It is reported that information on exploration and mining activities conducted by mining right holders is voluntarily disclosed by the enterprises themselves and proactively subject to oversight. Meanwhile, the Ministry of Natural Resources conducts spot checks or verifies reports received, and maintains a “blacklist.”

　　On April 28, the Economic Observer learned from the Ministry of Natural Resources that the “Scheme for the Survey and Assessment System of the Level of Mineral Resource Development and Utilization” (hereinafter referred to as the “Scheme”) will be submitted to the central authorities by the end of this year. This system comprises four major modules, with the evaluation system and the regulatory system being the two most important aspects. In the evaluation system module, the focus is on assessing the conservation and comprehensive utilization of mineral resources, with the key indicators being the “three rates” for minerals—namely, the mining recovery rate, the ore dressing recovery rate, and the comprehensive utilization rate. In the regulatory module, the Ministry of Natural Resources proposes implementing a system for publicly disclosing exploration and mining information of mineral rights holders.

　　Yu Haifeng, Director of the Department of Mineral Resource Reserves at the Ministry of Natural Resources, told the Economic Observer on April 29, “We are preparing according to modular approaches—once a module matures, we’ll first launch a pilot program for it. Currently, the system for publicly disclosing exploration and mining information by mineral rights holders has made breakthrough progress. Starting July 1, Zhejiang, Heilongjiang, and Hubei provinces will serve as pilot regions, and next year, the system will be rolled out nationwide.”

　　Currently, China still urgently needs to improve the efficient and intensive use and comprehensive utilization of mineral resources. The Ministry of Natural Resources’ vigorous promotion of this “Plan” is precisely aimed at accelerating the shift in mineral extraction from extensive practices toward more efficient and intensive utilization.

　　It is reported that information on exploration and mining activities conducted by mining right holders is voluntarily disclosed by the enterprises themselves and proactively subject to oversight. Meanwhile, the Ministry of Natural Resources conducts spot checks or verifies reports received to compile a “blacklist.” This “blacklist” includes two categories: an “abnormal list” and a “serious violation list.” Mining enterprises listed on the abnormal list are required to make rectifications; those failing to meet the required standards will be added to the serious violation list.

　　Evaluation System

　　It is understood that the Ministry of Natural Resources is currently working to establish a system for surveying and assessing the level of mineral resource exploration and utilization. This system will dynamically track and evaluate mining enterprises’ performance in meeting the “three rates” indicators, incorporating these evaluations into the public disclosure system for exploration and mining information of mining right holders and directly linking them to the creditworthiness of such holders. At the same time, as an important consideration in the reform of the rights and royalties system, this assessment will also be closely linked to the economic benefits of mining enterprises.

　　The “three rates” of mineral resources—namely, the mining recovery rate, the ore dressing recovery rate, and the comprehensive utilization rate—were standardized last October in the “Technical Indicators for Comprehensive Utilization of Mineral Resources and Their Calculation Methods,” issued by the Ministry of Natural Resources. These “three rates” have been established as industry-wide evaluation indicators, and work has begun to develop specific standards for the “three rates” of key minerals, which will serve as binding “red lines” governing how mining enterprises exploit and utilize mineral resources.

　　Currently, the Ministry of Natural Resources has completed the formulation of minimum standards for the “three rates” of 27 mineral resources. In accordance with the principle of full coverage of key mineral types, during the 13th Five-Year Plan period, additional “three rates” standards for 25 more mineral types will be studied and developed in succession.

　　According to information obtained by the Economic Observer from the Ministry of Natural Resources, two thresholds—known as the red line and the leading-line—will be established based on mining enterprises’ performance in meeting the “three-rate” indicators, thereby refining the reward and punishment mechanism. Mining enterprises falling below the red line will be placed on a blacklist, while those exceeding the leading-line will receive policy support, including reductions or exemptions from resource taxes and access to incentive funds.

　　Recently, the State Administration of Taxation has been actively promoting reforms to the resource tax. The core of these reforms is to encourage and support mining enterprises in conserving and efficiently utilizing resources. Currently, the Administration has jointly issued with the Ministry of Finance the "Notice on Implementing the Coal Resource Tax Reform Policy," which provides tax reductions for mining enterprises that adopt backfilling mining techniques and thereby increase the recovery rate of raw coal extraction.

