The Top Ten Regulations and Policies That Impacted China’s Mining Industry in 2017
Release time:
2018-02-03
Source:
“Governing the country according to law in a comprehensive manner is a profound revolution in national governance. We must steadfastly uphold the rule of law, promote scientific legislation, ensure strict law enforcement, achieve impartial justice, and foster universal compliance with the law.” The report of the 19th National Congress of the Communist Party of China identified “upholding comprehensive governance according to law” as one of the fundamental strategies for upholding and developing socialism with Chinese characteristics in the new era.
Facing the new era, China’s mining industry increasingly needs the protection of the rule of law, and promoting the healthy and sustainable development of the mining sector through “adhering to the rule of law in mining management.” For more than a decade, Beijing Yuren Law Firm—a professional legal service provider specializing in the mineral and energy sector—has served numerous administrative institutions and public organizations, including the Ministry of Natural Resources, the National Energy Administration, industry associations and academic societies such as the China Mining Association, as well as state-owned, private, and multinational enterprises like CITIC, Shenhua, and Huaxia Jianlong.
After the China Mining News first released, at the beginning of 2017, “The Top Ten Regulations and Policies That Influenced China’s Mining Industry in 2016,” compiled by the Beijing Yuren Law Firm, it sparked a significant response within the industry.
At the start of the new year, Luan Zhengming, Director of the Environmental and Resource Committee of the Beijing Lawyers Association and founder of Beijing Yuren Law Firm, and Shen Sheng, partner at Beijing Yuren Law Firm and Director of the Mineral and Energy Law Research Center, once again collaborated with China Mining News to carefully compile a list of the ten key regulations and policies issued at the national level in China that impact the development of China’s mining economy, aiming to make even a small contribution to the growth of our country’s mining sector.
I. The General Office of the CPC Central Committee and the General Office of the State Council have issued the "Guiding Opinions on Innovating the Government’s Approach to Resource Allocation."
According to a Xinhua News Agency report on January 11, 2017, the General Office of the CPC Central Committee and the General Office of the State Council recently issued the "Guiding Opinions on Innovating the Way the Government Allocates Resources." The opinions point out that it is necessary to give full play to the decisive role of the market in resource allocation while further enhancing the role of the government. This involves substantially reducing the government's direct allocation of resources, introducing more market mechanisms and market-oriented approaches, and improving the efficiency and effectiveness of resource allocation. Special efforts should be made to address issues such as an imperfect market system and excessive government intervention, advancing market-oriented reforms both in breadth and depth, and ensuring that resource allocation is guided by market rules, market prices, and market competition, thereby maximizing benefits and optimizing efficiency. The government should increasingly formulate and implement policies, regulations, rules, systems, strategies, and plans—particularly through the development and implementation of medium- and long-term strategies and industrial plans—to guide the flow of resources toward specific industries and sectors.
Fully establish a paid-transfer system for state-owned natural resource assets, promote market-based allocation of resources, strictly prohibit gratuitous or low-priced transfers, and deepen reforms of pricing and taxation for resource-based products. Integrate and establish a unified natural resource trading platform to enhance the efficiency and effectiveness of resource allocation. Improve the institutional framework for state-owned natural resources, formulate a resource tax law at an appropriate time, and revise the Mineral Resources Law and other relevant legislation.
Comment: Resources are the fundamental material conditions for economic and social development and represent the most basic issue in economic activities. The way the government allocates resources not only directly affects the government’s own role positioning but also significantly influences the full realization of market mechanisms’ functions. The “Guiding Opinions on Innovating the Government’s Resource Allocation Methods” clearly sets forth the fundamental tone for innovating these methods, emphasizing the comprehensive establishment of a paid-transfer system for state-owned natural resource assets and the promotion of market-oriented resource allocation. It also calls for perfecting the institutional framework for state-owned natural resources, timely enactment of a resource tax law, and revision of the Mineral Resources Law, among other measures. By innovating the methods of allocating public resources, we can foster sustained and healthy economic and social development.
