The first public bidding for the excavation rights to a gold mine
concluded "fairly and successfully" yesterday morning in Nanchang,
capital of East China's Jiangxi Province.
Li
Hongchang, vice-director of the Department of Land and Resources of
Jiangxi Province, said he was satisfied with the bidding result of
2 million yuan (US$242,000) for four years of excavation.
The winning bid went to the Nanfang Mechanical Engineering Limited
Company, which Li said is capable of fulfilling its promise to
develop the mine "scientifically, with enough attention paid to
workplace safety and environmental protection."
Before this auction, the mine was excavated without compensation to
the country at all, said Li.
The publicly bidded gold mine is located in the province's Shangrao
County. It was taken by the government from illegal miners in the
province.
Because the mine boasts high-grade ore shallowly buried and the
area has convenient transportation, its value is estimated as high
as 2.2 million yuan (US$265,700).
All the money collected from the bidding will be used to establish
a special prospecting fund to fuel the mining industry of Jiangxi
Province even further.
Altogether four Jiangxi enterprises, which are all private stock
companies and a Hong Kong limited company, participated in
yesterday's bidding.
The number is much less than those who considered participation in
the bid, which totaled nearly 20 at one time. It was because of
large number of possible bidders that the department postponed the
bid from August 8 to yesterday.
But Li said he was not disappointed.
"Instead, we have this exhilarating feeling of being trusted," he
said.
The development of a mine depends heavily on careful and
comprehensive investigation and study, especially in the local
investment environment which involves huge financial backing. The
bidding circular was published less than 10 days ago and Jiangxi
has only put excavation rights for sand and stone mines to auction
in the past.
"We understand many investors decided, probably at the last minute,
to look on this time. But the result should have enhanced their
confidence and will get more of them to participate in the mining
industry of Jiangxi," said Li.
Despite this successful auction, a provincial official dismissed
the possibility that more excavation rights of gold will be
transferred through public bidding in the near future.
"That is expected to happen eventually, but there is no indication
of fast increase so far," said Hou Kechang, director of the Mineral
Development Management Division at the department.
(China
Daily August 19, 2002)