China's new Indicative Catalog Of Industries for Foreign Investment (amended 2007) stipulates that foreign investment will be banned in exploration of rare or crucial and unrenewable mineral resources, which has made foreign companies worried over their participation in the country's trading of mining right.

   According to the new catalog, which is jointly issued by the National Reform and Development Commission (NRDC) and the Ministry of Commerce, China will ban foreign investment in exploration, development and mining of some crucial mineral resources which are not renewable, and restrict or ban foreign investment in projects which are in high consumption of materials and energy, and making serious pollution.

   With the opening of economy, trading of mining right will be surely open wider to foreign investors. The catalog only makes clear that what are areas are important and not be open to the outside, and what areas are open to foreign investors. Experts described it as a system preparation for more opening of the areas.

   Wang Min, vice-minister of land and resources, said that China's opening policy in the mining sector remains unchanged, and the country will work on ensuring legal interest and right of foreign investors.

   Foreign companies are permitted to conduct risk exploration and resource development in form of wholly owned, joint venture and cooperation in accordance with China's law.

   At the same time, the heavy investment and risk in mineral exploration require China to attract foreign investment and technology to step up the development.

   China's mining sector has become an important area in attracting foreign investment. At present, more than 100 foreign companies have made investment in mineral exploration in China.  Foreign investment has been mainly made in west China in more than 400 exploration and development projects the fields of oil, natural gas, coal, iron, copper, lead, zinc and gold. At the same time, some foreign companies engaging in exploration technological service, consulting and information have also entered China market. China now has 594 mining enterprises involving investment from foreign countries, Hong Kong, Macao and Taiwan.

   In China, mineral reserves are owned by the state. Related enterprises submit application to state departments for exploration and development rights of minerals. But some enterprises which have gained the mining right have no capability in doing it, thus forming the second market on mining right. Mining right can be sold to state-owned, non-governmental companies and individuals on the market.

   At the same time, the country has issued policies in favor of foreign participation in gaining the mining right.