Administrative Measures for the Registration of Mineral Resources Exploitation (Revised in 2014)

Order of the State Council of the People's Republic of China [2014] No. 653

July 29, 2014

(Promulgated according to the Order of the State Council No. 241 on Feburary 12, 1998; revised in accordance with the Decision of the State Council on Revising Certain Administrative Regulations on July 29, 2014.)

Article 1 These Measures are formulated in accordance with the Mineral Resources Law of the People's Republic of China for the purpose of strengthening the administration on as well as maintaining the order of the mineral resources exploitation, safeguarding the legitimate rights and interests of the mining right holders and promoting the development of the mining industry.

Article 2 These Measures must be adhered to in the exploitation of mineral resources within the territory of the People's Republic of China and other sea areas under its jurisdiction.

Article 3 The exploitation of the mineral resources set forth below shall be subject to the examination and approval by as well as the registration with the competent departments in charge of geology and mineral resources under the State Council, which shall grant the exploitation licenses.
1. Mineral resources within the mining areas in the State plans and the mining areas of great value to the national economy;
2. Mineral resources in the territorial seas and other seas under the jurisdiction of the People's Republic of China;
3. Mineral resources exploited with foreign investment; and
4. Mineral resources listed in the annex of these Measures.
The exploitation of mineral resources such as petroleum and natural gas shall be subject to the examination and approval by the organizations designated by the State Council prior to the registration with the competent departments of geology and mineral resources under the State Council, which shall grant the mining licenses.
The exploitation of the mineral resources set forth below shall be subject to the examination and approval by as well as the registration with the competent departments of geology and mineral resources under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government, which shall grant the mining licenses:
1. Mineral resources that are not covered by the provisions of Paragraphs 1 and 2 of this Article and the mineral reserves of which are of or above the medium scale; and
2. Mineral resources that are subject to the examination and approval by as well as the registration with the competent departments of geology and mineral resources under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government, which are authorized by the competent departments of geology and mineral resources under the State Council.
The exploitation of the mineral resources that are not covered by the provisions of Paragraphs 1, 2 and 3 of this Article shall be subject to the examination and approval by as well as the registration with the departments of the administration on geology and mineral resources under the local people's governments at and above the county level, which shall issue the exploitation licenses, in accordance with the administrative measures formulated by the standing committees of the people's congresses of provinces, autonomous regions and municipalities directly under the Central Government.
Where the mining areas span the administrative regions at or above the county level, the exploitation shall be subject to the examination and approval by as well as the registration with the registration administration organization at the next higher level of the administrative regions involved, which shall issue the exploitation licenses.
Departments responsible for administration of geology and mineral resources under the local people's governments at and above the county level shall, upon examination and approval as well as issuance of the mining licenses, report level-by-level to the higher departments responsible for administration of geology and mineral resources under the local people's governments for filing.

Article 4 Prior to filing the application for mining rights, the applicants shall apply to the registration administration organization for the delimitation of the mining areas in accordance with the approved reserves reports of geological survey.
To apply for the listing of projects and establishment of mining enterprises, the applicants shall, based on the delimitation of the mining areas, go through relevant procedures pursuant to the provisions of the State.

Article 5 The materials set forth below shall be submitted to the registration administration organizations by the applicants for mining rights with respect to the exploitation licenses:
1. Application for registration and a map for the scope of mining areas;
2. Qualification certificates of the applicants for mining rights;
3. Schemes for the exploitation and utility of the mineral resources;
4. Approval documents for the establishment of mining enterprises in accordance with the law;
5. Evaluation reports on the environmental influences of the mineral resources exploitation; and
6. Other materials to be submitted as required by the competent departments of geology and mineral resources under the State Council.
To apply for the exploitation of the mineral resources within the mining areas in the State plans or the mining areas of great value to the national economy, and particular species under the mining protection by the State, the applicants shall submit relevant documents approved by the competent departments under the State Council.
To apply for the exploitation of petroleum and natural gas, the applicants shall submit the approval documents for the establishment of petroleum companies or the exploitation of petroleum and natural gas issued by the State Council and the qualification certificates of the mining enterprise legal persons.

Article 6 The registration administration organizations shall, within 40 days upon receiving the application, make decisions on approval or disapproval of the registration and notify the applicants for mining rights.
Where the applicants for mining rights are required to modify or supplement the materials specified in Article 5 of These Measures, the registration administration organizations shall notify the applicants to modify or supplement the materials within the time limit.
With the registration approval, applicants for mining rights shall, within 30 days upon receiving the notification, pay the fee for use of the mining rights in accordance with Article 9 of these Measures and the purchase price of the mining rights derived from the State-financed survey in accordance with 10 of these Measures, go through registration procedures and obtain exploitation licenses prior to becoming the mining rights holders.
For the applicants for mining rights without getting the registration approval, reasons shall be given by the registration administration organization.

