Laws of the People's Republic of China

No.74

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 which has been adopted at the 21st Meeting of the Standing Committee of the Eighth National People's Congress on August 29, 1996 is promulgated now, and shall enter into force as of January 1, 1997. President of the People's Republic of China: Jiang Zemin

August 29, 1996

Decision of the Standing Committee of the National People's Congress on Amending the Mineral Resources Law of the People's Republic of China

The 21st Meeting of the Standing Committee of the Eighth National People's Congress has decided to make the following amendments to the Mineral Resources Law of the People's Republic of China:

1.

The first paragraph of Article 3 is amended as: "Mineral resources shall be owned by the state. The State Council shall exercise the ownership of mineral resources on behalf of the state. The state ownership of mineral resources, either near the earth's surface or underground, shall not change with the ownership or right to the use of the land which the mineral resources are attached to."

The third paragraph of Article 3 is amended as: "Anyone who wishes to explore and exploit mineral resources shall apply for the rights of exploration and mining separately according to law and acquire them with approval, and shall go through registration, except those mining enterprises which conduct the exploration operations for their own production within the defined mining areas when having acquired the mining right according to law. The state shall protect rights of exploration and mining from violation and protect order in production and other work in the mining and exploration areas from interference and disruption."

Add a new paragraph thereto as the fourth paragraph: "Anyone who is engaged in the exploration and exploitation of mineral resources shall be qualified to meet requirements."

2.

The Article 4 is amended as: "The state shall guarantee the lawful rights and interests of mining enterprises established according to law in the exploitation of mineral resources.

The state-owned mining enterprises shall be the principal force in exploiting mineral resources. The state shall guarantee the consolidation and expansion of state-owned mining industry."

3.

The Article 5 is amended as: "The state shall adopt the system by which the rights of exploration and mining are to be acquired with compensation. However, the compensation for the acquisition of the exploration and mining rights may be reduced or exempt by the state according to circumstances. The specific measures and implementation procedures shall be formulated by the State Council.

Anyone who exploits mineral resources must pay resources tax and compensation in accordance with relevant state provisions."

4.

The fourth paragraph of Article 3 is changed into Article 6 and amended as: "Exploration and mining rights may not be transferred with the exception of those as prescribed by the following provisions:

(1)

The explorer shall be entitled to conduct the approved exploration operations within the defined exploration area and to enjoy priority in the acquisition of the mining right in the area. He may transfer his exploration right to another person with lawful approval, provided that the minimum investment in the exploration has been made as required.

(2)

In the event of the merger or division of enterprise, or joint investment or joint operation with others, or in the event of a sale of assets or other changes in assets property which need change in the owner of mining right, a mining enterprise vested with the mining right may transfer its right to another person for mining with lawful approval.

The State Council shall formulate the specific measures and implementation procedures for the provisions in the preceding paragraph.

It is forbidden to resell rights of exploration and mining for profit."

5.

Article 10 is changed into Article 12 and amended as: "The state shall adopt a unified registration system for mineral exploration areas. The department in charge of geology and mineral resources under the State Council shall be responsible for registering the exploration of mineral resources. The State Council may authorize relevant departments to handle registration of the exploitation of special kinds of mineral ores. The procedures for registration of mineral exploration areas shall be formulated by the State Council."

6.

The first paragraph of Article 13 and Article 26 are combined as Article 15 and amended as: "Anyone who intends to establish a mining enterprise shall be qualified as required by the state, and the approval authority shall examine his application as to the limits of the mining area, design or mining plan, production technique and safety and environmental protection measures in accordance with the law and relevant state provisions. Approval shall be granted if it finds the enterprise meets these requirements."

7.

The second paragraph of Article 13 and Article 14 are combined as Article 16 and amended as: "The exploitation of the following mineral resources shall be subject to the approval of the department in charge of geology and mineral resources under the State Council and a mining licence shall be issued upon approval.

(1)

mineral resources within the mining areas which are to be exploited under the state plan, and which are of great value to the national economy;

(2)

mineral resources of at least large-scale recoverable reserves outside the areas prescribed in the preceding item;

(3)

special kinds of minerals for which protective mining is prescribed by the state;

(4)

mineral resources within the territorial seas and other sea areas under the jurisdiction of China; or

(5)

other kinds of minerals prescribed by the State Council.

