discipline:

(1) Geology, Geophysics and Geochemistry: M. De Batist [RCMG, UG, Gent, Belgium; marc.debatist@rug.ac.be], V. Soloviev [VNII Okeangeologia, St-Petersburg, Russia; soloviev@gashyd.spb.ru], and A. Duchkov [UIGGM, SBRAS, Novosibirsk, Russia; duch@geophys.nsk.su].

(2) Thermodynamics, Kinetics and Physico-Chemical Modelling: F.A. Kuznetsov and Y. Dyadin [IICN, SBRAS, Novosibirsk, Russia; clat@che.nsk.su], B. Kvamme [UB, Bergen, Norway; bjorn.kvamme@kj.uib.no], and N. Bazhin [ICKN, SBRAS, Novosibirsk, Russia; Bazhin@kinetics.nsk.ru]

(3) Technology of Exploitation, Ecological and Economical Impact: B. Tohidi [HWU, Edinburgh, UK; bahman.tohidi@pet.hw.ac.uk], A. Nesterov [IECT, SBRAS, Tyumen, Russia; root@ikz.tyumen.su], and V. Yakushev [VNII Gaz, Moscow, Russia; yakushev@mosc.msk.ru].

The project is supported by a grant of the European Commission DG XII n° MAS3-CT98-0176.


Oil and Natural Gas Resources of Northeastern Asia as a Basis for Creating the Siberian-Asian System of Energy Supply in the First Decades of the XXIst Century

Aleksei E. Kontorovich1, Vasily M. Vlasov2, Alexandr K. Bitner3, Lev M. Burshtein1, Daniil A. Gofman1, Dmitriy I. Drobot4, Vasily M. Vlasov5, Vasiliy M. Efimov5, Valentin I. Izarov3, Vladimir A. Kazakov4, Anton N. Kolodchenko1, Andrey A. Kontorovich6, Andrey G. Korzhubayev1, Valeriy R. Livshits1, and Alexandr F. Safronov6.

1. Institute of Petroleum Geology SB RAS

630090, Novosibirsk, Academician Koptyug Avenue 3, RUSSIA

Tel.011-7-3832-332128, Fax 011-7-3832-332301, E-Mail: alex@petrol.uiggm.nsc.ru, letters@petrol.uiggm.nsc.ru, lev@uiggm.nsc.ru


2. Chairman of the Government of the Republic of Sakha (Yakutia)

4/1 Khalturin str., Yakutsk, 677000, RUSSIA

Tel. 011-7-4112-...... Fax: 011-7-4112-455235, E-Mail: ...


3. Committee on Natural Resources of Evenk Autonomous Area

660049, Krasnoyarsk, Mir Avenue 36, RUSSIA

Tel. (7-3912) 263 284, Fax (7-3912) 274712, E-Mail: root@rifey.krasnoyarsk.su


4. JSC RUSIA Petroleum

664039, Irkutsk

Gogol Sreet 33, RUSSIA

Tel. 011-7-3952-243671, Fax 011-7-3952-243688


14, Nizhniyaya Naberezhnaya St.

Irkutsk, 664011, RUSSIA


5. NPC Sakhaneftegaz

677005, Yakutsk

Khalturin Street 4/1, RUSSIA

Tel. (7-4112) 455235, Fax (7-4112) 455220, E-Mail: sis@online.ru


6. Krasnoyarsk Research Institute of Geology and Mineral Resources,

660049, Krasnoyarsk

Mir Avenue 55, RUSSIA

Tel. (7-3912) 224900, Fax (7-3912) 277339, E-Mail: kniigims@public.krasnet.ru


7. Institute of Oil and Gas Problems SB RAS

677891, Yakutsk

Lenin Avenue 39, RUSSIA

Tel. (7-4112) 445014, Fax (7-4112) 445708, E-Mail: geo@yacc.yakutia.su

Note: This is a very high-level delegation. Vasily M. Vlasov is the Chairman of the Government of the Republic of Sakha (Yakutia); Vladimir A. Kazakov is the President of the JSC RUSIAPetroleum; and Kliment E. Ivanov is the President of the JSC NOGC Sakhaneftegaz. Other speakers are also highly respected, with some being members of the Russian Academy of Science.

Note: The local (in Canada & the USA) representative of Chairman Vlasov is Ivan V. Rojine, Trade Commissioner & Adviser to the Chairman of the Republic of Sakha. Mr. Rojine's address is: 885 Don Mills Road, Suite 203, Toronto, Ontario, CANADA M3C 1V9, Tel: 416-443-8771 Fax: 416-443-0084 E-Mail: tcscnd@netscape.net.



Analysis of the development of the world economy during the first quarter of the XXIst century and forecasts for the first half of the XXIst century show that in the nearest decades the highest growth of the world demand in energy resources will be due to the rise of energy consumption in the countries of eastern and southeastern Asia (China, Japan, Korea, Russian Far East, and other countries). By 2020, the regions of eastern and southeastern Asia (including Eastern Siberia and the Russian Far East) are expected to increase the consumption of oil by 320-375 million tons and gas by 100-170 billion cu m. The authors believe that, for the period considered (20-30 years), the economically justified replacement of conventional gas by its alternative sources (hydrate methane, water-diluted methane, etc.) is extremely unlikely.

To meet the energy demands of eastern and southeastern Asia, in addition to the traditional energy flows from the countries of the Near East, Indonesia, Mexico, and Australia, in the nearest decades, the Asia-Pacific energy market can be replenished with two new energy directions - from Middle Asia (Kazakhstan, Turkmenistan, Uzbekistan) and Russia (from Eastern Siberia and Sakha Republic (Yakutia) and the Okhotsk Sea, primarily from the Sakhalin Island Shelf). The projects for oil and gas transportation from the West Siberian Petroleum Province to eastern and southeastern Asia also are discussed.

An active entry in the Asia-Pacific market, together with supporting and developing the European market, should become a new, important trend in the foreign energy strategy of Russia in the first half of the XXIst century. Such being the case, it would be possible to export not only oil and gas, but also energy and energy carriers.

Three large petroleum provinces occur within Russia in northeastern Asia. These are the Lena-Tunguska, Khatanga-Vilyuy, and Okhotsk Sea provinces. Based on the performed estimation (IPG SB RAS, SNIIGGIMS, VNIGRI) of this area, the initial recoverable resources of natural gas are 33-35 billion cu m. They are concentrated in the Precambrian (Riphean, Vendian), Cambrian, Upper Paleozoic and Triassic (Eastern Siberia, Yakutia), and Cenozoic (Okhotsk Sea Shelf) deposits. The majority of these recources are concentrated in large and giant fields.

The characterization of the largest fields will be presented in this report.

Extremely high helium concentrations ranging from 0.20 to 0.60% are the important feature of free gases of the Lena-Tunguska petroleum province. In Russia almost all of the resources and reserves of free gas containing 0.20% helium are concentrated in the Lena-Tunguska Province. Initial in-place resources of helium in this province are 55-70 billion cu m, which is much higher than helium resources and reserves in the USA, the largest helium producer and exporter. Estimations show that world demand in helium, primarily in countries with developed economies, will increase in the nearest decades, and the USA export opportunities will be sharply reduced after 2010-2015.

The base fields for the formation of gas production in northeastern Asia will be Kovyktinskoye, Chayandinskoye, Sobinskoye, Yurubcheno-Tokhomskoye, and others. In Eastern Siberia and the Sakha Republic (Yakutia) the total annual gas production can be increased up to 80 billion cu m by 2020-2025 and gas exports up to 60-65 billion cu m per year.

On the basis of oil and gas resources and reserves on the Sakhalin Island Shelf, an autonomous system of oil and gas production and transportation will be created. Based on the explored gas reserves in this region, gas production can be increased to 22-25 billion cu m/year.

By 2015, annual helium production will reach 100 million cu m. In 2020-2030, it will be 120-140 million cu m. By 2031, cumulative helium production is expected to exceed 2.7 billion cu m. The suggested levels of gas production represent the guaranteed estimation made on the basis of resources. It is based only on the reserves of fields discovered as of the present and includes cautious estimation of the Kovyktinskoye Field.

Its realization will be controlled by the terms of field development and construction of pipeline transport, including product pipelines, gas refineries, and helium plants, as well as underground helium reservoirs. Under a favourable investment climate, thereby allowing acceleration of construction and development activities to reproduce the mineral-raw material base, these development and production levels can be significantly surpassed.

The development of the Kovyktinskoye Field and the construction of the Kovyktinskoye-Angarsk-Irkutsk gas pipeline, with its subsequent continuation to Ulan-Ude-Chita and further through China or Mongolia and China, represents the first-order task. The next stages of the construction of the system of pipeline transport via Eastern Siberia will be the construction of a gas pipeline for Vanavara-Kezhma-Ust-Kut and for Ust-Kovykta to supply gas from the Sobinskoye Field and, in future, from the Yurubcheno-Tokhomskoye Field.

In the first stages, this pipeline will carry associated gas. At the same time, the construction of gas pipeline Chayanda-Dulisma-Ust'-Kut will start. The capacity of the gas pipeline for Ust-Kut-Kovykta and for Kovykta-Angarsk-Irkutsk-Ulan-Ude must take into account gas supply from several sources. When the planned program finally is realized, the cumulative gas production is expected to reach 897 billion cu m by 2021 and 1812 billion cu m by 2025.

For stable development of oil and gas production following the year 2030, it will be necessary to perform geologic exploration activities to find new fields.

The first-order task of work on reproduction of the mineral-raw materials base should be the completion of exploration and making these fields ready for production. In the next stage, it will be necessary to start work on finding and evaluating new fields. In total, not less than 1500 million tons of oil and not less than 2500 billion cu m of gas should be explored for through 2030. This requires drilling of 6.5-7.0 million meters of deep wells (i.e., 200-250 thousand meters per year) and significant amounts of 2D and 3D seismic exploration. If we assume that the levels of oil and gas production must not level off or decrease after 2030, the scope of geologic exploration should be still greater. The Asia-Pacific Ocean energy program undoubtedly will be the greatest superproject of the XXIst century. The stable development of a significant part of mankind, the rise of standards of living of the population in this region, and the solution of many social and demographic problems will depend on how successful realization will be of this energy development. Russia should be an active participant of this superproject as a country possessing both tremendous energy resources and its unique scientific and technical potential.

The entry of Russia into the Asia-Pacific Ocean energy market requires the solution of the problem of ultralong-distance transportation of energy carriers or energy. Such ultralong transportation represents a complex system of expensive resource- and energy-consuming projects. Searching for the ways of making them cheaper, decreasing the resource consumption, and reducing the expenditures and energy losses are the most important tasks of science and engineering for the XXIst century.

In particular, the estimates made by IES SB RAS suggest that alternative gas transportation can be represented by electric power transport through electric transmission lines with high voltage direct current. In this case, not only organic energy carriers, but also atomic energy, hydropower energy, and others can serve as electric power sources.

There also may be various types of gas transport (natural gas, liquefied natural gas - LNG, methanol, and others) and transportation networks (use of Arctic Ocean routes, above-water and underwater tanks, etc.). This problem should be solved not just using the basis of already realized scientific, engineering, and technical decisions.

One of the possible ways to a solution is the concept of energy transportation using electronic bundles suggested by academician G. I. Budker as early as in the 1960s and developed lately by academician A. N. Skrinsky (INPh SB RAS). The versatile scientific, technical, and economic cooperation of all peoples and countries is needed to solve the projected energy problems of the XXIst century.


Gas Hydrates in the Context of Basin Analysis

Jan Krason

GeoExplorers International, Inc.

