Tuesday, December 11, 2007

Risks in mining investment in China

According to Mr Liu Shuchen of China's Ministry of Land and Resource
investment in mining holds a long payback period and time is the most
unstable investment factor.

He said that "Another risk is the shortage of special information and
experience. As for many mines, you do not know the information
underground."

He informed that "Although a mine holds a complete set of evaluation
reports, there are still many actual situations which do not match the
evaluation report when it is sold. It is very normal for us industrial
insiders, but many investors may not stand it."

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