Laws of the People's Republic of China

    Article 1  These Measures are formulated in accordance with the Mineral
Resources Law of the People's Republic of China with a view to strengthening
the administration of mineral resources exploration and survey, protecting
the lawful rights and interests of persons with mineral exploration right,
maintaining order in mineral resources exploration and survey and promoting
the development of the mining industry.

    Article 2  These Measures must be adhered to in mineral resources
exploration and survey within the territory of the People's Republic of
China and other sea areas under its jurisdiction.

    Article 3  The State practises the system of uniform area registration
administration in mineral resources exploration and survey. An area with
the delimitation of 1' longitude x 1' latitude shall be the basic unit area
of the scope of a work area in mineral resources exploration and survey.
The maximum scope of each exploration and survey project permissible for
registration shall be:

    (1)a 10-basic unit area for mineral water;

    (2)a 40-basic unit area for metal minerals, non-metal minerals and
radioactive minerals;

    (3)a 200-basic unit area for geothermal energy, coal and fluid and
gaseous minerals; and

    (4)a 2,500-basic unit area for petroleum and natural gas minerals.

    Article 4  Exploration and survey of the following mineral resources
shall be subject to the examination, approval and registration of the
competent department of geology and mineral resources under the State Council
and an exploration and survey permit shall be issued:

    (1)cross-province, cross-autonomous region and cross-municipality
directly under the Central Government mineral resources;

    (2)mineral resources within the territorial waters and other sea areas
under the jurisdiction of China;

    (3)mineral resources the exploration and survey of which are to be
conducted with investment by foreign businesses; and

    (4)the mineral resources listed in the appendix to these Measures.

    Whoever engages in the exploration and survey of mineral resources
shall be registered by the competent department of geology and mineral
resources under the State Council and issued an exploration and survey
permit upon the exaamination and consent of the organ designated by the
State Council.

    Exploration and survey of the following mineral resources shall be
subject to the examination, approval and registration of the competent
departments of geology and mineral resources of people's governments of
the provinces, autonomous regions and municipalities directly under the
Central Government and issued an exploration and survey permit, and the case
shall be submitted to the competent department of geology and mineral
resources under the State Council for the record within 10 days from the
date of issuance of the permit:

    (1)mineral resources other than those specified in the first clause and
second clause of this Article; and

    (2)mineral resources the examination, approval and registration of which
shall be subject to the competent departments of geology and mineral
resources of people's governments of the provinces, autonomous regions and
municipalities directly under the Central Government authorized by the
competent department of geology and mineral resources under the State Council.

    Article 5  The exploration and survey contributer shall be the applicant
for the mineral exploration right; however, where the State contributes to the
exploration and survey, the exploration and survey unit entrusted by the State
shall be the applicant for the mineral exploration right.

    Article 6  An exploration right applicant shall, in applying for the
mineral exploration right, present the following materials to the registration
administration organ:

    (1)a letter of application for registration and a map indicating the
scope of the area to be applied for;

    (2)a photocopy of the certificate of qualification of the exploration
and survey unit;

    (3)the work plan for exploration and survey, the exploration and survey
contract or the certificate of commission for exploration and survey;

    (4)implementation schemes and appendixes for exploration and survey;

    (5)proof of the source of funding for the exploration and survey; and

    (6)other materials the presentation of which are prescribed by the
competent department of geology and mineral resources under the State Council.

    Whoever applies for the exploration and survey of petroleum and natural
gas should as well present the approval document of the State Council for
the establishment of a petroleum company or conducting of exploration and
survey of petroleum and natural gas and certificate of qualification of the
legal person of the exploration and survey unit.

    Article 7  Whoever applies for roll-on exploration and exploitation of petroleum and natural gas should present the following materials to the
registration administration organ, go through the formalities of registration
and obtain a mining permit for roll-on exploration and exploitation upon
approval:

    (1)a letter of application for registration and a map indicating the
scope of the mining area for exploration and exploitation;

    (2)the project proposal approved by the competent department of planning
under the State Council;

    (3)authentication materials for roll-on exploration and exploitation;

    (4)the report on reserves for roll-on exploration and exploitation of petroleum and natural gas approved by the examination and approval organ
of mineral reserves under the State Council; and

    (5)a utilization scheme for roll-on exploration and exploitation.

    Article 8  The registration administration organ should, within 40 days
from the date of receipt of the application, make a decision on the approval
for registration or non-registration in accordance with the principle of whoever applies first, and inform the applicant for mineral exploration right.
With respect to applicants for the exploration and survey of petroleum and
natural gas, the registration administration organ should likewise make an
announcement or respond to inquiries in time upon receipt of the applications.

