The wise adapt to the times; the intelligent govern according to the moment.

　　In May of this year, with the official issuance and implementation of the guiding document—the "Several Opinions of the People's Government of Henan Province on Comprehensively Deepening the Reform of Mineral Resource Management"—which will steer the province’s mineral resource management and reform efforts for the coming period, Henan Province’s mineral administration has entered a new stage characterized by coordinated development between resource security and ecological civilization.

　　“This is a comprehensive and systematic guiding document specifically designed for the mineral resources sector, launched by the People’s Government of Henan Province in response to emerging trends, acting promptly and in step with the times, and fully promoting and implementing the five development concepts—innovation, coordination, green development, openness, and shared prosperity. It also underscores the strategic layout of the ‘Four Comprehensives’—completing the building of a moderately prosperous society in all respects, deepening reform across the board, governing the country according to law in all aspects, and exercising strict Party self-governance in every respect—while advancing the construction of ‘Four Henans’—a prosperous and strong Henan, a civilized Henan, a safe and secure Henan, and a beautiful Henan. This document holds great guiding significance for the management and reform of mineral resources across the province over the coming period.” Speaking about the issuance of these “Several Opinions,” Zhang Xingliao, Deputy Director of the Henan Provincial Department of Natural Resources—a veteran mineral resource administrator—expressed his deepest impressions.

　　Adapt to the times and take the initiative.

　　Henan Province is a major province rich in mineral resources and an important national base for the energy and raw materials industries. The mining industry is a traditionally strong sector in Henan Province and plays a crucial supporting role in the province’s economic and social development.

　　For many years, in order to enhance the capacity to secure mineral resources and consolidate and strengthen the advantages of the mining industry, the Henan provincial government has been continuously exploring and introducing “new policies” for mineral resource management. As early as 2004, the Henan provincial government issued the "Implementation Plan for the Consolidation of Coal and Bauxite Resources in Henan Province" (Yu Zheng [2004] No. 41), which aimed at consolidating key mineral resources in Henan Province. This initiative marked the nation’s first large-scale effort to integrate mineral resources and set an important precedent for subsequent nationwide efforts in this area. In 2008, the Henan provincial government further issued the "Several Opinions on Further Strengthening the Management of Mineral Resource Exploration and Development" (Yu Zheng [2008] No. 49), putting forward a systematic set of policy measures aimed at standardizing mineral resource management, promoting mineral exploration and development, and fostering the construction of the mining rights market. Thanks to the implementation of these two documents, Henan Province has achieved remarkable results in its mineral resource management work.

　　However, with the rapid development of the market economy and the deepening of reforms in recent years, some policies have become inadequate to meet the current needs of Henan Province’s economic and social development. In particular, in the field of mineral resources—especially regarding mine layout, industrial structure, environmental protection, safe production, and mining administration—several issues still remain and urgently require further study and resolution.

　　“In 2014, the National Audit Office conducted a special audit of the mineral resource sector in Henan Province. In March 2015, the Henan Provincial Government issued ‘Notice on Moderately Adjusting Policies for the Integration and Allocation of Key Mineral Resources in Henan Province’ (Yu Zheng [2015] No. 15), specifically addressing rectification requirements and making adjustments and standardizations to Henan’s policies on mineral resource integration and allocation,” said Lin Yingman, Director of the Mineral Development Management Division of the Henan Provincial Department of Land and Resources. “However, this ‘Notice’ did not cover other broader areas and thus could not provide comprehensive guidance for mineral resource management across the entire province. Therefore, there is an urgent need for the provincial government to issue a new, comprehensive, and systematic guiding document to lead the province’s mineral resource management and reform efforts over the coming period.”

　　The problem has emerged—so how should we tackle it? This has undoubtedly become a pressing real-world issue facing the Henan Provincial Government and the Department of Natural Resources.

　　The earlier we make reforms, the more proactive we’ll be. To implement the “Four Comprehensive” strategic layout and vigorously advance the construction of “Four Henans,” fully leveraging the decisive role of the market in the allocation of mineral resources, strengthening the government’s macro-regulatory functions, promoting the transformation and upgrading of the mining economy, enhancing our capacity to ensure mineral resource security, and fostering ecological civilization, in early 2015, the Department of Land and Resources of Henan Province, following instructions and requirements from Li Ya, Vice Governor of the Henan Provincial Government, established a special drafting group dedicated to comprehensively deepening reform of mineral resource management. Guided by the principles of “adhering to a problem-oriented approach and addressing practical issues; highlighting the role of the market and deepening management reform; strengthening supervision and oversight and tightening institutional constraints,” the group began conducting research and drafting work.

