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 exploitation,
protecting the lawful rights and interests of persons with mining right,
maintaining order in mineral resources exploitation and promoting the
development of the mining industry.

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

    Article 3  Exploitation 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
issuance of mining permits:

    (1)mineral resources within the state-planned mining areas and the
mining areas of essential value to the national economy;

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

    (3)mineral resources the exploitation of which are undertaken by foreign
business investment; and

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

    Whoever exploits petroleum and natural gas mineral resources shall, upon
the examination and consent of the organ designated by the State Council,
be registered by the competent department of geology and mineral resources
under the State Council and issued a mining permit.

    Whoever exploits 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 issuance of mining permits by them:

    (1)mineral resources other than those specified in the First Paragraph
and Second Paragraph of this Article the mineral reserve of which is above
the medium scale; and

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

    Whoever exploits the mineral resources other than those specified in the
First Paragraph, Second Paragraph and Third Paragraph of this Article shall
be subject to the examination, approval and registration of the departments
responsible for the administration of geology and mineral resources of local
people's governments at or above the county level and issuance of mining
permits by them pursuant to the measures for administration formulated by
the standing committees of people's congresses of the provinces, autonomous
regions and municipalities directly under the Central Government.

    In case of the scope of a mining area stretching beyond the administrative
areas at or above the county level, it shall be subject to the examination,
approval and registration of the joint registration administration organ at
the next higher level of the administrative areas involved and the issuance of a mining permit by it.

    Departments responsible for the administration of geology and mineral
resources of local people's governments at or above the county level should,
upon examination, approval and issuance of permits, report level by level to
the departments responsible for the administration of geology and mineral
resources of people's governments at the next higher level for the record.

    Article 4  An applicant for mining right should, prior to the filing of an apllication for mining right, apply to the registration administration
organ for the delimitation of the scope of the mining area on the basis of the approved report of geological survey on the reserves.

    In case of necessity of application for the listing of the project and
establishment of a mining enterprise, relevant formalities should be completed
pursuant to state provisions on the basis of the delimited scope of the
mining area.

    Article 5  An applicant for mining right should, in applying for the
processing of a mining permit, present the following materials to the
registration administration organ:

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

    (2)certificate of the human quality of the applicant for mining right;

    (3)development and exploitation scheme for the mineral resources;

    (4)approval document for the establishment of a mining enterprise in
accordance with law;

    (5)report on the evaluation of environmental impact of exploitation of the mineral resources; and

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

    Approval documents of the competent departments concerned under the State
Council should be presented as well for applications for the exploitation of mineral resources within the state-planned mining areas or mining areas
which are of essential value to the national economy and specific mineral
categories of which the State practises protective exploitation.

    An applicant for the exploitation of petroleum and natural gas should
as well present the approval document of the State Council approving the
establishment of a petroleum company or approving the exploitation of petroleum and natural gas and certificate of corporate capacity of the
mining enterprise.

    Article 6  The registration administration organ should, within 40 days
from the date of receipt of an application, make a decision on the approval
for registration or no registration and inform the applicant for mining right.

    In case of necessity for the applicant for mining right to revise or
supplement the materials specified in Article 5 of these Measures, the
registration administration organ should notify the applicant for mining
right to make the revision or supplement within the specified time period.

    An applicant for mining right should, when approved for registration,
within 30 days from the receipt of the notice, pay the mining right user's
fee pursuant to the provisions of Article 9 of these Measures and pay the
mining right purchase price formed by state-contributed exploration and
survey pursuant to the provisions of Article 10 of these Measures, go through
the formalities of registration, obtain a mining permit and become a person
with mining right.

    In case of no registration, the registration administration organ
should explain the reasons to the applicant for mining right.

    Article 7  The validity of a mining permit shall be determined according
to the scale of construction of the mine; the maximum validity of a mining
permit for a big-size mine and above shall be 30 years; the maximum validity
of a mining permit for a medium-size mine shall be 20 years; the maximum
validity of a mining permit for a small-size mine shall be 10 years. In case
of necessity of continuing exploitation on expiry of the validity of the
mining permit, a person with mining right should, 30 days prior to the expiry
of the validity of the mining permit, go through formalities of extention at
the registration administration organ.