5701 East Evans Avenue, Suite 22

Denver, CO 80222 USA

Tel: 303-759-2746 Fax: 303-759-0553 E-Mail: geoexpl@geoexplorers.com


Gas hydrates, more correctly known as clathrates, form ice-like crystalline structures of water molecules surrounding molecules of hydrate gases, mostly of methane composition. In the natural environment, gas hydrates are common in the regions overlaid by permafrost and in the marine sediments. In the permafrost regions, gas hydrates are formed and can be stable below freezing temperatures. Such temperatures prevail within frozen top soil and hundreds of meters down below. In the marine environment, usually along continental margins, and at greater depth, gas hydrates are formed at the sea floor and within the sediments, up to several hundred meters below sea floor, where temperatures do not exceed a few degrees above freezing and pressures are relatively high. For formation, physical characteristics, chemical composition, and the amount of gas hydrate that is accumulated, availability of a source of biogenic and/or thermogenic hydrocarbon gases is always critical.

Although the above indicated conditions are always emphasized, they are complex and confined to a very specific geographic and geological settings. Therefore, determination of the formation and stability conditions of natural gas hydrates, assessment of their resources have been investigated and the results are presented in the context of basin analysis and all inter-related factors.

Understanding of the geological environments controlling gas hydrate occurrences is fundamental for consideration of their exploitation, projection of recoverable amount of gas, applicable recovery technology, potential energy impact, environmental and geotechnical gas hydrates-caused hazards. Much of the current knowledge of natural gas hydrate occurrences was obtained indirectly. Geophysical and geological data collected for purposes other than gas hydrate study indicate gas hydrate presence. Thorough review and analysis of all available geological data the regional extent of 21 gas hydrate known and inferred occurrences have been assessed. The results of systematic study of the geological environments of identified gas hydrate occurrences provided the basic data for determination of the relationships of geological environments to gas hydrate formation and stability in 13 offshore regions. Five of these study regions are located on passive continental margins: offshore of Newfoundland and Labrador, Canada, the Baltimore Canyon Trough and Blake-Bahamas Outer Ridge offshore of the eastern United States, the western Gulf of Mexico, and the Black Sea. Eight of the regions for which the results have been also studied in detail are on active continental margins: the Colombia Basin, the Panama Basin, the Middle America Trench, offshore of northern California, and the Aleutian Trench, Bering Sea, all on the Pacific Margins of North and Central America. The results of the study of Beaufort Sea offshore of the north slope of Alaska, Nankai Trough offshore of Japan, and the Timor Trench offshore of Timor will be also discussed.

Geoexplorers International's research have been very extensive and the results are included in voluminous reports. A brief summaries of the major points of 13 regions of the above mentioned regions and factors critical for gas hydrate formation, stability, and assessed potential gas resources will be addressed in this presentation. Potential resources of natural gas, in the studied offshore regions, trapped in the hydrate form, have been estimated for about 3 x 1015 m3 (100,000 tcf), and 1 x 1014 m3 (4,000 tcf) of free gas trapped under hydrates. This amounts respectively 57.47 and 2.3 times more than world's total cumulative production of conventional natural gas as of 1 January, 1993 (as reported by J. W. Schmoker and T. S. Dyman; OGJ, Feb., 23, 1998).


Challenges for Methane Hydrates in Offshore of East Asia and Western Pacific

Jan Krason

GeoExplorers International, Inc.

5701 East Evans Avenue, Suite 22

Denver, CO 80222 USA

Tel: 303-759-2746 Fax: 303-759-0553 E-Mail: geoexpl@geoexplorers.com



Methane or gas hydrates, also known as clathrates, form ice-like crystalline structures of water molecules surrounding molecules of hydrate gases, mostly of methane composition. In the natural environment, gas hydrates are common in the regions overlaid by permafrost and in the marine sediments. In the marine environment, gas hydrates are common in the regions usually along continental margins, and at greater depth. They can be found at the sea floor and within the sediments, up to several hundred meters below sea floor, where temperatures do not exceed a few degrees above freezing and pressures are relatively high. For formation, physical characteristics, chemical composition, and the amount of gas hydrate that is accumulated, availability of a source of biogenic and/or thermogenic hydrocarbon gases is always critical.

Although the above indicated conditions are usually emphasized, they are complex and confined to a very specific geographic and geological settings. Therefore, determination of the formation and stability conditions of natural methane hydrates, assessment of their resources have been investigated and the results are presented in a numerous publications.

Understanding of the geological environments controlling gas hydrate occurrences is fundamental for consideration of their exploitation, projection of recoverable amount of gas, applicable recovery technology, potential energy impact, environmental and geotechnical gas hydrates-caused hazards.


Once the nature of the formation and stability of gas hydrates has been identified and potential gas resources preliminarily assessed, the next step is to determine the priority of exploration targets. Obviously, cost-effective potential discoveries and the production technology for methane trapped within and under gas hydrates stability zone, or interrelated conventional-type hydrocarbon deposits should be considered. There are opportunities and challenges for research and exploration of methane hydrates in offshore of East Asia and South-East Pacific region (Figure 1).

The US Department of Energy (US DOE) Research Program of the 1980s, which among other tasks included advancement of the basic knowledge on formation and stability of gas hydrates, achieved its objectives. Nankai Trough and Timor Trough were among 21 areas, grouped in 13 regions, with confirmed and suspected for presence gas hydrates, that were systematically studied by Geoexplorers International, Inc., (Finley and Krason, 1989). Both areas are located within the regions of special interests of this presentation. Nankai Trough is located in south-east offshore of Japan. Timor Trough, is located between Australia to the south and Timor Island to the north (Ciesnik and Krason,1989).


Although Geoexplorers International's study of basin analysis, formation and stability of gas hydrates determined for all regions, were based exclusively on the geological, inter-related data and interpretation of seismic surveys (which can be found in public domain), the results published and subsequently promoted by their authors, caught serious attention of Japan National Oil Corporation. JNOC is one of the world's largest and highly reputable petroleum company. JNOC, having already prior knowledge of the marine geology of Nankai Trough, convinced Japanese Ministry of International Trade and Industry (MITI), to consider methane hydrates of said region, as an alternative to Japan's own possible large resources of natural gas. Subsequently, JNOC in consortium of JAPEX (Japan Petroleum Exploration, Ltd.) launched extensive research on methane hydrates, with ultimate goal being to drill an exploratory well for economically feasible commercial gas field in the Nankai Trough (Figure 2).

For many years Japanese universities, research organizations, and individual scientists have studied and contributed considerable knowledge and a better understanding of various aspects of gas hydrates properties. However, the most significant progress in the research and development of methane hydrates as an energy resource in the near future has been made in the last few years. This became possible after JNOC's decisive commitment and after considering methane hydrates as a seriously challenging exploration frontier.

The methane frontier has been enhanced by completion of drilling and publication of the results of JAPEX/JNOC/GSC (Geological Survey of Canada) Mallik 2L-38 Research Well (Dallimore, Uchida and Collett,1999).This well drilled in February and March, 1998 in the Mackenzie Delta, NW Territories, Canada (Figure 3). The well has been drilled in preparation for exploration drilling in the Nankai Trough in 1999. By the time this communication will be published, JNOC, leading a ten companies consortium, will be drilling in Nankai Trough in the first attempt at commercial exploitation of methane hydrates.

Certainly, considering the results of exploratory drilling, interpretation of the geophysical logging and laboratory investigations, the endeavor of the JAPEX/JNOC/GSC Mallik 2L-38 Research Well has been evidently of great success. This also can be considered as a challenge to the science on the gas hydrates. For JNOC it will be an exceptionally important practical lesson and experience that shall be very beneficial in exploration efforts in the Nankai Trough. And most likely, the Canadian Government will benefit from the discovery of and, in near future, production of natural gas from a super-giant unconventional-type gas field (Krason, 1999a, 1999b).


Study of the Timor Trough focusing on formation and stability of gas hydrates was made by P. D. Finley with this author. Their report (as 14th of 15 volumes in the series) was published by US DOE in October, 1989. This was the last of the above mentioned 13 regions studied. This study was limited not only to the use of data in the public domain but also while funds for the study were nearly exhausted.

Prior to the study, gas hydrates were proposed to exist DSDP Site 262 to rectify an apparent paradox in pore water geochemical data from Site 262 (McKirdy and Cook, 1980). In the study, authors did not considered the use of the geochemistry of the pore water at DSDP Site 262 for indication of hydrate presence. Instead, they review of seismic data from the study region to detect the presence of the bottom simulating reflectors (BSRs). In addition to discordance of the BSRs and sediment reflectors, they found a possible velocity anomaly above some of the reflectors.

Thus, without direct confirmation of the gas hydrate presence in the Timor Trough study region, Finley and Krason's assessment of potential gas resources, recommended to consider this as speculative. They detected Bottom Simulating Reflectors along an area of the accretionary prism offshore of western Timor measuring about 5,000 km2. The same authors projected about 20% of the area is underlain by BSRs, for a net aerial extent of 1,000 km2. Assuming that the impedance contrast that causes the BSRs is due to hydrate filling 50% of pore space of a 40% porosity sediment, a 1 m thick layer of hydrate-impregnated sediment would contain 2 x 108 m3 or 1 trillion (tcf) may be present as hydrates. A 10 m thick layer of 40% porosity sediment with 50% of the pore space filled with hydrate, about 3 x 1011 m3 or 10 tcf of gas.

Finley and Krason (1989) also reported that the BSRs of the Timor Trough study region often correspond to anticlines with a bathymetric expression. This mode of occurrence is conducive to trapping free gas beneath the hydrate layer. Bathymetric highs on the accretionary prism offshore of Timor are capable of containing about 1010 m3 or 0.35 tcf of gas in sub-hydrate traps.

The above outlined study were bound with sever limitations, therefore has to be considered only as preliminary. Said study was completed ten years ago. Perhaps coincidentally, or even inferred, the presence of gas hydrates can be consider as one of the exploration precursors for conventional type hydrocarbon deposits (Krason, 1991). In the same region of the Timor Trough over the past four years, 16 oil and gas discoveries have been achieved, and 140 exploration wells are scheduled for over next four years (Offshore, p. 132, Nov., 1999). In the same issue, Offshore also reports that "Shell discovered Evans Shoal in 1998. Combined reserves of the four fields are estimated at 15.5 tcf of gas and 160 million bbl of condensate". Bayu-Udan Field is one of the largest development in the Timor Sea (Figure 4). The field reserves of about 400 million bbl of condensate and LPG and 3.4 tcf gas. The field is located in Zone A of the prolific Timor Gap Zone of Cooperation Area.


Japan's serious involvement in the research on and decisive exploration program for methane hydrates, which are being considered as resources in the near future, has been strong inspiration for similar challenges. It is known that in the East Asia, India, South Korea, and lately China, recognized the importance of the latest developments and already initiated their own methane hydrates research and exploration programs.


According to Oil and Gas Journal (Apr., 26, 1999) India's postulated unconventional hydrocarbon resources are estimated at 850 billion m3 (29,750 tcf) of coalbed methane, 600 million metric tons of oil shale, and 6,156 trillion m3 (215,460 tcf) of gas of methane hydrates.

Without any additions of existing reserves, crude oil reserves are expected to total 513 million tons (3,591 million barrels) by 2001 - 02, while production averages 37 million tons (259 barrels) /year.

India has earmarked $56 million for hydrate research and development and is also planning offshore leases for hydrate exploration. India's exploration region designated for methane hydrates exploration is located with western offshore, about 200 km from the coast between Goa and Bombay, within the sea depth reneging from 1,700 m and 2,500m.