　　“Hearing widely leads to clarity.” The drafting group held symposiums in six provincial cities—including Zhengzhou and Luoyang—each bringing together representatives from local Development and Reform Commissions, Industry and Information Technology Commissions, Finance Bureaus, State-owned Assets Supervision and Administration Offices, Safety Supervision Bureaus, as well as several geological exploration units and mining enterprises, to extensively solicit and gather opinions and suggestions. The group also conducted study tours and research visits to provinces such as Zhejiang, Jiangsu, and Hunan, and systematically collected mineral resource management policies and systems issued since 2014 by the provincial governments of seven provinces including Sichuan and Guizhou, as well as new measures introduced by the land and resources authorities of six provinces including Shandong and Hebei. In conjunction with feedback from special audits, the drafting group conducted a thorough study of more than 30 pressing issues that needed to be addressed and standardized. Based on comprehensive research, the drafting group prepared a draft of the “Several Opinions.” After reporting the draft to the Provincial Joint Conference on the Management of Important Mineral Resources and making necessary revisions, the group sought comments from relevant departments—including the governments of cities under provincial jurisdiction and counties directly administered by the province, the Provincial Legal Affairs Office, the Provincial Development and Reform Commission, the Provincial State-owned Assets Supervision and Administration Commission, the Provincial Industry and Information Technology Commission, the Provincial Finance Department, the Provincial Environmental Protection Department, the Provincial Public Security Department, and the Provincial Safety Supervision Bureau—as well as from the Provincial Bureau of Geology and Mineral Resources, the Nonferrous Metals Geological Bureau, the Coalfield Geological Bureau, and selected state-owned geological exploration units and mining enterprises.

　　Meanwhile, the drafting group also separately sought the opinions of the relevant departments and bureaus under the Ministry of Natural Resources and the Ministry of Land and Resources. On August 14 and October 8, 2015, Vice Governor Li Ya convened meetings twice with the relevant provincial-level departments to further study and revise the “Several Opinions,” and provided clear and specific guidance on refining and improving these “Several Opinions.” In line with the spirit of the “Overall Plan for Reform of the Ecological Civilization System” issued by the CPC Central Committee and the State Council, they also enriched certain sections of the draft, further embodying the ecological civilization principle of prioritizing conservation and protection, and placing greater emphasis on the reform of geological exploration units and their efforts to “go global.”

　　On January 14, 2016, the Department of Land and Resources of Henan Province solicited opinions from relevant provincial departments for the fourth time and made revisions based on the feedback received. After repeated rounds of refinement and improvement, a draft was finally prepared and unanimously approved for submission to the Standing Committee of the Henan Provincial Government for deliberation.

　　Comprehensive content with substantial value.

　　It is understood that the “Several Opinions” issued this time by the Henan Provincial Government consists of six sections and 21 articles, totaling over 6,000 words. The content covers such aspects as planning and layout, market-based allocation, resource assurance, environmental protection, innovative regulation, and streamlining administration and delegating power, comprehensively addressing key issues in mineral resource management.

　　“The first part focuses on standardizing the source and controlling spatial planning,” Zhang Xingliao explained. To fully implement the overall requirements of ecological civilization construction, we are developing a new round of mineral resource plans that will optimize exploration and development layouts from the source, strictly regulate development space, and clarify the relationship between mining economic development and environmental protection. By raising the准入 conditions for mining operations and establishing a mineral resource reserve system, we will promote the intensive and efficient use of mineral resources from a technical standpoint and achieve a balanced supply-demand adjustment in the mineral sector. The “Several Opinions” explicitly propose fostering two-way integration between mineral resources—such as tungsten, molybdenum, rare and scattered metals, graphite, and high-purity quartz—and high-end technology industries, thereby extending the processing industry chain for these mineral resources.

　　The second part of the “Several Opinions” focuses on perfecting regulations for online transactions. The Opinions point out that we must fully leverage the decisive role of the market in allocating mineral resource assets. While standardizing and restricting the transfer of mining rights through agreements, we should vigorously promote online trading of mining rights. All information regarding the transfer and assignment of mining rights must be made publicly available through media such as the internet. Furthermore, we should establish a fair, just, and transparent mining rights market system that, while safeguarding the state’s mineral resource rights in accordance with the law, also promotes the healthy development of mining enterprises.

