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China Mining Sector Invites Foreign Investment
China's non oil and gas mineral resources have been opened to foreign exploration and development and active measures will be taken to attract foreign investors to the mining sector.
The information was released at the press conference Thursday by Mr. Gan Zangchun, director general of the Department of Policy and Legislation at the Ministry of Land and Resources (MOLAR).
According to Gan, foreign investors are allowed to carry out risk exploration of non oil and gas resources in China through sole investment or through cooperation with Chinese partners. The foreign investors would than enjoy priority mining rights to access any non oil and gas mineral resources discovered in the exploring area.
Foreign parties may legally purchase transferable exploring and mining rights from Chinese enterprises. Foreign companies may also obtain shares in the industry by providing advanced technology and equipment.
Preferential treatment is offered to investors involved in the development of associated ores, paragenetic ores and tailings.
Gan said, foreign non oil and gas companies or joint ventures operating in China's West region will be exempted from the utilization fees for exploring and mining rights for one year and will only have to pay half the due amount during the following two years.
Compensation fees can be waived for five years for investors that are dealing with non oil and gas resources in the West and are listed in China's Guidance Catalogue for Foreign Investment.
Gan also called for joint efforts by relevant departments to standardize and improve administrative services to facilitate foreign investors joining in China's non oil and gas mining industry.
Registration departments are required to handle foreign applications for exploring and mining rights of non oil and gas mineral resources in China within 30 days.
Statistics show that in 1997 only US$940 million out of the 45 billion in direct foreign investment was devoted to the excavation sector, accounting for a two percent slice of the total.
The new regulation is expected to draw foreign investors to the Chinese mining industry as well as boost the development of China' s West region.
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