According to Chris Ellsworth (OGJ, Jul. 5, 1999) China with 1.2 billion people, natural gas is mostly used for production of fertilizers. In 1998, only 45% of Sichuan province's 244 bcf of marketed production was used to produce fertilizer, with much of the remainder used in the petrochemical industry. The South China Sea is the second largest gas producing region, providing about 113 bcf/year to Hong Kong and Hainan provinces. However, there are signs that with the ninth 5-year plan proclaiming that China will consume 6 - 7 tcf/year by 2010. In the Sichuan province, only small fraction, 31 bcf, was used for residential heating and cooking, while no gas was used for power generation. Gas consumption and production (< 2% of primary energy consumption) have remained 500 - 600 bcf/year, with recoverable reserves of over 37 tcf, sufficient for 74 - 120 years a current consumption rates.

Also according to Ellsworth, for comparison, North America posses 10 - 11 years of gas reserves at production rate 26 tcf/year; Western Europe, a major gas importer, has 17 years of reserves and produces 14 tcf. Eastern Europe and the former Soviet Union together possess 83 years of reserves, producing 3 tcf/year (Figures 5, 6 and 7).

Recently China's Xinhua new agency reported that China has decided to search for natural gas hydrates in its seabed. The China Ocean Mineral Resources recently completed studies on exploration and prospecting technology for the new energy source. Reserves are estimated at 1.1 trillion tons (Offshore, Sept., 1999).


This author who among other recommendations is advocating consideration of gas hydrates as pathfinder for conventional type hydrocarbons (Krason, 1991), has been especially pleased with the following information (published by OGJ Newsletter, Nov. 15, 1999): "a team of French and Australian scientists has taken a closer look what it now believes to be the world's largest natural gas deposit: a methane hydrates field off the coast of New Caledonia. The deposit was studied by the research vessel L'Atalante as part of a joint study of the Australian Geological Survey Organization (AGSO) and French Research Institute for the Exploitation of the Sea. The team says the hydrates field measures 80,000 km2, much larger than thought when they discovered it in May, 1998.

The field lies 240 km off the western coast of New Caledonia and about 600 m below the seabed. The scientists believe the gas comes from an oil deposit several hundred meters deeper. OGJ also quote: "we must ascertain if (the gas hydrates) are derived from a deep-seated thermogenic or shallow biogenic source," said AGSO in the October 1999 issue of Ausgeo News. "If the former applies, this would be the first real proof that conventional hydrocarbons are being generated on the Lord Howe Rise, opening it up as a petroleum exploration target". Water depths on the rise range from 1,000 to 4,000 m.


Among several sites with gas hydrates at the Far East of Russia, their presence has been confirmed in the Okhotsk Sea. One is located in offshore of north-eastern part of Sakhalin Island and another one occurs at the northern end of Kuril Islands, close to southern tip of Kamchatka Peninsula (Figure 8). Both sites have been described in detail by G. D. Ginsburg and V. A. Soloviev (1998), and mainly their information were used in this communication.

However, this author, during his first visit to Sakhalin Island, in 1987, personally met Dr. L. P. Zonenshein, Russian scientist, who at that time only completed his scientific expedition in submersible bathyscaph at the latter location.

The Paramushir Island is last to the north island, in the Kuril archipelago. The gas hydrates site is located at 16 km off the Paramushir Island (at 50030.8'N and 155018.2' E). Dr. Zonenshein went there down to the depth of water 768 m, and made specialized studies. There is a "plum" caused by gas bubbles venting on the sea floor. Gas seepages, mainly of methane composition, occur atop of a spur of a width of about 400m, length 800 m and relative height up to 15 m 2 to 3 m above the spur there is a 50 x 50 m anomalous field of gas source which is distinguished by pits and funnels, loose ground and bottom fauna. Funnels and pits are usually 1 to 1.5 m across and minimum 1 m deep, their edges frequently being abrupt. They are spaced at 0.5 to 2 m, some of them are interconnected at the bottom. Sometimes they occupy the bottom of wider depressions that are up to 10 m across and 3 m deep.

The bottom temperature within the gas source anomaly field was about 2.40 C.

The composition of gas hydrate recovered from Site 1395 has been studied. Methane, ethane, propane and carbon dioxide contents of the gas were respectively: 97.8%, 4.5x10-2%, 1x10-4%, 8.96x10-'%.

In the fall of 1991 VNII0keangologia and PO Dalmorgeologia carried out a research cruise on board RN "Geolog Pyotr Antropov". The main objective of the cruise was to study already known hydrate occurrence off Paramushir Island discovered in 1986 and to search for new ones related to submarine gas and/or gas-saturated water discharges.

Offshore from Paramushir Island a previously known "plume" was intersected by 20 echosounding profiles, which allowed a more accurate positioning to be gained. The center of the "plume" is at 500 30.904' N and 155018.37' E at a water depth of 790 m. Total positioning error of the "plume" center (navigation system error, time mark error, echosounding vibrator offset error) may reach 60 to 70 m.

The diameter of the "plume" in the water column near the seafloor is reported by echosounding crosscuts to be 350 to 450 m. The gas seepage itself seems to be smaller in size and tends to the upper part of the crest-like sublatitudinal rise extended from the east from the slope of Paramushir Island. The water depth within the "plume" varies between 790 and 800m.

Then after thorough investigations has been concluded that a source of gas responsible for an echosounding "plume" above the hydrate accumulation is a gas pool. Seismic exploration data suggest that the gas pool is probably located at a subbottom depth of about 200 m.

Ten submarine gas seepage fields have been recognized by echosounding on the north-east slope of Sakhalin Island (Figure 9) within the west flank of the Deryugin Depression. These were discovered within the depth range from 620 to 1,040 m in a fairly narrow zone less than 20 km wide, extended from north to south for almost 130 km. Some of these fields spaced at 0.5 to 1 km, and probably have a common deep gas source.

The study area is located in the vicinity of oil- and gas-bearing fields on Sakhalin Island and adjacent shelf. The sedimentary cover 5 to 6 km thick is represented predominantly by Cenozoic units (Krasny et al., 1986). Along the west flank of the Deryugin Depression a zone of abrupt seismic information deficiency occurs: reflectors are hardly pronounced on the CDP time sections. Based on medium-frequency seismic profiling may strongly suggest in the zone, an abundance of submeridional faults crossing gently dipping or subhorizontal sediments to form disturbance areas up to several hundred meters wide exists in th zone. These are, probably, upward gas migration pathways, since seismic indicators of gas-bearing sediments have been observed here.

Core sampling has been performed over three submarine gas seepage fields. The most interesting results have been received from field 1 where gas hydrates were found at all 5 sampling sites located on an area maximum 250 m across. Still another site in this area (91-02-43) located at a distance of 700 m from the gas seepage field has not encountered hydrates.

Hydrate-hosting silty clays are represented mainly by diatomaceous muds with a negligible agri-mixture of terrigenous material. The roof of the hydrate-bearing sediments within field 1 occurs as deep as 0.3 to 1.2 m. Some 0. 1 to 1 m of this unit has been penetrated. At all sites, hydrates have been traced down to core end. In all hydrate-bearing intervals hydrate-related bedding have been observed. No other bedding, for instance that of sedimentation has been identified.

In the cores taken from-n Sites 91-02-40 and 91-02-44 hydrate formed a lenticular-bedded structure resembling cryogenic structure. Beds and lenses of hydrates were 0.5 to 7 mm thick. Often two neighboring subhorizontal hydrate interbreeds were connected by a tilted one. Less frequently hydrates were observed as subvertical, nearly cylindrical isolations up to 0.5 cm in diameter and up to 5 cm long. These appear to be Polychaeta tubes filled with hydrates. Hydrates could be present between interbeds and lenses as micro-inclusions in pores. Hydrate content in hydrate-bearing intervals at Sites 91-02-40 and 91-0244 was visually estimated as 30 to 40% of the sediment volume. There were no regular depth-dependent variations in shape, size and amount of hydrate inclusions.

Summing up, accumulations of gas hydrates related to submarine gas seepages have been revealed in the Okhotsk Sea. They are characterized by shallow subtotal depth, substantial hydrate content, specific structures of hydrate-bearing sediments, association with calcium carbonate isolations, high water content of hydrate-bearing intervals, in comparison with overlying sediments.


It is impossible to predict whether any of the above highlighted methane hydrates sites and exploration programs will be commercially successful for a foreseeable future. Nevertheless, the research will provide with the thorough analysis of petroleum geology of each study region, and certainly, will determine discovery potential, with assessment of the resources not only of methane hydrates but eventually interrelated conventional type hydrocarbons.

The lesson learned from the presence of methane hydrates within already known oil and/or gas fields will further confidence that methane hydrates can be considered as one of the pathfinders in exploration for conventional type hydrocarbons.

Moreover, worldwide impetus for research on and exploration for methane hydrate deposits is continued and appears to be on an acceleration course. Successful results of test drilling of Mallik 2L-38 well that exceeded its research objectives, added considerable boost for Japan JNOC's - MITI sponsored exploration program.

Certainly, JNOC understands that even the best accomplishments need to be publicly disclosed and appropriately promoted. This is what we at Geoexplorers International have added to the US DOE completed contractual work, in 1980s.

Then, not even ten years later, the US DOE has been awarded with and charged to manage the much bigger "NATIONAL METHANE HYDRATE MULTI-YEAR RESEARCH AND DEVELOPMENT PROGRAM". Moreover, the US DOE in its new Program is not alone. The competition now in the research on and exploration for methane hydrates as potential energy resource is much stronger. Inter-related activity is extended beyond the US borders and their offshore, and at least several major petroleum companies are also seriously involved in the exploration for non-conventional natural gas resources, namely trapped in or associated with methane hydrates.


Ciesnik, M, and Krason, J., 1989, Basin analysis, formation and stability of gas hydrates in the Nankai Trough, geological evaluation and analysis of confirmed and suspected gas hydrate localities; US Department of Energy, DOE/MC/21181-1950, v. 13, 91 p.

Dallimore, S., Uchida, and Collett, T., 1999, Scientific results from JAPEX/JONC/GSC Mallik 2L- 38 gas hydrate research well, Mackenzie Delta, NW Territories, Canada: Geol. Surv. Canada, Bull. 544, 401 p.

Ellsworth, C., 1999, China's natural gas industry awaking, poised for growth: OGJ, Jul. 5.

Finley, P. D. and Krason, J., 1989a, Basin analysis, formation and stability of gas hydrates in the Timor Trough, geological evaluation and analysis of confirmed and suspected gas hydrate localities: US Department of Energy, DOE/MC/21181-1950, v.14, 60 p.

Finley, P. D. and Krason, J., 1989b, Basin analysis, formation and stability of gas hydrates; geological evaluation and analysis of confirmed and suspected gas hydrate localities, summary report; US Department of Energy, DOE/MC/21181-1950, v.15,111 p.

Ginsburg, G. D. and Soloviev, V. A., 1998, Submarine gas hydrates: VNIIOkeangeologia, St. Petersburg, 215 p.

JNOC-TRC, 1998, Proceedings of the international symposium on methane hydrates resources in the near future?: Japan National Oil Corporation, Chiba City, Japan, October 20-22, 1998, 399 p.

Jones, W. T., 1999, Sakhalin energy becomes first offshore producer in Russia: OGJ, Jul. 19, p. 44.

Krason, J., 1999a, Methane hydrates impetus for research and development: Part I; Offshore, Mar. p. 76.

Krason, J. 1999b, Industry considers difficulty, cost of pursuing hydrates: Part II; Offshore, Apr. p.96.

Krason, J., 1991, Gas hydrates as potential resource of energy and pathfinder for conventional type hydrocarbon deposits: AAPG Bull., v. 75, n. 3, abs., pp. 613-614.

McKidry, D. M. and Cook, P. J., 1980, Organic geochemistry of Pliocene-Pleistocene calcareous sediments, DSDP Site 262, Timor Trough: AAPG Bull. v. 64, p.2118-2138.

Offshore, 1999, Timor gap ZOC now void: countries to negotiate 16 finds: Nov., p. 132.

