China Encouraging Mines Consolidation
China’s Ministry of Land and Resources
(MLR) is moving to consolidate the mining
operations of 15 minerals into fewer, larger
groups to improve both efficiency and
safety, according to a Bloomberg report
published in India’s Business Standard on
March 16, 2007. Minerals covered by the
plan include copper, iron ore, coal, gold,
manganese, bauxite, lead, zinc, molybdenum,
tungsten and tin, antimony, rare
earths, phosphorus, and sylvite.
China’s economy grew 10.7% in 2006,
the fastest pace in 11 years, increasing its
requirements for raw materials and creating
pressure to improve the performance
of its mining industry. Mining industry
consolidation would cut mine numbers
from an existing 120,000 mostly smallscale
mines owned by individuals, the
report said, citing an MLR statement.
China also has set a goal of reducing mining
deaths and accidents by 10%. China’s
safety administration has reported that
4,746 people died in 2,845 coal-mine
accidents in 2006, according to the staterun
Xinhua News Agency.
“The consolidation will help reduce
the number of smaller miners, boost efficiency
of the utilization and development
of the minerals, and improve safety and
environmental standards of mining,” the
MLR statement said. The government
also wants to cut the number of prospecting
and mining permits issued by 20%,
moving to allow only a single permit for
each mining zone. China’s central government
asked provincial governments to
conduct investigations of local mineral
resources and submit proposals to the
Land Ministry and the National Development
and Reform Commission.
Chinese Vice-Premier Zeng Peiyan
has said China will draw on its $1 trillion
in foreign reserves to build a national
strategic stockpile of key minerals,
Bloomberg also reported.