- China fast-tracks construction of strategic mineral reserves under new regulations implementing a revised Mineral Resources Law.
- The rules mandate a minimum five-year reserve term and ban unauthorized mining or use of state-held minerals.
- Shanghai copper surged 3.47% to $15,159/ton following the announcement, signaling market impact.
New Regulations Take Effect
China has accelerated the buildup of strategic mineral reserves under regulations issued May 19, 2026, implementing a revised Mineral Resources Law passed in November 2024, state media reported Wednesday. The rules require a minimum five-year holding period for strategic minerals and prohibit mining or using state-controlled reserves without government approval.
Copper Stockpiling in Focus
The China Nonferrous Metals Industry Association (CIH) has explicitly called for expanding strategic copper reserves alongside commercial inventories. The move intensified after Shanghai copper surged 3.47% to $15,159/ton on February 3–4, 2026, when stockpile plans were first signaled.
Geopolitical and Market Implications
Industry experts suggest the strategy "surpasses geopolitics" but remains heavily influenced by geopolitical tensions. China already restricts exports of rare earths, gallium, germanium, and graphite. The US, EU, and Australia are accelerating their own critical mineral initiatives to reduce dependence on Chinese supply chains.
Long-term, economists expect continued copper price volatility as stockpiling ramps up, with potential supply constraints for exporters to China. Downstream industries such as EVs, electronics, and renewable energy may face tighter supply and higher costs.
Correction: An earlier version of this article misstated the copper price surge date. The correct date is February 3–4, 2026.