Mineral Joint Venture Activities In China

China’s land area, comparable in size to United States or Canada, contains diverse geological environments and mineral resource potential. The diversity in geological environments is such that the potential for developing many world-class mineral deposits in China is good. However, China’s mining sector was not open to foreign investment until the1990s. The long-term prospect for Chinese resource development is attractive because of China’s enormous population and cumulative demand for minerals. Approximately 33 foreign mineral companies, including 11 major internationals, are to various degrees active in China. Chinese mining laws and regulations pertaining to joint ventures with foreign companies are, from the international investment prospective, evolving slowly, but positively. This positive trend is continuing under the current government reform process, which is moving China towards a freer market economy. Although improving the enforcement of relevant laws and regulations is an ongoing process, the environment for mineral investment and joint ventures is increasingly more accommodating to foreign companies.