Abstract : China since 1992 Since the clear implementation of the market economy system years ago, the mining development consulting and design sector still remains in a transitional phase between the planned economy and the market economy. Compared with countries that represent the market economy, China’s mining development consulting sector—regarding qualification management and job role positioning, government regulatory roles, the status of capital, the positioning of consulting personnel and firms, working principles, and basic professional requirements—still exhibits certain differences. / There are distinct differences in a company’s positioning within the consulting services sector, as well as in the organizational structure and scope of business of consulting and design firms. This article seeks to compare these key aspects, with the hope of fostering a greater role for market-economic factors in the future development of China’s mining industry.

Keywords : Mining ; Exploration ; Development ; Market economy ; Standard specifications ; Code of Conduct

Abstract: China has clearly been developing a market economy since 1992. ， However, mining consulting and design are still in the transition from a planned economy to a market economy.   Compared with the countries representative of market economy ， There are apparent differences in qualification management and the role of work management. ， role of government management ， role of capital ， Role of individual consultants and consulting companies ， Working principle and basic professional requirements ， the role of the individual consultant / company in the consulting work ， the structure system and the business scope of the consulting / design company. This paper attempts to compare these differences and aims to encourage market economic factors to play an even more significant role in the mining industry sector in China in the future.

Key words: Mining ， exploration ， development ， consulting ， qualification ， government ， institute ， planned economy ， market economy ， Reformation ， code ， ethics

1  Preface

China since 1992 Since the clear adoption of a market economy system over a decade ago, after more than ten years of development, China seems to have already entered a fully market-oriented economic system. However, many foreign governments still do not recognize China as a fully marketized country. Moreover, as we’ve begun to participate in the international mining market, we’ve truly come to realize the gap between our practices and the standards and requirements of the global mining industry. Starting from an initial comparative study focusing on differences in outcomes and document formats in the field of mining exploration and design consulting, we’ve progressed to research on regulatory standards, and subsequently expanded our scope to include studies on behavioral norms, governance by government agencies, and management by professional associations. At one point, we even attempted to achieve alignment solely by focusing on technical standards and regulations—but quickly realized that without fundamental reforms, such alignment would remain unattainable. This article seeks to share some insights gained from this comparative research, with the aim of jointly promoting reform in China’s mining management and helping consulting services better align with international market demands.

This study examines the comparative scope from the initiation of commercial exploration activities through to the government approval of mining development—typically referred to as the pre-project preparation phase. It seeks to analyze the differences in technology, consulting services, and management practices throughout the exploration and development process. The research focuses on comparing China’s current practices in mineral exploration, mining development technical consulting, and management with those of market economy countries—particularly Australia and Canada—regarding mineral exploration and mining development consulting services and management.

2    Comparative Study Content

Mineral exploration and mining development consulting services in market economy countries, represented by Australia and Canada. The standards jointly recognized by the inquiry and its management are: CRIRSCO The report provides templates for exploration results, mineral resource estimates, and ore reserves. Securities markets in Australia, Canada, Singapore, South Africa, the United Kingdom, Hong Kong, and other regions have already established national or regional standards based on these templates, such as: JORC Standard, CIM Definition, SAMREC Standards such as these have established listing guidelines for mining companies and have become the recognized standard for both listed and unlisted mining investment companies in market economy countries. ( Hereinafter referred to as the market system. )。

China’s current geological exploration and its management, as well as mineral resource reserves. / The management of mineral reserves, basic research on mining development, and consulting services—all were established under the previous planned economic system. After more than a decade of being buffeted by an imperfect market economy, these systems remain in a transitional state, continually evolving and changing. ( Hereinafter referred to as the China System. ) Overall, we have not yet broken free from the framework of the planned economic management system.

Given that mineral exploration is the foundation upon which mining development is built, the market system not only differs from the Chinese system in that it integrates mineral exploration and mining development into a single, cohesive process, but also treats mineral exploration as the very core component of mining development and manages it accordingly. Capital investment and the pursuit of profit are at the heart of both the market and market behavior, serving as the driving forces behind mining development. Mining consulting stands between the government—acting as the voice of the public interest—and investors, whose actions are characterized by capital investment and the pursuit of profit. Drawing on their individual and collective expertise and experience, mining consultants provide professional advice and propose rational development plans and measures. In the market system, those recognized as “qualified persons” by the investment community should be mining professionals who excel in personal ethics, professional skills, and practical experience—individuals who are both capable and willing to assume responsibility for the consequences arising from their advisory opinions on mining development. This article will focus on comparing and discussing these aspects in greater detail.

2.1   Differences in Governmental Regulation During Mineral Resource Exploration and Mineral Development Technical Consulting Processes

(1) Basic research and consulting qualifications and their management. Currently, in China, qualification management for exploration work and consulting firms is carried out by the Chinese government, which acts on behalf of investors to assess the qualifications of entities and individuals engaged in exploration, exploration consulting, basic research on mineral resource development, and mineral resource development consulting. In contrast, the international market adopts a qualified-persons system for individual practitioners in exploration and consulting services, with the qualification manager being... CRIRSCO Relevant professional associations implement qualification management for their members and conduct competency management—known as "eligibility"—by assessing the competence of report authors. Specifically, public reports must be prepared by staff who possess the appropriate qualifications and extensive experience. ( Eligible person ) Work assigned to be completed as the basis. Such eligible persons must comply with mandatory professional... Moral standards.

