Mineral reserves in around 20 percent of mining cities in China are almost exhausted, sparking job loss fears and an intensive search for alternative investment.

But civic leaders in 400 towns dependent on mineral wealth could lessen the impact of depleted reserves by developing high-tech industries that guarantee prosperity, a senior Chinese official said at the weekend.

Li Xueyong, vice-minister of science and technology, described the problems as "pressing and demanding."

"But we cannot be vexatious because transforming industry is a strategic choice," Li said.

Restructuring mining cities and creating new jobs for laid-off miners are priorities of central and local governments.

Officials should think both "globally and locally" during the transformation process, said Li.

"We should consider local strengths and weaknesses, while taking into account the global situation," said Li.

Li made the remarks at a project negotiation ceremony over the weekend to turn Fuxin of northeast China's Liaoning Province -- a coal city with a 100-year mining history -- into a modern agricultural hub of the region.

Fuxin was chosen as a pilot city by the State Council for the transformation of mining cities where reserves are close to exhaustion.

The local government decided to create jobs in the agricultural sector for tens of thousands of coal miners.

The city is currently shutting down most of its mines.

The process involves nearly 400,000 coal miners and their families, constituting 50 percent of the city's population.

A total of 100,000 miners lost their jobs last year when three large mines were shut down in Fuxin.

The number of the unemployed in the city stands at 199,800 with 95,300 people living close to the poverty line.

"We will spare no efforts in cultivating new industry to absorb the large number of laid-off workers," said Fuxin Mayor Yao Zhiping.

Yao said the city will make the development of a modern agriculture industry and related tertiary industry priorities over the next decade.

About 100,000 laid-off miners are expected to find jobs in the agriculture sector within the next five years.

"The city is endowed with rich fertile land, and the development of the agriculture industry does not require much initial investment or a lot of technological or specialized know-how," said Cao Yuan, vice-mayor of Fuxin.

Cao said they will focus on the development of animal husbandry and the planting and processing of flowers, mushrooms and vegetables.

The city will encourage leading agricultural enterprises, research institutions and laid-off workers to work together to promote agricultural industrialization and a related market.

(China Daily December 23, 2002)