Mineral resources are an essential material foundation for economic and social development. China’s mineral resources are explicitly owned by the state. Through the transfer of mining rights, the state separates ownership from usage rights, thereby optimizing the allocation of mineral resources and safeguarding the interests of the state as the owner. The Party Central Committee and the State Council attach great importance to establishing a system for the transfer of mining rights that conforms to the requirements of the market economy and the principles governing the mining industry. 2015 In the year, the CPC Central Committee and the State Council issued the "Overall Plan for Reform of the Ecological Civilization System." 2017 The General Office of the State Council and the General Office of the Ministry of Natural Resources have issued the “Reform Plan for the Transfer of Mineral Rights,” outlining successive measures to reform the methods of mineral rights transfer. What has been the evolution of China’s policy on managing mineral rights transfer methods? In the face of new requirements in the new era, what steps should be taken to further advance the reform of the mineral rights transfer management system?

　　Historical Evolution of Management Policies: Mining rights have evolved from being granted free of charge to being obtained through payment. 2015 Since the year, we have been fully promoting the transfer of mining rights through tendering, auction, and listing methods.

　　Overall, China's approach to the transfer of mining rights has evolved from... 1986 The Mineral Resources Law of the year establishes that mineral resources are granted free of charge through an application and approval process, followed by... 30 After years of evolution, the process is moving toward fully implementing a competitive bidding and auction system for mining rights.

　　(1) Before the reform and opening-up, the state implemented a strict planned management system for the exploration and mining of mineral resources.

　　Before the reform and opening-up, China’s exploration and mining of mineral resources were funded by the state. State-owned geological survey institutions carried out mineral resource exploration according to national plans, and any discoveries made were turned over to the state. The state allocated identified mineral reserves to state-owned mining enterprises for exploitation through a non-compensated transfer, and these enterprises operated under a state-owned, state-managed model.

　　(2) 1986 year to 1996 In [year], the transfer of mining rights is carried out through an application-and-approval process and is granted free of charge.

　　After the reform and opening-up policy was implemented, the exploration and mining of mineral resources rapidly developed. However, due to an incomplete legal framework for mineral resource management, numerous problems have emerged in the course of these activities. Therefore, the state has... 1979 Starting this year, we have organized a dedicated team to draft the Mineral Resources Law. 1986 Promulgated and implemented this year, it introduced the concepts of prospecting rights and mining rights and established a management system for the approval and registration of these rights, clearly stipulating: “ The exploration of mineral resources must be registered in accordance with the law. The exploitation of mineral resources requires applying for and obtaining mining rights in compliance with the law. 1987 The supporting regulations promulgated and implemented in the same year—the “Interim Measures for the Registration and Administration of Mineral Resource Exploration” and the “Interim Measures for the Registration and Administration of Mining Activities by State-Owned Mining Enterprises”—provide specific provisions regarding the applicants for exploration rights and mining rights, as well as the application and approval procedures.

　　According to 1986 According to the provisions of the 2023 Mineral Resources Law and its supporting regulations, the state grants exploration rights and mining rights through an application-and-approval process on a non-compensated basis. Even if the exploration and mining areas applied for and registered were formed from mineral resources funded by the state, no fees or transfer revenues shall be collected from the holders of exploration rights or mining rights.

　　(3) 1996 year to 2005 In recent years, the transfer of mining rights has primarily relied on application approval. Efforts are being made to explore and promote the transfer of mining rights through bidding, auction, and public listing, and a paid-access system is being implemented.

　　As China’s reform and opening-up policy continues to deepen, the system of granting mining rights free of charge—established under the planned economic system—is increasingly failing to meet the requirements of the socialist market economy. To this end, 1996 The amended “Mineral Resources Law” established a system for the paid acquisition of prospecting rights and mining rights; however, the transfer of both prospecting rights and mining rights still follows the approval-based application procedure. 1998 The supporting regulations promulgated and implemented this year—the “Administrative Measures for the Registration of Mineral Resource Exploration Blocks” and the “Administrative Measures for the Registration of Mineral Resource Exploitation”—have expanded the methods for transferring mining rights, introducing tender-based transfer as an additional option. These measures also stipulate that fees for exploration rights and mining rights shall be collected for exploration rights and mining rights associated with mineral deposits that have been identified through state-funded exploration efforts.

