Overseas Firms Encouraged to Invest in Exploring Mineral Resources

China will adopt new measures allowing foreign funds to play a more important role in the country's prospecting and mining of minerals other than oil and natural gas, China Daily reported March 28.

The newspaper quoted Chinese Land and Resources Minister Tian Fengshan as saying recently that the new measures will protect foreign companies in winning prospecting rights and recouping capital outlay.

Tian said China will encourage foreign investment in mineral utilization and promote the establishment of mineral joint ventures.

Already endorsed by his ministry and five other ministries and commissions, the draft new regulation has been submitted to the State Council for final approval, he said.

The new regulation is the second effort this year by the Chinese government to improve the mining investment environment for overseas investors.

Last month, the ministry issued a Notice on the Problems in the Application of Foreign Subsidiaries for Prospecting Rights. Allowing foreign subsidiaries to win prospecting rights, the notice changed the method of having foreign companies responsible for funds with the Chinese ones needed to win the necessary rights and qualifications.

According to China Daily, Tian has set "all-round opening-up" as the basic principle of his ministry for the campaign to develop China's western areas.

He said the resource-exploiting enterprises in western China should enhance their competitiveness by absorbing foreign funds and using advanced foreign technologies and managerial experience.

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