Ministry of Natural Resources On May 30, 2022, the “Provisional Regulations on the Professional Qualification System for Mining Rights Appraisers” and the “Implementation Measures for the Professional Qualification Examination for Mining Rights Appraisers” were officially issued (Document No. [2022] 84 of the Ministry of Natural Resources). On July 1, 2022, the China Association of Mining Rights Appraisers’ “Notice on the Professional Qualification Examination for Mining Rights Appraisers” (No. 1 of 2022) was forwarded. On July 13, 2022, the China Association of Mining Rights Appraisers released the “Syllabus for the 2022 Professional Qualification Examination for Mining Rights Appraisers.” With this, all documents related to the newly established professional qualification system for mining rights appraisers have now been fully released. In the first installment of the Q&A series, we focused on answering questions regarding the categories included in the new “Mining Rights Appraisal” professional series, the professional qualification system, and the competency-based system. We also discussed the primary reasons for promoting the competency-based system and its significance. International CRIRSCO Organization. Series Q&A (Part 2) focuses on answering questions related to the competency-based personnel system and its associated changes and developments. Series Q&A (Part 3) will address the market-oriented reform of mineral resource reserves—specifically, content related to the proactive development of a market service system for mineral resource reserve evaluation.

    1. After the market-oriented reform, those previous matters, Are the administrative authorities no longer directly conducting reserve evaluations and filings for mineral resources?

◎ Retention of exploration rights, change of mineral type

◎ Renewal, transfer, and assignment of prospecting rights and mining rights

◎ Delimit the mining area.

◎ Identification and Registration of Proven and Contingent Reserves

◎ Mine closure

    2. After the market-oriented reform, are the previous evaluations of mineral resource reserves—being market-driven activities—suitable for market-based evaluation?

◎ IPO financing, mergers and acquisitions, and mineral rights transfers

◎ Contributing mining rights as capital or entering into cooperative ventures, and mortgage loans secured by mining rights.

◎ Estimation and assessment of mineral resource reserves involved in public interest matters such as state-owned assets, as well as market activities including overseas exploration and mining.

◎ and matters no longer subject to direct review by the aforementioned administrative authorities

    3. Cancellation of qualifications for geological exploration units and After the market-oriented reform of mineral resource reserve management, if the business scope registered on the business license includes categories such as “mineral resource reserve estimation and report preparation services” and “mineral resource reserve evaluation services,” what kinds of reminders and information will the Market Supervision Administration provide?

(1) Mineral resource reserve estimation and report preparation services. The classification is “7249 Other Professional Consulting and Investigation”; the business license states: “Mineral resource reserve estimation and report preparation services (must be registered and filed with the China Mining Rights Appraiser Association before engaging in business activities)”; backend prompt: “According to...” “Opinions of the Ministry of Natural Resources on Promoting Reform of Mineral Resource Management—Several Issues (Trial)” (Natural Resources Regulation [2019] No. 7), conducted upon the entrustment of the client. Business activities related to mineral resource reserve estimation and report preparation services.

(2) Mineral resource reserve evaluation services. The category is “11 Mining Specialization and Supporting Activities”; the business license states: “Mineral Resource Reserve Evaluation Services (must be registered and filed with the China Association of Mineral Rights Appraisers before engaging in business activities)”; backend prompt: “Based on…” The “Opinions of the Ministry of Natural Resources on Promoting Reform of Mineral Resource Management—Several Issues (Trial)” (Natural Resources Regulation [2019] No. 7) stipulates that institutions with the capability to conduct mineral resource reserve assessments, upon receiving a commission from the client, shall organize professional personnel specializing in mineral resource reserve assessment to review the mineral resource reserve report submitted by the client and the estimates contained therein. Conduct compliance and reasonableness reviews, re-examinations, and comments on resource quantities and reserves, and provide independent, objective, truthful, and standardized assessment results or advisory opinions, issuing a “...” Mineral Resource Reserve Assessment Report 》and other professional conduct. ”

The above information indicates: First, although it has been canceled... Geological exploration unit qualifications, but engaged in First, institutions engaged in mineral resource reserve estimation, report preparation, and evaluation must complete the registration and filing procedures. Second, the activities of “mineral resource reserve estimation, report preparation, and evaluation” have been defined. Third, “mineral resource reserve evaluation” is currently also referred to as “market review”—that is, a mineral resource reserve review service provided to market entities, including those mandated by law (such as... Going public for financing ) and non-statutory (such as the transfer of mining rights that do not involve state-owned assets).

4. What are the newly defined mineral resource reserve reports?

A mineral resource reserve report refers to documents including mineral exploration reports, mineral resource reserve verification reports, and assessment reports on the overlying of important mineral resources in construction projects. Professional reports such as mine closure geological reports and geothermal resource assessment reports, which include estimates and evaluations of resource quantities and reserves. That is to say: There are mainly the five types of mineral resource reserve reports mentioned above.

5. How are mineral resource reserve evaluation agencies defined? As mineral resource reserves... Market-oriented reform, What has become of the previous mineral resource reserve evaluation agencies?

A mineral resource reserve assessment agency refers to an entity established in accordance with laws and regulations, possessing the capability to conduct mineral resource reserve assessments, independently assuming responsibility, and having joined... The specialized committee on mineral resource reserves of the China Association of Mining Rights Appraisers.

