Laws and Regulations
Chinese law: Registration of mining of mineral resources
Source: Ministry of Commerce Website, PRC
PROCEDURES FOR ADMINISTRATION OF REGISTRATION OF MINING OF MINERAL RESOURCES
Thursday, February 12, 1998 Posted: 10:55 BJT (0255 GMT)
(Valid From:1998.02.12)
(Promulgated on February 12, 1998 by the State Council)
Article 1 These procedures have been formulated in pursuance to the Mineral Resource Law of the People’s Republic of China for the purpose of strengthening the administration of mining of mineral resources, protecting the legitimate rights and interests of the mining right holders, maintaining the order in mineral resource mining and promoting the development of the mining industry.
Article 2 These procedures apply to the mining of mineral resources in the territory of the People’s Republic of China and other marine areas under its jurisdiction.
Article 3 The department in charge of geology and mineral resources of the State Council shall be responsible for the approval, registration and licensing of the minings of the following mineral resources:
(1) Mineral resources in mining areas as planned by the State and in mining areas of important value to the national economy;
(2) Mineral resources in territorial waters and other marine areas under the jurisdiction of China;
(3) Mineral resources mined by foreign investors;
(4) Mineral resources as listed in the appendix of these procedures.
Minings of petroleum and natural gas, after examinations and approvals by the department concerned designated by the State Council, should also register with and acquire mining licenses from the department in charge of geology and mineral resources of the State Council. Minings of the following mineral resources shall be approved by, registered with and acquired mining licenses from the department in charge of geology and mineral resources of the people’s governments of provinces, municipalities and autonomous regions:
(1) Mineral resources of a medium-sized and a mineral reserve beyond what is provided for in the first and second paragraphs of this article;
(2) Mineral resources whose approval and registration power for mining has been authorized to the department in charge of geology and mineral resources of the people’s governments of provinces, municipalities and autonomous regions by the department in charge of geology and mineral resources of the State Council.
Minings of mineral resources beyond what is provided for in the first, second and third paragraphs of this article in scale shall be approved by, registered with and acquired mining licenses from the department in charge of administration of geological and mineral resources of the local county- and above-county-level people’s governments in pursuance to the administrative procedures formulated by the Standing Committee of People’s Congress of provinces, municipalities and autonomous regions.
If a mining area goes beyond one county- or above-county-level administrative region, the common higher-level registration administrative department of the administrative regions involved is authorized to approve, register and grant mining licenses.
The department in charge of administration of geological and mineral resources of the local county- and above-county-level people’s governments shall, after conducting examination, give approval and issue the license, send a report to the department in charge of administration of geological and mineral resources of the higher-level people’s governments for the record.
Article 4 An applicant for mining right should, before presenting the application for mining right, apply for designation of the boundary of the mining area with the registration administrative department in accordance with the approved report on geological survey of the reserves.
Whereas an application is made for setting up a mining enterprise, related procedures should be handled according to provisions of the State in line with the designated mining area.
Article 5 When applying for a mining license, the following materials should be submitted to a mining right registration department concerned:
(1) An application for registration and a map of the mining area;
(2) A certificate certifying the qualification of the applicant for the mining right;
(3) Program for the development and utilization of the mineral resources;
(4) Legal document of approval for the establishment of the mining enterprise;
(5) A report of appraisal on the environmental impact that would be imposed by the mining of the mineral resources; and
(6) other materials to be presented according to provisions of the department in charge of geology and mineral resources of the State Council.
Whereas an application is made for mining the mineral resources in a State planning mining area or in a mining area of important value to the national economy, or for mining special minerals on which the State adopts protective mining, the document of approval by the competent department of the State Council should also be presented.
Whereas an application is made for mining petroleum or natural gas, a document of approval by the State Council for establishing a petroleum company or for exploiting petroleum or natural gas, as well as a certificate certifying the legal person status of the mining enterprise should also be presented.
Article 6 The registration department concerned shall decide on approving the registration or not, and send the related decision to the mining right applicant within 40 days starting from the day when the application is received.
Whereas a mining right applicant needs to revise or replenish the materials as provided for in Article 5 of these procedures, the registration department concerned shall set a time for the revision or replenishment.
Whereas a registration is permitted, the applicant for the mining right should, within 30 days starting from the day when it is informed, pay the fee for use of the mining right as provided for in Article 9 of these procedures and pay the cost of the mining right counted as the amount of State fund used for survey as provided for in Article 10 of these procedures and then engage in the process of registration so as to acquire the mining license for holding the mining right.
Whereas a registration is rejected, the registration department concerned shall explain the reason to the mining right applicant.
