Chinese government has approved the establishment of China Mining
Lianfa Auction Company, the first state-level company that gives
foreign investors access to the mining rights to the country's
abundant mineral resources.
The company will begin business with investors from at home and
abroad for the surveying and exploitation of mineral resources in
China later this year, a company executive said Wednesday.
The China Mining Association (CMA) will be the principal
shareholder of the new company which has a total registered capital
of 10 million yuan (US$1.2 million).
Foreign investors can bid for the mining rights through their
branch companies registered in China or joint ventures, said Wang
Yanguo, president of the auction company.
"It is time for foreign investors to have full access to China's
mining market now," said Wang, who is also secretary-general of
CMA.
Wang said the company would take charge of the evaluation of
mineral resources, the release of authoritative information and the
examination of the bidders' qualifications.
In
the past, the Chinese government awarded most of the mining rights
for free to designated domestic mining companies, and it was very
difficult for foreign investors to gain those rights.
With its entry into the World Trade Organization last year, China
decided to open its mining market to foreign investors.
Deputy Minister of Land and Resources Shou Jiahua said last week
China would replace the administrative examination and approval of
mining rights with public bidding and auctioning.
In
August, China auctioned the mining rights to a gold mine for the
first time in eastern Jiangxi Province.
In
March, Australia's Griffin Mining Company, through its joint
venture in Hebei Province, got the first mining license to solid
minerals exploration in China.
Currently, foreign capital has access to the exploitation of
mineral resources including gold and rare earth. However, the
government still controls the mining rights to strategic mineral
resources like uranium.
Industry sources said opening the mining market to foreign
investors will benefit the mining industry that is in great need of
capital and advanced technology.
(Xinhua News
Agency October 31, 2002)