Mining in China

Industry Outlook

China’s economic growth fosters a long term demand for precious and base metals. The recent China Mining Conference 2005 has attracted foreign and local participants of over 10,000 industry participants, ranging from mining and exploration companies to service providers. China is also the fourth largest gold producer in the world.

China’s mining industry has the following characteristics: fragmented and largely under-explored. The Chinese government encourages the mining industry in a number of ways. Foreign investors are encouraged to invest in exploration and mining projects, where in the Western region foreign companies can own 100% of the property. The emergence of the Shanghai Gold Exchange and the deregulation of gold market have boosted domestic demand and encouraged foreign involvement.

As the China mining industry is fragmented (most mines are very small in scale) and under explored (less than 300 metres depth), the industry requires consolidation and exploration investment. Neo Alliance, through our domestic partner and strategic alliances (see Alliance and Partnership), is well positioned to capture the benefits in the rapid development of the China mining industry.

Mining Laws and Regulations on Foreign Investors

China Mining – Laws and Regulations (PDF - 232KB)

Mining License

• To carry out the mining activities within the boundary of the mining area and duration as set by the Mining Permit;

• To sell the mineral products exploited, except for the mineral products to be uniformly acquired by the organization designated by the State Council;

• To install the necessary production line and facilities within the mining area;

• To obtain the land usage rights according to the production needs; and

• To enjoy any other rights under the laws and regulations

• Environmental Impact Assessment completed

• Mining at Majiahe is legitimate and fully approved by
• City, Provincial and State levels of SDRC (State Development and Reform Commission)
• County, City, Provincial levels of MOLAR (Ministry of Land and Resources)