Article 7 The validity of a mining license shall be determined according to the construction scale of the mine: for a large-sized or bigger one, the mining license may be valid for a maximum term of 30 years; for a medium-sized one, the mining license may be valid for a maximum term of 20 years; for a small-sized one, the mining license may be valid for a maximum term of 10 years. Whereas continuation of mining is necessary upon expiration of the validity of the mining license, the mining right holder might handle procedures for extension of the registration with the registration department concerned 30 days prior to the expiration of the validity of the mining license.
Whereas the mining right holder fails to handle the procedures for extension in time the mining license should be abolished automatically.
Article 8 A registration department concerned shall, after granting a mining license, inform the related county-level people’s government in the locality of the mining area. The said county-level people’s government shall announce in public the mining area within 90 days starting from the day when it is informed and may in line with the application of the mining right holder organize the placement of boundary posts or ground marks.
Article 9 The State implements a system of paid acquisition of the mining right. The fee for use of the mining right shall be paid annually at an annual price of RMB1,000 per sq km of the area to be mined.
Article 10 Whereas an application is made for the mining right of mineral resources that have been surveyed under the expense of the State and whose location has been verified, the mining right applicant should, aside from paying the fee for use of the mining right as provided for in Article 9 of these procedures, also pay the cost for the mining right as counted as the amount of assessed State expense for the survey.
The cost for the mining right as counted as the expense of the State for survey shall be assessed by the department in charge of geology and mineral resources of the State Council in cooperation with assessment agencies recognized by the State assets administrative department of the State Council. The results of the assessment shall be recognized by the department in charge of geology and mineral resources of the State Council.
Article 11 The fee for use of the mining right and the cost for the mining right as counted as the expense of the State for the survey shall be collected by the registration department concerned and fully included in the State budget for control. The specific control and use of the fund shall be formulated by the department in charge of geology and mineral resources of the State Council in cooperation with the financial and planning departments of the State Council.
Article 12 In any of the following cases, the fee for use of the mining right and the cost for the mining right may be reduced or exempted upon application presented by the mining right holder and examination and approval by the registration department concerned of provincial- or above-province-level people’s governments in accordance with the procedures for reduction and exemption of the fee for use of the mining right and the cost for the mining right formulated by the department in charge of geology and mineral resources of the State Council in cooperation with the financial department of the State Council:
(1) Mining of mineral resources in remote, border and poor regions;
(2) Mining of minerals in short supply by the State;
(3) The mining enterprise suffers serious loss or stops production for force majeure such as natural disaster;
(4) Other cases as provided for by the department in charge of geology and mineral resources of the State Council and the financial department of the State Council.
Article 13 The mining right may be obtained from biddings through payment.
The registration department concerned, in accordance with the extent of authority as provided for in Article 3 of these procedures, determines a mining area for bidding, makes the bidding announcement, and sets the requirements and the deadline for bid submission. But a mining area for overseas bidding shall be determined by the department in charge of geology and mineral resources of the State Council.
The registration department concerned organizes the appraisal of the bids, and determines the best qualified bid winner. The bid winner should, after paying the fees as provided for in Article 9 and Article 10 of these procedures, engage in the process of registration, get the mining license for a mining right holder and carry out the obligations committed in the bidding document.
Article 14 The registration department concerned shall conduct supervision and examination according to law over the rational development and utilization of mineral resources, environmental protection, other legal obligations to be carried out, and other conditions of the mining right holders in the local administrative region. The mining right holders should report truly the related conditions and present annual reports.
Article 15 In any of the following conditions, a mining right holder should within the validity of the mining license apply to the registration department concerned for change of registration:
(1) The mining area is changed;
(2) The main mineral being mined is changed;
(3) The mining method is changed;
(4) The name of the mining enterprise is changed;
(5) The mining right is transferred upon approval according to law.
Article 16 Whereas a mining is suspended or stopped by the mining right holder within or upon expiration of the validity of the mining license, an application should be sent to the original license issuing organ for the cancellation of the license within 30 days as of the day when the decision is made for the suspension or close the mining license.
Article 17 The registration department concerned should according to provisions of related laws and administrative decrees impose punishment whereas any institution or individual without obtaining a mining license conducts mining without authorization, or conducts mining in a State planned mining area or in a mining area of important value to the national economy without authorization, or mine special minerals on which the State provides that protective mining shall be implemented without authorization, or conducts mining in excess of the approved mining area.
Article 18 For failure to present the annual report, refusal to accept supervision and examination, or practice of fraud in violation of provisions of these procedures, the department in charge of geological and mineral resource administrative work of the county- or above-county- level people’s government shall, according to the extent of power provided by the department in charge of geology and mineral resources of the State Council, order to stop the illegal act, give a warning, and impose a fine of up to RMB50,000; if the case is serious enough, the original license issuing organ shall suspend the mining license.