    The registration administration organ should guarantee the registration
of the first-category projects in the state geological survey plan. Specific
measures shall be worked out by the competent department of geology and
mineral resources under the State Council in conjunction with the competent
department of planning under the State Council.

    In case of necessity of revision or supplement of materials by an
applicant for mineral exploration right prescribed in Article 6 of these
Measures, the registration administration organ should inform the applicant
for mineral exploration right of effecting the revision or supplement within
the specified time period.

    An applicant for mineral exploration right approved for registration
should, within 30 days from the date of receipt of the notice, pay the mineral
exploration right user's fee in pursuance of the provisions of Article 12 of
these Measures and pay the mineral exploration right purchase price for state-
contributed exploration and survey in pursuance of the provisions of Article
13 of these Measures, go through the formalities of registration, obtain the
exploration and survey permit and become the person with mineral exploration
right.

    In the case of non-registration, the registration administration organ
should explain the reasons to an applicant for mineral exploration right.

    Article 9  Any unit or individual shall be prohibited to enter the
exploration and survey operations areas of others who have obtained the
mineral exploration right in accordance with law to conduct exploration
and survey or mining activities.

    In the event of a dispute over the scope of an exploration and survey
operations area and the scope of a mining area between a person with mineral
exploration right and a person with mining right, a settlement shall be
worked out by the interested parties through consultation; in case of failure
of the consultation, an arbitration shall be made by the higher registration
administration organ among the registration administration organs that issue
permits.

    Article 10  The maximum validity of an exploration and survey permit
shall be 3 years; however, the maximum validity of an exploration and survey
permit for petroleum and natural gas shall be 7 years. In case of necessity
for an extention of the time for the exploration and survey work, the person
with mineral exploration right should, 30 days prior to the expiration of the
validity of the exploration and survey permit, go through the formalities of
registration for extention at the registration administration organ. The
duration of each extension shall not exceed 2 years.

    Any person with mineral exploration right who fails to go through the
formalities of registration for extension on expiry, the exploration and
survey permit shall be automatically annulled.

    The maximum validity of a mining permit for roll-on exploration and
exploitation of petroleum and natural gas shall be 15 years; however, for
areas with known reserves, an application shall be submitted for the
processing of a mining permit.

    Article 11  The registration administration organ should, within 10 days
from the date of issuance of an exploration and survey permit, notify the
department responsible for the administration of geology and mineral resources
of the county-level people's government of the locality wherein the
exploration and survey project is located of such particulars as the name of
the project, the person with mineral exploration right, the scope of the area
and the duration of the exploration and survey permit for which a registration
has been entered into and a permit has been issued.

    The registration administration organ should make announcements at regular
intervals on the status of exploration and survey area registration and
issuance of permits.

    Article 12  The State practises the paid-for acquisition system of mineral
exploration right. The mineral exploration right user's fee shall be
calculated according to the exploration and survey year and paid every year.

    Rates of mineral exploration right user's fee: a payment of RMB 100 Yuan
per square kilometer a year shall be effected from the first exploration and
survey year to the third exploration and survey year; an additional RMB 100
Yuan per square kilometer shall be paid from the fourth exploration and survey
year; however, the maximum amount per square kilometer shall not exceed RMB
500 Yuan a year.

    Article 13  For application for mineral exploration right of areas of
state-contributed exploration and survey and areas of known minerals, an
applicant for mineral exploration right should, in addition to the payment of
the mineral exploration right user's fee in pursuance of the provisions of
Article 12 of these Measures, also pay the mineral exploration right purchase
price for state-contributed exploration and survey confirmed after evaluation;
the mineral exploration right purchase price may be paid in lump-sum or in
instalments pursuant to relevant state provisions.

    Evaluation of the mineral exploration right purchase price for state-
contributed exploration and survey shall be carried out by evaluation agencies
certified by the competent department of geology and mineral resources under
the State Council in conjunction with the department of state assets
management; the evaluation results shall be confirmed by the competent
department of geology and mineral resources under the State Council.

    Article 14  The mineral exploration right user's fee and the mineral
exploration right purchase price for state-contributed exploration and survey
shall be collected by the registration administration organs and integrated
into state budget management in total. Specific measures for the management
and use shall be worked out by the competent department of geology and mineral
resources under the State Council in conjunction with the department of
finance and the competent department of planning under the State Council.

