Shake-up Encouraged For Mining Industry

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Last updated at: (Beijing Time) Friday, June 20, 2003

Shake-up Encouraged For Mining Industry

A further shake-up is needed in China's mining industry to curb illegal operations and attract much-needed overseas investment, said a senior official of the Ministry of Land and Resources Thursday.

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A further shake-up is needed in China's mining industry to curb illegal operations and attract much-needed overseas investment, said a senior official of the Ministry of Land and Resources Thursday.

"Although adjustments have been made since 2001, erasing massive illegal mining in many parts of the country, there has been a minor resurgence in various areas due to high profits from increasing mineral demand,'' said Zeng Shaojin, the director of the ministry's Mineral Mining Management Department.

In the campaign since 2001, around 35,000 mines were closed down because of their poor working conditions and illegal operation.

The ministry uncovered 22,000 illegal mining operations last year, dishing out 50.67 million yuan (US$6.1 million) in fines. But it still faces a tough task ahead.

"China's mining regions are too scattered, which does not facilitate supervision and law enforcement,'' said Zeng.

But to leave the matter untouched will be costly -- it will have an impact on the ministry's efforts to attract foreign investment into the country's cash-strapped industry.

Central China's Hunan Province is among the latest regions suffering from the loss of foreign investment over the sector due to the lack of control.

Li Jindong, a leading mining official in the province, admitted to China Daily that a British company which was interested in a local project eventually gave up after several months of negotiations and investigation since there was no "guaranteed mining order.''

"The mineral deposit we were talking about is located in the mountains and is not easy to attain.

"Therefore, we had a really difficult time stopping the guerrilla-like illegal miners from being engaged in illegal mining operations,'' Li said.

"They would show up after the news of a newly-found deposit was released,'' he added.

He said: "The normal outcome is that they disappear, leaving tattered instruments behind, when our limited patrol force reaches the site.''

But fortunately, such situations will be improved in the near future with the ministry's new remote-sensing technique.

According to Zeng, the ministry will use satellites to remotely supervise mining starting from next year, laying a solid foundation for a concerted push to clean up the industry.

The ministry has launched 20 projects since 2001 to combat illegal mining, which have all produced positive results. Under these projects, it has become much harder for illegal miners to escape punishment.

Mao Donglin, a publicity official with the ministry, also expressed confidence for the improvement in the sector in the near future due to a new judicial interpretation by the Supreme People's Court, which was issued early this month.

The interpretation stipulates for the first time that illegal miners can be jailed for up to seven years.

Mao said the interpretation is daunting to those thinking of flouting the law.

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