　　Henan, as a major province rich in mineral resources, has consistently placed great emphasis on strengthening geological exploration to provide robust and reliable energy resource guarantees for the rise of the Central Plains region. The third part of the "Several Opinions" focuses on exploring and securing resources to support development. It calls for fully leveraging the foundational, pioneering, and public-service roles of geological work, intensifying geological exploration efforts, expanding the scope of mineral prospecting, and promoting reform and development of state-owned geological survey institutions. By continuously implementing strategic initiatives aimed at achieving breakthroughs in mineral exploration and actively developing overseas exploration areas, we can ensure a steady supply of mineral resources to support Henan’s economic development.

　　Building a peaceful and beautiful Central Plains is also in line with the spirit of the “Several Opinions.” The fourth section highlights the importance of strictly adhering to red lines and carrying out environmental remediation. It explicitly states that we must uphold the principle of prioritizing environmental protection, strictly abide by the ecological red lines for mining activities, promote green mining technologies, advance the construction of green and harmonious mining areas, strengthen the restoration and management of mine geological environments, and enhance the reclamation of land damaged by mining operations—thereby establishing a new pattern of mineral resource development that is ecologically friendly and fosters harmony between mines and their surrounding lands.

　　To shift from the institutional practice of “one entity managing and everyone else using” to a system in which “everyone uses and everyone manages,” and to truly establish a joint responsibility mechanism for mineral exploration, development, law enforcement, and supervision characterized by clearly defined responsibilities, distinct roles, and coordinated cooperation, Section 5 of the “Several Opinions” focuses on innovative mechanisms and strengthened oversight. It further clarifies the responsibilities of relevant government departments in mineral resource management as well as those of county-level people's governments. By integrating administrative law enforcement resources across departments, the document calls for intensified joint enforcement efforts against illegal activities in the mining sector, while also strengthening and standardizing the management of intermediary agencies and mining enterprises.

　　“Regulating mineral exploration and development is a complex systematic undertaking that involves multiple departments and cannot be accomplished by any single day’s effort or the sole efforts of one department—especially at the local government levels, where primary responsibility must be borne,” said Lin Yingman.

　　The sixth part of the "Several Opinions" focuses on transforming government functions and streamlining administration by delegating power. It proposes further simplifying administration and delegating power by gradually expanding the scope of pilot programs for decentralizing approval authority and reforming the management approach for issuing permits for sand mining in river channels. It also calls for exploring reforms in technical proposal preparation and review, temporary land-use leasing for mines, and opening up the market for technical services. Moreover, it aims to improve the coordination mechanism for the overlay of important mineral resources and promote information disclosure.

　　“You could say that the ‘Several Opinions’ issued this time by the Henan Provincial Government are well-suited to both the national and provincial conditions, scientifically comprehensive, highly valuable, and endowed with strong guiding significance and practical operability,” said Zhang Xingliao.

　　Highlights abound, with numerous innovations.

　　The new policy on mineral resource management recently introduced by the Henan Provincial Government is highly exploratory and features numerous innovative elements. It will have a significant and positive impact on Henan’s mineral resource management efforts over the coming period, particularly during the 13th Five-Year Plan. Moreover, it provides a nationwide model for how to deepen reform and strengthen management in the field of mineral resources under the new circumstances.

　　“Highlighting ecological civilization and introducing new measures for protecting mine ecosystems is a major highlight of the ‘Several Opinions,’” Zhang Xingliao said. The ‘Several Opinions’ fully embody the principles of prioritizing conservation and protection. For the first time, it proposes setting ecological red lines for mining activities in mineral resource planning, putting forward new requirements on mine site layout, entry conditions, mining and beneficiation methods, geological environment management of mines, and the three key mineral efficiency indicators. It also stipulates that mining rights already established in prohibited mining areas must be phased out within a legally prescribed timeframe. Moreover, for the first time, it explicitly requires the closure of open-pit mines located within the “Three Zones and Two Lines” (the areas surrounding nature reserves, important scenic zones, and densely populated residential areas, as well as the visually visible ranges along major transportation routes, rivers, and lakes) and other specifically designated regions. The document also explores a new model of geological environment governance characterized by government leadership, social participation, and market-oriented operations.

