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In January last year, China's Zhaoyuan Gold signed a 25-year contract with North Korea for a 50 percent share of operational rights to North Korea's largest copper mine, the Hyesan Youth Copper Mine in Yanggang Province. The Chinese firm invested 8 million euro (about W11 billion).
In 2005, the Department of Commerce of China's Jilin Province bought a 50-year contract for mining rights to North Korea's largest iron mine, Musan Iron Mine in North Hamgyong Province, for 7 billion yuan (about W875 billion). The deal gives China the right to mine and haul 10 million tons of iron ore per year from Musan.
Many experts are raising concerns about China's recent attempts to sweep up North Korea's mineral resources. They are stressing the importance of getting involved in the development of mineral resources in the North at a time when international prices of raw materials are soaring.
According to a report released Wednesday by the Korea Chamber of Commerce and Industry, China imported some US$274.53 million in mineral resources from North Korea last year, concentrating 70 percent of its investment in the North on resource development. By contrast, South Korea imported just $59.73 million worth of resources from the North, a mere 21.8 percent of China's level.
South Korea has been hesitant and unfocused in this area, concentrating instead on wrestling with the North Korean nuclear issue and studying the profitability of development in the North. China meanwhile has been working to snap up the nation's underground deposits.
South Korea counts as one of its major investment projects in the North an investment of a mere $5.1 million last year to develop Jeongchon Black Lead Mine in Yeonan County, South Hwanghae Province. The small level shows how unaggressive the country has been so far in developing resources in the North.
Mineral resources are deposited over 80 percent of the North Korean territory, and their potential value is estimated at W2,287 trillion (US$1=W929), 24 times greater than South Korea's resources value.
South Korea consumes W11.5 trillion worth of mineral resources annually, with its self-sufficiency rate standing at a mere 10 percent. The KCCI report claims that by developing mineral resources in the North, South Korea could secure a stable supply of resources at low prices.
A KCCI official said, "Not only China, but also the UK, the U.S. and Germany are interested in developing underground resources in the North. We urgently need to take the initiative in developing the North's resources from a long-term point of view."
(englishnews@chosun.com )
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