The exploitation of special kinds of minerals such as petroleum, natural gas and radioactive minerals may be approved by the relevant departments authorized by the State Council and a mining licence shall be issued upon approval.

The exploitation of other mineral resources than those prescribed in the first and second paragraphs shall, if their recoverable reserves are medium in scale, be subject to the approval of the departments in charge of geology and mineral resources of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government and a mining licence shall be issued upon approval.

Procedures for the administration of exploiting other mineral resources than those prescribed in the first, second and third paragraphs shall be formulated according to law by the standing committees of the people's congresses of provinces, autonomous regions, or municipalities directly under the Central Government.

Materials regarding the examination and approval of mineral exploitation and the issuance of mining licences under the provisions of the third and fourth paragraphs shall be collected and reported by the departments in charge of geology and mineral resources of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government to the State Council for the record.

The standard for dividing mineral reserves into large- and medium-scale reserves shall be set by the mineral reserves approval agency of the State Council."

8.

The third paragraph of Article 16 and Article 36 are combined as Article 19 and amended as: "Local people's governments at various levels shall take measures to maintain the normal order in mining areas of state-owned mining enterprises and other mining enterprises which are located within their administrative regions.

No unit and individual may enter and mine in mining areas of state-owned mining enterprises and other mining enterprises which are established by others according to law."

9.

Article 34 is changed into Article 35 and a new paragraph added thereto as the second paragraph: "Individuals are prohibited from exploiting mineral resources which reserves are suitable for a mining enterprise to mine, special kinds of minerals for which protective mining is prescribed by the state, and other mineral resources for which mining by individuals is prohibited by the state."

10.

Article 39 is amended as: "Anyone who, in violation of the provisions of this Law, mines without a mining licence, enters without authorization and mines in mining areas that the state has planned to develop, or in mining areas with ores of significant value to the national economy, or exploits special kinds of minerals that the state has prescribed for protective exploitation shall be ordered to stop excavation, compensate for the losses caused, have his extracted mineral products and unlawful proceeds confiscated, and may be fined concurrently. If the party refuses to stop mining and thus causes damage to mineral resources, the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law.

Any unit or individual who enters and mines in mining areas of the state-owned and other mining enterprises which are established by others according to law shall be punished according to the provisions of the preceding paragraph."

11.

The second paragraph of Article 42 is amended as: "Anyone who, in violation of the provisions of Article 6 of this Law, resells rights of exploration and mining for profit shall have his unlawful proceeds confiscated, be fined and have his exploration and mining licences revoked."

12.

Article 44 is amended as: "Anyone who, in violation of the provisions of this Law, exploits mineral resources in a destructive way shall be fined and may have his mining licence revoked; If heavy damage has been caused to mineral resources, the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law."

13.

Article 45 is amended as: "The administrative penalties prescribed in Articles 39, 40 and 42 of this Law shall be decided by departments in charge of geology and mineral resources under the people's governments at or above the county level within the limits of their authority prescribed by the department in charge of geology and mineral resources under the State Council. The administrative penalties prescribed in Article 43 shall be decided by administrative departments for industry and commerce under the people's governments at or above the county level. The administrative penalties prescribed in Article 44 shall be decided by departments in charge of geology and mineral resources under the people's governments of provinces, autonomous regions, or municipalities directly under the Central Government. The penalty of revoking the exploration and mining licences shall be decided by the departments that issue the licences.

If any department fails to give an administrative penalty, when it ought to do so in accordance with the provisions of Articles 39, 40, 42 and 44, the department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to order it to make corrections or shall directly give the administrative penalty."

14.

Article 46 is amended as: "A party who refuses to accept the decision on administrative penalties may apply for reconsideration according to law or may directly bring suit in a people's court according to law.

If the party neither applies for reconsideration nor brings suit in a people's court nor complies with the decision on administrative penalties within the time limit, the agency that made the decision shall request the people's court to compel execution of the decision."

15.

Add a new article as Article 47 : "If any of state functionaries who supervises and administers the exploration and exploitation of mineral resources or any of other relevant state functionaries, by engaging in malpractice for his personal gains, abusing his power or neglecting his duty and in violation of the provisions of this Law, grants an approval of the exploration and exploitation of mineral resources and issues exploration and mining licences, or fails to check and punish the unlawful mining activities according to law, when a crime has been constituted, the offender shall be investigated for criminal responsibility according to law; a disciplinary sanction shall be given when the action does not constitute a crime. The department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to withdraw the exploration and mining licences issued unlawfully.

