The Chinese government is about to establish a state-run auction house for the purpose of selling the country’s mining rights to the highest bidder.
The auction house, known as China Mining Lianfa Auction, will engage in transactions with foreign and domestic businesses, according to a state news agency.
The China Mining Association (CMA) will be the principal shareholder of the new company, which has a total registered capital of 10 million yuan (US$1.2 million).
Foreign investors will be able to bid for the mining rights through their branch companies registered in China or joint ventures already in existence.
The company will take charge of the evaluation of mineral resources and the examination of the bidders’ qualifications.
The government will still control the mining rights to strategic mineral resources such as uranium.
In the past, the Chinese government awarded most mining rights free of charge to domestic mining companies, and it was difficult for foreign investors to gain those rights. But with its entry into the World Trade Organization last year, China decided to open its mining market to foreign investors.
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