According to the Industries Composite Competitiveness Index compiled by the State Information Centre of the People’s Republic of China (the “PRC”), upstream mining industry is still taking an absolute advantage over the 39 industrial categories.  Nonferrous metal mining industry which was ranked third in 2005, took the number one position for the first 11 months of 2006.  Due to the declining business environment, competitiveness ranking of non-metal mining industry dropped from first to seventh position, while petroleum and natural gas mining both went down one place.  Prices did not rise after the costs, it led to rapid drop in competitiveness of coal and ferrous metal mining sector; among which, coal mining and preparation industry dropped from sixth position in 2005 to thirty fourth in 2006 and that was the greatest decline rate among all 39 industrial categories.
 
Affected by the surging price of copper, aluminum, lead and zinc in the international market, pricing of local nonferrous metal kept going up since 2006.  In November, ex-factory price of nonferrous metal mining industry, and smelting and die processing industry were inflated by 25.4% and 26.7% respectively.
 
Due to tense supply and demand coupled with high pricing, profit of nonferrous metal and petroleum mining have been growing rapidly since 2005, respective industrial prospectiveness and competitiveness remained at leading and growing position.  Profit growth of nonferrous metal industry outpaced all other industries, and far higher than the overall industry growth level during the period.  From January to November 2006, total production of ten types of nonferrous metals amounted to 17.3 million tones, increased by 18.2%; the industry generated an overall profit of Renminbi 107.1 billion, increased by 95%.  Nonferrous metal smelting and die processing industry attained a profit growth of 107.46%, increasing rate was better by 69.76% over the same period of last year.  Nonferrous metal mining and preparation industry has also recorded growth of 70.7%, even though the basis was already high in last year,
 
In view of the development trend and economic growth, whereas petroleum and nonferrous metal are the important base products of energy and raw material, demand of which are believed to increase rapidly.  As world supply and demand for petroleum and nonferrous metal would continue to be tensed, coupled with great demand of the same in PRC, price of the products shall continue its fine growth pace, regardless of the severe fluctuation in world market pricing.  Therefore, strong price shall remain, driving a continuous prosperous environment for the petroleum and nonferrous metal industry.