China plans to set up strategic reserves for key minerals such as copper, uranium and aluminum, the government says, acting to ensure supplies amid record high prices due to soaring demand.
The government's plan calls for moving quickly to build reserves for uranium and other scarce minerals similar to those planned for crude oil, natural gas and coal, part of Beijing's effort to stabilize supplies needed for booming industries.
The plan calls for "rather ample" uranium reserves — needed for the dozens of nuclear power plants China has planned or under construction.
Other minerals to be stockpiled include iron ore, copper, aluminum, manganese, chromium and potassium, according to a summary of the government's plans, seen Wednesday on the Web site of the Ministry of Land and Resources.
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The reserves are crucial for "adjusting the market, coping with emergencies and guaranteeing the security of resource supplies," it said.
The government has vowed to improve controls over strategically important commodities following several scandals resulting in major losses in international markets.
A trader with the government's National Control Center, Liu Qibing, allegedly took short positions on about 130,000 tons of copper last year, expecting prices to fall. When prices instead rose, the government was forced to auction copper from its commercial reserves to help reduce prices and make up for its losses.
Although China has ample reserves of some strategic commodities, including rare earths, it relies on imports for many others, including uranium. Chinese companies have been aggressively seeking exploration and mining deals in many countries, including Australia, Brazil, Chile, Canada and Zimbabwe.
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