Article 19 For destruction or moving of the boundary post or ground mark of a mining area without authorization, the department in charge of geological and mineral resource administrative work of the county- or above-county-level people’s government shall, according to the extent of power provided by the department in charge of geology and mineral resources of the State Council, order a restorage within the prescribed time; if the case is serious enough, a fine of up to RMB30,000 shall be imposed.
Article 20 For printing, forging or infringes of a mining license, the department in charge of geological and mineral resource administrative work of the county- or above-county-level people’s government shall, according to the extent of power provided by the department in charge of geology and mineral resources of the State Council, confiscate illegal income therefrom, and may also impose a fine of up to RMB100,000; if the case constitutes a crime, criminal responsibility shall be affixed according to the law.
Article 21 For failure of paying in time the fees as provided for by these procedures in violation of provisions of these procedures, the registration department concerned shall order to pay within the prescribed time and also impose an overdue fine of 2%% per day starting from the day when the payment is overdue; and for a failure to pay the overdue, the original license issuing organ shall revoke the mining license.
Article 22 For a failure to handle the procedures for change of registration or cancellation of registration of a mining license in violation of provisions of these procedures, the registration department concerned shall order to make a correction within the prescribed time and for a failure to make a correction overdue, the original license issuing organ shall revoke the mining license.
Article 23 For a mining of petroleum and natural gas minerals in violation of provisions of these procedures, the department in charge of geology and mineral resources of the State Council shall according to related provisions of these procedures give a corresponding administrative punishment.
Article 24 Whereas the mining license of a mining right holder is revoked, an application by the set holder of a new mining right license shall be denied within two years starting from the day when the mining license is revoked.
Article 25 Whereas a malpractice, abuse of power and negligence of duty which constitutes a crime, is committed by any staff of the registration department concerned, criminal responsibility shall be affixed according to law; whereas a crime is not constituted, administrative punishment shall be imposed according to law.
Article 26 Mining licenses shall be printed in a unified way by the department in charge of geology and mineral resources of the State Council. The formats for registration applications, change of registration applications and cancellation of registration applications shall be formulated in a unified way by the department in charge of geology and mineral resources of the State Council.
Article 27 Registration fees should be paid according to provisions in handling mining registration procedures. Standards, management and uses of the fees shall be set by the department in charge of price of the State Council in cooperation with the department in charge of geology and mineral resources and the financial department of the State Council.
Article 28 Mining of mineral resources with foreign investment shall be handled according to these procedures. Whereas separate special provisions have been accommodated by laws and administrative decrees, those provisions shall prevail.
Article 29 In minings of mineral resources in the form of Chinese- foreign cooperation, the mining areas, the types of minerals being mined, the programs for mining and utilization of the minerals, and other materials involved in the cooperation should be reported by the Chinese partners concerned to the original license issuing organ for re- examination and signing of opinion before the signing of contracts and after the signing of the contracts should be reported to the original license issuing organ for the record.
Article 30 Whereas a mining license has already been obtained before these procedures take effect, a renewal of the license should be undertaken through unified arrangements by the department in charge of geology and mineral resources of the State Council.
A mining enterprise set up before these procedures take effect should pay the fee for use of the mining right staring from the day when these procedures become effective, and may also apply for reduction or exemption according to provisions of these procedures.
Article 31 The registration department concerned shall announce in public a granting or a revoke of mining license.
Article 32 Mining areas mentioned in these procedures refer to areas of exploitable mineral resources, or areas for distribution of well and tunnel engineering facilities or three-dimensional spaces of stripped open cut areas designated by the registration department concerned.
Mining methods mentioned in these procedures refer to underground mining or open cut mining.
Article 33 Any revision of the appendix of these procedures shall be announced by the department in charge of geology and mineral resources of the State Council upon approval by the State Council.
Article 34 These procedures shall take effect as of the date of its promulgation. The Interim Procedures for Administration of Mining Registration by State-Owned Mining Enterprises promulgated by the State Council on April 29, 1987 and the Decision of the State Council on Revising the “Interim Procedures for Administration of Mining Registration by State-Owned Mining Enterprises” made on November 22, 1990 shall be abolished at the same time.
Appendix
Catalog of Minerals Subject to Approval and License Control by Department in Charge of Geology and Mineral Resources of the
1. Coal
2. Petroleum
3. Oil shale
4. Hydrocarbon natural gas
5. Carbon dioxide gas
6. Coal gas
7. Thermal power
8. Radioactive minerals
9. Gold
10. Silver
11. Platinum
12. Manganese
13. Chromium
14. Cobalt
15. Iron
16. Copper
17. Lead
18. Zinc
19. Aluminum
20. Nickel
21. Tungsten
22. Tin
23. Stibium
24. Molybdenum
25. Rare earth
26. Phosphorus
27. Potassium
28. Sulfur
29. Strontium
30. Diamond
31. Niobium
32. Tantalum
33. Asbestos
34. Mineral water