UPDATE 1-China Minmetals plans expanded logistics arm

(Adds details, background)

BEIJING, March 6 (Reuters) - China's state-owned Minmetals Corp plans to consolidate its logistics business into an independent subsidiary and boost the unit's annual capacity, its president Zhou Zhongshu said on Thursday.

Minmetals, the country's largest base metals trader, plans to double the annual transportation capacity of the unit to 100 million tonnes in coming years, Zhou told reporters at the sideline of the ongoing National People's Congress.

China's logistics sector, which has expanded rapidly in recent years but continues to pose bottlenecks for the country's fast-growing economy, has drawn a number of new entrants.

Zhou also proposed that China set up a national mining development fund for domestic and overseas projects, under the initiative of the country's sovereign wealth fund, which manages $200 billion.

"We suggest that the China Investment Corp take the lead, in cooperation with major domestic metals and minerals enterprises, to develop domestic and overseas mineral resources," Zhou said.

Minmetals, parent of Hong Kong-listed Minmetals Resources Ltd (1208.HK: Quote, Profile, Research, Stock Buzz) and Shanghai-listed Minmetals Development (600058.SS: Quote, Profile, Research, Stock Buzz), is studying plans for a listing of the whole group, Zhou said, although he gave no details about a timeframe or potential size of the offering.

The company aims to acquire domestic city commercial banks and trust companies, Zhou said, although he mentioned no specific targets.

He also expected that the company's Indian iron ore pellet project would start production next year.