About MLR
Mission
Organization
History
Facts
Contact Us
 
  Location: Home >
     
REGULATIONS FOR TRANSFERRING EXPLORATION RIGHTS AND MINING RIGHTS
From: Date: 2007-10-11
 

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 the transfer of exploration rights and mining rights, safeguard the lawful rights and interests of the exploration licensees and concessioners and promote the wise development of the mining industry.

Article 2 These Regulations shall be observed in the transfer of exploration and mining rights that have been obtained in accordance with law within the territory of the people¡¯s Republic of China and other sea areas under its jurisdiction.

Article 3 Exploration rights and mining rights shall not be transferred except under the following circumstances, subject to approval in accordance with law: 1) The exploration licensee has the right to carry out exploration activities within the designated exploration areas and has the privileged priority to obtain the mining rights to the mineral resources in this exploration area. The exploration licensee may transfer the exploration rights to others upon meeting the minimum exploration expenditure requirements. 2) A mining enterprise has already obtained the mining rights but needs to change the ownership of these mining rights for a variety of reasons: a) the enterprise has been merged or split b) the enterprise enters into equity joint ventures or cooperative joint ventures with others; c) the enterprise sells its enterprise assets; or d) other situations that will lead to the alteration of enterprise property ownership.

Article 4 The transfer of exploration rights and mining rights shall be examined and approved 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. The department in charge of geology and mineral resources under the State Council shall be responsible for the examination and approval of the transfer of the exploration rights and mining rights that have been examined, approved and licensed by the department itself. The transfer of exploration rights and mining rights beyond the prescription of the second paragraph of this Article shall be examined and approved 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 Any exploration licensee who wishes to transfer the exploration rights shall meet the following requirements: 1) 2years or more have passed since the date of issue of the exploration license, or the mineral resources already located are worthy of further exploration or mining; 2)the minimum exploration expenditure requirements have been met; 3)the licensee has undisputed ownership of the exploration rights; 4)the exploration fee and any reimbursement fee for exploration right have been paid in accordance with the provisions of the State; and 5)other requirements otherwise specified by the department in charge of geology and mineral resources under the state Council.

Article 6 any mining concessioner who wishes to transfer mining rights shall meet the following requirements: 1)one year or more have passed since the mining enterprise began mining; 2)the mining concessioner has undisputed ownership of the mining rights; 3)the mining fee and any reimbursement fee for mining right, the mineral resources compensation and resource tax have been paid in accordance with relevant provisions of the State; and 4)other requirements specified by the department in charge of geology and mineral resources under the state Council. Any State-owned mining enterprise shall get consent from the department in charge of that mining enterprise prior to the application for transferring the mining rights.

Article 7 the assignee of the transfer of exploration rights and mining rights shall meet the relevant requirements provided in regulations for Registering to explore for Mineral resources Using the Block System and Regulations for Registering to Mine mineral Resources.

Article 8 The exploration licensee or mining concessioner shall present the following materials to the licensing authorities when applying to transfer exploration rights or mining rights: 1)an application for transfer; 2£©a transfer contract signed by the transferor and assignee; 3)documents of proof showing the qualifications of the assignee 4)documents of proof showing that the requirements provided in Articles 5 and 6 of these Regulations have been met by the transferor; 5)a report detailing the status of the exploration an /or mining projects: and 6)the relevant materials otherwise specified by the examining and approving agency. If a state-owned enterprise wishes to transfer exploration rights and/or mining rights, the approval documents issued by the relevant departments shall be presented to the licensing authorities.

Article 9 Any exploration rights and mining rights developed by the State, at the State¡¯s expense shall be appraised before they are transferred. The appraisal work concerning the transfer of exploration right and mining right shall be conducted by the organizations designated by the department in charge of geology and mineral resources under the State Council, jointly with the department in charge of State-owned assets under the state Council. The result of appraisal shall be confirmed by the department in charge of geology and mineral resources under the state Council.

Article 10 if anyone applies to transfer exploration rights or mining rights, the examining and approving agency shall deny or approve the transfer within 40 days from receipt of the application for transfer, and notify the transfer applicant and the potential assignee of the decision. The transferor and the assignee shall , within 60 days from receipt of an approval notice, modify the registration with the licensing authorities that originally issued the corresponding licenses. The assignee shall pay the relevant fees in compliance with the provisions of the state, and obtain the exploration license or mining license before becoming the exploration licensee or mining concessioner. If a transfer is approved, the transfer contract shall take effect on the date of approval. If the transfer is denied, the examining and approving agency shall give an explanation.

Article 11 after approving the transfer of the exploration rights or mining rights, the examining and approving agency shall immediately inform the licensing authorities that originally issued the respective licenses.

Article 12 The rights and obligations of the exploration licensees and mining concessioners shall be transferred to the assignee upon the transfer of the exploration rights and the mining rights.

Article 13 When exploration rights or mining rights are transferred, the assignee shall assume whatever time remains on the original licenses.

Article 14 If any exploration licensee or mining concessioner transfers their respective rights without approval of the relevant examining and approval agency, the licensing authorities shall confiscate the illegal proceeds and impose a fine of up to 100,000 RMB yuan. If the circumstances are serious, the exploration license or mining license shall be revoked by the department that originally issued the license.

Article 15 Anyone who, in violation of the provisions of Item 2 of Article 3 of these Regulations, transfers the mining rights without authorization by means of contracting, etc. Shall be ordered to correct the illegal transfer by the department responsible for geology and mineral resources under the people¡¯s government at or above the county level in accordance with the limits of authorities prescribed by the department in charge of geology and mineral resources under the State Council. The illegal gains shall be confiscated and a fine of up to 100,000 RMB yuan shall be imposed. If the case is serious, the mining license shall be revoked by the department that originally issued the license.

Article 16 Personnel employed by an examining and approving agency who act illegally and abuse their power for personal gain or neglect their duties shall be investigated. If the case constitutes a crime, they shall be held for criminal responsibilities according to law. If the case does not constitute a crime, the personnel concerned shall be given administrative penalties.

Article 17 The actual form for the application for transfer of exploration rights and mining rights shall be formulated exclusively by the department in charge of geology and mineral resources under the State Council.

Article 18 These Regulations shall take effect as of the date of promulgation.

Copyright@ 1999-2007 All Rights Reserved Ministry of Land and Resources,PRC
Add: No. 64 Funei Street 100812 Beijng,China
Tel: 86-10-66558407/08/20
Fax: 86-10-66127247