16.

Add a new article as Article 48 : "Whoever by means of force or threat obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law shall be investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law. If anyone, without resorting to force and threat, refuses or obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law, the public security organ shall punish him in accordance with the provisions of the Regulations on Administrative Penalties for Public Security."

17.

Add a new article as Article 50 : "If there are other provisions in laws and regulations concerning the exploration and exploitation of mineral resources with foreign investment, such provisions shall apply."

18.

"State-operated mining enterprises" mentioned in this Law shall be amended as "state-owned mining enterprises" and "collective mining enterprises of villages and towns" amended as "collective mining enterprises".

This Decision comes into force on January 1, 1997.

The Mineral Resources Law of the People's Republic of China shall be republished after being correspondingly revised according to this Decision.

Attachment: Mineral Resources Law of the People's Republic of China Contents Chapter I General Provisions

Chapter II Registration for Mineral Exploration and Examination and

Approval of Mineral Exploitation

Chapter III Mineral Exploration

Chapter IV Mineral Exploitation

Chapter V Collective Mining Enterprises and Mining by Individuals

Chapter VI Legal Liability

Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1

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

Article 2

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

Article 3

Mineral resources shall be owned by the state. The State Council shall exercise the ownership of mineral resources on behalf of the state. The state ownership of mineral resources, either near the earth's surface or underground, shall not change with the ownership or right to the use of the land which the mineral resources are attached to.

The state shall safeguard the rational development and utilization of mineral resources. Seizing or damaging mineral resources by any means and by any organization or individual shall be forbidden. People's governments at all levels must make serious efforts to protect mineral resources.

Anyone who wishes to explore and exploit mineral resources shall apply for the rights of exploration and mining separately according to law and acquire them with approval, and shall go through registration, except those mining enterprises which conduct the exploration operations for their own production within the defined mining areas when having acquired the mining right according to law. The state shall protect rights of exploration and mining from violation and protect order in production and other work in the mining and exploration areas from interference and disruption.

Anyone who is engaged in the exploration and exploitation of mineral resources shall be qualified to meet requirements.

Article 4

The state shall guarantee the lawful rights and interests of mining enterprises established according to law in the exploitation of mineral resources.

The state-owned mining enterprises shall be the principal force in exploiting mineral resources. The state shall guarantee the consolidation and expansion of state-owned mining industry.

Article 5

The state shall adopt the system by which the rights of exploration and mining are to be acquired with compensation. However, the compensation for the acquisition of the exploration and mining rights may be reduced or exempt by the state according to circumstances. The specific measures and implementation procedures shall be formulated by the State Council.

Anyone who exploits mineral resources must pay resources tax and compensation in accordance with relevant state provisions.

Article 6

Exploration and mining rights may not be transferred with the exception of those as prescribed by the following provisions:

(1)

The explorer shall be entitled to conduct the approved exploration operations within the defined exploration area and to enjoy priority in the acquisition of the mining right in the area. He may transfer his exploration right to another person with lawful approval, provided that the minimum investment in the exploration has been made as required.

(2)

In the event of the merger or division of enterprise, or joint investment or joint operation with others, or in the event of a sale of assets or other changes in assets property which need change in the owner of mining right, a mining enterprise vested with the mining right may transfer its right to another person for mining with lawful approval.

The State Council shall formulate the specific measures and implementation procedures for the provisions in the preceding paragraph.

It is forbidden to resell rights of exploration and mining for profit.

Article 7

With regard to the exploration and development of mineral resources, the state shall practise the policy of unified planning, rational distribution, comprehensive exploration, rational exploitation and comprehensive utilization.

Article 8

The state shall encourage scientific-technical research on the exploration and development of mineral resources, popularize advanced technology and raise the scientific-technical level of mineral exploration and development.

Article 9

Any organization or individual that has achieved remarkable success in the exploration, development and protection of mineral resources and in scientific-technical research shall be rewarded by the people's governments at various levels.

Article 10

In exploiting mineral resources in national autonomous areas, the state shall give due consideration to the interests of those areas and make arrangements favourable to the areas' economic construction and to the production and livelihood of the people of local minority nationalities.

