To implement the spirit of the State Council’s initiative to accelerate reform of the administrative approval system, the new requirements issued by relevant national regulatory authorities on the management of mineral rights valuation, and to adapt to recent changes in China’s mineral rights valuation practices, the China Association of Mineral Rights Appraisers has organized industry experts to revise the “China Mineral Rights Valuation Standards.” The draft for public comment has recently been completed. It is understood that this revision introduces significant changes to the structure of the Mineral Rights Valuation Standards, as well as to the basic principles, valuation methods, and valuation parameters.

　　The main revisions are:

　　First, in accordance with the “Decision of the State Council on Cancelling and Adjusting a Batch of Administrative Approval Items and Other Matters” and the relevant provisions of the Ministry of Human Resources and Social Security and the Ministry of Natural Resources regarding the professional qualification system for mining rights appraisal specialists, we have made corresponding adjustments to the relevant content of the Mining Rights Appraisal Standards and Guidelines.

　　Second, the structure of the mining rights valuation standards has undergone significant adjustments.

　　Third, the fundamental guidelines for mineral rights valuation have been significantly revised. The current guidelines on mineral rights valuation have had their flexibility reduced and their binding constraints strengthened. It is now explicitly required that mineral rights valuations must adhere to the principles of independence, objectivity, and fairness, and further standardization has been introduced in aspects such as valuation principles and objectives, valuation objects and scope, valuation basis and procedures, and valuation methods. The scope and objects of mineral rights valuation have been refined, and the professional competence required for mineral rights valuation has been reinforced.

　　Fourth, regarding mining rights valuation methods and parameter determination, the “Standards for Income-Based Valuation Methods,” the “Standards for Cost-Based Valuation Methods,” and the “Standards for Market-Based Valuation Methods” will be merged to form a new “Standards for Mining Rights Valuation Methods.” The discounted residual cash flow method and the residual profit method will be abolished, and instead, the discounted cash flow method and the discounted cash flow risk coefficient adjustment method will be introduced. 8 The evaluation methods clearly specify the applicable scope, prerequisite conditions, and application procedures for each method; they also impose stricter and more explicit requirements on the selection of evaluation parameters.