Regulation for Registering to Explore For Mineral Resources Using the Block System (2014 Revision)

Regulation for Registering to Explore For Mineral Resources Using the Block System (2014 Revision) Regulation for Registering to Explore For Mineral Resources Using the Block System (Promulgated by Order No. 240 of the State Council of the People's Republic of China on February 12, 1998; and revised in accordance with the Decision of the State Council on Amending Some Administrative Regulations on July 29, 2014) Article 1 These Regulations are formulated, in accordance with the Mineral resources Law of the people's Republic of China , in an effort to strengthen the administration of mineral resources 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 resources within the territory of People's Republic of China and other sea areas under its jurisdiction. Article 3 In determining the mineral resources 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 explored 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) 2500 basic unit blocks for petroleum and gas. Article 4 Prior to exploring for mineral resources, each exploration project shall be examined, approved, registered, and licensed by the department in charge of geology and mineral resources under the State Council. This includes: 1)Those mineral resources that straddle two or more administrative areas of different provinces, autonomous regions and municipalities directly under the Central Government; 2) Those mineral resources in the territorial sea or other marine areas under China's jurisdiction; 3) Those mineral resources explored for by foreign investment; and 4) Those mineral resources 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 resources under the State Council. Prior to exploring for mineral resources, 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 resources under the State Council within 10 days, starting from the date of issuance of such license. This includes: 1)the mineral resources beyond the prescriptions of paragraphs 1 and 2 of this Article; 2)the mineral resources for which the examination and approval is authorized by the department in charge of geology and mineral resources under the State Council. The examination and approval shall be conducted by the department in charge of geology and mineral resources 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 resources under the State Council. If applying for a license to explore 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) a utilization plan for on-going exploration and operation. Article 8 The licensing authorities shall consider each application on a first come ,first serve basis, and either grant or deny the application within 40 days of receipt. Each applicant shall be notified as to the decision. If these is an application for exploration for petroleum and /or gas, the licensing authorities shall also make public announcement with regard to the application or make application available for public inquiring. The licensing authorities shall give priority to any exploration project listed in the first category of the National geological Exploration Plan. The detailed stipulations shall be formulated by the department in charge of geology and mineral resources under the State Council. If it is necessary for the exploration-rights applicant to amend or to add to the materials provided in Article 6 of these Regulations, the licensing authorities shall notify the exploration-rights applicant that they shall amend or add to the materials within the prescribed time limit. If the exploration project is approved, the exploration-rights applicant shall, within 30 days from the date of the receipt of the notice, pay a fee for the use of the exploration rights (hereafter referred to as the exploration fee) in accordance with the provisions of Article 12 of these Regulations. If the Central Government has already invested in the designated exploration area, the applicant shall be assessed a reimbursement fee for exploration right to be paid in accordance with the provisions of Article 13 of these Regulation. Upon approval, the applicant is obligated to complete the exploration registration procedures and obtain the exploration license before becoming an exploration licensee. If the exploration project is not approved, the licensing authorities shall give an exploration to the applicant at the time of notification. Article 9 No unit or individual may enter into or carry out exploration or mining activities in areas already licensed to other exploration or mining projects in accordance with law. If a dispute occurs between exploration licensees and mining concessioners, concerning the rights to exploration or mining areas, such a dispute shall be settled through consultation by the parties involved. If the consultation fails, such a dispute shall be adjudicated by the licensing authorities of the higher level concerned. Article 10 generally an exploration license is valid for no more than 3 years. However, the exploration license for petroleum and /or gas is valid for up......