Interfax China reported that China's largest nickel producer Gansu Jinchuan Group recently set up a JV with a Gansu based mining company Qinqi Mining Co Ltd to develop iron ore, copper, tungsten and minor metal resources in China.

Mr Gao a general affairs official of Qinqi Mining said that the joint venture will prospect for iron ore, copper, tungsten, rare earth, niobium and tantalum resources in the 10 mines to which Qinqi holds exploration licenses, covering an area of 300 square kilometers. He added that "Jinchuan is the controlling shareholder in the joint venture and will therefore fully finance the prospecting work."

Mr Gao said that to facilitate mine development Qinqi Mining has strengthened its cooperation with various foreign mining companies in order to take advantage of both their capital and technology.

Qinqi Mining Co Ltd is wholly owned by the Gansu Geology and Mine Survey Bureau, which owns more than 10 exploration licenses both in Gansu Province and other regions in China. Earlier it formed a JV with Rio Tinto in 2002 in order to carry out due diligence assessments on copper deposits in Gansu Province and the Inner Mongolia Autonomous Region. The company also established a JV with Canadian based Pargas Enterprises Ltd in 2004 to develop mineral resources in southern Gansu Province.