Rules for the Implementation of the Mineral Resources Law of the People's Republic of China

Rules for the Implementation of the Mineral Resources Law of the People's Republic of China Decree of the State Council of the People's Republic of China (No. 152) The Rules for the Implementation of the Mineral Resources Law of the People's Republic of China are hereby promulgated and shall come into effect as of the date of promulgation. Premier Li Peng March 26, 1994 Rules for the Implementation of the Mineral Resources Law of the People's Republic of China Chapter I: General Provisions Article 1 These Rules are formulated in accordance with the Mineral Resources Law of the People's Republic of China . Article 2 The "mineral resources" refer to the natural resources formed through geologic function, which are of value for utilization, and existing in solid, liquid or gaseous states. The varieties of the mineral resources and their classification are listed in the "Detailed List of Mineral Resources" attached thereunder. The competent department in charge of the geology and the mineral resources under the State Council shall report any discovery related to the new varieties of the mineral resources to the State Council and make publications after approval. Article 3 All mineral resources shall be owned by the State. The State ownership of the mineral resources, either near the earth's surface or underground, shall not change with the ownership of the land or the right to the use of the land to which the mineral resources are attached. The State Council shall exercise the ownership of the mineral resources on behalf of the State. The competent department in charge of geology and mineral resources under the State Council is authorized by the State Council to exercise a centralized administration over the allocation of the mineral resources. Article 4 The exploration and exploitation of the mineral resources within the territory of the People's Republic of China and other sea areas under its jurisdiction must comply with the Mineral Resources Law of the People's Republic of China (hereinafter referred to as the Mineral Resources Law ) and these Rules. Article 5 The State shall adopt a license system for the exploration and exploitation of the mineral resources. Anyone who intends to explore mineral resources shall apply for registration in accordance with the law, draw an exploration license, obtain the exploration right. Anyone who intends to exploit mineral resources shall apply for registration in accordance with the law, draw an exploitation license, obtain the mining right. The block defined by longitude and latitude is the basic unit in determining both the scope of exploration areas and the scope of exploitation areas of the mineral resources. The specific methods shall be formulated by the competent department in charge of geology and mineral resources under the State Council. Article 6 The terms both in the Mineral Resources Law and in these Rules are defined as follows: "Exploration right" means the right to explore the mineral resources within the scope provided by the exploration license which is legally obtained. The units or individuals that have obtained the exploration licenses are called exploration licensees. "Mining right" means the right to exploit the mineral resources and own the products within the scope provided by the exploitation license which is legally obtained. The units or individuals that have obtained the exploitation licenses are called concessionaires. "The special kinds of the mineral ores under protective exploitation prescribed by the State" mean those minerals which are, in view of the need for the construction of the national economy and high-technological development, or in view of their scarcity and their value, specified by the State Council, and the exploitation of which shall be authorized by the competent departments concerned under the State Council according to the State plans. "Mining areas under the State programme" mean the areas where the mineral resources are located and zoned by the State for the construction of large or medium sized mines according to both the national construction programme and the national mineral resources programme. "Mining areas with great value to the national economy" mean the mineral resources protection areas which are zoned by the State based on the need of the national economic development but have not been listed in the national construction programme, because the minerals there are rich in deposits, fine in quality and with a good prospect for development. Article 7 The State allows foreign companies, enterprises and other economic organizations as well as individuals to invest for exploration and exploitation of mineral resources within the territory of the People's Republic of China and other sea areas under its jurisdiction pursuant to the relevant laws and regulations of the People's Republic of China. Article 8 The competent department in charge of geology and mineral resources under the State Council is responsible for the supervision and administration over exploration and exploitation of the mineral resources throughout the country. The other competent departments concerned under the State Council shall assist the competent department in charge of geology and mineral resources under the State Council to conduct the supervision and administration of exploration and exploitation of mineral resources according to their functions and powers granted by the State Council. The competent departments in charge of geology and mineral resources under the people's governments of provinces, autonomous regions and the municipalities directly under the Central Government are responsible for the supervision and administration over the exploration and exploitation of the mineral resources within their respective administrative areas. The other competent departments concerned under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall assist the competent departments in charge of geology and mineral resources at the same level to conduct the supervision and administration of the exploration and exploitation of mineral resources. The municipal people's governments with administrative districts and the