China to set up mineral industry development fund 

Industrial experts have called on the government to establish a large industry fund to encourage mineral enterprises to acquire more resources so as to cut mineral import reliance.

Zhou Zhongshu, president of China Minerals Corporation, said that to set up a large industry fund can draw relatively abundant sate and private capital, which will meet domestic mineral enterprises’ capital demand to cover investment projects.

The establishment of the industry fund, reliant on state capital, will improve the current financing situation for mineral companies, who now mainly borrow loans from banks.

Lin Haoxiang, analyst with Guotai Jun'an Securities, deemed that centrally administered enterprises, domestic banks, large mineral enterprises and overseas strategic investors are likely to reach an agreement on setting up the fund.

In recent years, capital from various channels has been flowing into mineral exploration and development sector, yet a converging force has not been formed due to small scale and diversified investment.