Suess, E., Bohrmann, G., Greinert, J. and Lausch, E., 1999, Flammable ice: Scient. American; Nov., p. 77-83.

Tsui, Y., Furutani, A., Matsuura, S. and Kanamori, 1998, Exploration surveys for evaluation of methane hydrates in the Nankai Trough area, offshore central Japan; Proc. Int'l Sympos. Methane Hydrates: Resources in the Near Future?: JNOC-TRC, Japan, Oct. 20-22, 1998, p. 15-26.


Figure 1. Location of methane hydrates. Chart shows organic carbon reservoirs (in billion tons). After: E. Suess, G. Bohrmann, J. Greinert and E. Lausch (1999).

Figure 2. Area for methane hydrate evaluation in the Nankai Trough, offshore of SE Japan. After: Y. Tsuji, A. Furutani, S. Matsuura and K. Kanamori (1998).

Figure 3. Location of the JAPEX/JNOC/GSC Mallik 2L-38 Well drilled in the Mackenzie Delta, NWT, Canada. After: S. R. Dallimore and T. S. Collett (1999).

Figure 4. Producing and discovered fields in the Timor Sea, including the former Zone of Co-operation between Darwin and East Timor. After Offshore, (Nov., 1999).

Figure 5. Sources, routes for China's new gas supplies. After: C. Ellsworth (OGJ, Jul. 5, 1999).

Figure 6. China's natural gas production. After: C. Ellsworth (OGJ, Jul. 5,1999).

Figure 7. Proven gas reserves. After: C. Ellsworth (OGJ, Jul. 5, 1999).

Figure 8. Regions of revealed gas hydrate occurrences in the Okhotsk Sea (indicated in the squares). After: G. D. Ginsburg and V. A. Soloviev (1998).

Figure 9. Sakhalin petroleum project areas. After: W. T. Jones (OGJ, Jul. 19, 1999).


Research Advances Regarding Gold Deposits in China

Junjian Li* and Baofeng Shen

Tianjin Institute of Geology and Mineral Resources

Chinese Academy of Geology Science

No. 4, 8th Road, Dazhigu, Hedong District

Tianjin 300170, CHINA

Tel: 86-22-24314292 Fax: 86-22-24315288 E-Mail: tjigmr@public.tpt.tj.cn


Much progress has been made in recent years in the study of Chinese gold deposits. There are eight types of gold deposits in China: associated with greenstone belts; associated with granitic rocks; porphyry-type; skarn-type; Carlin-type; volcanic-types; sedimentary rock-types; and alluvial placers.

Based on the age-dates of ninety-six ore samples from sixty Chinese gold deposits, the metallogenic epoch of China's gold deposits constitutes the metallogenic framework, which includes one older epoch (2500-1800 Ma) and one younger epoch (280-100 Ma).

The older metallogenic epoch can be divided into two stages of early Luliang (2500-2400 Ma) and late Luliang (1900-1800 Ma). The younger metallogenic epoch can be divided into late-Variscan-Indo-China stage (280-220 Ma) and meso-late Yanshan stage (160-100 Ma), with emphasis on the meso-late Yanshan stage.

The regional distribution of metallogenic epoch shows regular variation, with the epoch of Precambrian gold deposits gradually increasing from west to east across China, with Phanerozoic gold deposits gradually decreasing.

The greenstone belt type of gold deposits is the most important in China, and can be subdivided into two types: syntectonic and post-tectonic gold deposits.

Regarding the newly recognized types of gold deposits, obvious progress has been made in the exploration for Meso-Proterozoic carbonate-hosted disseminated gold deposits and lateritic-type gold deposits. Meso-Proterozoic carbonate-hosted disseminated gold deposits with gold prospecting potentiality in China are dominantly located on the North China Platform, which are characterized by low ore grade, large- to super- large-size, and easy ore dressing.

Lateritic-type gold deposits in China are divided into two types: residual and transfer.

The authors welcome more geologists and mining community at home and abroad to take part in exploration, research and development of new types of gold deposits in China.


The East Asia Digital Data Base and its use in Oil and Gas Exploration and Planning.

Lindsey Vance Maness, Jr., Geologist

12875 West 15th Drive

Golden, CO 80401-3501

Tel: 303-237-6590 E-Mail: lvmaness@china-resources.net or lvmaness@uswest.net



The East Asia digital data base was originally created as a set of thematic references at a unified scale and projection to be used with satellite imagery. Such data bases are designed to enable synergistic improvements to be made to reference materials. The improved references then enable reductions in cost and higher profits. The greatest effort and the highest costs were in acquiring, translating, rectifying and integrating the information into one coherent whole, without sacrificing reasonably differing geological views and opinions. Over ten man-years were thus expended. A huge amount of supporting information was acquired (about offshore geology, geological structures & tectonics, metamorphic stages, geothermal gradient, minerals, coals, geophysical parameters [aeromag, gravity, etc.], geochemistry, topography, bathymetry, oceanography, meteorology, etc.) that has not yet integrated into the package, solely because of cost.


Other similar efforts have been limited to the reproduction of a single map or set of maps from a single source. The East Asia digital data base was a compilation from hundreds of sources, with translations from several languages, and using only experienced geologists to do geological analyses. In direct comparison, our East Asia study maps over 177 oil basins in onshore China, alone (not counting the many offshore basins also displayed on our map): other studies have been generally limited to the 30 largest onshore China basins. Our basin map also displays the actual locations and routes of pipelines, with diameters, products carried, etc., specified. And, also important for energy exploration, oil & gas seeps and oil shales are mapped. Our transportation map shows 29.6% more cities and towns than on the US Defense Mapping Agency's ONC Series of maps, the standard reference used by most, and our hard-copy maps are bilingual (Chinese & English), using the official Pin-Yin transliteration of China (not used by DMA-ONC). Our digital maps are not yet bilingual, but we are well on our way to providing them in several languages, not just Chinese & English! Our maps display more types of transportation features than is usual: full-gauge vs. narrow-gauge rail, main- vs. secondary-roads, shipping canals (very important in China, Russia & India!), shipping lanes, etc.

Reference Materials:

The original reference materials were bilingual (English and Chinese) hard-copy maps showing the political boundaries, the geology, the oil & gas basins, the hydrology and the transportation of all of China and a considerable surrounding area: these maps were accompanied by explanatory texts, one for each map, plus one general text containing exploration recommendations, source materials, etc. The hard-copy maps were provided in the form of multi-colored transparencies suitable for overlay on satellite imagery to enable ready analysis. This type of hard-copy study remains a viable option for those without sophisticated digital image processing facilities.

Maximizing Benefits:

To get maximum benefit, however, it is necessary to use the maps in digital form, directly overlaying the thematic maps onto satellite imagery (and other reference materials). The benefits of maps in vector form for this type of operation far outweigh those in raster form: it is a straightforward matter to convert maps to raster from vector, too, although not vice-versa. Many vector maps forms exist, but that in most use is AutoCAD: to meet the largest potential market, we chose AutoCAD. However, AutoCAD is still weak in Geographic Information Systems (GIS), so it is necessary to also use a GIS package for certain routine operations. The clear GIS applications leader is ESRI, with a variety of products. To get the maximum benefit from our East Asia digital data base requires jockeying between AutoCAD (AutoCAD Map) and ESRI (usually ARC View), a process that can be vexing for the operators and analysts, but is well worthwhile regarding the final results.

The final products change constantly, as new data sources become available and as the desires of management vary with the stages of projects. Newly updated maps and new analyses can be generated routinely and quickly, and show only the features desired, in any scale and projection specified. Actual distances between features can be calculated (e.g., from a newly-discovered oil field to a pipeline or to a refinery) and costs of construction estimated using off-the-shelf software.

For the properly trained exploration geologist (photogeologist), in particular, the time savings can be great and the quality improvements surprising. Using the vector geological map as a digital overlay on satellite imagery (Landsat TM recommended), the mapping of formation contacts, faults and folds can be straightforward. The vector geological map provides generalized information about the ages and types of rocks, and major faults, etc., information that the photogeologist can greatly improve upon. An improved geological map is far more likely to lead to commercially profitable discoveries.

For the properly trained photointerpreter (geographer), our digital base map provides an unparalleled starting point. Cities and towns are identified and transportation infrastructure mapped. The geographer will find that overlaying our transportation maps onto satellite imagery will enable the ready correcting and mapping of essentially the entire transportation network. Many hundreds of thousands of kilometers of new roads and railroads have been constructed in China over the past five years: most of these new roads do not yet appear on any maps. Knowing where the roads and railroads actually are located can dramatically change the economic picture for a proposed mine, etc.

New Capabilities of Digital Maps:

Some sophisticated maps can now be generated that weren't even considered a generation ago. Some examples are using our digital maps, with associated attribute information and GIS software, to calculate IsoProb® (lines of equal probability), IsoProfit® (lines of equal profit), and other maps.

Another profound advantage of digital maps is the ability to quickly and routinely send them over telephone lines and have them print at the destination the same as the original. There will not be the cost of a courier service, nor the agony of being ordered by an airline employee (e.g., a stewardess) to send your map tube through check-in (and getting it back crushed & soiled, if at all!), etc. All one has to do is attach the digital map(s) to E-Mail and click send. The person at the other end separates the file from the E-Mail, and makes copies, as many as needed.


In modern exploration geology, the making and analysis of maps is absolutely critical to maximize profits while containing costs. The more and better the data that go into the maps, the tools of analysis employed, the competence of the people, etc., are inescapable necessities for any serious exploration and production business. The more isolated the area, the more distant from the business, the more critical the capability becomes.

There is an old poem that starts: "The world is my oyster ...." Truly, modern technology lends real meaning to that expression: distance between business partners is no longer as forbidding as it once was. Opportunities that once would have gone unanswered are now within reach, for mutual benefit.


Mineral & Energy Resources and Development Consideration in East Asia.

Lindsey Vance Maness, Jr., Geologist

12875 West 15th Drive

Golden, CO 80401-3501

Tel: 303-237-6590 E-Mail: lvmaness@china-resources.net or lvmaness@uswest.net


The known mineral and energy resources of Asia, both developed and undeveloped, are of such significance that firms which ignore those resources do so at their own peril. Much of the region has been inadequately explored: in consequence, it is reasonable to believe that further immense mineral and energy resources exist in Asia that far exceed the known resources of both. It is only prudent, therefore, for those interested in energy and mineral resources to inventory the known and reasonable-to-assume resources of Asia. This necessity far transcends the traditional interests of geologists and includes not just the businessmen and economists, but also governmental officials and politicians who must responsibly plan for the needs and growth of the nations of the world.

For much of Asia, the available resources information is either non-existent or of questionable or highly-variable accuracy. Acquisition and analyses of those resources data which do exist pose problems requiring sensitivity, fluency in other languages, a knowledge of the cultures as an influence on the nature of the data, technical competence, and far, far, more. The question has often been posed that with all these problems, why even bother? The answer to that is in the preceding paragraph.

Over the past twenty-five years, this author has acquired, had translated from various languages, and placed on (traditional and AutoCAD computer) maps an immense quantity of mineral and energy resources information about Asian nations. In Asia, it is simply not enough to know that an earth resource exists, or probably exists, in large quantity in a certain locale. Even more so than in most of the remainder of the world (except, perhaps, for certain parts of Africa), it is absolutely necessary to consider all aspects of development from the earliest hypothetical stages through production. In particular, accessibility of sites to means of transport (roads, railroads, canals, airports, etc.) is of paramount importance. This means that to be successful, a firm must do more than just acquire the best information available about the geological resources (still an absolutely critical concern), but must also involve as members of the development team governmental advisers, financiers, legal staff, etc. Further, this team must include members fluent in local languages and with personal knowledge of regional customs.