II. Six departments issue the "Implementation Opinions on Accelerating the Construction of Green Mines."
On March 22, 2017, the Ministry of Land and Resources, the Ministry of Finance, the Ministry of Environmental Protection, the General Administration of Quality Supervision, Inspection and Quarantine, the China Banking Regulatory Commission, and the China Securities Regulatory Commission jointly issued the "Implementation Opinions on Accelerating the Construction of Green Mines."
The “Implementation Opinions” sets forth three major objectives: First, transform the image—basically establish a new pattern for green mine development. We will build a collaborative and co-creative working mechanism, intensify policy support, and accelerate the pace of green mine construction, striving to develop a new model of mining development by 2020 that meets the requirements of ecological civilization. All newly established mines will fully meet the standards for green mine construction, while existing mines will speed up their transformation and upgrading to gradually meet these standards. Second, shift the development approach—explore new pathways for transforming the mining development model. We will coordinate the shift in development approach with stable economic growth, innovate new models for resource conservation, intensive use, and circular utilization, and forge new avenues for economic growth. Third, promote reform—establish a new mechanism for green mining development. We will ensure that green transformation and management reform mutually reinforce each other, and study the establishment of a green mine construction system involving joint creation at the national, provincial, municipal, and county levels; enterprise-led construction; third-party evaluation; and social oversight.
By adopting a three-step approach—first, formulating local standards for green mine construction; second, summarizing and developing nationwide industry-specific green mine standards; and third, gradually introducing mandatory national standards—we will refine and establish leading standards for green mines. Under the new circumstances and in response to emerging requirements, the work of green mine development must further clarify the boundaries among government, market, and society, and focus on building a new mechanism for green mine construction characterized by government guidance, enterprise leadership, standard-driven advancement, policy support, innovative mechanisms, strengthened supervision, clear accountability, and enhanced vitality. We will promote this work through a new mechanism that includes self-assessment by mines themselves, third-party evaluations, list-based management, inclusion of qualified mines into a registry, and automatic eligibility for relevant policies. At the same time, we must tailor assessment methods for green mine development to local conditions. Furthermore, we will introduce incentive policies for green mines covering land use, mineral resource utilization, fiscal matters, and financial support.
Comment: The "Implementation Opinions on Accelerating the Construction of Green Mines" firmly establish and implement the development philosophy of innovation, coordination, green development, openness, and shared benefits. It is designed to adapt to and guide the new normal of economic development, earnestly carry out the Party Central Committee and the State Council’s decisions and deployments on ecological civilization construction, and concretely reflect the overall requirements for ecological civilization development. Through the organic coordination and integration of a series of corresponding measures, the concept of green development will be integrated into every stage of mineral resource planning, exploration, development, utilization, and protection, thereby leading and driving the transformation and upgrading of traditional mining industries and significantly enhancing the quality and efficiency of mining development.
III. The State Council Issues the “Reform Plan for the Mineral Resource Rights and Royalty System”
On April 20, 2017, the State Council released the “Reform Plan for the Mineral Resources Rights and Royalty System,” deciding to establish a new mineral resources rights and royalty system that is tailored to China’s specific characteristics and to promote the creation of a fair competitive environment in the mining industry.
The key measures are as follows: First, the current fees for prospecting and mining rights will be adjusted to become revenue from the transfer of mineral rights applicable to all mineral rights granted by the state, thereby reflecting the state’s ownership interests; second, the fees for the use of prospecting and mining rights will be consolidated into a mineral rights occupancy fee that is dynamically adjusted based on changes in mineral prices and the needs of economic development; third, during the mineral extraction phase, efforts will be made to effectively organize and implement the reform of the resource tax; fourth, the current deposit for mine environmental restoration and remediation will be transformed into a Mine Environmental Restoration and Remediation Fund that features standardized management, clear allocation of responsibilities and rights, and convenient usage.
