Chinese officials started talks yesterday with their Thai
counterparts to investigate a possible sylvite mining operation in
the Southeast Asian country.
Backed by the Ministry of Land and Resources, the China
Geo-Engineering Corporation and four major mining areas - Shaanxi,
Sichuan, Hunan and the Guangxi Zhuang Autonomous Region - started
talks yesterday with their potential Thai partners.
China needs high-quality supplies of the mineral - a form of
potassium chloride - for a number of uses, including the production
of chemical fertilizers.
Although a final deal has yet to be agreed, a preliminary outline
for the establishment of a joint venture has already been arrived
at between the corporation and its Thai partner.
The resource authorities of the four provinces will be responsible
for supplying labour and technical supervision, which are expected
to be paid back with shares in the new joint-venture company.
The implementation of the planned Thai project is different from a
similar and highly successful operation in Laos, in that the
Chinese Government will not be the sole investor.
Li
Jindong, vice-director of the Hunan Provincial Department of
Geology and Minerals, praised the idea of setting up a holding
company.
He
said: "It will allow the market to assume more influence over the
operation, facilitate future project bids in Thailand and provide
jobs for surplus mining labour forces in the major mining
provinces."
In
order to solve its mineral shortage problem, China has vowed to
play a more active role in the international minerals market and is
working to attract more foreign investment into the country's
cash-starved mining industry.
But their journey into foreign markets may be hindered by the small
scale and lack of funds of most Chinese mining enterprises,
compared to their international competitors, said Wang Anjian, an
expert from the Chinese Academy of Geological Sciences.
"Working together may be their best way forward," he said.
(China Daily January 23, 2003)