SHANGHAI, Jan. 10 (SMM) - Activity in the mining market slackened in 2016. As of December 2016, the number of valid mineral exploration licenses was 26,904, a drop of 9.3% year-on-year, according to statistics of the Ministry of Land & Resources. The number of valid mining permits was 67,108, down 11.1% year-on-year. The sharp drop is mainly due to small and lean mines, so any impact on total reserves and output was limited, SMM said.
The number of exploration rights sold was 1,096 in the same period, up 25.6% year-on-year. Active exploration for high-grade and rich mineral resources will not only boost development of the mining sector but also reduce future mining cost, SMM said.
By region, East, Central and West China account for 25.3%, 35.3% and 39.4%, respectively, in exploration rights sold in China, with mining rights claiming 21.2%, 28.4% and 50.4%.
Exploration activity in West China has been active over recent years, SMM said. The region will be an important mineral resource supplying base in China as technology and related policy improve. Many large and rich mines were found there.
The number of mining permits canceled was 4,841 in the first eleven months of 2016, down 8.4% year-on-year, most of which were for dinas and clay. Other mineral resources whose mining permits were canceled were mainly coal, iron, gold and lead.
This is mainly because of China’s supply-side reform and environmental protection policy, SMM explained. China will further push supply-side reform in 2017, so the number of mining permits for some mineral resources will decrease further, SMM added.
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