Let the hoarding of metals begin!
China Vows to Build Strategic Mineral Reserves
2006-05-10 10:44:00 Bloomberg
China aims to build up strategic reserves of minerals such as uranium, copper and aluminum to help meet rising demand and provide a buffer against supply disruptions, the Ministry of Land and Resources said.
The nation aims to have ``sufficient reserves'' of uranium, and will start to build stockpiles of copper, aluminum, manganese, tungsten and other minerals in the next few years, the ministry said in a statement on its Web site, citing a five- year government plan. The term ``sufficient reserves'' was not defined, and there were no specific targets for the eventual size of the mineral holdings.
China, the world's biggest consumer of steel, copper, aluminum and other metals, is building up the reserves to ensure stable supplies for its economy, which grew 10.2 percent in the first quarter. The growth, the fastest rate among the world's major economies, has contributed to a surge in many metal prices to records this year.
China has already announced plans to begin building up a strategic oil reserve as early as this year. The government has also urged companies such as Aluminum Corp. of China Ltd., the world's second-largest alumina maker, to secure raw materials overseas to make sure the nation's metals needs are met.
The government and companies will jointly invest to build up the mineral reserves, the statement said. It didn't specify how the reserves will be managed.
China's State Reserves Bureau currently manages the nation's commodities reserves, including copper and steel. The Ministry of Land and Resources' Web site statement was dated April 28; it was unclear when it was first posted online.
The ministry said it will step up domestic exploration and increase the country's proven reserves of iron ore by 5 billion metric tons; of copper by 20 million tons; and of bauxite by 200 million tons by 2010. Bauxite is used to make aluminum.