    Article 15  In case of any of the following circumstances, a person with
mineral exploration right shall file an application and may enjoy reduction
in or exemption from the payment of mineral exploration right user's fee and
mineral exploration right purchase price subject to the examination and
approval of the registration administration organ pursuant to the measures
for the reduction and exemption of mineral exploration right user's fee and
mineral exploration right purchase price formulated by the competent
department of geology and mineral resources under the State Council in
conjunction with the department of finance under the State Council:

    (1)categories of minerals the exploration and survey of which are
encouraged by the State;

    (2)areas the exploration and survey of which are encouraged by the State;
and

    (3)other circumstances specified by the competent department of geology
and mineral resources under the State Council in conjunction with the
department of finance under the State Council.

    Article 16  Paid-for obtainment of mineral exploration right may be
effected in the form of invitation to tender and bidding.

    The registration administration organs shall determine the areas for
invitation to tender pursuant to the terms of reference prescribed in Article
4 of these Measures, issue a tender notice and put forth bidding requirements
and date of termination; however, areas for invitation to tender from abroad
shall be determined by the competent department of geology and mineral
resources under the State Council.

    The registration administration organs shall organize the evaluation of biddings and determine the winning bidder in accordance with the principle
of selection on merit. The winning bidder shall, upon payment of the fees
prescribed in Articles 12 and 13 of these Measures, go through the formalities
of registration, obtain an exploration and survey permit, become a person
with mineral exploration right and fulfil the obligations undertaken in the
tender.

    Article 17  A person with mineral exploration right should, from the
date of obtainment of the exploration and survey permit, complete the minimum
exploration and survey input pursuant to the following provisions:

    (1)RMB 2,000 Yuan per square kilometer in the first exploration and
survey year;

    (2)RMB 5,000 Yuan per square kilometer in the second exploration and
survey year; and

    (3)RMB 10,000 Yuan per square kilometer each exploration and survey year
starting from the third exploration and survey year.

    In case of the exploration and survey input in the current year by a
person with mineral exploration right is higher than the minimum exploration
and survey input rate, the portion higher than the rate may be calculated
in the exploration and survey input of the following exploration and survey
year.

    A person with mineral exploration right should, within 30 days starting
from the date of resumption of normal exploration and survey work, submit
a report to the registration administration organ applying for the
verification and reduction of corresponding minimum exploration and survey
input owing to natural disasters and other causes of force majeure resulting
in the impossibility of carrying on normal exploration and survey work; the
registration administration organ should give an official reply within 30
days starting from the date of receipt of the report.

    Article 18  A person with mineral exploration right should, within six
months starting from the date of obtainment of the exploration and survey
permit, begin the construction; a report should be submitted to the department
responsible for the administration of geology and mineral resources of the
county-level people's government of the locality wherin the exploration and
survey project is located at the start of the exploration and survey work and
a report on the start of construction should be submitted to the registration
administration organ.

    Article 19  A person with mineral exploration right may apply for
exploitation upon discovery of complex-type mineral deposits conforming to
the state-prescribed requirements that exploitation should be proceeded
along with exploration in the process of exploration and survey during the
period of validity of the exploration and survey permit and go through the
formalities of registration for mining upon approval of the registration
administration organ.

    Article 20  A person with mineral exploration right should, in case of necessity of trial exploitation during the exploration and survey of such
fluid minerals as petroleum and natural gas, file an application for trial
exploitation at the registration administration organ and may engage in
trial exploitation for one year upon approval; in case of necessity of extension of the time for trial exploitation, formalities of registration
must be completed.

    Article 21  A person with mineral exploration right may terminate the
minimum exploration and survey input for the corresponding areas upon
ascertaining exploitable ore body during the period of validity of the
exploration and survey permit subject to the approval of the registration
administration organ and may apply for the reservation of the mineral
exploration right 30 days prior to the expiry of validity of the exploration
and survey permit. However, where there are circumstances that necessitate
postponement of exploitation by the State for public interest or there
are temporary difficulties in exploitation due to technical conditions
are exceptions.

    The maximum time period for the reservation of the mineral exploration
right shall not exceed two years. In case of necessity for the extension of the reservation period, applications for extensions may be filed twice with
each extension not exceeding two years; the scope of reservation of the
mineral exploration right shall be the scope of the exploitable ore body.

    A person with mineral exploration right should, pursuant to the provisions
of these Measures, pay the mineral exploration right user's fee during the
termination of the minimum exploration and survey input or during reservation
of the mineral exploration right.

    The exploration and survey permit should be nullified on expiry of the
period of reservation of the mineral exploration right.