According to the reform plan, the main focus is on four key areas—mining rights transfer, possession, exploitation, and mine reclamation and restoration—as well as supporting policies and organizational implementation measures. The goal is to properly balance the relationships among three key aspects: "property rights returns versus tax revenues," "owners' returns versus investors' returns," and "competitive returns versus fixed returns."
Commentary: The “Reform Plan for the Mineral Resource Rights and Interests Fee System” represents a reform of the current paid-use system for mineral resources, which comprises “one tax” (resource tax), “two fees” (prospecting rights fee and mining rights fee), and “three charges” (prospecting rights usage fee, mining rights usage fee, and mineral resource compensation fee). This reform reflects the commitment made in the 13th Five-Year Plan for National Economic and Social Development adopted in 2016 to “establish a national rights and interests fee system for mineral resources and improve the mineral resource tax and fee system.” It also fulfills the requirements set forth in the “Overall Plan for Ecological Civilization System Reform,” with a primary focus on safeguarding and realizing the state’s rights and interests in mineral resources, thereby promoting the modernization of the national governance system and governance capacity in the field of ecological civilization.
IV. The CPC Central Committee and the State Council Issue Opinions on Deepening Reform of the Oil and Gas System
On May 21, 2017, Xinhua News Agency, Beijing—Recently, the CPC Central Committee and the State Council issued the "Several Opinions on Deepening the Reform of the Oil and Gas System," which clearly outlines the guiding principles, basic principles, overall approach, and key tasks for deepening the reform of the oil and gas system.
The “Opinions” clearly state that the overarching approach to deepening reform of the oil and gas system is as follows: Addressing the deep-seated contradictions and problems within the oil and gas system, we will further reform and streamline the exploration and exploitation of oil and gas, import and export management, pipeline network operations, production and processing, product pricing mechanisms, and the reform of state-owned oil and gas enterprises. This will unleash market vitality in competitive segments and enhance the dynamism of key oil and gas enterprises, thereby improving capabilities in ensuring resource continuity, optimizing the utilization of both domestic and international resources, effectively managing market risks, providing efficient and equitable transportation services, producing and supplying high-quality oil and gas products, guaranteeing strategic oil and gas supply security, and ensuring safe and clean operations across the entire industry chain. Through these reforms, we aim to promote the sustained, healthy, and robust development of the oil and gas sector, significantly increase proven reserves, continuously improve resource allocation efficiency, and achieve safety, efficiency, innovation, and sustainability—while ensuring energy security, stabilizing supply, protecting resources, and maintaining market stability.
The “Opinions” outline eight key reform tasks. First, improve and gradually liberalize the oil and gas exploration and production system to enhance the capacity to ensure a continuous supply of resources. Second, refine the management system for oil and gas imports and exports to boost both domestic and international resource utilization capabilities and strengthen market risk prevention. Third, reform the operational mechanisms of oil and gas pipelines to enhance integrated transportation and equitable service delivery. Fourth, deepen reforms in the competitive downstream segments to improve the capacity to produce and supply high-quality oil and gas products. Fifth, reform the pricing mechanism for oil and gas products to effectively unleash market vitality in competitive segments. Sixth, further advance reforms of state-owned oil and gas enterprises to fully unlock the potential of leading oil and gas companies. Seventh, improve the oil and gas reserve system to enhance the strategic security and supply capability for oil and gas. Eighth, establish and perfect an oil and gas safety and environmental protection system to strengthen the safe and clean operation capability across the entire industry chain. Strengthen safety oversight throughout the entire process of oil and gas exploration, development, and utilization; establish and improve a safety production responsibility system covering the entire oil and gas industry chain; and refine mechanisms for responding to and preventing safety risks.
Commentary: For a long time, oil and gas reform has been at the heart of numerous reform initiatives. The guiding principle behind the "Several Opinions on Deepening the Reform of the Oil and Gas System" is to fully implement the national energy strategy, adhere to the direction of socialist market economy reform, properly balance the relationships among enterprises, the market, and the government, give full play to the market’s decisive role in resource allocation while enhancing the government’s role, and aim to ensure national energy security, promote productive forces development, and meet the needs of the people. Establishing and improving an oil and gas system characterized by orderly competition, legal compliance, and effective regulation is of great significance for achieving an organic integration of national interests, enterprise interests, and social interests.