The organs of self-government of national autonomous areas shall, in accordance with legal provisions and the unified state plan, have priority for rationally developing and utilizing the mineral resources that may be developed by 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 development of mineral resources throughout the country. Other departments concerned under the State Council shall assist the department in change of geology and mineral resources under the State Council in supervising and administering the exploration and exploitation of mineral resources.

The departments in charge of geology and mineral resources under the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall be in charge of supervising and administering the exploration and exploitation of mineral resources within their respective administrative areas. Other departments concerned under the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall assist the departments in charge of geology and mineral resources at the same level in supervising and administering the exploration and exploitation of mineral resources.

Chapter II Registration for Mineral Exploration and Examination and Approval of Mineral Exploitation

Article 12

The state shall adopt a unified registration system for mineral exploration areas. The department in charge of geology and mineral resources under the State Council shall be responsible for registering the exploration of mineral resources. The State Council may authorize relevant departments to handle registration of the exploitation of special kinds of mineral ores. The procedures for registration of mineral exploration areas shall be formulated by the State Council.

Article 13

The mineral reserves approval agency of the State Council or mineral reserves approval agencies of provinces, autonomous regions, and municipalities directly under the Central Government shall be responsible for the examination and approval of the prospecting reports to be used for mine construction designing and shall, within the prescribed time limit, give official replies to the units that submitted the reports. Unless a prospecting report is approved, it may not be used as the basis for mine construction designing.

Article 14

Archives of mineral exploration results and statistics of reserves of various kinds of minerals shall be subject to unified management, and shall be collected or compiled for submission to the competent authorities in accordance with the stipulations of the State Council.

Article 15

Anyone who intends to establish a mining enterprise shall be qualified as required by the state, and the approval authority shall examine his application as to the limits of the mining area, design or mining plan, production technique and safety and environmental protection measures in accordance with the law and relevant state provisions. Approval shall be granted if it finds the enterprise meets these requirements.

Article 16

The exploitation of the following mineral resources shall be subject to the approval of the department in charge of geology and mineral resources under the State Council and a mining licence shall be issued upon approval.

(1)

mineral resources within the mining areas which are to be exploited under the state plan, and which are of great value to the national economy;

(2)

mineral resources of at least large-scale recoverable reserves outside the areas prescribed in the preceding item;

(3)

special kinds of minerals for which protective mining is prescribed by the state;

(4)

mineral resources within the territorial seas and other sea areas under the jurisdiction of China; or

(5)

other kinds of minerals prescribed by the State Council.

The exploitation of special kinds of minerals such as petroleum, natural gas and radioactive minerals may be approved by the relevant departments authorized by the State Council and a mining licence shall be issued upon approval.

The exploitation of other mineral resources than those prescribed in the first and second paragraphs shall, if their recoverable reserves are medium in scale, be subject to the approval of the departments in charge of geology and mineral resources of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government and a mining licence shall be issued upon approval.

Procedures for the administration of exploiting other mineral resources than those prescribed in the first, second and third paragraphs shall be formulated according to law by the standing committees of the people's congresses of provinces, autonomous regions, or municipalities directly under the Central Government.

Materials regarding the examination and approval of mineral exploitation and the issuance of mining licences under the provisions of the third and fourth paragraphs shall be collected and reported by the departments in charge of geology and mineral resources of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government to the State Council for the record.

The standard for dividing mineral reserves into large- and medium-scale reserves shall be set by the mineral reserves approval agency of the State Council.

Article 17

Mining areas which are to be exploited under the state plan, those which are of great value to the national economy and special kinds of minerals for which protective mining is prescribed by the state, shall be exploited by the state in a planned way. No unit or individual may be permitted to exploit them without the approval of the department in charge under the State Council.

Article 18

After defining, according to law, the limits of the mining areas that are to be exploited under the state plan, mining areas that are of great value to the national economy and mining areas of mining enterprises, the competent departments responsible for defining such areas shall inform the relevant people's government at the county level to make a public announcement.

Any change in the mining area of a mining enterprise must be reported to and approved by the original approval department, and a new mining licence must be obtained from the department that issued the original mining licence.