　　Yu Haifeng said, “We plan to further discuss with the State Administration of Taxation and explore ways to develop policies—such as granting reductions or exemptions in resource taxes—that would incentivize mining enterprises to adopt advanced and appropriate technologies and thereby improve the ‘three rates’ indicators for mineral resources. By fully leveraging economic tools, we can promote the widespread application of advanced and appropriate technologies and enhance the efficiency of mineral resource utilization.”

　　In recent years, as China’s economic growth has slowed down, demand for mineral resource products has declined, causing prices to plummet sharply. As a result, the mining industry has entered a “cold winter.” The development model that relied heavily on massive resource investments and extensive resource utilization has become unsustainable, prompting mining companies to increasingly seek ways to reduce costs and improve efficiency. Yu Haifeng said, “It’s fair to say that most of the easily accessible mines in our country have already been exhausted; what’s left are the harder-to-exploit ones. Under these circumstances, China’s recovery rate—the ratio of mined ore recovered relative to the total ore reserves—continues to rise significantly, reflecting companies’ proactive efforts to adapt to adjustments in the mining market.”

　　To enhance the conversion and dissemination rates of advanced and applicable technologies, the Ministry of Natural Resources has established a system for publishing a catalog of promoted advanced and applicable technologies since 2012. This system enables enterprises with specific needs to identify suitable technologies and helps advanced technologies find the right enterprises to adopt them. Over the past four years, a total of four batches comprising 210 advanced and applicable technologies have been released, covering various stages of exploration, mining, beneficiation, and comprehensive utilization across fields such as energy, metals, and nonmetals.

　　Yu Haifeng told Economic Observer, “On our information platform, you can see who developed this technology, what the institution is, and who the contact person is. Enterprises can directly reach out to the technology provider for negotiations. As for whether the final technology upgrade plan will receive financial support from the national government, experts from our expert database will conduct a review.”

　　Establish a “blacklist”

　　In terms of supervision over resource conservation and comprehensive utilization in mining enterprises, the Ministry of Natural Resources will implement a system for publicly disclosing exploration and mining information by mineral rights holders, thereby strengthening oversight of mining companies.

　　It is understood that information on exploration and mining activities conducted by mining right holders is voluntarily disclosed by the enterprises themselves and proactively subject to oversight. Meanwhile, the Ministry of Natural Resources conducts spot checks or verifies reports received to compile a “blacklist.” This “blacklist” includes two categories: an “abnormal list” and a “serious violation list.” Mining enterprises listed on the abnormal list are required to make rectifications; those failing to meet the required standards will be added to the serious violation list.

　　In addition, exploration and mining information of mining right holders will be incorporated into a nationwide, unified enterprise information disclosure platform, where it will be shared with disclosure information from other government departments, thereby strengthening regulatory oversight over market entities.

　　On March 25, the State Council issued Document No. 21, calling for the improvement of the national credit information sharing platform and the gradual realization of the collection, sharing, and integration of credit information across various relevant departments. The document also emphasizes leveraging big data to enhance services for market entities and strengthen supervision during and after events, as well as reinforcing mechanisms for joint incentives for those who uphold integrity and joint penalties for those who breach trust. To this end, the State Administration for Market Regulation, together with more than 50 government departments and institutions, jointly signed the "Information Resource Sharing Agreement for the National Enterprise Credit Information Publicity System," under which information generated by various departments in the course of their official duties will be collected through effective means and integrated into a unified sharing platform. Exploration and mining information of mineral rights holders will become an integral part of this shared platform.

　　The system for publicly disclosing exploration and mining information of mining right holders will be piloted in three provinces—Zhejiang, Heilongjiang, and Hubei—starting July 1, and will be rolled out nationwide beginning next year.

　　At that time, more than 80,000 mines across the country will be brought under unified regulatory oversight. Companies found to have crossed the red line will be blacklisted, and any single violation will result in restrictions everywhere. Yu Haifeng said, “If a company is placed on the blacklist, it could face restrictions in areas such as bank loans and financial services.” □