V. The General Office of the CPC Central Committee and the General Office of the State Council have issued the “Reform Plan for the Transfer of Mineral Rights.”
On June 16, 2017, 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," clearly stating that, based on mineral resource planning, guided primarily by market-oriented transfer mechanisms and focusing on innovative transfer methods, the plan will adopt a problem-oriented approach, adhere to pilot programs first, and comprehensively promote competitive bidding for the transfer of mineral rights. It will strictly limit negotiated transfers, adjust the authority for approving mineral rights, strengthen regulatory oversight and services for transfers, ensure that mineral rights can be “delegated appropriately, effectively taken over, and well-managed,” and establish a mineral rights transfer system that meets the requirements of the market economy and the laws governing the mining industry.
The “Plan” emphasizes that, except in special circumstances, mining rights shall be transferred exclusively through bidding, auction, and listing procedures. The management of revenues from the transfer of mining rights will be reformed, allowing these revenues to be paid in annual installments. An innovative economic regulation mechanism for mining rights will be introduced, comprehensively adjusting the fee standards for exploration rights occupancy fees and establishing a progressive, dynamically adjusted mechanism to effectively curb the phenomenon of “land grabbing without actual exploration.” Furthermore, based on fluctuations in mineral product prices and the needs of economic development, the fees for mining rights occupancy and the minimum exploration investment standards will be adjusted in a timely manner.
The “Plan” requires that the scope of negotiated land transfers be strictly limited to specific exploration and mining entities designated by the State Council, key construction projects approved by the authorities, and the deeper parts of mining rights already established in large- and medium-sized mines. It also calls for delegating approval authority while strengthening regulatory services. At the same time, the plan reinforces the role of mineral resource planning in exercising source-level control over the granting of mining rights; it tightens oversight of transfer transactions and establishes a nationwide, networked information system for querying and accessing data on mining right transfers; it strengthens regulatory services related to allocation numbering and fully implements traceability management; and it reforms the supervision approach for mining right holders by fully implementing a system of public disclosure of exploration and mining information by mining right holders.
The “Plan” requires the Ministry of Natural Resources, the Ministry of Finance, and other relevant departments to strengthen coordination and organize the implementation of reform-related work in accordance with their respective responsibilities. Six provinces (or autonomous regions)—Shanxi, Fujian, Jiangxi, Hubei, Guizhou, and Xinjiang—have been selected to serve as pilot sites. The pilot program will be launched in 2017. In 2018, building on the ongoing pilot efforts and drawing on accumulated experience, relevant normative documents will be issued, revised, and refined. Based on a comprehensive evaluation of the pilot program, the reform will be rolled out and implemented nationwide in 2019.
Commentary: The reform of the mineral rights transfer system is an important component of the ecological civilization reform. It is a crucial measure for safeguarding the state’s rights and interests in mineral resources and ensuring national mineral resource security, as well as for promoting the healthy and sustainable development of the mining industry. The “Reform Plan for the Mineral Rights Transfer System,” proposed by the authorities, adheres to market-oriented principles and follows the inherent laws governing mining development. Taking market-based transfer as the main approach, it seeks to better leverage the role of the government, reform and improve the mineral rights transfer system, fully promote competitive bidding for mineral rights, strictly limit negotiated transfers, adjust the authority for approving mineral rights, strengthen regulatory oversight and services, and fully harness the decisive role of the market in allocating resources. This reform is of great significance for ensuring the security of mineral resources, fostering green, healthy, and sustainable development of the mining industry, protecting the rights and interests of the state as the owner of mineral resources, and safeguarding the legitimate rights and interests of mineral rights holders.