Article 7 The valid period of the exploitation licenses shall be determined according to the construction scale of the mines: 30 years for the large-sized and above; 20 years for the medium-sized; 10 years for the small-sized. To continue the exploitation upon the expiry of the exploitation licenses, the applicants shall, 30 days prior to the expiration of the exploitation licenses, go through relevant procedures with the registration administration organizations.
Where the mining right holders fail to go through relevant procedures for continuation within the time limit, the exploitation licenses shall be automatically annulled.

Article 8 The registration administration organizations shall, upon granting the exploitation licenses, notify the people's government at the county level of the locality of the mining areas. The relevant people's government at the county level shall, within 90 days upon receiving the notification, announce the scope of the mining areas, and may organize to install the boundary post or the surface mark in accordance with the application of the mining right holders.

Article 9 The State implements a system of paid acquisition of the mining rights. The fee for use of the mining rights shall be paid annually at an annual price of CNY1,000 per square kilometer of the area to be mined.

Article 10 To apply for the mining rights of the mining areas of which the survey is financed by the State and the mineral location has been ascertained, the applicants shall pay not only the fee for use of the mining rights in accordance with Article 9 of these Measures but also the purchase price of the mining rights derived from the State-financed survey; the purchase price of the mining rights may be paid once for all or be paid by installments pursuant to relevant provisions of the State.
Assessment on price of mining rights formed through state-funded prospecting shall be conducted by an appraisal agency with qualification in mineral rights assessment; and the assessment report shall be submitted to registration and management authority for the record.


Article 11 The fee for use of the mining rights and the purchase price of the mining rights derived from the State-financed survey shall be collected by the registration administration organizations and put under the national budget control. The specific measures for its administration and use shall be formulated by the competent department of geology and mineral resources under the State Council in conjunction with the financial department and the competent department of planning under the State Council.

Article 12 The fee for use of the mining rights and the purchase price of the mining rights may be reduced or exempted in any of the following situations provided that the application of the mining rights holders are examined and approved by the registration administration organizations of the people's governments at or above the provincial level in accordance with the measures for reduction and exemption of the fee for use of the mining rights and the purchase price of the mining rights formulated by the competent department of geology and mineral resources under the State Council in conjunction with the financial department and the competent department of finance under the State Council.
1. Exploitation of the mineral resources of the outlying poverty-stricken areas;
2. Exploitation of the mineral categories much needed by the State;
3. The mining enterprises suffer from heavy losses or production halts due to force majeure such as natural disaster; or
4. Other situations specified by the competent department of geology and mineral resources under the State Council and department of finance under the State Council.

Article 13 The mining rights may be obtained via paid acquisition such as bidding and tendering.
The registration administration organizations shall determine the scope of the mining areas for bid invitation, publish the announcement of tender and set forth requirements of the bid submission as well as the deadline in accordance with Article 3 of These Measures; however, the scope of the mining areas for the bid invitation outside China shall be determined by the competent department of geology and mineral resources under the State Council.
The registration administration organizations shall organize the bidding evaluation and determine the winning bidder on the principle of selection on merit. After paying the fee specified in Article 9 and 10 of These Measures, the winning bidder shall go through relevant registration procedures and receive the mining licenses prior to performing, as the mining right holders, the obligations in the bidding documents.

Article 14 The registration administration organizations shall supervise and check the mining right holders within their respective administrative area with respect to their proper development and utilization of the mineral resources, protection of the environment and performance of their statutory obligations in accordance with the law. The mining right holders shall report truly the related conditions and present annual reports.

Article 15 Where one of the situations set forth below occurs, the mining right holders shall, during the valid period of the mining licenses, apply to the registration administration organizations for registration of changes:
1. The change of the scope of mining areas;
2. The change of the main mineral categories;
3. The change of the exploitation methods;
4. The change of the name of the mining enterprises; or
5. The transfer of the mining rights with legal approval.

Article 16 Where the mining is suspended or closed down by the mining right holders within or upon expiry of the valid period of the mining licenses, an application shall, within 30 days from the date when the decision is made for the suspension or closing down of the mining, be submitted to the original license issuance organizations for the cancellation of the licenses.

Article 17 Any unit or individual conducting any of the following practices shall be punished by the registration administration organizations in accordance with relevant laws and administrative regulations: exploitation without the mining licenses; exploitation within the mining areas in the State plans and the mining areas of great value to the national economy without authorization; exploitation of the mineral categories under the State protection without authorization; and exploitation beyond the scope of the approved mining areas.

Article 18 In case of failure to submit the annual reports in accordance with the provisions of these Measures, refusal to accept supervision and examination or conducts of fraud, the departments responsible for the administration of geology and mineral resources under the people's governments at or above the county level shall order to cease the illegal practice and issue a warning, and may impose a fine of no more than CNY50,000 in accordance with the authority specified by the competent department of geology and mineral resources under the State Council; if the cases are serious, the original issuance organizations shall revoke the mining licenses.