    Article 22  A person with mineral exploration right should, within the
period of validity of the exploration and survey permit, apply for
registration in changes at the registration administration organ in
case of any of the following circumstances:

    (1)expansion or reduction of the scope of exploration and survey areas;

    (2)change in target(s) of the exploration and survey work;

    (3)transfer of mineral exploration right approved in accordance with law;
and

    (4)change in the name or address of the person with mineral exploration
right.

    Article 23  The exploration and survey year, the mineral exploration
right user's fee and the minimum exploration and survey input shall be
calculated consecutively for the registration of extension of mineral
exploration right and registration of the change(s).

    Article 24  A person with mineral exploration right should, within the
period of validity of the exploration and survey permit, present a report on
the completion of the exploration and survey project or a report on the
termination of the exploration and survey project to the registration
administration organ and submit statements on fund input and relevant
testimonial documents and go through the formalities of nullification
registration of the exploration and survey permit upon verification of the actual exploration and survey input by the registration administration
organ in case of any of the following circumstances:

    (1)failure to go through registration for extension or to apply for
the reservation of the mineral exploration right on expiry of the validity
of the exploration and survey permit;

    (2)whoever applies for the mining right; and

    (3)revocation of the exploration and survey project necessitated by
unforeseen reasons.

    The original person with mineral exploration right must not apply for
the mineral exploration right within the scope of areas already nullified
within 90 days starting from the date of the nullification of the exploration
and survey permit.

    Article 25  When the registration administration organ needs to
investigate the exploration and survey input and the progress in the
exploration and survey work, a person with mineral exploration right
should report truthfully and provide relevant materials, and must not
make false reports or deceptive reports, nor shall he/she refuse the
inspection.

    With respect to the request of a person with mineral exploration right
for confidentiality of materials for the application for registration,
information on the results of the exploration and survey work and the
financial statements, the registration administration organ should keep
the secrets.

    Article 26  Whoever engages in exploration and survey work without
authorization and obtainment of the exploration and survey permit or
engages in exploration and survey work beyond the approved scope of exploration and survey area(s) in violation of the provisions of these
Measures shall be ordered by the department responsible for the administration
of geology and mineral resources of people's government at or above the county
level pursuant to the terms of reference prescribed by the competent
department of geology and mineral resources under the State Council to stop
the illegal acts, administered a warning and may concurrently be imposed a
fine of less than RMB 100,000 Yuan.

    Article 27  Whoever engages in roll-on exploration and exploitation,
exploitation along with exploration or trial exploitation without approval
and authorization in violation of the provisions of these Measures shall be
ordered by the department responsible for the administration of geology and
mineral resources of people's government at or above the county level pursuant
to the terms of reference prescribed by the competent department of geology
and mineral resources under the State Council to stop the illegal acts,
administered a warning, confisticated of the illegal gains and may
concurrently be imposed a fine of less than RMB 100,000 Yuan.

    Article 28  Whoever prints or forges and use the exploration and
survey permit assuming another name without authorization in violation of the
provisions of these Measures shall be confisticated of the illegal gains
and may concurrently be imposed a fine of less than RMB 100,000 Yuan by the
department responsible for the administration of geology and mineral resources
of people's government at or above the county level pursuant to the terms of reference prescribed by the competent department of geology and mineral
resources under the State Council; where a crime has been constituted,
criminal liability shall be investigated according to law.

    Article 29  Whoever commits any of the following acts in violation of the provisions of these Measures shall be ordered to make a rectification
within the specified time period by the department responsible for the
administration of geology and mineral resources of people's government at
or above the county level pursuant to the terms of reference prescribed by the
competent department of geology and mineral resources under the State Council;
whoever fails to make a rectification on expiry of the specified time
period shall be imposed a fine of less than RMB 50,000 Yuan; where the
circumstances are serious, the organ that originally issued the permit
may revoke the exploration and survey permit:

    (1)whoever fails to submit or report the relevant information for the
record in accordance with the provisions of these Measures, refuses to
accept supervision and inspection or practises fraud;

    (2)whoever fails to fulfil the minimum exploration and survey input; and

    (3)an exploration and survey project which has already obtained the
exploration and survey permit fails to start construction on expiry of six
months, or termination of the exploration and survey work for six months
after construction without reason.

    Article 30  Whoever fails to go through the formalities of registering
the changes in the exploration and survey permit or nullification of the
registration in violation of the provisions of these Measures shall be
ordered by the registration administration organ to make a rectification
within the specified time period; whoever fails to make a rectification
on expiry of the specified time period shall be revoked of the exploration
and survey permit by the organ that originally issued the permit.

