CHINA now requires tungsten, tin and antimony smelters to have at least half of the investment self-funded and also to be subject to other environmental and energy standards as it implemented new rules over those industries.

The rules could better develop China's abundant mineral resources, optimizing mining and utilization processes and exports, the National Development and Reform Commission said in a statement on its Website yesterday.

Smelters must now use their own capital to fund 50 percent or more of a project, rather than use channels like bank loans, according to rules published yesterday by the commission, China's top industry policy planner.

The new rules went into effect on January 1. It's not immediately clear if there were any requirements for project financing before.

Tungsten can be used in the metalworking, construction and electrical machinery and equipment sectors. Antimony is used as a hardening alloy for lead, especially in batteries. Tin is used as a protective coat for other metals to prevent corrosion or in soldering electronic components. China is the world's largest producer of these resources.

"Last year, non-ferrous metal prices soared. The trend won't be that strong for copper and aluminum while still firm for things like tungsten and tin," said Zhao Chun, an analyst at China Merchants Securities Co. "With more state regulations, I think it would benefit listed companies like Yunnan Tin Co and Xiamen Tungsten Co."

Under the new rules, smelters are not allowed to build or add capacity if they cannot secure feedstock supplies.

Newly approved plants also must meet other requirements. For example, a tin project must have annual production capacity of at least 8,000 tons and an antimony project with a capacity above 5,000 tons.

They are also subject to rules governing locations where they can build plants, and the amount of waste they can discharge is also limited as they are usually energy-guzzling and cause pollution.

Similar rules have already been adopted in other industries such as copper smelting.

The government has said it would build up state strategic reserves of minerals as well as crude oil.