VI. The Supreme People’s Court Issues Judicial Interpretation on Disputes Involving Mineral Rights.
On June 24, 2017, the Supreme People's Court issued the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Adjudication of Disputes over Mineral Rights" (Fa Shi [2017] No. 12), which took effect on July 27, 2017. The Interpretation consists of 23 articles and primarily covers such matters as the validity and termination of mineral rights transfer contracts in disputes over mineral rights, the validity of mineral rights transfer contracts, compulsory performance, contract termination, and liability for breach of contract; the establishment and enforcement of mortgages on mineral rights; judicial review of the validity of mineral rights contracts in specially designated areas; as well as issues related to public interest litigation concerning mining environmental protection, judicial recommendations, and coordination between environmental justice and administrative law enforcement.
The key highlights are as follows across ten aspects: First, the establishment, effectiveness, and termination of mining rights transfer contracts; second, contracts for the exploration and exploitation of mineral resources entered into without obtaining mining rights are invalid; third, the validity of mining rights transfer contracts, the fulfillment of approval obligations, and contract termination; fourth, mining rights lease contracts take effect from the date of their lawful establishment; fifth, mining rights contracting agreements take effect from the date of their lawful establishment; sixth, contractual cooperation agreements for exploration and exploitation take effect from the date of their lawful establishment; seventh, mining rights mortgage contracts become effective upon lawful establishment, with the mortgage right being established upon registration; filing procedures are deemed equivalent to registration; eighth, contracts stipulating exploration and exploitation of mineral resources in special areas are invalid; ninth, overlapping mining rights shall be handled first by the land and resources authorities, and any overstepping of boundaries during exploration and exploitation shall entail liability for infringement; tenth, handling of illegal activities discovered during environmental public interest litigation and court trials.
Commentary: Disputes over mining rights involve not only the state’s administrative management of mineral resources, the rational development and efficient utilization of these resources, but also their market-oriented allocation and the protection of property rights for relevant stakeholders. Moreover, such disputes are closely linked to broader social public interests, including safe production and environmental protection, making them a highly significant category of environmental and resource-related cases. The issuance of this interpretation effectively addresses the current situation in which existing laws and regulations concerning mining rights largely focus on administrative oversight needs, failing to fully accommodate the increasingly market-driven trend in the transfer of mining rights, as well as the substantial differences among courts at various levels nationwide in their understanding of these laws and regulations and the resulting inconsistency in judicial standards. This interpretation aligns with the demands of the developing mining rights market, promotes ecological civilization, and standardizes judicial rules.
7. The Ministry of Natural Resources issued the “Work Plan for Clearing Mining Rights within Nature Reserves.”
On July 5, 2017, the Ministry of Natural Resources issued the "Work Plan for Clearing Mineral Rights within Nature Reserves." According to the Plan: First, a comprehensive survey and classification of mineral rights within various protected areas across administrative regions will be conducted. This includes surveying and compiling statistics on the area of damage to the geological environment of mining sites within protected areas, as well as on the status of deposits made for the protection, remediation, and restoration of mine geological environments, and estimating the costs required for such remediation and restoration. Second, mineral rights within national-level nature reserves will be verified; the data will be statistically compiled separately for oil-and-gas and non-oil-and-gas resources, and categorized recommendations for their disposition will be proposed. On this basis, a summary and analytical report on the clearing work will be prepared. Meanwhile, a proposal for a classified disposal plan for mineral rights within nature reserves will be studied and submitted to the provincial people's governments, laying a solid foundation for the steady and orderly withdrawal of mineral rights from these protected areas.