Article 19

Local people's governments at various levels shall take measures to maintain the normal order in mining areas of state-owned mining enterprises and other mining enterprises which are located within their administrative regions.

No unit and individual may enter and mine in mining areas of state-owned mining enterprises and other mining enterprises which are established by others according to law.

Article 20

Unless approved by the competent department authorized by the State Council, no one may exploit mineral deposits in the following places:

(1)

within demarcated areas of harbours, airports and national defence projects or installations;

(2)

within a certain distance from important industrial districts, largescale water conservancy works or municipal engineering installations of cities and towns;

(3)

within certain limits on both sides of railways and important highways;

(4)

within certain limits on both sides of important rivers and embankments;

(5)

nature reserves and important scenic spots designated by the state, major sites of immovable historical relics and places of historical interest and scenic beauty that are under state protection; and

(6)

other areas where mineral exploitation is forbidden by the state.

Article 21

If a mine is to be closed down, a report must be prepared with information about the mining operations, hidden dangers, land reclamation and utilization, and environmental protection, and an application for approval must be filed in accordance with the relevant state provisions.

Article 22

If, in the course of mineral exploration or exploitation, rare geologic phenomena or ancient cultural remains of major scientific and cultural value are discovered, they shall be protected and reported immediately to the relevant departments.

Chapter III Mineral Exploration

Article 23

Regional geologic surveys shall be carried out in accordance with the unified state plan. Reports on regional geologic surveys and the appended maps and other data shall be examined and accepted according to state regulations and then provided to relevant departments for use.

Article 24

In conducting a general survey of mineral resources, while surveying for the chief kind of mineral deposits, a preliminary comprehensive assessment shall be made of the minerogenetic conditions involving all paragenetic or associated mineral ores and of the economic perspective of those mineral ores in the area being surveyed.

Article 25

In prospecting for mineral deposits, a comprehensive assessment of the paragenetic and associated mineral ores of commercial value within the mining area must be made and their reserves calculated. Any prospecting report without such comprehensive assessment shall not be approved. However, an exception shall be made of the mineral deposit prospecting items for which the planning department of the State Council has made other stipulations.

Article 26

In conducting general surveys and prospecting of special kinds of fragile non-metallic minerals, fluid minerals, combustible, explosive and soluble minerals and minerals containing radioactive elements, methods prescribed by the competent departments of people's governments at or above the provincial level must be used, and necessary technical installations and safety measures must be provided.

Article 27

The original geological record, maps, and other data of mineral exploration, rock cores, test samples, specimens of other material objects, and various exploration marks shall be protected and preserved in accordance with the relevant provisions.

Article 28

Prospecting reports on mineral deposits and other valuable exploration data shall be provided for use with compensation in accordance with the provisions made by the State Council.

Chapter IV Mineral Exploitation

Article 29

In exploiting mineral resources, a mining enterprise must adopt rational sequence and methods of mining and the proper ore-dressing technology. The recovery rate and impoverishment rate in mining and recovery rate in ore-dressing of a mining enterprise shall meet the design requirements.

Article 30

While exploiting the chief mineral deposit, its paragenetic and associated mineral ores having commercial value shall be comprehensively exploited and utilized in accordance with a unified plan, so as to avoid waste. Effective protective measures shall be adopted to avoid loss and damage to ores that cannot be exploited in a comprehensive way or that must be exploited simultaneously but cannot be comprehensively utilized for the time being, and to tailings containing useful components.

Article 31

In exploiting mineral resources, it is essential to abide by the state provisions for labour safety and hygiene and have the necessary conditions to ensure safety in production.

Article 32

In exploiting mineral resources, it is essential to observe the legal provisions on environmental protection to prevent pollution of the environment.

In mining mineral resources, attention shall be paid to using land economically. In case cultivated land, grassland or forest land is damaged owing to mining, the relevant mining enterprise shall take measures to utilize the lands affected, such as by reclamation, tree planting and grass planting, as appropriate to the local conditions.

Anyone who, in mining mineral deposits, causes losses to the production and livelihood of other persons shall be liable to compensation and adopt the necessary remedial measures.

Article 33

Before the construction of railways, factories, reservoirs, oil pipelines, transmission lines and various large structures or architectural complexes, the units responsible for the construction must obtain information from departments in charge of geology and mineral resources under the people's governments of provinces, autonomous regions, or centrally administered municipalities where the units are located, about the distribution and mining of mineral resources in the areas where the construction projects are to be built. Those projects shall not be built over important mineral deposits unless approved by departments authorized by the State Council.

