China to protect foreign miners' rights-vice min

Beijing, Mar 11: China will protect the rights of foreign prospectors, as it seeks more exploration investment to increase domestic reserves of metals and other resources, a senior government official said on Saturday.

Although rich in many rarer ores, China has relatively poor deposits of more common ores used for industrial metals.

Beijing is trying to entice international miners to explore for new mines, especially in the underdeveloped west, but some of them worry that the right to exploit a deposit once found is insufficiently guaranteed.

Speaking at a news conference on the sidelines of the annual session of parliament, Li Yuan, vice minister of land and resources, sought to reassure them.

''We will put in place a fair and just market mechanism for the exploration of resources ... We will straighten out all kinds of economic regulation in the field of exploration of mineral resources,'' Li said. ''We will open up more to the outside and protect the legitimate rights and interests of foreigners who invest in mineral resources.'' Li said China would also increase exploration for energy resources, including non-conventional oil and gas, without giving further details.

Foreign gold miners have made the biggest inroads in the Chinese mining sector, with some companies now operating gold mines. Multinationals such as Canadian nickel firm Inco Ltd. and BHP Billiton Ltd. have also invested in exploration in China.

The Ministry of Land and Resources also said in a press release on Saturday that it would ''strengthen the fundamental geological surveys in national key projects''.

Investors remain leery of the quality and interpretations of some of China's survey data.

REUTERS