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Regulations of Yunnan Province on Mineral Exploration & Mining Developed by Using Foreign investment

Regulations of Yunnan Province on Mineral Exploration & Mining Developed by Using Foreign investment

2006-11-14 11:30:42

Regulations of Yunnan Province on Mineral Exploration & Mining Developed by Using Foreign investment (Adopted at the 10th Session of the Standing Committee of the Ninth People's Congress of Yunnan Province on July 29, 1999)

Article 1. In order to promote the mining industrial economy of Yunnan province and encourage the foreign business to invest in exploring and mining mineral resources within the territory of Yunnan province, the regulation hereunder is formulated in accordance with the Mineral Resources Law of the People's Republic of China and the other pertinent laws and regulations based on the realities of Yunnan province .

Article 2. These regulations are applicable for any foreign establishment that intends to invest for exploring and mining mineral resources in Yunnan Province .

Article 3. Those provincial departments which are in charge of geology and mineral resources shall be responsible for administering the exploration and mining of mineral resources developed by using foreign investment, and provide the foreign party with necessary information for business invitation projects and the area information projects and the area information on the prospective ore district, as well as the regional geological investigation report and foundation drawing that are related to the project to be explored and mined within the province.
The local prefecture (municipal, county) people's governments shall be in charge of supervising and administering the exploring and mining mineral resources within its respective administrative area .

Article 4. Foreign business is encouraged to invest in exploring and mining mineral resources within the provincial administrative area, subject to the minerals unopened to the foreign business.
On the basis of the developed actuality of mining industry in the province, the province, the provincial people's government may designate district for establishing mining industrial development & experimental district, and work out a specific measure for administrating the mining industrial development and experimental district according to laws.

Article 5. Any foreign business shall be encouraged to sole invest in exploring and mining mineral resources, or work in association in the terms of joint funds or cooperation with other enterprises or economic entities, or invest by adopting other legal means.

The licensee of exploration or mining may revalue his given right of exploration or mining as an investment to enter jointly exploring and mining mineral resources with foreign business. The foreign establishment may acquire the right of exploration or mining by means of transfer according to law.

Article 6. A foreign business shall apply for getting registered for a block exploration and acquire the exploration right in accordance with the Management Measures for Registering Mineral Exploration Through Block System before actually getting down to the exploration.

The provincial department in charge of geology and mineral resources shall, within 20 days dating from receiving all the application materials submitted by the foreign party, give a verification report and present all the materials to the State Council for approval, or make a decision on approval or refusal the registration with the authorization granted by competent department in charge of geology and mineral resources under the State Council. For those who have acquired the approval please go through the registration within 30 days from the date of being notified and receiving the license. For those who have been rejected shall be informed with a written explanation.

The applicant with right for exploration shall be filed at the provincial origination for foreign investment within five (5) days from receiving the license.

Article 7. Any foreign business shall only use the mining right for the proved mineral resources invested by itself after being approved and filed at the provincial approval organization for foreign investment with the evidence of the necessary documents according to law.

Any foreign business that intends to invest in mining minerals shall apply for registration and acquire the mining right in accordance with the Management Measures for Registering Mineral Exploration Through Block System before mining.
The competent department in charge of geology and mineral resources under the State Council shall authorize or entrust the relevant department of the provincial GMB to complete the approval for the mineral resources to be explored and mined by using foreign investment according to the following procedures:

(1) To apply for designation of mining area. The foreign business shall apply to the provincial department in charge of geology and mineral resources for the designation of mining area with the Agreement on Joint Venture (cooperative business operation) or Intention of Cooperation and the relevant materials. The provincial department in charge of geology and mineral resources shall complete its examination and approval within 20 days from receiving the application materials. It shall make a grant to the application qualified to designate the mining area, or give a refusal to those unqualified with a written explanation.

(2) To apply for establishing an entity. Those who intend to establish a mining enterprise shall apply for approval at the examination and approval organization for foreign investment according to the mining area designated.

(3) To apply for mining registration and receiving the license for mining. The applicant for mining right shall propose a plan for the development and utilization of mineral resources based on the mining area designated, and apply to the provincial department in charge of geology and mineral resources for the mining license with the approval document issued by the examination and approval organization for foreign investment and the relevant materials. The provincial department in charge of geology and mineral resources shall make a decision on approval or refusal within 30 days from receiving the application materials. It shall notify the qualified applicant for mining right to handle the registration formalities within 30 days upon receiving notification and receive the mining license. For those who have been refused shall be informed with a written explanation.

Article 8. Foreign business shall acquire the right of exploration or mining through bidding.
The provincial department in charge of geology and mineral resources shall organize the bid invitation in accordance with the relevant provisions.

Article 9. The right of exploration or mining owned by a foreign business shall be protected by law and the aforesaid rights can be transferred according to law.

Article 10. Any foreign business involved in exploring and mining mineral resources shall abide by the laws and regulations concerning the mineral resources administration, environment protection, forest protection, land administration, mine safety, labor and labor protection.

Article 11. Any foreign business involved in exploring and mining mineral resources shall handle the formalities for temporary-use land in geological prospecting pursuant to law within the exploration area stipulated in the exploration license.

Any foreign business involved in mining shall apply for and acquire the land use right according to law.

Article 12. Any foreign business shall have the rights to refuse those who intend to share profits by revaluing the road of county or township as shares; or refuse to raise funds for building county or township road, or refuse to bear part of the construction fee for building the road of county of township, subject to the supporting road engineering for foreign invested project.

Article 13. In addition to the existing provisions, the foreign business involved in exploring and mining mineral resources is granted the following preferences:

(1) The expenses incurred in prospecting the proved deposits can be amortized annually as deferred assets in mining period;

(2) The concerned foreign party can apply for an accelerated method of depreciation for its fixed assets.

(3) For those who mine and recover the associated mineral deposits, the compensation fee will be deducted by 50%; while for those who introduce the state-of-the-art technique as the first in the province for mining and recovering the associated mineral deposits, the compensation fee will be exempted.

Article 14. Anyone who, in violation of laws, enters into a foreign business's planned mining area or block to conduct exploration or mining shall be punished by the department in charge of geology and mineral resources above the county level according to law. Should such action constitute a crime, the involved party shall be prosecuted according to law for his criminal responsibility.

Article 15. Those who act against the provisions of Article 12 of this regulations shall be urged to rectify the situation, return the illegal income and compensate for the losses brought about to the people's government or the department in charge of geology and mineral resources above the county level. Should it be a serious case, the main leader and the person directly involved shall be investigated for legal responsibility.

Those who deprive the preferences, which are deserved to the foreign business, in violation of the provisions of Article 13 set forth this regulations, shall be ordered to rectify the situation by the people's government or competent authorities at the same level or the higher level. Should the contravention fail to stop the main leader and the person directly involved shall be investigated for legal responsibility.

Article 16. These regulations are applicable for the enterprises, other economic organizations, individuals or overseas Chinese involved in exploring and mining mineral resources from Hong Kong SAR, Macao SAR or the Taiwan province within the Yunnan administrative division.

Article 17. These regulations shall be effective as of the date of proclamation.

NOTE: The English version of the Regulations of Yunnan province on Mineral Exploration and Mining Developed by Using Foreign Investment has not been confirmed by authorities concerned. If there are some not expressed definitely, please take the Chinese version as the authorized one.