Article 34

As prescribed by the State Council, mineral products to be purchased exclusively by designated units may not be purchased by any other units or individuals; excavators of such minerals shall not sell their products to non-designated units.

Chapter V Collective Mining Enterprises and Mining by Individuals

Article 35

The state shall adopt a policy of vigorous support, rational planning, correct guidance and powerful administration with regard to collective mining enterprises and mining by individuals. It shall encourage collective mining enterprises to exploit mineral resources within the areas designated by the state, and permit individuals to exploit scattered and dispersed mineral deposits, as well as sand, stone and clay usable only for common building materials, and small amounts of minerals for their own use in daily life.

Individuals are prohibited from exploiting mineral resources which reserves are suitable for a mining enterprise to mine, special kinds of minerals for which protective mining is prescribed by the state, and other mineral resources for which mining by individuals is prohibited by the state.

The state shall direct and help collective mining enterprises and individual miners to raise unceasingly their technical level, and to increase the mineral resource utilization rate and economic effects.

Departments in charge of geology and mineral resources, geological units and state-owned mining enterprises shall, on the principles of vigorous support and mutual benefit, provide geological data and technical service with compensation to collective mining enterprises and individual miners.

Article 36

Existing collective mining enterprises, located within the mining area of a mining enterprise which is to be established with the approval of the State Council or the relevant department in charge under the State Council, shall be closed down or carry on mining in other designated places. The unit that undertakes to open the mine shall give rational compensation to the closed-down enterprise and make appropriate arrangements for the masses' livelihood. According to its overall arrangement, the state-owned mining enterprise may also enter into joint operation with the collective mining enterprises.

Article 37

Collective mining enterprises and individuals engaged in mining shall raise their technical level and increase the mineral recovery rate. Abusive or wasteful exploitation which is destructive to mineral resources shall be forbidden.

Collective mining enterprises must survey and draw maps showing the correlation between surface and underground workings.

Article 38

People's governments at and above the county level shall direct and help collective mining enterprises and individuals engaged in mining in carrying out technological transformation, improving business management and ensuring safety in production.

Chapter VI Legal Liability

Article 39

Anyone who, in violation of the provisions of this Law, mines without a mining licence, enters without authorization and mines in mining areas that the state has planned to develop, or in mining areas with ores of significant value to the national economy, or exploits special kinds of minerals that the state has prescribed for protective exploitation shall be ordered to stop excavation, compensate for the losses caused, have his extracted mineral products and unlawful proceeds confiscated, and may be fined concurrently. If the party refuses to stop mining and thus causes damage to mineral resources, the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law.

Any unit or individual who enters and mines in mining areas of the state-owned and other mining enterprises which are established by others according to law shall be punished according to the provisions of the preceding paragraph.

Article 40

Anyone who mines beyond the approved limits of his mining area shall be ordered to return to his own area and compensate for the losses caused, shall have the mineral products extracted outside his area and his unlawful proceeds confiscated, and may be fined concurrently. If the offender refuses to return to his own mining area and causes damage to mineral resources, his mining licence shall be revoked and the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law.

Article 41

Anyone who steals or seizes mineral products or other property of mining enterprises or exploration units, damages mining or exploration facilities, or disrupts order in production and other work in mining areas or in areas of exploration operation shall be investigated for criminal responsibility in accordance with relevant provisions of the Criminal Law; if the circumstances are obviously minor, the offender shall be punished in accordance with relevant provisions of the Regulations on Administrative Penalties for Public Security.

Article 42

Anyone who sells, leases or transfers mineral resources by other means shall have his unlawful proceeds confiscated and be fined.

Anyone who, in violation of the provisions of Article 6 of this Law, resells rights of exploration and mining for profit shall have his unlawful proceeds confiscated, be fined and have his exploration and mining licences revoked.

Article 43

Anyone who, in violation of the provisions of this Law, purchases or sells mineral products which are to be purchased exclusively by the state shall have such products and his unlawful proceeds confiscated and may be fined concurrently. If the circumstances are serious, criminal responsibility shall be investigated in accordance with the provisions of Article 117 and 118 of the Criminal Law.