　　To adapt to the development of the socialist market economy and foster and regulate the mineral rights market, 2000 In the year, the Ministry of Natural Resources issued the “Interim Provisions on the Administration of the Transfer and Assignment of Mining Rights,” further expanding the methods for transferring mining rights and introducing auction as an additional method. Since the document does not explicitly specify the circumstances under which each method of transferring mining rights is applicable, these provisions are not mandatory in practice. As a result, local authorities have considerable discretion in choosing among various methods for transferring mining rights, including application approval and tendering/auction procedures. “ Dual-track ” Establish regulations to standardize the transfer of mineral rights, clarify the applicable scenarios for different methods of mineral rights transfer, and enhance the rigidity of policy implementation. 2003 In the year, the Ministry of Natural Resources issued the "Administrative Measures for Bidding, Auction, and Listing of Prospecting Rights and Mining Rights (Trial)", which, building on existing transfer methods, introduced the listing-based transfer method. The measures specify the scope of application for bidding, auction, and listing transfers. Mineral deposits must be transferred via bidding, auction, or listing. For minerals that can be directly mined without prior exploration, mining rights must be directly transferred through bidding, auction, or listing. At the same time, to better protect the ecological environment and promote resource utilization, special provisions have been made regarding the scope of application for the bidding method.

　　Based on local conditions and guided by the principle of tackling easier tasks before more difficult ones, various regions have actively explored methods for transferring mining rights through bidding and auction processes, starting with construction-material minerals such as sand and gravel and gradually expanding to other mineral resources. For example, Zhejiang Province... 2000 For the first time this year, mining rights for ordinary construction stone materials were granted through auction. 2003 The annual paid-use single-track operation for ordinary construction stone mining rights has been completed. 2000 The Shanxi Provincial Department of Natural Resources and Environment has placed the development of the mineral rights market high on its agenda. 2002 In the same year, the "Notice on Rectifying and Standardizing the Order of Building Materials and Mineral Mining, and Promoting Issues Related to Bidding and Auctioning of Mining Rights" was issued, suspending administrative approvals for mining rights for Class II mineral resources such as stone materials and river sand throughout the province, and mandating that all such rights be publicly and paidly transferred through bidding and auction procedures.

　　(Four) 2006 year to 2014 In recent years, the scope of mineral rights transfers through bidding, auction, and listing has continued to expand, while the negotiated transfer method has also been introduced.

　　With the recovery of the mining economy, rising prices of mineral products, and advances in exploration and mining technologies, using simply the location of mineral deposits as the standard for auctioning and granting mining rights no longer fully aligns with the principles governing geological work and market economic laws. For areas rich in ore-forming concentrations and sedimentary mineral deposits—though their geological exploration levels may not yet meet the standards for designated mineral deposit sites—the exploration risks have already become very low. Granting mining rights through an application-and-approval process would enable applicants to easily obtain substantial excess profits from their prospecting rights, which would be detrimental to safeguarding national interests and could easily lead to speculative trading of mining rights, thereby disrupting the order of the mining market.

　　2005 In the year, the State Council issued the “Notice on Comprehensively Rectifying and Standardizing the Order of Mineral Resource Development,” requiring the full implementation of a paid acquisition system for prospecting rights and mining rights, adopting market competition mechanisms to allocate such rights, standardizing the mineral rights market, and studying solutions to issues related to obtaining prospecting and mining rights. “ Dual-track system ” Effective measures for the issue.

　　According to the work arrangements of the State Council, 2006 In 2023, the Ministry of Natural Resources issued the "Notice on Further Standardizing the Management of Mineral Rights Transfer." Based on the natural characteristics of mineral resource endowment and the extent of previous geological work, mineral exploration is categorized into three types—high-risk, low-risk, and no-risk—and different transfer methods are adopted accordingly. For high-risk exploration, prospecting rights are transferred through an application-and-approval process; for low-risk exploration, prospecting rights are transferred via market-based competitive methods such as bidding, auction, and listing; and for no-risk exploration, mining rights are directly transferred through market-based competitive methods like bidding, auction, and listing. At the same time, a new method of transferring mineral rights by agreement has been introduced: where exploration rights would normally be transferred through bidding, auction, and listing, but under prescribed circumstances and upon approval, the bidding, auction, and listing procedures may be waived, and the rights may instead be directly transferred to an investor via an agreement.

　　Afterward, various regions successively introduced policies to standardize the management of mineral rights transfer methods. Some localities further expanded the scope of transfer through bidding, auction, and listing—based on the national policies—resulting in an increasingly high proportion of exploration rights being transferred via these methods. 2006 Since the year, nearly 10 Over the years, the proportion of mining rights transferred via agreements has been... 46.87% The proportion to be transferred via auction, bidding, and listing. 38.92% 。

　　(5) 2015 So far this year, we have fully promoted the transfer of mining rights through tendering, auction, and listing methods, while strictly restricting the transfer of mining rights via negotiated agreements.

