Starting in 2012, China’s domestic investment in geological exploration has been steadily declining. As a cyclical industry, geological exploration has also seen a sharp deterioration in its situation. Particularly after the formal abolition of geological exploration qualifications in 2017, the sector plunged into a deep slump, with a cascade of problems emerging one after another: fewer projects, unstable revenues, and difficulties in finding employment...

By 2022, the situation began to show signs of a turnaround. The author has identified four positive signals that indicate good times are just around the corner. One is The field of mineral exploration has officially been included within the scope of the profession of mining rights appraisers, finally giving geologists and mining professionals their own national professional qualification. Second is Within the ecological protection red line, strategic mineral resource development activities are permitted, making mineral resource development management more scientific and better aligned with local realities. Third is The country has begun implementing a new round of strategic initiatives aimed at achieving breakthroughs in mineral exploration, and all provinces and cities are placing even greater emphasis on mineral exploration. Fourth is After many years, the turning point in domestic geological exploration investment has finally arrived, ensuring greater financial security for future exploration efforts.

In November 2021, the state released the “National Catalog of Occupational Qualifications (2021 Edition),” officially including the professional qualification of mining rights appraiser in the catalog. The implementation of this qualification is organized and carried out by the Ministry of Natural Resources and the China Association of Mining Rights Appraisers. On May 30, 2022, the Ministry of Natural Resources issued the “Interim Provisions on the Professional Qualification System for Mining Rights Appraisers” and the “Implementation Measures for the Examination of Mining Rights Appraiser Professional Qualifications,” clearly establishing a national system for evaluating the competency level of mining rights appraisers and setting forth relevant requirements and regulations.

According to the "Interim Provisions on the Professional Qualification System for Mineral Rights Appraisers," a mineral rights appraiser is a professional who engages in the exploration and physical quantity estimation of mineral resources, as well as the valuation of mineral rights and related interests. Such professionals provide clients—through relevant institutions—with reports on mineral resource reserves, valuations of mineral rights, and advisory opinions. The profession is divided into four specializations: exploration and physical quantity estimation of solid mineral resources; exploration and physical quantity estimation of oil and gas mineral resources; exploration and physical quantity estimation of water and gas mineral resources; and valuation of mineral rights. In other words, front-end areas such as mineral geological exploration have, for the first time, been included within the scope of practice for mineral rights appraisers.

The establishment of a professional qualification system for mining rights appraisers by the state is of great significance. It is currently the only national professional qualification in China’s geological and mineral resources sector. This system plays a crucial role in standardizing the management of the geological exploration industry, improving the integrity framework of the mining market, strengthening the development of specialized technical personnel in the geological exploration sector, enhancing the core competitiveness of geological exploration institutions, and promoting high-quality development of the geological exploration sector.

On August 19, the Ministry of Natural Resources, the Ministry of Ecology and Environment, and the National Forestry and Grassland Administration jointly issued the “Notice on Strengthening the Management of Ecological Protection Red Lines (Trial).” The Notice clarifies that exploration activities conducted by prospecting rights holders who have legally established or newly obtained prospecting rights for strategic minerals—including chromium, copper, nickel, lithium, cobalt, zirconium, potash salts, and (medium-) heavy rare earth minerals—may be registered. Furthermore, if exploration activities are carried out due to national strategic needs and are subsequently converted into mining activities, mining rights registration may also be processed.

In geological surveys and exploration and mining of mineral resources—including public-interest activities such as basic geological surveys and prospective surveys for strategic mineral resources—uranium exploration and mining activities may be registered for mining rights. For oil and gas exploration rights that have been legally established, ongoing exploration activities may be subject to renewal, modification (excluding expansion of the exploration block boundaries), retention, or cancellation. Once commercially viable oil and gas resources are discovered and their reserves are confirmed, the surface or offshore areas proposed for mining may be reclassified, in accordance with relevant national regulations, to exclude them from ecological protection redlines. The Notice emphasizes that all the above-mentioned exploration and mining activities must implement measures to mitigate environmental impacts and strictly comply with requirements related to green exploration, green mining, and ecological restoration of mine environments.