Unexploited Geothermal Resources near Lake Baykal, Russia

Dr. Sergei A. Markov, Assistant Professor

Fisk University

Nashville, TN 37208

Tel: 615-329-8740 Fax: 615-329-8677 E-Mail: smarkov@dubois.fisk.edu

Unable to Attend


Abstract Not Available


Southeast Asia.

Peter J. McCabe

US Geological Survey

Denver Federal Center

Lakewood, CO 80225 USA

Tel: 303-236-7550 Fax: 303-236-0459 E-Mail: pmccabe@usgs.gov


Abstract Not Available


Digital Maps of the Geology and Petroleum Provinces of the Asia-Pacific Region.

1Peter J. McCabe, 2Robert T. Ryder, 3Douglas W. Steinshouer, and 4Jin Qiang


1Peter J. McCabe

US Geological Survey

Denver Federal Center

Lakewood, CO 80225 USA

Tel: 303-236-7550 Fax: 303-236-0459 E-Mail: pmccabe@usgs.gov


2Robert T. Ryder

U.S. Geological Survey

National Center, MS 956

Reston, VA 20192-0001

Tel: 703-648-6492 Fax: 703-...-.... E-Mail: rryder@usgs.gov


3Douglas W. Steinshouer

Contractor to the U.S. Geological Survey

Federal Center MS 939

Denver, CO 80225

Tel: 303-...-.... Fax: 303-...-.... E-Mail: ...@usgs.gov


4Jin Qiang

Department of Resources

University of Petroleum

Dongying, Shandong

People's Republic of China

Tel: 086-546-8396227 Fax: ... E-Mail: ...


The U.S. Geological Survey is conducting an assessment of oil and gas resources of the world. Estimates of the remaining undiscovered resources will be released in July 2000. The initial step in this assessment entailed delineation of geologic provinces of the world and identification of those provinces which contain most of the world's known reserves. One product of this work is a set of digital maps of the world available on CD and the Internet. The maps show geologic outcrops, delineated geologic provinces, and oil and gas fields.

Three geologic maps of the Asia-Pacific region have been released on one CD. They show the Far East, Southeast Asia, and Australasia. The onshore and offshore areas of the region, to a bathymetric depth of 2000 m, are divided into 261 geologic provinces. Each province has geologic characteristics that distinguish it from surrounding provinces. These characteristics may include the predominant lithologies, the age of the strata, and the structural style. Some sedimentary provinces consist of a single basin, but others contain multiple, small, genetically-related basins.

The maps are available in three formats, all of which allow the maps to be zoomed and panned. The Adobe Acrobat format has printable maps at the scale of 1:7,500,000. The ESRI ArcExplorer format presents the data in a simple GIS format where the various data layers can be queried. The ESRI ArcView format presents the maps in a more advanced GIS format allowing more versatility in data query.

The maps provide a useful reference to the geology and location of oil and gas fields of the Asia-Pacific region. Although produced primarily for petroleum geology studies, the maps should prove a useful basis for other economic geology studies of the region.


Mineral Resources of Buryatia (Russia) and Problems of Their Development

Anatoly G. Mironov, Director & Professor

Geological Institute, SB RAS

6a Sakhyanova str.

Ulan Ude, Russia 670047

Tel: Work 011-7-3012-330955 Home 011-7-3012-333846 Fax: 011-7-3012-336024 E-Mail: mir@bsc.buryatia.ru


V.I. Bakhtin and P.A. Roshchektaev

Committee of Natural Resources of Buryatia

Ulan Ude, Russia


Tel: Work 011-7-3012-...... Fax: 011-7-3012-...... E-Mail: ...


Geological setting of Western Transbaikalia, where the Republic of Buryatia is situated, is specific and unique in many respects with its the most ancient rocks on the shore of Lake Baikal, one of the largest granitic batholiths in the world and the Baikal rift zone. Geologists in the whole world call Western Transbaikalia "Ancient topic of Asia".

The largest deposits of zinc, lead, gold, molybdenum, tungsten, fluorite and asbestos in Russia have been discovered and developed here. In addition, unique deposits of beryllium, strontium, scandium and other rare metals also occur. The deposits of various nephrite (from tremolite to black nephrite), the stone of the Sky and the Earth, Wisdom and Eternity, that was estimated more expensive than gold in the Ancient East, are known only in Buryatia.

All these deposits are waiting for their development.

In total, more than 400 deposits have been found out on the territory of Buryatia by geological prospecting. Among them, there are 4 deposits of tungsten, 6 - molybdenum, 3 - beryllium, 5 - lead and zinc, 10 - fluorite, 3 - chrysotile-asbestos, 218 - gold as well as deposits of apatite, phosphorite, boron, graphite, zeolite, bentonite, perlite and building raw materials. Here are some data on the deposits.

In the Republic of Buryatia there are 48 percent of zinc and 24 percent of lead of all the resources in Russian Federation. On its territory large deposits as Kholodninskoye and Ozernoye, small- and middle-size deposits as Nazarovskoye, Davotkinskoye and others have been explored and prepared for practical use development.

In the Republic of Buryatia deposits of tungsten and molybdenum (the Inkur stockwork and Kholtoson lode deposits of tungsten, the Orekitkanskoye, the Malo-Oinogorskoye deposits of molybdenum with metal content more than 0,1 wt.%, with high technological and economical characteristics have been explored and partially developed. The Zharchikhinskoye Mo-deposit, 30 km away from Ulan-Ude, the capital of Buryatia, deserves a particular attention.

The Khalyuta deposit of basite-strontianite ores in carbonatites and the Oshurkovo apatite deposit in alkaline gabbroids have been revealed near the capital of Buryatia. 218 placer and ore gold deposits have been discovered in the Republic of Buryatia. Among them, gold ore deposits equals 70,4 %, and placer gold - 29,6 % in the explored resources. Primary Au makes up 36 % and placer Au - 64 % in mining. Buryatia has high perspectives for determination of large Au-deposits in the East-Sayan, North Baikal and Muya mining districts. An increase of resources base of gold-mining industry is hindered by financial and material resources not enough for exploration of the deposits, as well as for research work on development of new technologies of mining nontraditional gold ore deposits.

The quartz resources are great in Western Transbaikalia. The Cheremshansk quartz deposit more than 40 mln tons, 7 deposits of granular quartz in Northern Prebaikalia and some unestimated deposits of pure quartzite in East Sayan have been prospected on this territory. An enterprise on mining quartzites operates on base of the Cheremshansk deposit of quartzites 70 km away from Ulan-Ude.

Six deposits of fluorite with total reserves of more than 10 mln tons, 2 deposits of bentonite clays and 2 large deposits of chrysotile-asbestos with summary reserves of 17,8 mln ton of fibre of industrial categories have been explored and prepared for treatment in Buryatia. The deposits of perlites, zeolites and phosphorites have also been explored.

Energy resources. About 30 coal areas located in the Cenozoic and Mesozoic basins of Transbaikalia have been identified on the territory of Buryatia. The largest among them are the Tunka, Tory, Tugnui, Gusinoozersk, Uda, Chikoi and other ones. Brown coal of Cretaceous with average ash-content 17-24 wt %, S-content 0,3-0,9 wt %, moisture 18-28 wt% predominate. Eleven coal deposits have been explored,. 7 of them are being developed.

Despite rich mineral resources, mining industry is weakly developed. Two factors hinder a development of mining enterprises, i.e. lack of significant invesments, and both of Russian and foreign businessmen, and severe ecological demands for projects of deposit development due to localization of some of them in the basin of Lake Baikal, being a World Heritage Site.


Japan's Energy Policy and its Cooperation in the Asia Pacific Region

The Honorable Makoto Mizutani, Consul General of Japan

Consulate-General of Japan

1225 17th Street, Suite 3000

Denver, CO 80202 USA

Contact: Danielle Rochelleau, Assistant to the Consul-General

Tel: 303-534-1151 Fax: 303-534-3393 E-Mail: cgjdenver03@earthlink.net or cgjdenver10@earthlink.net


Policy Mix: Market mechanism plus 3 Es (economic growth, energy security, and environmental protection).

1. Domestic oil reserves in Japan: 170 days.

2. An active member in IAE: emergency measures, energy saving measures, etc.

3. Dialogs with Middle East Countries: Their supply is about 80 percent of Japan's oil needs.

4. Diversified energy sources: Oil, natural gas, clean-coal technology and safe atomic energy.

5. Asia Pacific Economic Cooperation: APEC

. (1.) Energy security? In 2010, East Asia will import 80 percent of its oil needs.

. (2.) Any supplier? By 2010, East Asia will increase its oil import by 74 million B/D. Needs of natural gas and electricity will increase by 59 percent and 65 percent, respectively.

. (3.) Environmental issues: Recycling and energy efficiency (In oil, its ratio in China and Japan is 1:3).

. (4.) Energy Ministers Meeting and A.P. Energy Research Center in Japan.

Keynote Address:

Governor Owens, Mayor Webb, Distinguished Guests, Ladies and Gentlemen;

It is a great pleasure for me to speak to you today on this subject, which is fitting for this region. As I have been told, the gold rush in the 19th Century gave birth to the development of this area and an energy boom in the 1970's brought many skyscrapers to this city. I should like to say also that this symposium is a timely one, since, as I will mention later, the Asia and Pacific region will be facing a daunting energy question in the near future.

Japan's energy policy today is couched in a motto of 3 E's, e.g., balanced considerations to Economic growth, Economic security or supply-demand stabilization, and Environmental protection. As a part of economy, the energy question is supposed to work in the framework of a market mechanism. This, however, is not enough to cope with the enormous increase in demand for energy in the region as well as in the world market in the next few decades1, hence the need for consistent and well-considered government policies.


1. Oil Reserves for Emergencies and Development Abroad.

The most important resource for Japan is oil, which occupies about 57% of the total primary energy and its import value is about 80% of total imports. Domestic oil reserves in Japan could comfortably cover the country's needs for about 170 days (85 days from government sources, 84 days from the private sector). Japan is trying to cooperate in setting up domestic reserves in other Asian countries, since besides Japan only Korea is prepared.

Since 1967, Japan has been maintaining a policy of "30% national oil," meaning 30% of total oil imports must be developed and imported by Japanese companies abroad. There seems to be no logical reasoning behind this rate, but no serious counter-argument has been raised, either.


2. An Active Member in the IEA (International Energy Agency).

The IEA, established in response to the oil crisis in the 70's, worked well in the Gulf War period in the 90's by, for example, agreeing to use 2 million b/d from the domestic reserves of member states.2 Japan has been active in the IEA in areas such as emergency measures, energy-saving measures and most recently in its cooperation with China, Russia, and India, three major non-member states which must be considered when addressing energy management.


3. Dialog with Middle Eastern Countries.

Japan is dependent upon Middle Eastern oil for fully 80% of its total oil needs, which constitutes about 45% of the total primary energy consumed there. In addition to this predominant weight, it is a fact that the Middle East enjoys 66% of world reserves of crude oil, which could expectedly sustain oil production for the coming 70 to 110 years. This predominant position of the Middle East in its oil production and reserves does not mean a one-sided relationship between the supplying and consuming countries. In fact, the oil producers of the Middle East countries need stable demand as much as we need stable supply. It is here where there is room for enhanced mutual dialgo.


4. Diversified Energy Sources.

Japan's primary energy supplies in 1996 were: oil (54%), coal (16%), nuclear (15%), natural gas (11%), and others. Oil supplies from Russian Sakhalin, Siberia, and the Caspian Sea are to be further developed. Japan is also working to develop better clean-coal technology, and is hoping to increase its capacity to use natural gas. Needless to say, people want safer nuclear energy, but the basic need for this energy source has not been questioned in Japan.


