Gems Beckon Money to West

Opening land and mineral resources to foreign business is a priority in China's programme to develop its western region, government officials said in Beijing on May 31, according to China Daily.

Foreign participation in tapping hidden resources will top the agenda of the Ministry of Land and Resources for developing the west.

The ministry also intends to promote a co-ordinated, cost-efficient development. It wants the market to decide the allocation of resources in line with government regulations and local conditions and promote new technology, said ministry spokesman Fan Zhiquan.

Fan was briefing 100 Chinese and foreign reporters at a press conference by the State Council Information Office on the western China development plan's land use.

He said the biggest advantage of western China is its rich land and resources and that the ministry is committed to translate the advantage into money potential.

But the rest of the world needs to be involved, he said.

"While domestic and foreign capital, technology, talent and management expertise must be introduced on a large scale, we should make full use of the local advantages and push the western hinterland to participate in international co-operations," Yu said.

So the State is formulating incentives for the mining industry, Fan said.

"For sure, investing in the mining industry in western China will be favoured with more preferential policies," Fan said.

One such policy to come is reduction or waiver of fees paid for mining. Other mining procedures will also be simplified. The policy should encourage mining in poor rural areas of the west.

A mining pilot programme in Yunnan Province is expected to spread in the west.

In November, the ministry made Yunnan a trial base in increasing mining investment. Yunnan mining authorities got the rights to review, approve, register and issue licences to foreign companies. Those companies no longer need to apply to the ministry for licences.

But petroleum, natural gas and radioactive minerals are excluded.

And to facilitate investment in western China the ministry is surveying land and resources. Sixty per cent of the ministry's survey budget will go to western China this year, Fan said.



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