Article 44

Anyone who, in violation of the provisions of this Law, exploits mineral resources in a destructive way shall be fined and may have his mining licence revoked; If heavy damage has been caused to mineral resources, the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law.

Article 45

The administrative penalties prescribed in Articles 39, 40 and 42 of this Law shall be decided by departments in charge of geology and mineral resources under the people's governments at or above the county level within the limits of their authority prescribed by the department in charge of geology and mineral resources under the State Council. The administrative penalties prescribed in Article 43 shall be decided by administrative departments for industry and commerce under the people's governments at or above the county level. The administrative penalties prescribed in Article 44 shall be decided by departments in charge of geology and mineral resources under the people's governments of provinces, autonomous regions, or municipalities directly under the Central Government. The penalty of revoking the exploration and mining licences shall be decided by the departments that issue the licences.

If any department fails to give an administrative penalty, when it ought to do so in accordance with the provisions of Articles 39, 40, 42 and 44, the department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to order it to make corrections or shall directly give the administrative penalty.

Article 46

A party who refuses to accept the decision on administrative penalties may apply for reconsideration according to law or may directly bring suit in a people's court according to law.

If the party neither applies for reconsideration nor brings suit in a people's court nor complies with the decision on administrative penalties within the time limit, the agency that made the decision shall request the people's court to compel execution of the decision.

Article 47

If any of state functionaries who supervises and administers the exploration and exploitation of mineral resources or any of other relevant state functionaries, by engaging in malpractice for his personal gains, abusing his power or neglecting his duty and in violation of the provisions of this Law, grants an approval of the exploration and exploitation of mineral resources and issues exploration and mining licences, or fails to check and punish the unlawful mining activities according to law, when a crime has been constituted, the offender shall be investigated for criminal responsibility according to law; a disciplinary sanction shall be given when the action does not constitute a crime. The department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to withdraw the exploration and mining licences issued unlawfully.

Article 48

Whoever by means of force or threat obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law shall be investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law. If anyone, without resorting to force and threat, refuses or obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law, the public security organ shall punish him in accordance with the provisions of the Regulations on Administrative Penalties for Public Security.

Article 49

Disputes over the limits of mining areas between mining enterprises shall be settled by the parties through consultation; if no agreement is reached through consultation, the relevant local government at or above the county level shall handle the case on the basis of the limits that have been verified and fixed according to law. Disputes over the limits of mining areas that straddle provinces, autonomous regions, or municipalities directly under the Central Government shall be settled by the people's governments of the relevant provinces, autonomous regions, or municipalities through consultation. If no agreement is reached through consultation, the disputes shall be settled by the State Council.

Chapter VII Supplementary Provisions

Article 50

If there are other provisions in laws and regulations concerning the exploration and exploitation of mineral resources with foreign investment, such provisions shall apply.

Article 51

Before this Law goes into effect, anyone who exploited mineral resources without going through approval procedures, having the mining area delimited and obtaining a mining licence shall complete the formalities in accordance with relevant provisions of this Law.

Article 52

Rules for the implementation of this Law shall be formulated by the State Council.

Article 53

This Law shall go into effect on October 1, 1986.

Attachment: Related articles in the Criminal Law

Article 117

Whoever engages in speculation in violation of the laws and regulations on the control of monetary affairs, foreign exchanges, gold and silver, or on the administration of industrial and commercial affairs, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, or he may concurrently or exclusively be sentenced to a fine or confiscation of property.

Article 118

Whoever makes a regular business of smuggling or illicit speculation, smuggles or speculates in huge amounts or is the ringleader of a group that smuggles or engages in illicit speculation shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years, and may concurrently be sentenced to confiscation of property.

Article 156

Whoever intentionally destroys public or private property, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or a fine.

Article 157

Whoever by means of force or threat obstructs a state functionary from carrying out his functions according to law or refuses to carry out legally effective judgments or orders of people's courts shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, a fine or deprivation of political rights.

Article 158

It shall be prohibited for anyone to disturb public order by any means. If the circumstances of the public disturbance are so serious that work, production, business, education or scientific research cannot be conducted and the state and society suffer serious losses, the ringleaders shall be sentenced to fixed-term imprisonment of not more than five years, criminal detention, public surveillance or deprivation of political rights.