China expanding mining rights in N. Korea: report

SEOUL, Jan. 14 (Yonhap) -- China has expanded its mining rights in North Korea to
cover as many as 20 sites, a South Korean report said Thursday.

China is a leading investor in North Korea, which, according to a South Korean
study, is believed to have enormous deposits of natural resources, including
coal, nickel, molybdenum and bronze.
A report presented by the foreign affairs committee of South Korea's parliament
said the Chinese efforts for development in its neighbor compare with those of
South Korea, which has secured mining rights of only three sites in North Korea.
"We are behind China in the development of North Korea's underground resources,
and need measures to cope with this," the report said.
China, the world's third-largest economy, invested over US$200 million in
resource development in North Korea from 2004-2007, according to a state-run
South Korean research institute.
China is a staunch ally of North Korea, having fought together in the 1950-53
Korean War that ended in a truce. Beijing also hosts multinational talks aimed at
denuclearizing North Korea.
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