Wan Guotu Zi [2006] No. 55
To the Land and Resources Bureaus of all cities:
To strengthen the assessment of mineral rights in our province as well as the filing and confirmation of assessment results, and in accordance with the relevant provisions of the Ministry of Natural Resources’ “Interim Measures for the Granting and Transfer of Mineral Rights,” “Interim Measures for the Management of Mineral Rights Assessment,” and “Interim Measures for the Administration of Mineral Rights Assessment Qualifications,” we hereby notify you of the following requirements. Please comply accordingly.
I. Scope of Mineral Rights Valuation
In the following circumstances, mineral rights shall be assessed by an institution qualified to conduct mineral rights evaluations. The assessment results shall be confirmed or filed with the land and resource reserve management department at or above the provincial level. The confirmation or filing results shall serve as the basis for determining the price of mineral rights or the reserve price for their transfer.
1. Mining rights that have already been established but have not yet been compensated and disposed of;
2. Mining rights for mineral deposits formed by state-funded exploration, transferred through the approval of applications;
3. Establish a new mining right through the approval of an application;
4. Applications for expanding the boundaries of existing mining rights that have already been filed for registration changes;
5. Mining rights transferred through bidding, auction, and listing procedures must be evaluated to determine the reserve price or minimum acceptable price.
Document No. Wan Guotu Zi [2005] No. 27 identifies 19 non-metallic mineral types for which the benchmark price has been established. For Class B minerals (i.e., ordinary construction sand, stone, and clay) that meet the aforementioned criteria, as well as for Class A minerals with small-scale resource reserves (based on cumulatively identified reserves) and sporadic resources, the municipal departments of land and resources may entrust assessment agencies or organize appraisers or experts specializing in mining rights to conduct mining right assessments based on the benchmark price. The assessment results shall be confirmed or filed by the land and resources management departments of each municipality and subsequently reported to the competent department of the provincial authorities for record.
II. Commissioning of Mineral Rights Valuation
(1) Entrustment of mineral rights valuation projects.
1. Assessment mandates for mining rights that have already been established but have not yet undergone compensated disposal. As of the date of this notice, mining rights that have been obtained and meet the conditions for retention or extension, but whose compensated disposal has not yet been completed, shall have an assessment announcement issued by the licensing authority. After the assessment agency submits a letter of intent to the licensing authority, the licensing authority will determine the specific assessment agency through market-based methods (such as bidding, lottery, or drawing lots). For large-scale projects, the bidding method may be adopted to select the assessment agency. The assessment agency shall carry out the assessment work based on the authorization letter issued by the licensing authority.
2. Commissioning of new mineral rights assessments. For mineral rights granted through bidding, auction, public listing, or approved applications, or for mining rights applications seeking expansion of the mining area, the issuing authority shall, based on the documents issued for the bidding, auction, or public listing of mineral rights, or following the approval of exploration rights establishment or the approval of delineating and expanding mining areas in mining rights applications, determine the assessment agency by referring to the procedures for commissioning assessments of already established mineral rights that have not yet been compensated and disposed of.
(2) Entrustment of mineral rights valuation projects. When a mineral rights holder transfers mineral rights over mineral deposits formed through state-funded exploration, the entrustment procedure for valuation—similar to that applied to mineral rights already established but not yet monetarily disposed of—shall be determined by the issuing authority, which will specify the particular valuation agency to be entrusted. The valuation agency shall carry out the valuation work based on the valuation entrustment letter provided by the transferor.
III. Fees for Mineral Rights Valuation
The appraisal fees for the transfer of mining rights shall be included in the transfer costs and deducted from the collected consideration.
The assessment fee for the transfer of mining rights shall be borne by the holder of the mining rights.
IV. Management of Mineral Rights Valuation
Within three business days from the date on which the mining rights appraisal agency signs a contract with the client, the agency must submit, in writing, to the provincial department responsible for the confirmation or filing of mining rights, information including the identity of the client, the appraisal object, the purpose of the appraisal, the types of minerals involved in the appraisal, and details regarding the resource reserve evaluation and filing upon which the appraisal is based. This ensures that the provincial department responsible for confirmation or filing can promptly grasp the status of mining rights appraisals within its jurisdiction and thereby carry out its confirmation and filing tasks more effectively.
V. Confirmation or Filing of Mineral Rights Valuation Results
The assessment results shall be filed or confirmed by the provincial department of natural resources and land according to relevant regulations.
(1) When the commissioning party or the appraisal agency submits an application for confirmation or filing of the appraisal report, it shall provide the following materials to the confirmation or filing authority under the provincial department of natural resources and land: the application document for confirmation or filing, the letter of authorization for appraisal, a summary of the mining rights appraisal report together with its electronic version, the full mining rights appraisal report, a valid mining rights certificate, qualification (certification) certificates of the appraisal agency and appraiser, as well as supporting documents that provide supplementary explanations to the appraisal report. For applications of a filing nature, the appraisal report filing form must also be submitted.
(2) After receiving an application for confirmation or filing, the provincial department responsible for land and resource management shall complete a compliance review of the appraisal report and related documents within 5 working days. Applications that do not meet the requirements shall be returned; those that do meet the requirements shall be reviewed by mining rights appraisers or personnel with expertise in mining rights appraisal. These reviewers shall propose a recommended value for the mining rights fee. After the confirming or filing department has synthesized the recommendations from all experts, it shall submit a proposed value to the Provincial Land and Resource Mining Administration Review Committee for approval.
(3) The confirming or filing authority shall, based on the review committee’s opinions, issue to the applicant the relevant documents indicating whether the assessment results are confirmed or filed.
(4) The expenses incurred in reviewing and evaluating the report shall be borne by the appraisal agency undertaking the appraisal project (500 yuan per expert per report).
VI. Supervision and Management of Assessment Agencies
In accordance with the “Interim Measures for the Administration of Qualifications for Mineral Rights Appraisals” issued by the Ministry of Natural Resources and the Ministry of Natural Resources, institutions conducting mineral rights appraisal work in our province shall promptly report to the provincial administrative authority for natural resources at the end of each year on the results of the annual inspection conducted by the Ministry of Natural Resources. The main contents of the report shall include basic information on the appraisal work carried out, the quality of professional practice, and whether the mineral rights appraisal reports have been filed and confirmed with the competent administrative authority for natural resources in a timely manner as required. Based on the results of the annual inspection, the provincial administrative authority for natural resources will randomly select one to two appraisal reports from among those already evaluated and entrust them to mineral rights appraisers or personnel specializing in mineral rights appraisal for re-examination. If necessary, the relevant re-examination results will be reported to the Ministry of Natural Resources.