5. Asia Pacific Economic Cooperation (APEC).

Under the aegis of APEC, energy ministers of member states meet regularly and the Asia Pacific Energy Research Center has been established in Japan. To date, discussion on energy matters within APEC has been focused on market liberalization and deregulation. This is welcomed and is much commensurate with the present general trend of allowing the market to be the price-fixer of oil, whereas in the past it was major oil companies up through the 60's and OPEC in the 70's and 80's.


Having said that, however, the energy question in East Asia in the near future is daunting indeed, and must be tackled expeditiously and in a coordinated manner through, for example, APEC. Here are four of the major concerns.


1) Energy Security?

China turned into a net importer of oil in 1993, and Indonesia and Malaysia are to follow suit ten years from now. In 2010, the rate of oil imports by East Asia is expected to rise as high as 80%, whereas its crude oil reserves will be only 4% of world reserves. A stable supply of oil from outside the region is more than crucial.


2) Any Supplier?

By 2010, APEC including East Asia will have to increase its imports of oil by about 7.4 million b/d. It is believed that Saudi Arabia might be able to increase its supply by 2.5 million b/d, Kuwait and UAE by 0.5 million b/d, and probably Sakhalin by 0.6 million b/d. But even so, this totals only 3.6 million b/d, with no known supplier for the remaining 3.8 million b/d.


3) Energy Infrastructure.

In the same period leading to 2010, APEC will be needing 59% more natural gas and 65% more electricity. Much regional cooperation in infrastructure building is called for to meet these increasing demands. Due to the lack of energy supply potential, Asian countries are naturally interested in resorting to nuclear power.3 Cooperation in high technology is a must.


4) Environmental Issues.

Recycling, clean-use technology and improved energy efficiency are some of the salient questions. Through such processes, Japan is currently using oil three times more efficiently than China.


In spite of the recent economic debacle in Asia, it is certain that the economy will resume its upward curve, due to rich human resources and a longing for economic growth. However, given the weight of these four concerns, some even suggest that an Asian IEA should also be established to face the dire needs of the region.4 I should like to conclude by saying that the government of Japan will be working hard to address the energy questions of Japan as well as other countries in the region.


Thank you very much.


1The IEA forecasted in 1998 that the world demand for primary energy resources would increase by 65% between 1995–2020.

2On Japan's economic effort through the Gulf War, see my article, "Japan's Aid Policy Towards the Middle East Following the Gulf Crisis," J.A., Allen, ed., Japan in the Contemporary Middle East, Routledge, London, 1993, pp. 112-124.

3In 1999, 51 nuclear power stations were under construction in the world, of which 31 are in Asia.

4In this paper, mineral resources have not been taken up. I wish to point out here that a similar concern exists in Japan regarding supply security of minerals, particularly of rare metals. Sixty-days' need (government 42 days and private sector 18 days) is reserved domestically of seven rare metals: nickel, chrome, cobalt, manganese, vanadium, molybdenum, and tungsten.


Coalbed Methane: A Source of Clean Energy for the New Millennium in Countries of the Western Pacific Rim.

D. Keith Murray

D. Keith Murray & Associates, Inc.

200 Union Boulevard, Suite 215

Lakewood, CO 80228 USA

Tel: 303-986-8554 Fax: 303-985-5261 E-Mail: kmurray@uswest.net


The development of natural gas from coal deposits worldwide is expected to improve the economic viability, reduce atmospheric pollution, and greatly increase safety in underground coal mines, especially in those countries fortunate enough to have large resources of high-rank, typically gassy, coal. Among those nations are several in the Asia-Pacific region, including China, Indonesia, East Malaysia, the Korean Peninsula, and the Philippines.

The world's most abundant mineral fuel is coal, and more than 90 percent of this immense resource is found in the Northern Hemisphere. With the exception of parts of Indonesia and East Malaysia, all of the Asia-Pacific countries lie north of the Equator; and nearly 80 percent of the high-rank ("hard") coal lies in the Northern Hemisphere.

Natural gas demand and consumption is expected to increase dramatically by the first decade of the New Millennium. Coalbed methane (CBM) will play an increasingly important role in satisfying demands for this environmentally attractive energy fuel.. Development of CBM will become especially critical in those nations that appear to lack sufficient onshore reserves of conventional natural gas to satisfy local needs, and these countries include some of the most populous in the world - - China and Indonesia.

The strategic location of very large coal deposits close to population centers and industrial infrastructure in portions of nations such as China and Indonesia makes it imperative that the significant resources of CBM believed to be stored in these coal fields be developed as rapidly as possible.


Mineral base and Natural Complexes of the Republic of Sakha (Yakutia)

Mikhail Dmitrievich Novopashin.

Research Institute of Mining in the North

Siberian Branch, Russian Academy of Sciences

Republic of Sakha (Yakutia)

4/1 Khalturin str., Yakutsk, 677000, RUSSIA

Tel. 011-7-4112-44-59-30 Fax: 011-7-4112-44-59-30 E-Mail: igds@sci.yakutia.ru


Note: Dr. Novopashin is a member of Chairman Vlasov's very high-level delegation from Sakha.

Note: The local (in Canada & the USA) representative of Sakha's mining interests is Ivan V. Rojine, Trade Commissioner & Adviser to the Chairman of the Republic of Sakha. Mr. Rojine's address is: 885 Don Mills Road, Suite 203, Toronto, Ontario, CANADA M3C 1V9, Tel: 416-443-8771 Fax: 416-443-0084 E-Mail: tcscnd@netscape.net.



At present on the vast territory of Yakutia (over 3 mill. sq. km.) unique and diverse mineral base is explored and forecasted, which is still not industrially developed. Estimated potential of the resources is 2.3 billion dollars.

According to estimates the most of explored reserves and forecasted resources of Russia's diamonds, antimony (about 75%), tin (40%), gold (20%), tungsten (9% of explored and 15% of forecasted reserves), phosphates and iron-ore (10% of industrial reserves), lead (7-8% of forecasted resources), zinc, niobium, etc. are concentrated here.

Existence of regional complexes is typical for the mineral base of Yakutia when unique and diverse range of natural resources is concentrated in one region (for example: coal, iron-ore, apatites, mica, gold, less-common and non-ferrous metals, water and timber resources).

One of the most famous and intensively developed natural complexes is situated in South Yakutia. This region is rich in coal, iron-ore, gold, apatites, mica, phlogopite, chromdiopsides, considerable timber reserves, etc.

The other natural complexes where unique deposits of diamonds, gold, tin, oil, gas, flora and fauna resources, etc. are concentrated, also have unique characteristics.

The most of the explored and not developed mining deposits are regarded as complex. Thus, copper-tungsten Agylky deposit with concentration of copper at the level of world deposits have almost equal shares of copper and tungsten in Total potential value of ore (Vpot). Silver, selenium, tellurium, indium in total accounts for 5% of Vpot, content of gold 0.6 - 1.5 gram/ton.

Concentration of various natural resources in a single region and existence of complex deposits makes good grounds for efficient development of the resources.


A Comparison of the uncompahgrite and turjaite mineralogy (phlogopite, melilite, etc.) of the south Nyanza district, western Kenya, with similar rock complexes in Asia, Australia and America

1Chris M. Nyamai, University of Nairobi, and 2I. Haapala, University of Helsinki

1. Professor C.M. Nyamai

Department of Geology, University of Nairobi

P.O. Box 30197

Nairobi, KENYA

Tel: ...-...-.... Fax: 254-2-449539 or 254-2-751752 E-Mail: uonseism@arcc.or.ke

2. Professor I. Haapala

Department of Geology and Mineralogy

University of Helsinki

Snellmaninkatu 5, PL 115, 00171

Helsinki, FINLAND

Tel: 358-90-1911 Fax: 358-90-1913466 E-Mail: ...

Unable to Attend


The uncompahgrite - turjaite complex constitutes a part of the larger Rangwe caldera which occurs in the Tertiary and Quaternary alkaline province, south Nyanza district, western Kenya. This alkaline complex is interpreted to be a metasomatic derivative of an original peridotite intrusion. Uncompahgrite and turjaite are strongly metasomatised rocks in which the earliest minerals (forsterite, diopside, magnetite, perovskite) are more or less replaced by melilite, phlogopite, carbonate and other minerals. Melilite is further sericitized.

Melilite is the most abundant mineral in both the uncompahgrite and turjaite. The presence of melilite in these rocks has been taken to suggest that the original peridotite may have had kimberlitic parentage (Mitchell, 1972). In petrogenetic terms, melilites are individually associated with kimberlites (Ukhanov, 1963; Nixon, 1973), ijolites and carbonatites.

Perovskite occurs both as discrete single grains and as a thin rim that infiltrates the magnetite grains. This texture implies that perovskite is a later phase than magnetite. Adjacent to this observed texture, abundant yellowish granules of fine grained perovskite occurs within highly altered melilites, suggesting alteration of the latter to perovskite. This phenomenon may be analogous to that noted in a similar uncompahgrite rock from Iron Hill, Colorado where the alteration of melilite to perovskite by the action of residual magmatic fluid has been reported by Larsen and Goranson (1932). The niobium content in perovskite - Nb2O5 (av. 0.96 wt. %) - reported in this study is higher than that reported by McCall (1958) - (av. 0.56 wt. %) - from the same locality, and are comparable to the niobium rich perovskite varieties that occur in the alkaline plutonic rocks of the Kola Peninsula (Afanassiev, 1939).


Rubies, Diamonds, Emeralds and other Gemstones of Asia

1Ronald Pingenot and 2Joseph A. Rott

1International Collectible Exchange and 2Emiba-Empresa de Mineracao Minas Bahiaia, Ltda.

1. Ronald "Ron" Pingenot, President

International Collectible Exchange

8008 West Jewell Avenue

Lakewood, CO 80232 USA

Tel: 303-988-5801 Fax: 303-984-2155 E-Mail: cherylpingenot@home.com

2. Joseph A. Rott, VP, Marketing

Emiba-Empresa de Mineracao Minas Bahia, Ltda.

Rua Cristina 1120, #302

Belo Horizonte, M.G.

BRAZIL 30330-130

Tel: 55-31-344-3692 Fax: 55-31-342-3116

Unable to Attend


Abstract Not Available

Note: Ron Pingenot was unable to attend because of illness in his family. Bruce Geller spoke in his place: see Geller's abstract.


Geological Mapping of Mineral Resources in China, with Special Reference to Distribution and Quality of Coals

Youliang Ren

2203 South Holly Street, #7

Denver, CO 80222-5612 USA

Tel: 303-758-8547 Fax: 303-334-1679 E-Mail: youliang_ren@jdedwards.com


Since the founding of the People's Republic of China fifty years ago, Chinese geologists have been pursuing exploration and development of a great amount of metallic (ferrous, nonferrous, and rare earth), non-metallic (industrial and chemical materials, building materials, and optical materials), and energy mineral resources (coal, oil, gas, uranium, and geothermal) using modern geologic theories and advanced technology.

At least 163 mineral commodities have been discovered in China, which are selectively demonstrated in three separate maps showing metallic, non-metallic, and energy mineral resources respectively (Scale: 1:1,000,000).

This paper provides an explanation for the above-mentioned maps, with special reference to those commodities whose quality and reserves are among the best of the world, and whose supplies exceed the domestic needs and consequently could be exported perennially. Special focus on the distribution and qualities of coals is provided.


