Published by: World Tibet Network News Thursday - October 9, 1997

Xinhua is the official news agency of the People's Republic of China

Xining, 7th October: China has drafted a strategy for the large-scale development of natural resources in the Qaidam basin as part of an effort to promote economic revitalization in western regions.

Plans call for the establishment of a fund for developing potash mineral resources in the Qaidam Basin in northwest China's Qinghai Province. This will be one of China's first special funds for an individual project.

"This marks an important step for expanding development in the Qaidam basin," according to a high-ranking official with the Qinghai Potash Fertilizer Plant, the largest plant of its kind in the country.

China currently faces a severe shortage of potash resources, and has to spend more than 1bn yuan (160m US dollars) to import potash fertilizer.

The Qaidam Basin, which covers 256,000 sq.km., is home to 97 per cent of China's total potash reserves which have not yet been fully developed due to insufficient funding and outdated technology.

China plans to develop the basin into the country's major production base for potash fertilizer in order to meet the increasing demands of rapid agricultural development.

The first phase of the Qinghai Potash Fertilizer Plant will have an annual production capacity of 500,000 tons by the end of the century, with second phase output expected to hit 800,000 tons.

"Developing potash resources is only one aspect of China's overall development plan," according to the official. He pointed out that the basin leads the country in reserves of more than 30 minerals.

The basin's reserves of lepidolite and magnesite rank first in the country, with the future development of reserves expected to provide substantial economic benefits to the region.

Feasibility research has been carried out for the exploration and use of lepidolite resources, and a magnesite plant with an annual capacity of 3,000 tons is currently under construction.

China is actively seeking cooperative partners to introduce capital and expertise in promoting further development of the basin.

The basin's ideal composition and high quality resources have also promoted development. Qaidam has large reserves of various types of precious minerals, including nonferrous metal, as well as readily exploitable reserves of oil, natural gas, water and hydropower.

China has drafted policies to provide financial support for the construction of a group of resource-orientated enterprises in the region, with emphasis to be placed on infrastructure construction.

Golmud, located in the central part of the basin, has been transformed into an important traffic hub in western China, with the construction of the railway line linking the Qinghai and Tibet autonomous regions listed as a priority project.

The basin's installed power generating capacity now stands [at] 70,000 kW, and a new microwave telecommunications system linking the provincial capital of Xining and Golmud has entered operations.

By the end of the century, the Qaidam Basin will be transformed into China's largest base for chemicals, petrochemicals, natural gas and nonferrous metals, according to the official.