Although Chinese mining companies have been investing in countries such as Australia, Canada, Africa, Russia, Peru and Chile, there are still obstacles hampering further growth.

Zhou Yongmei, senior manager of the mining sector with the World Bank, said most of the Chinese companies invest in low-and middle-income countries.

"These countries have a vulnerable political system that often poses risks to investment."

She said Chinese companies take huge risks when they invest in countries where there are not enough jobs for locals. Civil wars can also cause huge capital losses.

"The government is working on steps to improve and increase overseas investments by promoting the green-credit policy," she said.

The Ministry of Environmental Protection will soon submit a list of companies that have violated environmental protection regulations to the China Banking Regulatory Commission. The commission will limit, suspend or withdraw loans to the companies in the list.

Bie Tao, deputy head of the policies and regulations department with the environmental protection ministry, said mining companies must take steps to control the environmental impact from their operations. "Environmental risks are the main criteria that banks weigh before approving loans," he said.

The government would use the loans and other financial measures to limit overseas investments and ensure that the companies work in an orderly fashion.

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