Hydrocarbon Potential of the Jianghan Basin, Eastern China, with Special Reference to Chenhu Area Adjacent to Qianjiang Oil Fields

Youliang Ren

2203 South Holly Street, #7

Denver, CO 80222-5612 USA

Tel: 303-758-8547 Fax: 303-334-1679 E-Mail: youliang_ren@jdedwards.com


The geologic, geochemical and geophysical data from the Jianghan Basin (near the confluence of the Yangtze River (Jiang in Chinese) and its tributary, the Han, hence the name Jianghan) of central China have been collected and interpreted in this paper. Based on the data provided by the Jianghan Petroleum Administration (JPA), the predicted remaining oil reserves in the Qianjiang (pronounced as Chain-jiang) Depression are as follows: Qianjiang Formation (Oligocene - Eocene in age, 3,500 meters in thickness): 584 - 1314 million barrels; Lower Xingouzui (pronounced as Shing-gou-zui) Formation (Lower Eocene): 270 million barrels.

The Chenhu (pronounced as Chen-who) Uplift, located to the north of the producing Qianjiang oilfield in the Jianghan Basin was selected from the eleven newly opened areas, which was considered to be most promising based on an overall assessment in terms of the hydrocarbon potential and investment environment. This basin has good access to both domestic and international markets through a network of pipelines, railways, highways and river systems. In addition, JPA has been authorized by CNPC to negotiate petroleum contract with foreign investors.

In the Chenhu area, previous seismic surveys tied up with deep wells have revealed the occurrence of buried-hill structures involving potential Upper Carboniferous dolomite reservoirs underlain by thick (1,400 meters) Silurian shales and sealed by regional cap rocks. These prospective traps are similar in general to the buried-hill structures in the Renqiu (pronounced as Ren-chew) oil field in the Bohai Basin to the north of the Jianghan Basin.

By using the known deposits as an analogous guide to a new discovery in other prospective areas, it is predicted that similar prolific reservoirs and traps may exist in the Chenhu area as well. In the Renqiu field area, rich amount of hydrocarbons were generated from Oligocene shales and migrated and trapped in cavities and fractures of Precambrian limestones and dolomites with initial single well flow rates exceeding 4,000 barrels. However, in Chenhu area, high precision deep seismic acquisition and additional deep drilling are required to further define the internal structure and cap rocks of these highly attractive buried-hill structures.

In addition to possible sourcing by Tertiary lake beds, thick and organically rich Silurian shales underlie the Upper Carboniferous reservoirs in Chenhu area of the Jianghan basin; they could serve as a possible major source of hydrocarbons to fill up the overlying Paleozoic carbonate platform reservoirs as well as drape fold structures within shallow Triassic and Jurassic reservoirs.


Note: The following information was provided by Ren Youliang after the Symposium ended, for those interested in the latest information on bidding status and procedures.


China's Jianghan Oil Fields Are Open for Bidding.

General information about the Jianghan Basin:


Bidding process for petroleum rights:



The Natural Trans-Eurasian Divider: Structural and Metallogenic Evidences.

D.V. Rundqvist, Yu. G. Gatinsky and S.V. Cherkasov

Vernadsky State Geological Museum

Russian Academy of Sciences, Mokzhovaya 11, Bldg. 2

Moscow, 103009 Russia

Tel/Fax: (095)-292-05-86 E-Mail: nata@sgm.ru


A quasi-linear zone of noticeable changes of different geological characteristics can be traced across Eurasia using Electronic Geodynamic Globe. It is located approximately along 102-103º E. In the extreme north it marks the shelf margin of the Laptev Sea. Further south it manifests itself in an east virgation and sharp north deflection of Paleozoic folds and thrusts in the Severnaya Zemlya Archipelago and Taimyr. A buried early Mesozoic rift traces the zone in the pre-Taimyrian foredeep. Within the Siberian platform the 102-103º zone is marked by the west wing of the Anabarian anteclise and a buried Rhiphean rift below the Tungus syneclise. Further it nearly coincides with the south jutting out edge of the platform and with a squeeze of fold structures of the East Sayanian belt.

Within the territory of Northern Mongolia the zone under consideration borders a centroclinal closure of the Hangay - Hentey synclinorium, which corresponds to a «blind» termination of the Mongolian - Okhotsk belt in the late Paleozoic - Triassic. Further south an abrupt termination or squeezing of the majority of Paleozoic ophiolitic belts coincides with the zone, and, simultaneously, some enormous fields of the Cenozoic basalt are displayed along it in Central and Southern Mongolia. Over there, the zone is manifested by a regional fault bordering the west margin of the Amurian lithospheric subplate. The fault is seismoactive along whole its strike. In the Northern China, a virgation of Caledonian structures of Beishan and Qilian occurs eastward of 102-103ºE. Southward a wide virgation of Triassic folds can be seen also in the Indosinides of North West Sichuan, where they go round the Songpan massif - a buried fragment of the Yangtze platform basement. A scattered seismicity characterizes the discussed zone in those parts of China.

The brightest occurrence of the 102-103º zone can be seen in South China and Indochina. It distinctly coincides with the Kham-Dian axis, which is formed by metamorphic and magmatic rocks of the late Proterozoic basement of the Yangtze platform. Numerous active dislocations of longitudinal strike stretch along that structure, mostly presented by sinistral wrench faults accompanied by some pull-apart basins. A rather high seismicity is developing along the zone in that segment. A solution of earthquake focal mechanisms demonstrates predominance of the shift and extension. Within Indochina the examined zone goes along the sharp west margin of the Indosinian massif and coincides with some active eastward thrusts and wrench faults of the sub-longitudinal strike. The seismic activity is still high over there. Further south the zone is marked by transcurrent structures and faults crossing the rift system of the Thailand Gulf as well as by the Bentong ophiolit suture in the Malay Peninsula and a flexure like curve of a Cenozoic structural strike in Sumatra.

It is worth to note that an abrupt change of the crust thickness coincides with the most part of the 102-103º zone in China and Indochina. It steps from 45-60 km in the west to 25-35 km in the east. This change is accompanied everywhere by more vast development of various basic volcanic rocks including the Cenozoic basalt at the East. So the zone can be interpreted as a kind of giant regional geological-geophysical step or divider in the crust and perhaps in the whole lithosphere of Eurasia. It can be compared with such structures as the Tornquist line, Uralian and Appalachian fronts a.o.

It is of interest to consider metallogenic characteristics of areas surrounding the 102-103º zone, also, this aspect turns out more intricate than that can be assumed. Analysis of mineral deposits' location demonstrates that in the area 103-108ºE, the number of gold and antimony deposits is 1.5 times, iron deposits - 2 times and manganese deposits - 16 times more than in the area 97-102ºE. The number of base metal deposits is roughly equal in both areas, but, in general, the deposits of the eastern area are larger. Also, it seems that the most significant zinc occurrences are situated at the east area. Some well known superlarge deposits of mentioned metals are placed east of 103ºE: coper-bearing Erdenet (Mongolia), iron-bearing Bayanobo (North China), zinc-bearing Kholodninskoe (Russia) and Ulaan (Mongolia) a.o. The mercury, arsenicum, REE are often met among accompanying metals.

At the western area (97-102ºE) a noticeable predominance of tin deposits is noted (2.5 times more than to the east), all of them are with admixture of tantalum, niobium, REE. In some cases more significant contents of the lead are noted in base metal ores in the western area in comparison with the eastern one. Certain superlarge deposits are situated here: gold-tungsten-bearing Olimpiadninskoe and lead-bearing Gorevskoe (Russia), lead-zinc-bearing Xitieshan (China) and Bawdwin (Myanmar), tin-bearing Kuala Langat (Malaysia). Aside of the said, some trends in the ore deposits' distribution should be underlined. In the western area concentration of gold deposits grows southward, whereas in the eastern one it grows northward. In the both parts, tin deposits are dominating south of 25ºN. The most part of lead-zinc and mercury deposits is located in the western area southward of 25ºN, but in the area 103-108ºE - between 25-50º.

The 102-103ºE zone itself is characterized (i) by higher concentration of small to large size ore deposits (1.5 times more than in the eastern and western parts) and total lack of superlarge deposits; (ii) by relative abundance of iron, lead-zinc and copper deposits in comparison with side parts (10, 5 and 4 times higher concentration, respectively); (iii) and by total absence of tin, antimonium, tungsten and mercury deposits. The said is most noticeable between 25-50ºN. The concentration of manganese deposits between the 102 and 103ºE has the same value as it has in the area 103-108ºE whereas in the western area the only one manganese deposit is located.

So it makes sense to conclude that the zone under consideration divides two large different domains of Eurasian lithosphere: the western one having thick crust and sufficiently lithophylic type of the metallogeny and the eastern domain which is characterized by thinner crust and mainly chalcophylic type of the mineralization. It is, of course, the principal scheme and some exceptions exist. There are some massifs with rather old pre-Cambrian crust in the east, where the lithophylic tendency somewhat increases. Among them we can mention the most part of the Sino-Korean platform, Cathaysia in SE China, NE Vietnam, Kontum in South Vietnam. But, even in these cases an admixture of chalcophylic elements is rather high. Genetically such differences can be related not only to the latest plate interaction in the east of Eurasia, which is obvious, but it seems to be connected with the primary heterogeneity of the Earth matter. We believe that the established regularities should be taken into count in the course of planning prospect works and defining the perspectives of the East Asia territory on different minerals.


Working with Regulatory Agencies in China

James C. Scott

URS Greiner Woodward Clyde

4582 South Ulster Street, Suite 1000

Denver, CO 80237 USA

Tel: 303-...-.... Fax: 303-...-.... E-Mail: Jim_Scott@urscorp.com


Western manufacturing companies thinking of working in China will, at some time, likely need to negotiate with various Chinese regulatory "agencies," bureau or institutes. Types of projects for which Western companies need to negotiate with these Chinese groups have included the following:

Chinese "agencies" can include the following:

This paper looks closer at the environmental protection bureaus in China. It provides a brief review of environmental pollution control, discussion of the responsibilities of EPBs (what they are and what they do), how enforcement of emission standard occurs, main sources of difficulty in negotiations, and some lessons learned in negotiating with some Chinese regulating "agencies."


Environmental Control in China

James C. Scott

URS Greiner Woodward Clyde

4582 South Ulster Street, Suite 1000

Denver, CO 80237 USA

Tel: 303-...-.... Fax: 303-...-.... E-Mail: Jim_Scott@urscorp.com


China has developed a substantial body of sophisticated laws, regulations, and policies for air, water, and noise over the past 25 years. Policies and legislation are initiated at the national level, principally through the actions of the National Environmental Protection Authority (NEPA) and administered by environmental protection agencies/bureaus at provincial, city and subcity levels. Regulations are generally based on an "end of pipe" philosophy. Lack of financial resources for training and equipment has generally led to little attention being paid to groundwater protection and land degradation. Specific regulations have been developed for discharge limits to air and water.

New Western or joint venture owned facilities may be required to comply with the Chinese standards while local Chinese enterprises are allowed to exceed the standards or perhaps not even be monitored. Many Western companies lack fundamental information and understanding of China's environmental laws and regulations. Some of the laws are vaguely worded. The scope of work for Phase I environmental site assessments often includes a review of Chinese legislation and regulations, including the new Solid Waste Pollution Prevention and Control Law. This law calls for enterprises to minimize waste generation through cleaner production and to ensure safe waste management. Through this law, China's mindset is slowly changing from reactive to proactive.


Environmental Investigations in China

1James C. Scott and 2Clive Couldwell

URS Greiner Woodward Clyde


14582 South Ulster Street, Suite 1000

Denver, CO 80237 USA

Tel: 303-...-.... Fax: 303-...-.... E-Mail: ...


2Bank Direct Building, Level 6

13-15 College Hill

Auckland, New Zealand

Tel: ... Fax: ... E-Mail: ...



