China’s Mineral Priorities and Current Projects

Investment in the ferrous sector between 1981 and 1985 will total about $9 billion, or 7.6% of the state budget for capital assets. The money will primarily go to complete the first stage of the Baoshan Iron and Steel complex and to increase steel production by 3 Mt* (3.3 million st) and seamless tubing by 0.5 Mt (551,000 st). Investment in 1983 will be about $3.5 billion, a 28% increase over 1981. Although data on nonferrous investment is less specific, the Chinese announced early this spring that the country's investment would be 2.6 times greater than the average spent during the previous five year plans. Geological surveying will also be stepped up. The Ministry of Geology and Minerals recently announced it will incorporate a search for metal and mineral resources into its second round of oil and gas surveys. The Sixth Five-Year Plan desig¬nates some actual production targets. Steel is to increase to more than 72 Mt (79.4 million st). The country's production of 10 priority nonferrous metals - aluminum (and bauxite), copper, lead, zinc, nickel, tin, antimony, mercury, magnesium, and titanium - is to increase 12.7%. Top priority is to develop aluminum production. Renewed efforts are to be made to develop gold and silver production and to increase rare earth and rare metal production. By April 1983 when the China Nonferrous Metal Industry Corp. was established, some five months after publication of the Five-Year Plan, the goals for nonferrous development had already been upgraded and changed to include: • development priority status equal to that of coal's; • an increase of more than 150% in the 1985 projected production level for the 10 top nonferrous metals (a move from the Sixth Five-year Plan's production increase of 12.7% to one of 34%); and • modification of the top 10 nonferrous metals list to include tungsten, molybdenum, and rare earths. Aluminum, copper, lead, and zinc maintained primary importance, while mercury, magnesium, and titanium were deleted. It is likely that the modification will be taken one step further and titanium will be substituted for antimony. China has already indicated its intentions to stabilize rather than expand its antimony industry, while press reports play up the titanium industry's importance to the country's development. In addition, the China Nonferrous Metal Industry Corp. announced that it expects to register a progressive annual increase of 4% in foreign currency earnings through export. China's nonferrous development efforts, therefore, appear two-pronged. First, the country's efforts will be directed toward self-sufficiency in its four major process and primary metals - aluminum, copper, zinc, and lead - and a number of other nonferrous metals that are in increasing demand by its light industry sector. At present, 96% of China's non¬ferrous consumption is composed of aluminum, copper, lead, and zinc. Substantial portions of that must be imported to meet rising demand. Second, efforts will concentrate on those metals that can be developed the fastest and are in "urgent demand" on the international market. Metals such as tungsten, tin, molybdenum, titanium, nickel, and rare earths will be given freer use of foreign capital and technology to increase production levels and raise quality. Examples of some projects in the area include upgrading the country's carbide industry and developing new high speed and tool steels to meet international standards. Foreign involvement and sales have been reported in each area, particularly with regard to sales of deposition equipment and presses by Swiss and West Ger-