First, when the China Association of Mineral Rights Appraisers was established in 2006, according to the document transferring tasks from the former Ministry of Land and Resources to the China Association of Mineral Rights Appraisers, the review of mineral resource reserves was included within the scope of industry self-regulatory management by the China Association of Mineral Rights Appraisers. Second, according to... Mineral resource reserves Market-oriented reform design, intended for original market reviewers. The mineral resource reserve review agency will be transformed into a mineral resource reserve evaluation agency.

6. What are the requirements for applying to become a mineral resource reserve evaluation agency? How do I apply?

According to the “Notice on Issuing the ‘Administrative Measures for the Evaluation of Professional Competencies of Members of the Mineral Resource Reserves Specialized Committee of the China Association of Mining Rights Appraisers (Trial)’” dated August 19, 2021 (Min Ping Xie Fa [2021] No. 8), the application requirements for institutions are:

(1) Possess independent legal personality and a fixed workplace.

(2) Possess 7 individual members with senior-level or higher qualifications in mineral resource reserves.

(3) Establish a comprehensive quality risk prevention and control system.

(4) Possess the corresponding capability to independently carry out mineral resource reserve evaluation services.

The applying organization must first apply to join the Mineral Resource Reserves Professional Committee of the China Association of Mining Rights Appraisers and become a corporate member. Corporate members may voluntarily apply for professional competency assessment; upon passing the assessment and certification, they will obtain the “Member Professional Competency Assessment Certificate.” According to the regulations of the Administration for Market Regulation, only organizations holding this certificate are permitted to engage in market evaluation services for mineral resource reserves.

7. As a corporate member of the Mineral Resources Reserves Professional Committee of the China Association of Mining Rights Appraisers, you are free to voluntarily apply for professional competency assessment—can you submit your application at any time, or is it done in batches? How many batches have been conducted so far? Where can I obtain the application materials?

Apply by batch. The second batch of applications is currently underway. The deadline is September 30, 2022.

The application materials can be accessed by logging in. Download from the website of the China Association of Mining Rights Appraisers (www.camra2006.org.cn).

8. The “…” in the application requirements for institutions Professional individual member with advanced-level or higher mineral resource reserves expertise What does that mean?

This brings us to the concepts of “competent persons” and the “competent person system.” According to the “Provisional Measures for the Registration and Filing of Competent Persons of the Mineral Resource Reserves Professional Committee of the China Association of Mining Rights Appraisers” (Min Ping Xie Fa [2021] No. 10), a competent person is defined as follows: a professional who holds either the senior member or distinguished member status in the Mineral Resource Reserves Professional Committee of the China Association of Mining Rights Appraisers (hereinafter referred to as the Reserves Committee), or who holds membership in a “recognized overseas professional organization” accredited by the China Association of Mining Rights Appraisers, and who personally—or under their supervision—estimates resource quantities and reserves and prepares technical reports. Currently, individual members of the Reserves Committee are categorized into basic members, senior members, and distinguished members. Starting from 2020, the Association has been accepting applications from qualified professionals across various specialties and at all levels in the mining sector at any time, allowing them to join as individual members.

9. Why is it said that mining rights appraisers are the only nationally recognized professional qualification in the field of geology and mineral resources established by the state?

The “New Mining Rights Evaluator” integrates the roles of the former Mineral Resource Reserve Evaluator, Mining Rights Evaluator, and the previously proposed Registered Geologist. As such, it is the sole nationally recognized professional qualification in the field of geology and mineral resources established by the state.

10. How many organizations have currently obtained member professional competency assessment certificates? Are there any such organizations in Zhejiang Province?

July 18, 2022 Issued by the China Association of Mineral Rights Appraisers Announcement on the List of Units That Have Successfully Passed the Professional Competency Assessment for the First Batch of Mineral Resource Reserve Evaluation Members: Currently, 31 institutions nationwide have obtained certificates for member professional competency assessment. Among them, the institution in Zhejiang Province that has received certification is Hangzhou Boyuan Mineral Technology Consulting Co., Ltd.

(Author: Executive Director of the China Association of Mining Rights Appraisers, Deputy Chairperson of the Professional Committee on Mineral Resource Reserves, Deputy Chairperson of the Professional Committee on Mining Rights Appraisal, Senior Member in Mineral Resource Reserves, and Senior Industry Expert )

Conclusion

Judging from the content of the series of Q&A statements, As mentioned in the “Opinions of the Ministry of Natural Resources on Promoting Reform of Mineral Resource Management—Trial Measures” (Natural Resources Regulation [2019] No. 7), the term “ Actively cultivate a market service system for mineral resource reserve evaluation. ” has already been implemented and is about to begin operation. This system encompasses coordination and administrative management among national vocational qualifications and competency frameworks, industry organizations, practice regulations, and administrative authorities; at the same time, it corresponds to... The CRIRSCO organization has established a China-specific third-party service system—comprising three fundamental requirements for applicant countries or regions (namely, industry organizations, a system of professional practice rules, and qualified professionals)—that is aligned with international standards and designed to serve China’s mining capital market.

In recent years, the China Association of Mining Rights Appraisers has introduced the “large-asset” appraisal concept. We look forward to seeing China’s “new generation of mining rights appraisers” live up to their mission!