　　2013 year to 2015 Year, the state to 19 Some provinces (autonomous regions and municipalities) have conducted special audits in the field of mineral resources and found that certain localities have failed to strictly enforce policies governing the bidding, auction, and listing for the transfer of mining rights. They have arbitrarily expanded the scope of mining rights transferred via agreements and illegally granted mining rights, thereby causing damage to the state’s interests. In accordance with the decisions and deployments of the State Council, 2015 In the year, the Ministry of Natural Resources issued the “Work Plan for the Special Rectification Campaign in the Mineral Resources Sector,” organizing and carrying out a special rectification campaign nationwide in the mineral resources sector. The plan also calls for studying and improving the management measures for the bidding, auction, and public listing of mining rights, expanding the scope of mining rights granted through market competition, and further strengthening and standardizing the granting of mining rights via negotiated agreements.

　　2015 In that year, the CPC Central Committee and the State Council issued the “Overall Plan for Reform of the Ecological Civilization System,” which proposed to improve the system of paid use of mineral resources and establish methods for transferring exploration and mining rights that are consistent with market economic requirements and the principles of the mining industry, with market-oriented transfers being implemented in principle. According to statistics, as of... 2016 Year, the whole country has 23 All provinces (autonomous regions and municipalities) have fully implemented the bidding, auction, and listing methods for the transfer of mining rights.

　　To fully leverage the decisive role of the market in the allocation of mineral resource assets and to better enhance the role of the government, we will comprehensively promote the system of paid acquisition of mining rights and effectively safeguard the state’s ownership rights. 2017 In that year, the General Office of the CPC Central Committee and the General Office of the State Council issued the “Reform Plan for the Transfer of Mineral Rights,” covering provinces such as Shanxi, Fujian, Jiangxi, Hubei, Guizhou, and Xinjiang. 6 Eight provinces (and autonomous regions) are conducting pilot programs to reform the system for the transfer of mineral rights, exploring the comprehensive promotion of competitive bidding for mineral rights transfers. With the exception of special cases such as negotiated transfers, all mineral rights will be publicly transferred through tendering, auction, and listing procedures. Market forces will determine exploration and mining risks and decide on the revenue generated from the transfer of mineral rights. At the same time, the scope of negotiated transfers of mineral rights will be strictly limited, confined only to specific exploration and mining entities designated by the State Council, key construction projects that have been approved, and the deeper parts of mining rights already established in large- and medium-sized mines. The "Reform Plan for the Transfer of Mineral Rights" provides a top-level design for the reform of the mineral rights transfer system and sets the direction for China’s reform of mineral rights transfer methods.

　　The main reasons for the evolution of management policies : Proactively adapt to changes in the socialist market economic system, etc.

　　According to scholars, through studies conducted in the United States, Australia, and other countries... 70 A systematic study of mineral rights transfer methods in multiple countries and regions reveals that the application-and-approval-based approach is the most common practice for transferring mineral rights in these countries. It can be said that, in terms of market-oriented transfer of mineral rights, China has already taken a leading position worldwide. A thorough examination of the underlying reasons behind the major policy changes in China’s management of mineral rights transfer methods reveals the following key factors: :

　　First, we have proactively adapted to the changes in the socialist market economic system. Since the reform and opening-up, China has gradually shifted from a highly centralized planned economy to a socialist market economy. As a result, the market has played an increasingly important role in resource allocation—moving from a supplementary role to a fundamental role and ultimately to a decisive one. Mineral resource management has actively aligned itself with this transformation of the socialist market economic system by continuously reducing administrative measures and increasing the use of economic, market-based, and legal tools. To optimize the allocation of mineral resources, we have vigorously attracted investment entities from various economic sectors and actively promoted competitive bidding for mining rights. In terms of bidding methods, we have moved from primarily tendering to auctions and then to public listings; in terms of scope, we have expanded from specific mining sites to low-risk and risk-free exploration and extraction areas, and eventually to all regions; and in terms of policy implementation, we have progressed from optional compliance to mandatory enforcement, fully demonstrating the ongoing maturation and deepening of marketization in the mining sector.

　　Second, this is based on China’s fundamental national condition—the generally high level of geological exploration. After the founding of New China, with everything in ruins and needing urgent reconstruction, large-scale economic development was in dire need of various mineral resources. Consequently, the state placed geological work at the forefront of its priorities. “ Preliminary ” Status: With the concerted efforts of the entire nation, substantial human, material, and financial resources have been mobilized to carry out geological surveys and mineral exploration nationwide. After decades of large-scale investment, we have essentially eliminated blank areas in geological work. Currently, regional geological surveys at various scales across China’s land territory have achieved full coverage. A large number of mineral (and alteration) occurrences and mineralization indicators have been discovered. Compared with most countries worldwide—including the United States and Australia—China’s level of geological work conducted using public funds is generally relatively high, laying a solid geological foundation for China’s implementation of the “bidding, auction, and listing” system for granting mining rights.

