A Chinese city, which sits on top of the worlds biggest tungsten reserves, issued new rules to crack down on illegal mining, the local government announced Thursday.
Ganzhou in southern Jiangxi Province has rich resources of rare earth, uranium, niobium and tantalum in addition to its tungsten.
The local government requested that tungsten concentrate production be kept below 22,920 tons next year, 70 percent of current production in the province, and rare earth oxide production to be no higher than 7,000 tons, 100 percent of the total in Jiangxi at the moment.
Mining companies whose tungsten concentrate production was not higher than required levels this year can apply for new operating licenses for 2007.
The government said it will strengthen its efforts to clamp down on illegal mining and asked each local tungsten mining company to submit production schedules and financial reports with their new license applications.
Ganzhou's tungsten mining sector was in disorder a few years ago and there are few downstream tungsten product processors. Ganzhou started tungsten mining restrictions last year.
Local government plans to build a tungsten and nonferrous metals production base with projected sales of RMB 6 billion ($739.83 million) in the next four years.
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