Western manufacturing companies seeking to build or acquire manufacturing capacity in China will likely need to perform an environmental assessment or environmental investigation of an existing enterprise facility, or of a "greenfield" site for a new facility. The purpose of the environmental assessment or investigation is to assess and investigate the potential presence of hazardous contamination and the potential liabilities associated with a facility or site as a result of the past and present use of the property. Types of environmental investigations in China have included the following:

Mine waste management (China National Non-ferrous Metals Corporation)

This paper examines the realities and logistics of performing environmental site assessments (ESAs) in China. It provides a discussion of the following items:


Effect of Hydrates on CO2 Sequestration in Ocean.

E. Dendy Sloan

Colorado School of Mines

Center for Hydrate Research

Golden, CO 80402 USA

Tel: 303-273-3723 Fax: 303-273-3730 E-Mail: esloan@mines.edu


As the world turns toward deposition of hydrocarbon combustion products in locations other than the upper atmosphere, the deep ocean seems to be the largest potential resource. This deliberation causes interaction of CO2 with water to be considered a principal physical phenomenon, involving hydrates at temperatures less than 10°C. If CO2 is sequestered in the ocean, how will hydrates play a role in the long term storage of CO2 from power plant stack gases? This presentation will discuss the physical phenomena involved and review some of the processes proposed to sequester CO2; in the ocean.


Iron and REE Ores from Bayan Oboo Mine, Inner Mongolia

Goa Telengut

8240 Ouimet

Brossard, Quebec, CANADA J4Y 3D3

Tel: 450-656-9728 Fax: 450-656-5103 E-Mail: jadec@videotron.ca


The Bayan Oboo mine in Inner Mongolia, China, is a world class iron and rare-earth element (REE) deposit. Several REE manufacturers, headed by the Bao Tou Iron & Steel Company (Bao Tou Gang Tie Gong Si), have formed an integrated industrial system and have become the principle base for REE production and research in China. The Bao Tou Rare Earth Research Institute is the largest organization researching production and utilization of REE.

Many of the Bayan Oboo products already reach or approach international standards, with over 200 varieties and 400 specifications produced. Tremendous potential exists for foreign investors in a variety of business opportunities related to the further development and expansion of the huge Bayan Oboo iron and REE mine.

The Bao Tou Iron and Steel Company owns a present production capacity of more than twenty-thousand tons of iron per day, which comprises one-half of all of China's total production. Associated REE products include rare-earth chlorides, rare-earth silicide ferroalloy, rare-earth oxide, Sm-Eu-Gd concentrate, and much more.

REE exports to Japan, the USA, Germany, Belgium, Singapore, Hong Kong, etc., account for 80% of China's export total and has earned the Bayan Oboo Mine world fame.


Mineral Resources in China

Pui-Kwan Tse

U.S. Geological Survey

National Center

Reston, VA USA

Tel: 703-...-.... Fax: 703-...-.... E-Mail: ptse@usgs.gov


China is the third largest economic country behind the United States and Japan. China's economic growth has averaged more than 8% in the last decade. In 1993, the National People's Congress ratified the recommendation on changing the country from a planned economy to a social market economy and the amendments to the 1986 Mineral Resources Law in 1996. The amendments strengthened the state-ownership of China's mineral resources and allowed for local governments' responsibility for guaranteeing exploration and exploitation of mineral resources. The amendments also allowed private enterprises and Sino-foreign joint-venture companies to participate in the exploration and exploitation of mineral resources in China under the supervision of the state.

China is one of the richest mineral resources countries in the world. Over 160 kinds of minerals have been discovered , and the reserves of antimony, coal, kaolin, mercury, rare earths, talc, tin, and tungsten are on the top of world lists. China's mineral resources are found throughout the country. Currently, there are more than 8,800 state-owned mines. In addition, there are estimated to be more than 30,000 collective- and county-owned mines. Since the 1970s, China has emerged as a major producer in number of mineral commodities, including aluminum, antimony, coal, iron and steel, rare earths, tin, tungsten, and zinc. In the late 1970s, with the open-door policy adopted, China's mineral sector entered a new era of vitalization, development, and expansion.

Industrial reform has come gradually, and it has slowly changed from a state target plan to one of market orientation. Since 1990, the expansion and consumption of mineral and metal sectors grew more than 50%. The Chinese government encourages foreign investments on new technological renovation projects that will improve the industrial infrastructure, increase productivity, better utilize mineral resources, and reduce dependence on imports.


Distribution and Cultural Variation of the Mongol Peoples at the Beginning of the New Millennium.

Dorsha "Josh" Unkow and Lindsey V. Maness, Jr.

Mongol Traders, Inc.

3817 NE 11th Avenue

Portland, OR 97212 USA

Tel: 503-288-1455 Fax: 503-288-1455 E-Mail: dhusmu@earthlink.net

Note: Unkow is to be a translater of Mongol (various dialects), Russian and English at the CEAR 2,000 Symposium.


In order to be successful in international trade, it is necessary for all parties concerned to benefit. In order to have an amicable long-term relationship, all involved must understand and respect the needs and wishes of the others. Many of the burgeoning new economies are in countries (or autonomous republics) with significant populations of Mongol descent. These include both prosperous countries (e.g., Finland and Turkey) and comparatively undeveloped regions (e.g., Tuva, Buryatia and Inner Mongolia), spanning the entire Euro-Asian continent from the Pacific to the Atlantic and from the Arctic seas to the Caspian and the Indian Ocean. While these Mongol "countries" vary in many respects, their cultural and linguistic similarities are important.


Keynote Address: The Investment Outlook of the Republic of Sakha (Yakutia)

Vasily M. Vlasov.

Chairman of the Government of the Republic of Sakha (Yakutia)

4/1 Khalturin str., Yakutsk, 677000, RUSSIA

Tel. 011-7-4112-43-55-55 Fax: 011-7-4112-24-06-24 or 011-7-4112-45-52-35 or Attn: Ms. Ludmila Popova 011-7-4112-240607, E-Mail: mvssakha@sakha.ru


Note: Chairman Vlasov leads a very high-level delegation. Vasily M. Vlasov is the Chairman of the Government of the Republic of Sakha (Yakutia). Chairman Vlasov's personal interpreter is Ms. Nadezhda Egorovna Arguylova.

Note: Chairman Vlasov's local (in Canada & the USA) representative is Ivan V. Rojine, Trade Commissioner & Adviser to the Chairman of the Republic of Sakha. Mr. Rojine's address is: 885 Don Mills Road, Suite 203, Toronto, Ontario, CANADA M3C 1V9, Tel: 416-443-8771 Fax: 416-443-0084 E-Mail: tcscnd@netscape.net.



The Government of the Republic of Sakha (Yakutia) pays particular attention to the development of industrial production for export. For this we need considerable financial resources, including those from foreign investors.

The following steps have been made to make the republic more attractive for investors: we have passed the Law of the Republic "About capital investments in the Republic of Sakha (Yakutia)"; the Investment passport of the Republic (a list of investment projects) has been developed; we are working on a draft of the Law "About foreign investments in the Republic of Sakha (Yakutia)".

The Republic of Sakha (Yakutia) is one of the most important mineral resources and mining region in Russia. It is a leader in diamond, gold, tin, antimony, and coal mining in the Russian Federation. Deposits of natural gas, oil, semi-precious stones, building materials are being developed.

The coal mining industry set up in coal bearing basins includes 47 deposits worth total reserves of 9,617.8 mln tons of coal. Out of major coal mining projects, one could mark the project of Elginsky deposit where according to some specialists the quality of coal is unique.

The oil and gas extracting and processing investment projects are the most promising. The mineral base ready for development in Western Yakutia consists of 31 deposits of oil, gas, and gas-condensate. The most notable amongst gas project is the Chayanda deposit development project. The deposit is considered to be the basis for implementing a large-scale gas export project to Southeast Asia.

From oil projects extracting and processing gas and oil from Talakan deposit is of the most interest. The projects will possibly be carried out on the basis of the Production sharing agreement.

When areas with permafrost undergo industrial development, it is necessary to take into account the ecological aspects because northern nature is very fragile, and damages to it can be irreversible.

The existing mineral base and forecasted potential can provide for long-term needs in the important minerals not only of the Republic an Russia, but also for potential investors.


Metal Mining Project Finance from a Bank's Perspective

Douglas Ward

N.M. Rothschild & Sons (Denver), Inc.

370 17th Street, Suite 2150

Denver, CO 80202 USA

Tel: 303-607-9890 Fax: 303-607-0998 E-Mail: dw@rothden.com


Note: Rothschild is an advisor to the World Bank.


Abstract Not Available


Seismic Sequence Stratigraphy of the East China Sea

Walter W. Wornardt, Ph.D., President

MicroStrat Corp.

5755 Bonhomme, Suite 406

Houston, TX 77036

Tel: 713-977-2120 Fax: 713-977-7684 E-Mail: msiw3@micro-strat.com

Interpretation of the relationships of the second and third order depositional sequences, their sequence boundaries, maximum flooding surfaces, low stand and high stand systems tracts and their surfaces were made on three wells in the East China Sea. The age of the sediments is based on the integration of Calcareous Nannofossils, Planktonic, Benthic and Large Foraminifers and Palynomorphs. The maximum flooding surfaces, sequence and systems tract boundaries were identified and annotated on well-logs and on a sequence stratigraphy analysis chart. These surfaces and boundaries on well-logs were correlated with a series of seismic reflection profiles.

The lacustrine-fluvial sediments in the Shi Men Tan No. 1 Well were correlated to similar sediments in the Ming Yue Feng No. 1 Well. Lowstand systems track slope fan complexes, that were deposited at the same time as the Andrews and Forties fans in the North Sea, were found in the Shi Men Tan No. 1 and Ming Yue Feng No. 1 wells. The slope fan complexes were deposited in upper bathyal water depths (200-500 meters) based on benthic foraminifers. Coastal swamp lagoonal sediments identified in the three wells could be the source rocks for hydrocarbon accumulations in the channels or channel overbank deposits in the slope fan complexes and the lowstand prograding complexes. Stratigraphically above these deposits, nummulite carbonate banks were identified in the Shi Men Tan No. 1 and the Ling Feng No. 1 wells. Several significant angular unconformities were recognized at various intervals in the three wells.


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Chinese Gas Priorities and Import Patterns

Xu Xiaojie, Founder & Research Fellow



Beijing, China

Unable to Attend


Up until recently, debate and discussion of environmental issues in China have been confined to not only environmental agencies and research institutes but also government regulatory bodies and energy companies as a top priority in planning for future development of energy sources. Natural gas, as a cleaner energy source, accounted for merely 2.06 percent in the primary energy mix in China in 1998, a proportion that lags behind natural gas use in both the major industrial countries and even many developing countries. By way of comparison, natural gas use covers 25.67 percent of energy consumed in the United States, 10.31 percent in Spain, 8.43 percent in South Korea, 7.72 percent in India and 4.60 percent in Brazil in the same year (BP-Amoco, 1999).

The unprecedented floods of the summer 1998 and the growing problem of air pollution in major cities such as Shanghai and Beijing have forced the public and the central government to realize the importance of environmental protection. A new awareness is emerging that clean energy sources must be utilized to maintain a sustainable social and economic development. China has moved once again to implement acceleration in domestic natural gas supply to meet the uprising requirements for cleaner energy sources. The country is also seriously investigating any possibilities of expanding its gas imports.

But the desire to enhance natural gas-fueled industry and consumer-use inside China faces several challenges: (1) domestic infrastructure and market networks are not sufficient to support the growing interest in natural gas usage; (2) substantial foreign imports face financing obstacles and also suffer from concerns about supply security risk, and (3) Chinese gas industrial policy and regulatory system are less effective to oversee gas-based industrial developments.

This paper begins with a brief overview of China's economic development and the impact on energy demand and investigates the potential for and roadblocks to the wider use of natural gas in the country. Focus then turns onto natural gas policy, future import arrangements and the geopolitical influences that will affect its desire and ability to import substantial amounts of external natural gas.