Annual Report
Board of Directors and Management
Facts on Mining in China
Securing Title in China
Wall Street Transcript Article - July 2003
Caledon Market Analysis
Corporate Information > Facts on Mining in China >

Overview

  • China is the sixth largest economy in the world with GDP of $1.1 trillion in 2001, economic growth of 7.5% and inflation at <1.0%
  • China attracts more foreign direct investment than any country except for the USA; $US 47 billion invested in 2001
  • China�s entry into the World Trade Organization in 2001 presents not only tariff reductions, but also confirmation of the government's intention to foster greater openness and transparency and more reliance on the rule of law
  • The WTO agreement allows for unrestricted repatriation of capital and profit
  • In China, 8 million households have annual income in excess of USD$40,000 and 30 million households have assets in excess of USD$100,000
  • Low exchange risk: China has the second largest foreign exchange reserve of US$ 220 billion by March�02
  • A steady economic growth brings strong domestic demand for base and precious metals

China: Mining Sector Overview

  • Mineral Title and Mining Code: Modelled after Canadian and Australian codes
  • China: World�s largest producer of coal, steel, zinc, tin lead and manganese
  • Chinese Mining Industry:  Employs over 20 million people in over 10,000 state-owned and 100,000 smaller mining operations
  • Numerous foreign owned mining companies are currently operating in China in the fields of petroleum, natural gas, coal-bed gas, gold, diamond, copper, lead, zinc and stones

China: Gold Industry Facts 

  • Gold transparency in effect. Shanghai Gold Exchange set-up for the purchase and sale of gold at world (�London Spot�) rates
  • Largely unknown fact: China is the fourth largest gold producer in the world � largely underpinned by small scale �unofficial� mining operations 
  • Gold mining industry is highly fractured and undercapitalized; average gold production from Chinese mining operations is only 15,000 ozs/year � recognized need for foreign investment to improve the situation
  • Power to grant mineral titles has been transferred from the Central Government to the Provinces
  • Foreign ownership of up to 90% in precious metal assets is allowable under the Chinese mining law
  • Mining investment incentives in place: 2 year zero tax holiday, 3-5 years at 15%, VAT exemptions, etc
Disclaimer © 2003 Caledon Resources Inc.