Chinese investors to build silver ‘zone’

In an effort to cultivate China’s burgeoning silver industry, private investors are planning to build the Shanghai Silver Industry Exploitation Zone.

Led by Shanghai Contor Enterprise Develop Co., the 2-sq.-km zone will “enhance the competitiveness and status of the Chinese silver industry in the international market,” says one local official.

The zone will be divided into several areas, each of which will focus on a specific part of the silver industry. These include: production and processing of silver products; trade; logistics; business affairs; exhibition; information; and scientific research.

The production and processing area will include deep processing and the production of sensitization materials for electronics, such as thick films. The trade area will encompass a technical information and research exchange, an education area, a media area to publish books and papers about silver, a silver culture museum and garden, and a management area, which will have a hotel, offices and a restaurant.

China is the fifth-largest silver producer, behind Mexico, Peru, Australia and the U.S.

The country consumes 1,509 tonnes silver annually, compared with 5,974 tonnes in the U.S. In addition, China’s per-capita consumption in 2002 was 1.04 grams, compared with 70 grams in developed countries. With the opening of China’s silver market, production and consumption are expected to rise. Shanghai was chosen as the silver centre because of the expertise in business and finance that is available there.

The entire Silver Zone project is expected to be completed by 2008.