　　The comprehensive deepening of reform, with an emphasis on the overarching principle of market-based allocation of resources, is another major highlight of the "Several Opinions." Building on a thorough review of past experiences—and lessons learned—from the integration and allocation of mineral resources in Henan Province, the "Several Opinions" underscore the decisive role of the market in resource allocation. Specifically, with the exception of key projects approved by the state, newly established mining rights will no longer be transferred via agreements; instead, all such rights will be publicly offered to the public through online trading platforms, using market competition as the primary mechanism. At the same time, the procedures and requirements for the transfer of state-owned and state-controlled mining rights are made more transparent, and new requirements are introduced for fully implementing online, public auctions of state-owned mining rights, thereby preventing backroom deals and safeguarding against the loss of state assets. Based on the current status of reform and development within provincially-owned geological exploration units, the document advocates adhering to the principles of reform and innovation, separation of government functions from enterprise operations, phased advancement according to classification, demand-driven approaches, people-centered management, and a prudent yet proactive stance. It calls for consolidating existing resources, standardizing business scopes, defining core business directions, clarifying roles and responsibilities, strengthening internal management, enhancing the quality of geological exploration services, bolstering the strength of geological exploration enterprises, and elevating both innovation capabilities and entrepreneurial levels.

　　The “Several Opinions” also place great emphasis on sustainable development, striving to provide impetus for the growth of traditional industries as well as emerging industries in new energy and new materials. Based on the fundamental judgment that, over the coming period, the energy and raw materials sectors will remain among Henan Province’s traditional strengths, the “Several Opinions” systematically balances exploration and development with conservation efforts. It proposes differentiated management policies tailored to different types of minerals and mining regions, identifies a number of key exploration and development bases, and explicitly calls for continued guidance of mineral enterprises toward resource integration, mergers, and restructuring. This aims to facilitate the alignment of mineral resources with high-end technology industries and promote the transformation and upgrading of the mining economy. At the same time, the document coordinates geological and mining development efforts more effectively, further advancing the strategic action plan for breakthroughs in mineral exploration as laid out by the State Council. It sets forth the goal of “discovering a batch of emerging minerals, identifying a batch of urgently needed minerals, stockpiling a batch of strategic minerals, developing a batch of advantageous minerals, and establishing a batch of overseas exploration and development bases,” thereby providing a sustainable resource guarantee for Henan Province’s new “four modernizations.” Among these initiatives, the establishment of mineral resource reserves, exploration of new energy and new material resources, and the creation of overseas exploration and development bases along the Belt and Road are all new strategies, measures, requirements, and concepts that reflect the adaptation of geological and mining work to the new economic normal.

　　“Adhering to a problem-oriented approach and formulating specific countermeasures to address issues affecting the development of the mining industry is one of the key highlights of the ‘Several Opinions,’” Zhang Xingliao said knowledgeably. Specifically, in response to the long-standing issue of disharmony between some mines and local communities in Henan Province, the proposal was made for the first time to build green and harmonious mining areas. To tackle the repeated review process involved in preparing mine development and utilization plans, geological environment restoration and remediation plans, and land reclamation plans, a new model has been explored—combining these plans into a single document and adopting a unified review and filing procedure. Regarding the difficulty of securing construction land for mines, a new approach has been proposed: resolving temporary land-use needs through leasing arrangements. Concerning the overlapping responsibilities in managing sand extraction from riverbeds, the principle of non-duplication of permits has been introduced: management of sand extraction from non-seasonal rivers will be handled by water administration authorities, while management of sand extraction from seasonal rivers will fall under the jurisdiction of land and resources departments. As for the challenge of coordinating construction projects that may overlay important mineral resources, a mechanism for government coordination on such overlays has been proposed, requiring city and county governments as well as land and resources departments to take proactive measures and provide services ahead of time.

　　It is particularly worth noting that the “Several Opinions” recently released by Henan Province also emphasize the principle of the rule of law and clearly define the regulatory requirements for managing, exploring, and mining minerals in accordance with the law. While stressing the importance of managing mineral resources based on mineral resource planning and in strict compliance with the law, the “Several Opinions” further clarify the conditions and requirements for the entry and exit of mining rights, standardize relevant approval procedures, simplify and consolidate prerequisite requirements, and optimize service standards. They also clearly delineate the regulatory responsibilities of various relevant departments in mineral resource management, establish the basis and standards for supervising mining right holders, underscore the necessity of joint enforcement at the grassroots level, and put forward requirements for building a credit system and promoting information sharing and transparency. In particular, the document highlights taking the implementation of the “Internet Plus” action plan as an opportunity to fully leverage modern information technologies such as big data and spatial remote sensing, thereby enhancing the levels of geological exploration and public services, improving the efficiency of mineral resource development and utilization, and boosting overall management effectiveness. In line with the principle of “combining deregulation with regulation and strengthening supervision during and after the event,” the document proposes establishing systems for public disclosure of information, blacklists, negative lists, and credit systems, thus reinforcing oversight over mining enterprises, geological exploration units, intermediary agencies, and practitioners.