    A person with mining right who fails to complete the formalities of extension on expiry, his/her mining permit shall be automatically annulled.

    Article 8  The registration administration organ should, upon issuance of a mining permit, inform the people's government concerned at the county level
of the locality wherein the scope of the mining area is located. The county-
level people's government concerned should, within 90 days from the date of receipt of the notice, make an announcement on the scope of the mining area,
and may, in accordance with the application of a person with mining right,
organize the installation of boundary markers or installation of ground
markers.

    Article 9  The State practises the system of paid-for obtainment of mining right. The mining right user's fee shall be paid on a yearly basis
according to the area of the scope of a mining area. The rate shall be
RMB 1,000 Yuan per square kilometer per year.

    Article 10  An applicant for mining right should, in applying for mining
right for mineral areas the exploration and survey of which are contributed by
the state and the reserve has been ascertained, pay the mining right purchase
price formed by state-contributed exploration and survey confirmed upon
appraisal as well in addition to the payment of the mining right user's fee
pursuant to the provisions of Article 9 of these Measures; the mining right
purchase price may, pursuant to relevant state provisions, either be paid in
lump sum or in installments.

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

    Article 11  The mining right user's fee and the mining right purchase
price formed by state-contributed exploration and survey shall be collected
by registration administration organs and integrated into state budget
management in total. Specific measures for their 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 12  A person with mining right may file an application and enjoy
reduction of or exemption from payment of the mining right user's fee or
the mining right purchase price subject to the examination and approval of the registration administration organ of people's government at or above the
provincial level pursuant to the measures for the reduction and exemption of the mining right user's fee and the mining 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
in the event of any of the following circumstances:

    (1)exploitation of mineral resources in border regions, remote regions
and poor regions;

    (2)exploitation of mineral categories that the State is in urgent demand
or shortage;

    (3)serious losses or suspension of production of a mining enterprise
resulting from natural disasters or other causes of force majeure; and

    (4)other circumstances specified by the competent department of geology
and mineral resources under the State Council and the department of finance
under the State Council.

    Article 13  Mining right may be obtaianed with a payment in the form of invitation to tender and bidding.

    Registration administration organs shall, pursuant to the terms of reference of the provisions of Article 3 of these Measures, determine the
scope of mining areas for invitation to tender, publish a tender notice and
set forth bidding requirements and the date of termination; however, the
scope of mining areas for invitation to tender from abroad shall be
determined by the competent department of geology and mineral resources
under the State Council.

    Registration administration organs shall organize evaluation of the
biddings and determine the winning bidder following the principle of selection
on merit. The winning bidder shall, upon payment of fees specified in Articles
9 and 10 of these Measures, go through the formalities of registration,
obtain a mining permit, become a person with mining right and fulfil the
obilgations undertaken in the tender.

    Article 14  The registration administration organ should conduct
supervision and inspection in accordance with law with respect to the
rational development and exploitation of mineral resources, environmental
protection and other legal obligations that should be fulfilled by persons
with mining right within its respective administrative area. Persons with
mining right should truthfully report the relevant information and present
annual reports.

    Article 15  A person with mining right should, within the duration of validity of the mining permit, file an application for registration of change(s) at the registration administration organ in the event of any of the following circumstances:

    (1)change in the scope of a mining area;

    (2)change in the exploitation of main mineral categories;

    (3)change in the mode of exploitation;

    (4)change in the name of a mining enterprise; and

    (5)transfer of the mining right approved according to law.

    Article 16  In case of suspension of operations or closure of a mine
within the duration of validity or on expiry of the mining permit, a person
with mining permit should, within 30 days from the date of decision on the
suspension of operations or closure of the mine, apply to the original permit
issuing authority for going through the formalities of nullification of the
registration.

    Article 17  Any unit or individual that engages in mining without
authorization and obtainment of a mining permit, or enters a state-planned
mining area and the scope of a mining area of essential value to the national
economy for mining without authorization, or exploit without authorization
specific mineral categories under protective exploitation prescribed by the
state, or engages in mining beyond the approved scope of the mining area
shall be penalized pursuant to the provisions of relevant laws and
regulations.

