China to bar foreign investment in non-renewable mineral resources

updated: Nov.8 2007
China will bar foreign companies from investing or exploring in some
major non-renewable mineral resources, according to a policy statement
issued by the Ministry of Commerce and the National Development and
Reform Commission (NDRC).
Tungsten, tin, antimony, molybdenum and rare earth exploration are in
the 'prohibited' category for foreign companies, according to the
latest issue of Foreign Investment Industry Guidance Categories.
Under the new guidance, the government will restrict foreign
investment in the refining of copper, zinc, aluminum and rare earths.
Exploration for gold, silver and platinum will be on the are stricted'
list, the guidance shows.
The 'encouraged,' are stricted' and 'prohibited' categories are used
as principles in the government's examination and approval of
projects.
Foreign firms will also be restricted or forbidden to invest in
projects which emit high amounts of pollution or consume excessive
amounts of energy.
China welcomes foreign investment in oil shale, oil sands, heavy oil
and superheavy oil, according to the guidelines.
But the guideline categories limit foreign investment in oil refining.
The country will, however, encourage foreign firms to invest in
renewable energy, ecological, and environmentally-friendly projects,
the guidance added.
The government will 'prudentially' open up strategic industries
involved in matters of economic security to foreign investors,
according to the statement.
The Ministry of Commerce and the NDRC said that China will not focus
solely on an export-oriented trade policy amid a large trade surplus
and surging foreign reserves.
The guidelines will take effect on Dec 1.
(Source: XFN-ASIA. To contact the reporter on this story: kelly.zang@xfn.com)