A Chinese company in Jilin province that specializes in processing natural building stone has submitted a proposal to North Korea for jointly operating stone processing facilities. The proposed sites are Dancheon in South Hamgyong province and Musan in North Hamgyong province.
According to a Daily NK source recently, the trade management bureaus in South and North Hamgyong’s people’s committees received a proposal in mid-April from the company for establishing joint processing facilities in two areas of northern North Korea with abundant stone deposits.
“The company stated in its proposal that it is interested in Dancheon’s granite and Musan’s gray marble resources,” the source said. “These two areas are recognized as sources of natural stone that are in steady demand in China’s northeastern three provinces’ construction industry.”
While Dancheon has been known for its rich magnesite deposits and Musan for its iron ore and coal, actual mineral production has focused on these resources. According to the source, the building stone sector remains underdeveloped, with a shortage of extraction and processing equipment.
The company’s proposal includes bringing Chinese equipment and technical personnel, and sharing profits. North Korea is reviewing the proposal at the Central Committee’s Economic Department and Cabinet level through next month (May).
The source explained, “The Central Committee’s Economic Department hasn’t announced an official position on the proposal. Cabinet working-level agencies have internally agreed to equipment cooperation but are also considering receiving a certain percentage of international stone sales profits in cash based on market prices.”
The Cabinet is analyzing potential benefits while staying within the principles of self-reliance. Some internal opinions suggest the company’s proposal is a practical approach to implementing the Party’s regional development policies.
Following receipt of this proposal, the Cabinet has instructed the State Planning Commission to adjust foreign cooperation standards for regional mineral resource development to be presented at next year’s Ninth Party Congress.
North Korea has recently been unofficially exploring options to allow foreign investment in some non-strategic resource development. The source explained that some evaluate this joint natural stone processing facility proposal as a “test case” for this approach.
If this cooperation model—where Chinese companies invest capital and North Korea provides resources—becomes reality, it could significantly change the landscape of North Korea-China economic cooperation.
“Among local people’s committee officials, there’s a growing expectation that ‘the Central Committee’s Economic Department and Cabinet are now making practical decisions based on real benefits,’” the source said. “There’s also talk that if we move from simply exporting minerals to a model that includes processing before export, it could revitalize the stagnant mineral development sector. The internal atmosphere is currently moving in a positive direction.”
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