The “Plan” points out that mining rights within protected areas and the types of protected areas themselves are numerous and their situations are complex. Therefore, on the basis of a meticulous investigation and statistical analysis of changes in the establishment time, scope, legal basis of protected areas, as well as the establishment time, legal basis, scope, reserves, and production levels of mining rights, it is necessary to carry out rational classification and organization, and conduct statistical analysis as required, thus laying the foundation for the next step of classified management and disposition of mining rights. In particular, local departments responsible for natural resources and land use, while conducting comprehensive surveys and classifications, should actively provide coordinate data on various nature reserves and other ecologically sensitive zones designated as no-construction zones under the ecological redline, and cooperate with the Regional Project Office of the China Geological Survey in carrying out the cleanup of basic and public-interest geological survey projects within nature reserves. The cleanup of mining rights within various protected areas involves a wide scope, is highly systematic, and presents significant challenges; hence, it requires coordinated efforts and joint management by multiple departments. In terms of methods, a mechanism for internal coordination within the natural resources and land use system, as well as inter-departmental collaboration, will be established to ensure dynamic updates; furthermore, a ledger system for mining rights and a system of liaison officers will be set up.
According to the Plan, the status of mining rights within national-level nature reserves will be screened, verified, and categorized and statistically analyzed. By the end of August 2017, relevant statistical tables and verification and analysis reports shall be submitted to the Ministry, along with recommendations for the classified disposal of mining rights. At the same time, base maps delineating the areas within provincial-level protected zones where exploration and exploitation of mineral resources are prohibited shall be submitted to the Ministry’s Information Center. The land and resource authorities at the provincial (autonomous region, municipality) level shall conduct surveys and categorize mining rights located within various protected zones and other ecologically sensitive red-line areas under their administrative jurisdictions. Each oil company shall likewise conduct surveys and categorize mining rights situated within its own protected zones and other ecologically sensitive red-line areas. These efforts shall be completed by the end of December 2017, and a summary report on the cleanup of mining rights within protected areas shall be submitted to the Ministry.
Commentary: In recent years, the state has prohibited the establishment of new commercial exploration and mining rights within nature reserves. However, due to inconsistencies in the timing of the establishment of reserve areas versus mining rights, as well as the ambiguity of reserve boundaries and weak protection of related rights and interests, it has become extremely difficult to phase out existing mining rights. The issuance of the “Work Plan for Clearing Mining Rights within Nature Reserves” is a concrete manifestation of the Party Central Committee and the State Council’s major decisions and deployments aimed at accelerating the advancement of ecological civilization construction. This plan involves conducting a comprehensive survey and assessment of all types of mining rights within national-level nature reserves—covering prohibited areas for mineral resource exploration and extraction—categorizing them systematically, performing thorough analyses, and carrying out systematic cleanup efforts across various protected areas. Ultimately, the goal is to ensure that no new mining rights are established within nature reserves, thereby achieving an organic coexistence and coordinated development between mining activities and environmental protection.
VIII. The Ministry of Natural Resources Releases the “Rules for Mining Rights Trading”
On September 6, 2017, the Ministry of Natural Resources issued a notice on the “Rules for Mining Rights Trading.” The newly revised “Rules” have been adjusted in many aspects: In the general provisions, the scope of application of the Rules has been revised to cover both oil and gas as well as non-oil and gas mining rights; the transfer of mining rights shall be implemented by reference. The connotation of the trading platform has been standardized. Moreover, the competent authority of the Ministry of Natural Resources responsible for registering mining rights that require auction, bidding, and listing procedures has been clearly defined as the organizing entity for such activities.
In terms of transaction procedures, the entity responsible for issuing announcements on the transfer of mining rights will be adjusted to either the mining rights trading platform or the competent department of natural resources and land. The evaluation and award procedures and requirements during the bidding process have been refined, and the form of confirmation for the winning bidder has been adjusted. It has been clarified that the refund of security deposits will commence after the completion of tendering, auction, and listing activities. The operational requirements for transitioning from listed bidding to on-site auctions have been further detailed. Additionally, the method for signing mining rights transfer contracts under the registration authority of the Ministry of Natural Resources has been explicitly defined.
Regarding public disclosure, a new requirement has been added stipulating that mining rights transferred via agreement must be publicly disclosed after the transferee and the scope of the transfer have been determined but before the registration application is filed. The provisions related to the certification and fees for the transfer of mining rights have been removed.