    Article 18  Whoever fails to present the annual report pursuant to the
provisions of these Measures, refuses to accept supervision and inspection
or practises fraud shall be ordered to stop the illegal acts, administered
a warning and may concurrently be imposed a fine of less than RMB 50,000 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 the circumstances are
serious, the mining permit shall be revoked by the original permit issuing
authority.

    Article 19  Whoever damages or shifts without authorization boundary
markers or ground markers delimiting the scope of a mining area shall be
ordered to make the restoration 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; where the circumstances are serious,
a fine of less than RMB 30,000 Yuan shall be imposed.

    Article 20  Whoever engages in printing or forgery and infringement of mining permits without authorization 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 21  Whoever fails to pay the payable fees specified in these
Measures on time in violation of the provisions of these Measures shall be
ordered by the registration administration organ to effect the payment within
the specified time period, and an additional 0.2% of delaying payment per day
shall be charged from the date of delayed payment; whoever still fails to
effect the payment on expiry of the specified time period shall be revoked
of the mining permit by the original permit issuing authority.

    Article 22  Whoever fails to go through the formalities of registering
the change(s) in the mining 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, the mining permit shall be revoked by the original
permit issuing authority.

    Article 23  Whoever engages in exploitation of petroleum and natural gas
mineral resources 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 24  A person with mining right whose mining permit has been
revoked must not re-apply for mining right within two years from the date
of revocation of the mining permit.

    Article 25  Any functionary of the registration administration organs
who indulges in self-seeking misconducts, abuses power and neglects duties
constituting a crime shall be investigated of criminal liability according to
law; where a crime has not been constituted, administrative sanctions shall be
imposed according to law.

    Article 26  Mining 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, the letter of application for
registering the change(s) and the letter of application for the nullification
of registration shall be uniformly determined by the competent department of geology and mineral resources under the State Council.

    Article 27  A registration fee shall be paid pursuant to provisions in
going through the formalities of registration for mining. The rates and
measures for their management and use shall be determined and worked out
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 28  Exploitation of mineral resources by foreign business
investment shall be handled pursuant to the provisions of these Measures;
where laws and regualtions have separate specific provisions, those provisions
shall prevail.

    Article 29  In case of Sino-foreign cooperative exploitation of mineral
resources, the cooperator on the Chinese side should, prior to the conclusion
of a contract, submit such materials as the scope of the mining area for
cooperation, mineral categories for exploitation and the scheme of
development and utilization to the original permit issuing authority
for reverification and opinions to be signed thereon; upon conclusion of the
contract, it shall be put on record at the original permit issuing authority.

    Article 30  For those who have already obtained the mining permits prior
to the implementation of these Measures, the competent department of geology
and mineral resources under the State Council shall unifiedly organize the
exchange for the obtainment of new mining permits.

    Mining enterprises established prior to the implementation of these
Measures should start to pay the mining right user's fee from the date of implementation of these Measures and may apply for reduction of or exemption
from payment pursuant to the provisions of these Measures.

    Article 31  Registration administration organs should make announcements
on the mining permits issued and the mining permits revoked.

    Article 32  The scope of a mining area referred to in these Measures
means the solid space area of the scope for exploitation of mineral resources,
the scope of distribution of parallel?? tunnel engineering facilities or the
scope of strip mining delimited by registration administration organs
according to law.

    The modes of exploitation referred to in these Measures mean underground
mining or strip mining.

    Article 33  Revision of the Appendix to these Measures shall be published
by the competent department of geology and mineral resources under the State
Council upon submission to the State Council for approval.

    Article 34  These Measures shall enter into force as of the date of promulgation. The Interim Measures for Mining Registration Administration    
of Mining Enterprises under Ownership by the Whole People promulgated by
the State Council on April 29, 1987 and Decision of the State Council on
the Revision of the Interim Measures for Mining Registration Administration
of Mining Enterprises under Ownership by the Whole People on November 22, 1990
are simultaneously superseded.

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

    1 coal    13 chronium 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