Mineral Resources Law of the People's Republic of China (Amended in 2009)

Mineral Resources Law of the People's Republic of China (Amended in 2009)


Mineral Resources Law of the People's Republic of China (Amended in 2009)

Order of the President of the People's Republic of China No. 18

August 29, 1996

(Adopted at the 15th Meeting of the Standing Committee of the 6th National People's Congress on March 19, 1986; amended for the first time by the Decision of the Standing Committee of the National People's Congress on Amending the Mineral Resources Law of the People's Republic of China adopted at the 21st Meeting of the Standing Committee of the 8th National People's Congress on August 29, 1996; and amended for the second time by the Decision of the Standing Committee of the National People's Congress on Amending Certain Laws adopted at the 10th Meeting of the Standing Committee of the 11th National People's Congress on August 27, 2009)

Contents

Chapter I General Provisions
Chapter II Registration for Exploration of Mineral Resources and Examination and Approval of Mining
Chapter III Exploration of Mineral Resources
Chapter IV Mining of Mineral Resources
Chapter V Collectively-owned Mining Enterprises and Privately-owned Mining Undertakings
Chapter VI Legal Liabilities
Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is enacted in accordance with the Constitution of the People's Republic of China, with a view to developing the mining industry, promoting the exploration, development, utilization and protection of mineral resources and ensuring the present and long-term needs of the socialist modernization programme.

Article 2 This Law must be observed in exploring and mining mineral resources within the territory of the People's Republic of China and the marine areas under its jurisdiction.

Article 3 Mineral resources belong to the State. The rights of State ownership in mineral resources is exercised by the State Council. State ownership of mineral resources, either near the earth's surface or underground, shall not change with the alteration of ownership or right to the use of the land which the mineral resources are attached to.
The State safeguards the rational development and utilization of mineral resources. Seizing or damaging mineral resources by any means and by any organization or individual shall be prohibited. People's governments at various levels must make serious efforts to protect mineral resources.
Anyone who wishes to explore or mine mineral resources shall separately make an application according to law and shall register after obtaining the right of exploration or mining upon approval, with the exception of the mining enterprises that have, in accordance with law, applied for and obtained the right of mining and are conducting exploration within the designated mining area for the purpose of their own production. The State protects the right of exploration and of mining from encroachment and protects the order of production and other work in the mining and exploration areas from interference and disruption.
Anyone engaged in exploring and mining of mineral resources shall meet the prescribed qualifications.
(Relevant articles: Articles 1)

Article 4 The State protects the lawful rights and interests of mining enterprises, established in accordance with law, in mining of mineral resources.
The State-owned mining enterprises are the mainstay in mining mineral resources. The State guarantees the consolidation and expansion of State-owned mining enterprises.

Article 5 The State practises a system wherein the exploration right and mining right shall be obtained with compensation; however, the State may, in light of specific conditions, prescribe reduction of or exemption from the compensation for acquiring the exploration right and mining right. Specific measures and implementation procedures shall be formulated by the State Council.
Anyone who mines mineral resources must pay resource tax and resource compensation in accordance with relevant regulations of the State.
(Relevant articles: Articles 1)

Article 6 Exploration right and mining right shall not be transferred except for the transfers made according to the following provisions:
1. The exploration licensees shall have the right to carry out specified explorations within the designated exploration areas and have the priority to obtain the right to mine the mineral resources in the exploration areas. The exploration licensees, after fulfilling the specified minimum input to exploration and obtaining approval in accordance with law, may transfer the exploration right to another.
2. A mining enterprise that has obtained the mining right but needs to change the subject of the mining right, because of merger, division, forming of an equity joint venture or contractual joint venture, sale of its assets, or change of ownership of its assets in other manners, may transfer its mining right to another, subject to approval in accordance with law.
The specific measures and implementation procedures concerning the provisions in the preceding paragraph shall be stipulated by the State Council.
Profiteering in exploration right or mining right shall be prohibited.

Article 7 With regard to the exploration and development of mineral resources, the State applies the principles of unified planning, rational geographical distribution, multi-purpose exploration, rational mining and multi-purpose utilization.

Article 8 The State encourages scientific and technological research on the exploration and development of mineral resources, promotes advanced technology so as to raise the scientific and technological level of mineral exploration and development.

Article 9 Any organization or individual that has achieved outstanding successes in the exploration, development and protection of mineral resources and in scientific and technological research shall be awarded by relevant people's government.

Article 10 In mining mineral resources in national autonomous areas, the State should give consideration to the interests of those areas and make arrangements favourable to the areas' economic development and to the production and well-being of the local minority nationalities.
Self-government organs in national autonomous areas shall, in accordance with legal provisions and unified national plans, have the priority to develop and utilize in a rational manner the mineral resources that may be developed by the local authorities.

Article 11 The department in charge of geology and mineral resources under the State Council shall be responsible for supervision and administration of the exploration and mining of the mineral resources throughout the country.
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