Illegal miners could face a jail term of up to seven years as part of new efforts to crack down on an industry in which thousands of workers lose their lives every year.

The legal moves are part of a new judicial interpretation by the Supreme People's Court that was issued early this month.

The tough penalty will be daunting to miners considering flouting the law.

However, a further shakeup is needed in China's mining industry to curb illegal operations and attract much-needed overseas investment, said Zeng Shaojin, a senior official of the Ministry of Land and Resources yesterday.

"China's mining regions are too scattered, which does not facilitate supervision and law enforcement," he said.

Although crackdowns have been launched since 2001, erasing massive illegal mining operations in many parts of the country, "there has been a minor resurgence in various areas because of high profits from increasing mineral demand," said Zeng, director of the ministry's Mineral Mining Management Department.

During the ongoing overhaul, around 35,000 mines were closed down because of their poor work practices or illegal operation.

The ministry uncovered 22,000 illegal mining operations last year, dishing out 50.67 million yuan (US$739,000) in fines. But it still faces a tough task.

Despite hurdles, to leave the matter untouched will be costly - impacting on the ministry's efforts to attract foreign investment into the country's cash-strapped industry.

Central China's Hunan Province is among the latest regions suffering from a loss of foreign investment over the sector because of a lack of control.

A British company interested in a Hunan project eventually gave up after several months of negotiations and investigation because of an "unguaranteed mining order," Li Jindong, a leading mining official in the province, told China Daily.

"The mineral deposit we were talking about is located in the mountains and is not easy to reach. Therefore, we had a really difficult time stopping the guerrilla-like illegal miners who would show up after the news of a newly-found deposit was released," said Li.

"The normal outcome is that they disappear, leaving tattered instruments behind, when our limited patrol force reaches the site."

But fortunately, such situations will be improved in the near future with the ministry's new remote-sensing technique.

According to Zeng, the ministry will use satellites to supervise mining from next year, laying a solid foundation for a concerted push to clean up the industry.

The ministry has launched 20 projects since 2001 to combat illegal mining, which have all produced positive results. Under the projects, it has become harder for illegal miners to escape punishment.

(HK Edition 06/20/2003 page1)

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