China is improving the investment environment of its mining industry in line with international standard and foreign investors involved in this sector should be optimistic, the China Daily reported Monday.
Shou Jiahua, vice-minister of land and resources, was quoted assaying the Chinese mining industry is marching towards a fairer and more transparent investment environment to attract more foreign investors.
Shou said some problems in the Chinese mining industry that used to turn foreign investors away from Chinese land, a lack of necessary legal guidelines, limits on geological data and a lack of an effective market mechanism allowing the transaction of mining rights, have been overcome.
Attracting more foreign funds is becoming a pressing task for this industry before it can be upgraded, she said.
The much-complained Chinese stipulation of giving "priority" in mining developments to exploration groups is expected to be revoked in the coming revision agenda of China's mining law at the Standing Committee of the National People's Congress, Shou said.
Shou said international practice just allows the discoverer of a new mineral deposit to mine and market the area while China's "priority" wording leaves an impression that discoverers are not assured the right of follow-up exploitation and marketing.
Though actually the "priority" has in most cases guaranteed the profits of companies through exploitation and marketing, it is better to give the exploitation right directly to the companies, Shou said.
Also being considered for reform are rules that will help solve problems between local authorities and mine management, in addition to streamlining approval procedures for the establishment of joint venture mining enterprises, she said.
(Xinhua News Agency October 21, 2002)
