August 28, 2008

China to limit granting of mineral rights

It is reported that China may restrict the award of mineral exploitation rights to a limited group of people as part of a plan to boost domestic production as import prices rise.

Mr Wang Min deputy minister of land and resources said restricting exploitation rights is part of a plan to set up a national reserve system for minerals to ensure supply,. The plan requires the cooperation of several' agencies.

Baosteel Group Corp China's largest steelmaker agreed last month to pay 65% more to Brazil's CVRD for contract iron ore as China's demand for cars, buildings and appliances boost appetite for steel.