Introduction to Mineral Resources in China Two

Also in Xinjiang Uygur, near Habahe, the government approved the construction of the Ashel Copper mine; the mine, which also contained iron and zinc, planned to produce 2,000–3,000 tons per day of ore and concentrates that contained 25% copper and 53% zinc for the duration of its projected 38-year life. The Xitieshan Mining Bureau, renamed Western Mining Co. Ltd., had a lead and zinc mining capacity of 1 million tons per year (Qinghai Province), and was approved to develop the Saishitang Copper Mine, northwest of Xining, and China’s largest undeveloped copper deposit, Yulong (6.5 million tons reserves), in Xizang Autonomous Region. Jiangxi Copper Co. Ltd. planned to expand one mine, acquired another, and bought the exploitation rights to a third.

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The government planned to reform the gold sector by easing restrictions on foreign investment and establishing a gold exchange market by 2002. Domestic producers were required to sell all their gold to the Central Bank at a fixed price; the bank would gradually withdraw from its gold monopoly position. The establishment of gold mining companies that were wholly owned by foreign investors was not permitted.

A joint exploration and development agreement was signed to explore for gold and silver in the Hulunbeier League; the Canadian partner in the agreement, Naneco Minerals Ltd., had to provide the capital for further exploration and development of the Errentouligai gold and sivler deposit, near the Jiawula polymetallic deposit. Alaskan Exploration Corp., a subsidiary of Vega-Atlantic Corp., of Germany, and Yunnan Northeast Silver Industry Co. Ltd., formed a joint venture to develop the Luomachang silver mine, in Yunnan Province; the mine, which had operated for three years, at a capacity of 17 tons per year, had reserves of 9 million tons at a grade of 221.9 grams per ton of silver.

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