To duly improve the investment environment of the mining sector and
further open the mining sector, especially the solid minerals
market, the Chinese government has decided to encourage more
foreign investment in the exploration and development of
non-oil-and-gas mineral resources, said Gan Zangchun, director
general of the Department of Policy and Legislation under the
Ministry of Land and Resources, in Beijing Thursday.
In
1997, according to Gan, only US$940 million of foreign direct
investment went to the excavation sector and most of them were in
oil and gas exploration. There was little money putting into the
exploration and development of non-oil-and-gas mineral resources.
This is by no means compatible with China's status as a big mineral
resources country, said Gan.
To
solve the problems facing foreign investors, such as the unclear
exploring and mining rights of non-oil-and-gas mineral resources,
overlapping procedures for checking and approving foreign
investment, preferential taxation policies, difficult ways to
obtain necessary geological materials and interference of local
governments, the Ministry of Land and Resources, together with the
State Development Planning Commission, State Economic and Trade
Commission, Ministry of Finance, Ministry of Foreign Trade and
Economic Cooperation and State Administration of Industry and
Commerce, after a profound investigation and study, formulated a
document entitled Several Suggestions for Further Encouraging
Foreign Investment in the Exploration and Development of
Non-Oil-and-Gas Mineral Resources. The document is officially
published today.
According to the document, China will further open the exploration
and mining rights market of non-oil-and-gas resources. Foreign
companies, their agencies and representative offices are allowed to
carry out risk exploration of non-oil-and-gas resources in China
either by making sole investment or cooperating with their Chinese
partners. Also, China will provide greater support for foreign
investors in the exploration and development of these resources
with relevant incentives clearly defined. Special encouragement
will be given to foreign investment in the western regions for
developing non-oil-and-gas mineral resources. The management and
service in this respect are also standardized and improved.
Gan said that many successful experiences in exploring and
developing oil and gas were employed in drawing out the document,
for example, in the taxation of exploring cost and preferential
taxation policies in importing and exporting equipment for
geological survey. The implementation of this document will greatly
improve China's environments for foreign investors.
China also welcomes foreign investment to concrete working fields
so as to improve the efficiency and safety of mining sectors.
Meanwhile, Gan pointed out, like most countries do in the world,
China will take restrictive or protective measures in mineral
resources which will affect the national strategic security. For
instance, uranium, a kind of strategic mineral resource, is
forbidden to open to foreign investors.
(CIIC 12/14/2000)