The notice explicitly clarifies the regulatory management of geological surveys and mineral resource exploration and extraction within the ecological protection red line, which holds significant importance for China’s resource supply and the development and utilization of mineral resources.

On March 12, 2021, the full text of the 14th Five-Year Plan for National Economic and Social Development and the Visionary Goals for 2035 of the People’s Republic of China was released. The “14th Five-Year Plan and Visionary Goals for 2035” explicitly emphasizes strengthening the planning and management of strategic mineral resources, enhancing the capacity to ensure reserve security, and launching a new round of strategic actions to achieve breakthroughs in mineral exploration.

The new round of strategic actions for breakthroughs in mineral exploration will focus on strategic mineral resources, strengthen basic geological work, deepen reforms in mineral resource management, fully leverage the role of market entities, vigorously promote scientific and technological innovation, enhance the efficiency of mineral resource conservation and comprehensive utilization, advance green exploration and green mine development, intensify domestic mineral exploration efforts, and bolster our capacity to secure energy and strategic mineral resources.

On July 25, 2022, the Party Group Meeting of the Ministry of Natural Resources requested that the Party Group of the China Geological Survey strengthen basic geological surveys and mineral resource exploration, implement a new round of strategic actions to achieve breakthroughs in mineral exploration, enhance the level of mineral resource development and protection, and provide support for the nation’s energy and resource security strategy.

Localities are also stepping up efforts to advance the new round of strategic initiatives for mineral exploration breakthroughs. In Guizhou Province, the latest round of mineral exploration initiatives has already completed the comparative analysis and feasibility studies of key ore-forming belts. Over the next three five-year plans, the exploration strategy will be implemented in three stages. During the 14th Five-Year Plan period, the primary focus will be on identifying minerals related to new-energy batteries and battery materials. During the 14th Five-Year Plan period, Gansu Province will leverage its “1+2+2+2” policy framework for mineral resource exploration and development to comprehensively promote the new round of strategic initiatives for mineral exploration breakthroughs and drive high-quality development in mineral resource exploration and exploitation. Yunnan Province has fully launched its new round of mineral exploration initiatives, which will be systematically planned and deployed across the province, with a focus on solidifying the 14th Five-Year Plan, formulating the 15th Five-Year Plan, and looking ahead to the 16th Five-Year Plan, thereby coordinating geological exploration efforts throughout the province. Henan Province is also organizing expert reviews and assessments in preparation for the nation’s and Henan Province’s new round of strategic initiatives for mineral exploration breakthroughs...

On June 23, 2022, the Ministry of Natural Resources released the “2021 National Geological Exploration Report.” The report showed that in 2021, national investment in geological exploration reached 17.381 billion yuan, an increase of 7.5% over the previous year and a 1.0% rise compared to 2019, before the pandemic—a positive growth rate not seen since 2013.

In 2021, mineral exploration investments were primarily directed toward coal, gold, uranium, copper, and lead-zinc, accounting for 51.2% of total mineral exploration expenditures. The top five provinces in terms of mineral exploration funding were Inner Mongolia, Xinjiang, Heilongjiang, Guizhou, and Shaanxi. In 2021, a total of 3,419 exploration projects were carried out, representing a 1.5% increase over the previous year. The total drilling volume reached 6.37 million meters, up 20.6% year-on-year. As of the end of 2021, the number of employees working in geological exploration institutions nationwide was 428,300, an increase of 5.6% over the previous year. In 2021, these institutions achieved total revenues of 404.724 billion yuan, up 22.6% from the previous year.

The increase in exploration investment signifies that the geological exploration industry has already weathered its trough and toughest days, and a new round of industry cycle may have begun—good times are truly on the horizon!