"Although adjustments have been made since 2001, erasing massive illegal mining in many parts of the country, there has been a minor resurgence in various areas due to high profits from increasing mineral demand," said Zeng Shaojin, the director of the ministry's Mineral Mining Management Department.

In the campaign since 2001, around 35,000 mines have been closed down due to their poor working conditions and illegal operation.

The ministry uncovered 22,000 illegal mining operations last year, dishing out 50.67 million yuan (US$6.1 million) in fines. But it still faces a tough task.

"China's mining regions are too scattered, which does not facilitate supervision and law enforcement," said Zeng.

But to leave the matter untouched will be costly - it will have an impact on the ministry's efforts to attract foreign investment into the country's cash-strapped industry.

Central China's Hunan Province is among the latest regions suffering from the loss of foreign investment over the sector due to the lack of control.

Li Jindong, a senior mining official in the province, admitted that a British company which was interested in a local project eventually gave up after several months of negotiations and investigation since there was no "guaranteed mining order."

But fortunately, such situations will be improved in the near future with the ministry's new remote-sensing technique.

According to Zeng, the ministry will use satellites to remotely supervise mining starting from next year.

(China Daily June 20, 2003)