    Article 31 Whoever fails to pay the payable fees prescribed by these
Measures on time in violation of the provisions of these Measures shall be
ordered by the registration administration organ to make the payment within
the specified time period, and to pay an additional    ??   percent of fine
for delaying payment each day from the date of overdue payment; whoever
still fails to make the payment shall be revoked of the exploration and
survey permit by the organ that originally issued the permit.

    Article 32  Whoever explores and surveys petroleum and natural gas
minerals in violation of the provisions of these Measures shall be imposed
administrative penalties by the competent department of geology and mineral
resources under the State Council pursuant to the relevant provisions of
these Measures.

    Article 33  A person with mineral exploration right whose exploration and
survey permit has been revoked must not apply for mineral exploration right
again within six months from the date of revocation of the exploration and
survey permit.

    Article 34  Any functionary of a registration administration organ who
indulges in self-seeking misconducts, abuses power, neglects duties which
constitute a crime shall be investigated of the criminal liability according
to law; where a crime has not been constituted, aadministrative sanctions
shall be imposed according to law.

    Article 35  The exploration and survey permits shall be uniformly printed
by the competent department of geology and mineral resources under the State
Council. Formats of the letter of application for registration, letter of
application for registration of change(s), letter of application for
registration of reservation of mineral exploration right and letter of
application for nullification of registration shall be uniformly worked out
by the competent department of geology and mineral resources under the State
Council.

    Article 36  Whoever goes through formalities of registration for
exploration and survey should pay a registration fee pursuant to provisions.
The rates and management of fee collection and measures for their use
shall be determined by the competent department of price control under the
State Council in conjunction with the competent department of geology and
mineral resources and the department of finance under the State Council.

    Article 37  Exploration and survey of mineral resources by foreign
business investment shall be handled in pursuance of the provisions of these Measures; where there are separate specific provisions of laws and
regulations, those provisions shall prevail.

    Article 38  In case of Sino-foreign cooperative exploration and survey
of mineral resources, the cooperator on the Chinese side should, prior to
the conclusion of the contract, submit the relevant documents and materials
on areas for cooperative exploration and survey and mineral categories to
to the organ that originally issued the permit for reverification and
opinions to be signed thereon; the contract shall, upon conclusion, be
submitted to the organ that orginally issued the permit for the record.

    Article 39  Those having obtained the exploration and survey permits
prior to the implementation of these Measures shall exchange and obtain
new exploration and survey permits under uniform organization of the
competent department of geology and mineral resources under the State
Council. The mineral exploration right user's fee and the minimum exploration
and survey input shall be calculated on the basis of the first exploration
and survey year upon new registration and application for reduction or
exemption of payment may be filed pursuant to the provisions of these
Measures.

    Article 40  Whoever engages in such geological survey work as regional
geological survey, regional mineral survey, regional geophysical survey,
regional geochemical survey, aeronautic remote sensing geological survey
and regional hydrologic geological survey, regional engineering geological
survey, regional environmental geological survey and oceanographic geological
survey should report to the registration administration organ for the record.

    Artile 41  Revision of the appendix to these Measures shall be published
by the competent department of geology and mineral resources under the State
Council upon approval of the State Council after submission.

    Article 42  These Measures shall enter into force from the date of promulgation. The Interim Measures for the Registration Administration of Mineral Resources Exploration and Survey promulgated by the State Council
on April 29, 1987 and the Interim Measures for the Registration Administration
of Petroleum and Natural Gas Exploration, Survey and Exploitation approved by
the State Council on December 16, 1987 and promulgated by the Ministry of Petroleum Industry are simultaneously superseded.

    Appendix:Catalog of Mineral Categories Subject to the Examination,
Approval and Issuance of Permits of the Competent Department of Geology
and Mineral Resources under the State Council:

    1 coal                     13 chromium            25 rare earth

    2 petroleum                14 cobalt              26 phosphorus

    3 oil shale              15 iron              27 potassium

    4 hydrocarbon natural gas  16 copper              28 sulfur

    5 carbon dioxide gas       17 lead                29 strontium

    6 coal rake gas            18 zinc                30 diamond

    7 geothermal energy        19 aluminium           31 niobium

    8 radioactive minerals     20 nickel              32 tantalum

    9 gold        21 tungsten            33 asbestos

   10 silver        22 tin       34 mineral water

   11 platinum        23 antimony

   12 manganese        24 molybdenum