China will establish a variety of ore strategic reserves

The Ministry of Land and Resources recently stated that in order to meet demand growth and prevent supply disruption, China will establish a strategic reserve of ore including uranium, copper and aluminum.

China is currently the world's largest consumer of steel, copper and aluminum. Take aluminum as an example. With the acceleration of urbanization and industrialization in China in the next few years, the consumption of electrolytic aluminum in China will continue to grow. Relevant departments expect that from 2005 to 2007, aluminum for construction will increase by 8% to 15%, reaching 2.43 million tons, 2.72 million tons and 2.94 million tons respectively. It is reported that China is currently the largest consumer of primary aluminum after the United States.

In the first quarter of this year, China’s economy grew by 10.2% over the same period of last year, ranking first in the world’s major economies. As China is entering a new phase of industrialization, in order to ensure growth and stability, China must possess sufficient critical resources.

It is reported that China has proposed to establish strategic oil reserves this year. The government also urges the world's second largest aluminum producer, China Aluminum Corporation, to seek overseas resources to ensure that domestic demand is met.

The Ministry of Land and Resources also stated that as part of the “Eleventh Five-Year Plan”, the government will jointly establish ore reserves. It will intensify the exploration of domestic mineral resources and strive to increase the reserve of iron ore by 5 billion tons, copper by 20 million tons, and bauxite by 200 million tons by 2010. On the other hand, the state-owned assets department also plans to add 4.5 billion to 5 billion tons of oil reserves and 100 billion tons of coal resources.

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