Administrative Measures for the Block Registration of Mineral Resource Prospecting (Revised in 2014)

Administrative Measures for the Block Registration of Mineral Resource Prospecting (Revised in 2014)


Administrative Measures for the Block Registration of Mineral Resource Prospecting (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. 240 on Feburary 12, 1998, and revised in accordance with the Decision of the State Council on Revising Certain Administrative Regulations on July 29, 2014.)

Article 1 These Regulations are formulated, in accordance with the Mineral resource Law of the people's Republic of China, in an effort to strengthen the administration of mineral resource exploration, safeguard the lawful rights and interests of exploration licensees, maintain the exploration order, and promote the wise development of the mining industry.

Article 2 These Regulations shall be observed in exploring for mineral resource within the territory of People's Republic of China and other sea areas under its jurisdiction.

Article 3 In determining the mineral resource areas for exploration, the State shall adopt a Unified Block Registration System, based on a grid pattern in which the basic unit block is longitude 1'X latitude 1'. The largest area to be prospectd for each exploration project is as follows:
1. 10 basic unit blocks for mineral water;
2. 40basic unit blocks for metal, non-metal, and radio-active mineral;
3. 200 basic unit blocks for geo-thermal resources, coal, and vapor mineral; and
4. 2,500 basic unit blocks for petroleum and gas.

Article 4 Prior to exploring for mineral resource, each exploration project shall be examined, approved, registered, and licensed by the department in charge of geology and mineral resource under the State Council. This includes:
1. Those mineral resource that straddle two or more administrative areas of different provinces, autonomous regions and municipalities directly under the Central Government;
2. Those mineral resource in the territorial sea or other marine areas under China's jurisdiction;
3. Those mineral resource prospectd for by foreign investment; and
4. Those mineral resource listed in the Appendix attached to these Regulations.
Each project exploring petroleum and /or gas shall be examined and approved by the organization designed by the State Council, and registered and licensed by the department in charge of geology and mineral resource under the State Council.
Prior to exploring for mineral resource, each exploration project shall be examined, approved, registered, and licensed by the department under the people's government of provinces, autonomous regions and municipalities directly under the Central Government. The exploration license shall be recorded with the department in charge of geology and mineral resource under the State Council within 10 days, starting from the date of issuance of such license. This includes:
1. the mineral resource beyond the prescriptions of paragraphs 1 and 2 of this Article;
2. the mineral resource for which the examination and approval is authorized by the department in charge of geology and mineral resource under the State Council. The examination and approval shall be conducted by the department in charge of geology and mineral resource under the people's government of provinces, autonomous regions and municipalities directly under the Central Government.

Article 5 The exploration investor shall be the exploration rights applicant. If the investor is the State, the exploration unit entrusted by the State shall be the exploration rights applicant.

Article 6 In applying for exploration rights, the applicant shall present the following materials to the licensing authorities:
1. an application form for registration and a drawing or map showing the scope of the blocks for which the applicant is applying;
2. a copy of a certificate validating the qualifications of the exploration unit;
3. an exploration working plan and an exploration contract or documents of proof indicating that the exploration unit and project are entrusted by the State;
4. an implementation proposal for the exploration and relevant appendix;
5. documents of proof showing the source of the funds for the exploration project; and
6. materials otherwise specified by the department in charge of geology and mineral resource under the State Council.
If applying for a license to prospect for petroleum and /or gas, the applicant shall also present the document of the State Council approving the establishment of a petroleum company or the document permitting the exploration for petroleum and /or gas, and a Legal person Certificate of the exploration unit.

Article 7 In order to receive a license for on-going exploration and operation of petroleum and /or gas, the applicant shall present the following materials to the licensing authorities:
1. an application form for registration and d drawing or map showing the mining area for on-going exploration and operation;
2. a project proposal approved by the department in charge of planning under the State Council;
3. materials of proof showing the necessity of on-going exploration and operation;
4. a mineral reserves report used for the purpose of on-going exploration and operation and approved by the mineral reserves approving agency under the State Council, and
5.
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