China stresses efficient use of minerals ( 2003-12-24 01:33) (China Daily)
China will maintain fast economic growth relying mainly on its own mineral
resources, the country's first white
paper on the subject says.
Released yesterday, the white paper says to fulfill that goal, China needs a
more efficient mining sector.
Shao Juenian, director of the Mineral Reserve Department of the Ministry of
Land and Resources, said the white paper delivers a clear-cut message that the
country will continue its opening-up efforts by introducing more private
investment, along with foreign capital and technologies, into the mining sector.
"One ultimate purpose of the white paper is to introduce to the world the
current situation of the Chinese mining sector. Foreign investment and advanced
mining technologies are welcomed,'' Shao said.
In addition to preferential policies encouraging investment into the
cash-pinched Chinese mining sector, Shao said the country's on-going revision of
the Law on Mineral Resources expects to provide more clear-cut protection of the
proper rights of investors.
Although details are not yet available, Shao did say that the revised version
of the law will spell out the rights of prospectors and miners and safeguard the
rights on a unified basis throughout the country.
Liu Yikang, an official with the China Mining Industries Federation, said
varying policies of different Chinese regions have puzzled foreign investors.
"Although the huge Chinese market has proved too irresistible to foreign
investors, we still need to improve our investment environment in order to
nourish their investment interest into real moves,'' he said.
But before the revision can be complete in three to five years, the ministry
has already geared up to improve its mining order. "One solid step in the
regard, we are going to close down hundreds of small mines in the near future,''
said Shao.
For many local mining authorities in China, poor mining orders, especially
irregularities in small illegal mines, have made it difficult to attract foreign
investment.
Li Jindong, a leading mining official in Central China's Hunan Province, said
the province has pledged greater-than-ever efforts to sort out local mining
orders and shut down small mines.
"We have lost large amounts of foreign investment to that already,'' he said.
Shao strongly believes in the potential of Chinese minerals. Statistics in a
report of the World Mineral Resource Strategy Research Centre of the Chinese
Academy of Geological Sciences indicate that of the 200,000-odd spots worth
mining in the country, only 20 per cent have undergone preliminary evaluation,
the very foundation for exploitation operations.
Shao refuted some reports that the country expects to import as many as 500
million tons of crude oil by the year 2020.
"Our estimate of the number is roughly between 300 million tons and 400
million tons, and expect it to shrink further due to improved utilization
technologies,'' he said.
However, he said China will play a bigger role in the international mineral
market, because "no country can develop on its own mineral resources only.''
Therefore, the country will produce a special regulation in the near future
to especially encourage Chinese mining companies to develop business overseas,
while co-ordinating competition with each other.