　　Third, local governments have played a significant role in boosting fiscal revenue. Since... 2003 Following the recovery of the mining economy, an increasing number of local governments have placed greater emphasis on the management of mineral resources. They view the transfer of mining rights as a crucial avenue for boosting local fiscal revenues, thereby intensifying efforts to allocate local government funds toward mineral exploration. Moreover, they are actively promoting the transfer of mining rights through competitive market mechanisms such as bidding, auction, and listing, thereby reaping substantial revenues from the sale of mining rights.

　　Fourth, the registration and management authorities are evading administrative risks. As mineral prices have risen sharply, tax and fee policies related to mineral resources have failed to be adjusted in a timely manner, causing mineral resource development to become synonymous with exorbitant profits for a time. Consequently, mining rights administrators have at one point become the primary target of capital from all quarters. “ Hunting in a pack ” The management of mining rights is a high-risk area for integrity and corruption, making it a key focus for preventive measures. The Party Central Committee and the State Council have repeatedly emphasized the need to strengthen the prevention of integrity risks in key areas and critical links, such as the granting of mining rights. To avoid administrative risks associated with the granting of mining rights, the authorities responsible for mining rights registration and management have, out of subjective intent, chosen to minimize discretionary powers in administrative approvals and have increasingly adopted open competitive market mechanisms—eventually moving toward fully implementing the bidding, auction, and listing system for the granting of mining rights.

　　Recommendation: Thoroughly and comprehensively summarize best practices and elevate management policies to the level of legal systems.

　　First, comprehensively and thoroughly summarize best practices and elevate management policies to the level of legal systems. 2007 The General Office of the State Council and the General Office of the Ministry of Natural Resources have issued the “Reform Plan for the Transfer of Mineral Rights,” deploying pilot programs for reforming mineral rights transfer methods in six provinces (and autonomous regions) including Shanxi and Xinjiang, with the aim of further improving and perfecting the management system for mineral rights transfers. In accordance with the requirement of comprehensively governing the country according to law and conducting work within the rule-of-law framework to ensure lawful administration, it is essential to closely monitor reform explorations across the country—especially those identified as priorities by the central government. 6 A comprehensive and in-depth summary will be conducted on the best practices and experiences from the pilot provinces undergoing reform. Provisions regarding the methods for granting mining rights currently found in existing normative documents—those that have proven effective through practical implementation—will be promptly elevated to the level of laws and regulations, thereby enhancing their legal efficacy. As for practices that remain highly controversial and are unlikely to reach consensus in the short term, it will be necessary to organize specialized research teams, solicit opinions from all relevant parties, draw on foreign practices, and conduct thorough deliberations. This will ensure that the newly established management system for granting mining rights not only meets the requirements of a market economy but also aligns with the inherent principles governing the mining industry.

　　Second, comprehensively establish bidding and auction conditions for the transfer of mining rights to optimize the allocation of mineral resources. Mineral resources are a crucial material foundation for economic and social development, and their rational exploration, utilization, and protection are vital to both economic and social progress and ecological civilization building. When transferring mining rights through bidding and auction, it is essential to take into account both short-term and long-term interests in a balanced way. Competitive conditions should be set comprehensively, taking into account factors such as funding, technology, past performance, and integrity, thereby preventing simplistic approaches. “ Only the highest bidder wins. ” To achieve optimal allocation of mineral resources, the granting of mining rights in ecologically sensitive areas and ethnic minority regions should involve scientifically established entry barriers. Clear standards for green exploration and green mine construction must be specified for both exploration and mining activities, ensuring that the investors who win mining rights through competition possess financial and technological advantages, enjoy a solid reputation, and demonstrate a strong sense of social responsibility. These investors should adopt advanced technologies in exploration and mining operations to protect the ecological environment, promote ethnic unity, and maintain social stability. When granting mining rights for strategically critical and scarce minerals, factors such as exploration investment, exploration progress, and resource development and utilization should be incorporated as key criteria for setting the terms of the grant, thereby preventing speculation on mining rights, hoarding without exploration, and hoarding without actual mining.

　　Third, standardize and improve the agreement-based transfer method as a beneficial complement to the tendering, auction, and listing approach for transferring mining rights.

　　Fourth, we must keep pace with the times by enhancing our management philosophy and capabilities and conducting the transfer of mining rights in a scientific and orderly manner. The ultimate goal of the reform of the mining rights transfer system is to give full play to the market’s decisive role in resource allocation while better leveraging the government’s role, thereby promoting the sustainable and healthy development of the mineral exploration and mining industry and providing a stable resource guarantee for economic and social development. This places higher demands on the administrative authorities’ management philosophy, capabilities, and management attitude—especially requiring new achievements in the new era.

　　(Author’s Affiliation: Strategic Research Center for Oil and Gas Resources, Ministry of Natural Resources) Xu Shuping )