(2) Consulting Outcome Management.

China's reserves of mineral resources / Ore Reserves are subject to government review and filing. The main procedures include application submission. Tiger Accepted Tiger Review Tiger Modify Tiger Report Tiger Filing Tiger Register and submit the document package. Including the Mineral Resource Reserve Evaluation and Filing Form, the commitment letter from the submitting entity guaranteeing the authenticity of the submitted materials, the commitment letter from the report preparation entity guaranteeing the authenticity of the submitted materials, the exploration license, the geological exploration qualification certificate of the report preparation entity, the written report on mineral resource reserves along with accompanying maps, tables, and appendices, as well as the industrial index verification report issued by a qualified design unit—this evaluation process is conducted either by the provincial or ministerial-level evaluation and certification center or by experts hired by the mining rights holder. China’s resource reserves... / The reserve evaluation and filing system does not reflect investors’ intentions and is detached from market realities. The international market’s assessment of mineral resource quantities... / Mineral reserves are subject to a reporting system, with investors as the reporting entities. Naturally, these reports reflect the wishes of the investors.

(3) Basic research and consulting work involve intermediate-level technical and operational management. In China, technical and managerial requirements for these tasks are governed by national or industry standards. Industry standards have codified a wealth of experience and achievements; while they can standardize behavior within the industry and facilitate the implementation of standardization, all of China’s industry standards are formulated and issued by government agencies or administrative authorities. Moreover, these standards lay down detailed specifications for every stage and every specific task, typically covering multiple aspects such as conduct, technology, quality, and management. Due to the sheer number of standards, the lengthy time required for their formulation and revision, and their highly detailed and comprehensive content, it becomes difficult to fully adhere to the principle of analyzing each specific issue on its own merits. In contrast, the international market operates based on professional ethical codes established by academic societies, reporting guidelines, and the expertise of qualified and competent professionals. Work is conducted and results are presented according to three core principles: transparency, substance, and qualification. Transparency requires that sufficient information be provided to the public readership of the report, and that this information be expressed clearly and unambiguously, enabling readers to understand the report without being misled by the information provided or by omissions of material information known to qualified professionals. Substance demands that public reports include all relevant information—information that investors and their professional advisors would reasonably expect and require in order to make logical and comprehensive judgments about the reported exploration results, mineral resource estimates, or ore reserves. If any relevant information is missing, a reasonable explanation must be provided. ; Eligibility requires that public reports be prepared by staff who are appropriately qualified and experienced. ( Eligible person ) Based on the work they are responsible for completing, such qualified individuals must also comply with mandatory professional ethical standards.

(4) Recognition of the outcomes of foundational research processes.

In our country, the outcomes of each stage or each specific matter are evaluated and certified independently. The certification process is based on various standards and regulations, and the certifying entities are either the government or investors. Each party assumes its own responsibilities, ensuring that exploration and foundational work... The quality of consulting results directly used as the basis for sexual research quality and investment decisions is divided. Cut. For example, exploration reports, metallurgical test reports, hydrological and engineering survey reports, preliminary feasibility study reports, and feasibility study reports all require independent review and certification. The entity preparing the consulting report is not responsible for the authenticity or quality of exploration reports, metallurgical test reports, hydrological and engineering survey reports, and the like. In the international market, only the results of mineral exploration, estimates of mineral resources, and reports on ore reserves need to be signed by qualified persons and submitted to investors. All other exploration, research, and consulting activities conducted in preparation for these three types of reports must be carried out under the direction or supervision of the qualified person who is required to sign, or of a competent individual authorized by such qualified person, and must obtain their approval.

(5) Government management of mineral resources and their exploration and utilization.

Our government not only manages mineral resources at the macro level but also directly oversees specific projects at the micro level. In terms of resource development and utilization, the government reviews and approves resource development and utilization plans and regulates the use of mineral resources. On the international market, governments manage resources primarily at the macro level—focusing on broad policy frameworks rather than on individual project-level management. They do not directly oversee specific project resource development and utilization plans, but instead place greater emphasis on issues related to the environment, safety, and other aspects that affect the public interest.

(6) The relationship between mineral resource exploration and mining development, as well as their management.

Our government manages exploration activities as an independent industry or set of practices, separate from mineral resource development. China’s exploration industry emerged under the planned economy and has long been governed by administrative management models typical of that system. As the degree of market liberalization continues to deepen in today’s economy, the existing institutional framework has become increasingly ill-suited to the current geological exploration market, giving rise to ever-growing contradictions. In the international market, however, mineral exploration is merely one stage and a foundational component of the mining development process—carried out either on behalf of mining companies themselves or through engagement with consulting firms—and serves exclusively to support mining development efforts.

2.2   Differences in the positioning of technical consulting services and management for mineral resource exploration and mineral development.

(1) Positioning of mineral resource exploration consulting and mineral resource development consulting services. In China, both mineral resource exploration consulting and mineral resource development consulting services serve both the government and investment initiators. In the international market, mineral resource development consulting—whether in exploration activities or in foundational research for mineral development—is conducted under the approval and supervision of the exploration or development consulting firm. Exploration and development consulting firms independently carry out their consulting work, serving investors and potential investors while also meeting government regulatory requirements and addressing the concerns of relevant stakeholders.