people's governments of autonomous prefectures and the people's governments of counties as well as their departments in charge of mineral resources shall be responsible for conducting supervision and management over the State-owned mining enterprises approved by them according to law, and are also responsible for conducting supervision and administration over the collective-owned mining enterprises, the private-owned mining enterprises, individual miners as well as the units and individuals who undertake the exploration within their respective administrative areas in their respective administrative areas according to law, and shall protect the lawful rights and interests of the exploration licenses and the concessionaires pursuant to law. The competent departments in charge of geology and mineral resources at higher levels are authorized to redress or revoke the illegal or improper administrative behaviors over the exploration and exploitation conducted by the competent departments in charge of geology and mineral resources at lower levels. Chapter II: Registration for Mineral Exploration and Examination and Approval for Mineral Exploitation Article 9 For conducting any mineral resources exploration, the formalities concerning the application, examination, approval and the exploration registration shall be fulfilled in accordance with the provisions of the State Council on the exploration registration of the mineral resources. For conducting the exploration of any special kinds of mineral ores, the formalities concerning the application, examination, approval and the exploration registration shall be fulfilled according to the relevant provisions of the State Council. Article 10 Where the State-owned mining enterprises exploit the mineral resources, they shall go through the formalities concerning the application, examination, approval and mining registration in accordance with provisions of the State Council governing mining registration. Where they want to exploit the mineral areas under the State programme, the mining areas with great value to the national economy, or the special kinds of mineral ores under protective exploitation prescribed by the State, they shall hold the approval documents from the relevant competent departments under the State Council while going through the formalities concerning the application, examination and approval and the mining registration. Where they want to exploit the special kinds of mineral ores, they shall go through the formalities concerning application, examination and approval and mining registration in accordance with the relevant provisions of the State Council. Article 11 The establishment of State-owned mining enterprises shall meet the following requirements in addition to conditions prescribed by laws and regulations: (1) having the mineral resources exploration report required for mine construction; (2) having the feasibility study report required for mine construction project (including the mineral resources utilization proposal and the report on the influence on the environment within the mining areas); (3) having the definite scope of the mine and the mining area; (4) having the mine design; and (5) having the technical support required for production. The State Council, the competent departments under the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, pursuant to the State provisions regarding fixed assets investment and the conditions given hereinabove, exercise examination over the application for establishment of State-owned mining enterprise and approval can be granted only after the application is formed to be duly qualified. Article 12 The application for establishing a collective-owned mining enterprise, a private mining enterprise or for an individual miners shall go through the formalities concerning the examination, approval and the mining registration prescribed by the relevant provisions issued by the province, autonomous region and municipality directly under the Central Government. Article 13 Application for establishing collective-owned mining enterprises or private mining enterprises shall meet the following requirements in addition to the conditions prescribed by laws and regulations: (1) having the mineral resources exploration materials required for the mine construction and which shall also be appropriate to the mining scale; (2) having the definite mining scope which has been approved without dispute; (3) having the necessary funds, equipment and technical personnel required appropriate to the scale of the mine to be constructed; (4) having the feasibility study report, mine design or mining proposal appropriate to the mine to be constructed, also in line with the State industrial policies and the technical regulations; and (5) having a mine chief equipped with basic knowledge regarding to the mining production, safety control and environmental protection. Article 14 Where individuals apply for mining, they shall meet the following requirements: (1) having the definite mining scope which has been approved without dispute; (2) having the necessary funds, equipment and technical personnel required appropriate to the scale of mine to be constructed; (3) having necessary mineral resources exploration materials required and the mining proposal that has been approved; and (4) having the necessary conditions and proper measures required for safety production and for environmental protection. Chapter III: Mineral Exploration Article 15 The State shall programme in a unified manner the exploration of mineral resources. The competent department in charge of geology and mineral resources under the State Council shall organize and map out the national medium and long term programmes over the mineral exploration under the guidance of the competent department in charge of planning under the State Council, in accordance with the national medium and long term economic and social development programmes, and on the basis of the exploration programmes adopted by the relevant competent departments under the State Council. The national annual mineral exploration plan and the annual mineral exploration plan of provinces, autonomous regions and municipalities directly under the Central Government shal......