China plans to explore more of its mineral resources and improve its
self-sufficiency.
Prospecting is "essential" if the country is to bring outside investment into
its cash-starved mining industry, Shou Jiahua, vice-minister of land and
resources, said yesterday.
The prospecting data collected provides a solid foundation for follow-up
commercial exploration by reducing the risks involved in the search for
minerals. These risks account for many of the unknowns confronting mining
projects.
"We have seen successful cases in which commercial prospectors follow up data
obtained through exploration activities," Shou said.
A source close to the ministry disclosed that large-scale gold deposits,
found recently in Northwest China's Xinjiang Uygur Autonomous Region, had
attracted investors from Australia. "Negotiations are under way," said the
expert, who declined to be named.
China carried out its most radical reform of its mineral exploration industry
in 1999. It aimed to turn about 1 million geologists or prospectors from
government to enterprise employees. Since then, Chinese geological survey
institutes have earned much of their income by turning their prospecting rights
into commercial ventures.
Vice-Minister Shou said exploration activities are useful to commercial
prospectors, who in turn provide further funds to the institutes.
The ministry published a State Council circular yesterday calling on local
governments to provide enough operating funds for geological survey institutes
under their jurisdiction. It also urged the institutes to participate more
actively in the market.
For example, geological surveyors are now helping local governments such as
East China's Zhejiang Province and Northeast China's Jilin Province revise
agricultural plans taking soil and mineral composition into account, according
to Shou.
The anonymous expert close to the ministry said the move will help the
country obtain more minerals to fuel its economic development.
Although the country will "inevitably" play a more active role in the
international market, discoveries of new domestic mineral deposits will still be
essential. But the lack of funds in the sector remains a major bottleneck, the
source said.
