UPDATE 1-China to subsidise loans for raw material imports

* Policy aids imports of base metal concentrates and ores

* Also "clean" energy equipment, including nuclear and solar

* No details on size of subsidy or who will qualify
(Adds background, detail)

BEIJING, Aug 31 (Reuters) - China will cut costs of raw
material imports by subsidising the interest on loans taken out
to pay for shipments, China's top planning body, the National
Development and Reform Commission (NDRC), said.

The imports include concentrates and ores of metals such as
copper, nickel, lead, zinc, uranium and chromium, as well as
clean energy equipment such as solar and nuclear power
components.

The offer of import loan subsidies is the latest in a string
of measures designed to support China's industry. Other steps
have included a loosening of credit, a $585 billion stimulus
package, tax adjustments on imports and exports, and a commodity
stockpiling campaign by the central and local governments.

But China has suspended its state purchases of metals,
leaving many smelters facing an oversupply of their products on
the domestic market.

The NDRC said the subsidised loans would support new
technology, imports of equipment and development of key
industries, as well as resource-based products. It did not give
any information about the size of the subsidy.

"There are no details yet, but overall the policy is positive
for smelters' profits," said Heng Kun, metal analyst at Essence
Securities.

Heng said the move was to encourage smelters to import raw
materials and to protect local resources.

Beijing may limit the users of the subsidises and only give
them to smelters that meet national standards on metals
production, given that the central government is trying to phase
out outdated capacity.

In addition to raw materials, loan subsidies will be
available for imports of equipment and technologies used to make
ethylene crackers with at least 600,000 tonnes annual capacity,
power transmission and transformation facilities with more than
500 kilowatts capacity, gas-fired generators bigger than 400 MW
and other clean energy power generation equipment such as nuclear
power, solar and tidal power.

The NDRC posted the list of qualifying imports in Chinese here

Below is a list of some of the raw materials and some of the
likely beneficiaries of the loan subsidies:

Possible benefit to:
Nickel ore and concentrate Jinchuan Group
Chromium ore and concentrate Steel mills
Uranium ore and concentrate Nuclear firms
Titanium ore and concentrate Aluminum Corp of China
Niobium ore and concentrate Steel mills
Tantalum ore and concentrate Electronics firms and

nuclear reactor makers
Copper concentrate > 20 pct metal Jiangxi Copper (600362.SS)

Tongling 000630.SZ
Lead concentrate > 55 pct metal Yuguang Lead (600531.SS)
Zinc concentrate > 40 pct metal Zhuzhou Smelter (600961.SS)
Cobalt concentrate > 6 pct metal Jinchuan Group