China to bar foreign investment in non-renewable mineral resources

China will bar foreign companies from investing or exploring in some major non-renewable mineral resources, according to a policy statement issued by the Ministry of Commerce and the National Development and Reform Commission (NDRC).

Tungsten, tin, antimony, molybdenum and rare earth exploration are in the "prohibited" category for foreign companies, according to the latest issue of Foreign Investment Industry Guidance Categories.

Under the new guidance, the government will restrict foreign investment in the refining of copper, zinc, aluminum and rare earths.

Exploration for gold, silver and platinum will be on the "restricted" list, the guidance shows.

The "encouraged," "restricted" and "prohibited" categories are used as principles in the government's examination and approval of projects. Foreign firms will also be restricted or forbidden to invest in projects which emit high amounts of pollution or consume excessive amounts of energy.

China welcomes foreign investment in oil shale, oil sands, heavy oil and superheavy oil, according to the guidelines. But the guideline categories limit foreign investment in oil refining.

The country will, however, encourage foreign firms to invest in renewable energy, ecological, and environmentally-friendly projects, the guidance added.

The government will "prudentially" open up strategic industries involved in matters of economic security to foreign investors, according to the statement.

The Ministry of Commerce and the NDRC said that China will not focus solely on an export-oriented trade policy amid a large trade surplus and surging foreign reserves.

The guidelines will take effect on Dec 1. – XFN-Asia