Article 19 In case of any damage to or movement of the boundary post or the surface mark within the scope of the mining areas, the departments responsible for the administration of geology and mineral resources under the people's governments at or above the county level shall order to make restoration within the specified period of time in accordance with the authority specified by the competent department of geology and mineral resources under the State Council; if the cases are serious, a fine of no more than CNY30,000 shall be imposed.

Article 20 In case of printing, forging or false using of the mining licenses without authorization, the departments responsible for the administration of geology and mineral resources under the people's governments at or above the county level shall confiscate the unlawful proceeds and impose a fine of no more than CNY100,000; if any crime is constituted, criminal liabilities shall be investigated in accordance with the law.

Article 21 In case of failure to pay in time the fees as provided in these Measures in violation of the provisions of these Measures, the registration administration organization shall order to pay within the prescribed time limit and also impose an late fee of 2%% per day starting from the day when the payment is overdue; and in case of failure to make the payment overdue, the original issuance organization shall revoke the mining licenses.

Article 22 In case of failure to go through procedures on the alteration or cancellation registration of the mining licenses in violation of the provisions of these Measures, the registration administration organizations shall order to make corrections within the prescribed period of time; in case of failure to make corrections overdue, the original issuance organizations shall revoke the mining licenses.

Article 23 The mining right holders engaging in the exploitation of petroleum and natural gas in violation of the provisions of these Measures shall be subject to the administrative sanctions by the competent department of geology and mineral resources under the State Council in accordance with these Measures.

Article 24 The mining right holders whose mining licenses are revoked shall not reapply for the mining rights within two years from the date of the revocation of the licenses.

Article 25 Any functionary of the registration administration organization who indulges in self-seeking misconducts, abuses power, neglects duties that constitute a crime shall be investigated for criminal liability in accordance with the law; where a crime has not been constituted, administrative sanctions shall be imposed in accordance with the law.

Article 26 Mining licenses shall be prepared uniformly by the competent departments of geology and mineral resources under the State Council. The formats of the application for registration, application for alteration registration and application for cancellation registration shall be prepared uniformly by the competent departments of geology and mineral resources under the State Council.

Article 27 To go through mining registration procedures, registration fee shall be paid in accordance with relevant regulations. The charging criteria and the measures for the administration and use of the fee shall be formulated by the competent department of commodity price under the State Council in conjunction with the competent department of geology and mineral resources as well as the financial department under the State Council.

Article 28 Where the mineral resources are exploited with foreign investment, relevant procedures shall be handled in accordance with the law; where it is otherwise prescribed in laws and administrative regulations, those laws and administrative regulations shall prevail.

Article 29 In case that the mineral resources exploitation is conducted through sino-foreign cooperation, the Chinese cooperator shall submit the contract to original license issuance authority for the record after signing the contract.

Article 30 The replacement of the mining licenses obtained prior to the implementation of these Measures for new ones shall be organized by the competent department of geology and mineral resources under the State Council in a unified manner.
The mining enterprises established prior to the implementation of these Measures shall pay the fee for the use of the mining rights from the implementation date of these Measures, and may apply for the reduction or exemption in accordance with the provisions of these Measures.

Article 31 The registration administration organization shall make announcement with respect to the mining licenses granted or revoked.

Article 32 The scope of mining areas as referred to in these Measures means the scope delimited for the mineral resources exploitation by the registration administration department in accordance with the law, the cubical space region of the distribution scope of the mining pit engineering facilities or the cubical space region of the open stripping scope.
The exploitation methods as referred to in these Measures mean underground mining or strip mining.

Article 33 The amendment to the appendix of these Measures shall be published by the competent department of geology and mineral resources under the State Council upon submission to and approval by the State.

Article 34 These Measures shall come into force as of the date of promulgation. The Tentative Measures for the Registration Administration of the Exploitation by Mining Enterprises Owned by the Whole People issued on April 29,1987 and the Decision of the State Council on the Amendment to the Tentative Measures for the Registration Administration of the Exploitation by Mining Enterprises Owned by the Whole People issued on November 22,1990 shall be simultaneously annulled.

Appendix:
Catalogue of Mineral Contents Subject to Examination and Approval and License Issuance by the Competent Department of Geology and Mineral Resources under the State Council

1 coal
2 petroleum
3 oil shale
4 hydrocarbon natural gas
5 carbon dioxide
6 coal formed (coal bed) gas
7 terrestrial heat
8 radioactive minerals
9 gold
10 silver
11 platinum
12 manganese
13 chronium
14 cobalt
15 iron
16 copper
17 lead
18 zinc
19 aluninum
20 nickel
21 tungsten
22 tin
23 stibium
24 molybdenum
25 rare earth
26 phosphorus
27 potassium
28 sulfur
29 strontium
30 diamond
31niobium
32 tantalum
33 asbestus
34 mineral spring water