In terms of transaction supervision and dispute resolution, emphasis is placed on the need for the competent authorities for land and resources to strengthen their oversight of transaction activities and enhance social supervision. Additionally, provisions have been added to hold winning bidders and successful auction participants accountable for breach of contract.
In the supplementary provisions, it is newly stipulated that each province (autonomous region, municipality) may formulate detailed rules for mining rights transactions and online trading rules by reference. A list of relevant normative documents that are hereby repealed is also provided. These Rules shall take effect from the date of their promulgation and shall remain in force for a period of five years. The Ministry of Natural Resources shall be responsible for interpreting these Rules.
Commentary: The “Rules on Mineral Rights Trading” represent the Ministry of Natural Resources’ timely revision of the “Notice of the Ministry of Natural Resources on Issuing the (Trial) Rules on Mineral Rights Trading” (Guotu Zifa [2011] No. 242), in response to the State Council’s requirements regarding streamlining administration and delegating powers, transforming government functions, building public resource trading platforms, clearing departmental regulations and normative documents, and regulating intermediary service matters. The new “Rules” enhance operational effectiveness and provide more detailed implementation of the State Council’s reform initiatives—such as integrating and establishing a unified public resource trading platform and standardizing intermediary service matters—under the “delegation, regulation, and service” framework. These rules are of great significance for further standardizing mineral rights trading activities, ensuring that such transactions are open, fair, and just, and safeguarding both national interests and the legitimate rights and interests of mineral rights holders.
9. The 19th National Congress report pointed out the “establishment of a state-owned natural resource asset management agency.”
The 19th National Congress of the Communist Party of China opened in Beijing on the morning of October 18, 2017. Comrade Xi Jinping delivered a report titled “Securing a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Achieving Great Success for Socialism with Chinese Characteristics for a New Era.” The report clearly stated that a state-owned institution would be established to manage natural resource assets and oversee the natural ecological environment.
The ninth section of the report, “Accelerating Institutional Reform for Ecological Civilization and Building a Beautiful China,” proposes: Strengthening the overall design and organizational leadership of ecological civilization development; establishing state-owned institutions for the management of natural resource assets and for the supervision of natural ecosystems; improving the ecological and environmental management system; exercising uniformly the responsibilities of owner of natural resource assets owned by all the people; exercising uniformly the responsibilities for regulating land use and for ecological protection and restoration across all territorial spaces; and exercising uniformly the responsibilities for supervising various types of pollution emissions in urban and rural areas as well as for administrative law enforcement. We will also establish a system for the development and protection of territorial space, refine supporting policies for functional zones, and build a nature conservation system centered on national parks. We will firmly stop and punish any acts that damage the ecological environment.
Commentary: Property rights issues lie at the heart of managing state-owned natural resource assets and overseeing the natural ecological environment. In 2015, the Party Central Committee and the State Council issued the "Overall Plan for Reform of the Ecological Civilization System," which proposed—following the principle of separating ownership from regulatory functions and assigning responsibility for each task to a single department—that the fragmented responsibilities of owners of collectively owned natural resource assets be consolidated. Specifically, an agency would be established to exercise unified ownership over all types of collectively owned natural resources, including mineral deposits, water flows, forests, mountains, grasslands, wastelands, marine areas, and tidal flats, and would be responsible for the transfer and other related activities involving these resources. The report to the 19th National Congress further proposed "establishing agencies for the management of state-owned natural resource assets and the supervision of the natural ecological environment, thereby unifying the exercise of ownership responsibilities over collectively owned natural resource assets." This initiative will help foster a comprehensive governance framework characterized by unified management of natural resource property rights, effective ecological environmental oversight, and orderly control over land space.
X. The Ministry of Natural Resources Issues a Notice on Standardizing the Approval and Registration Management of Mineral Exploration.
On December 6, 2017, Jiang Daming, Minister of the Ministry of Land and Resources and Chief Inspector of National Land Resources, presided over the 25th Ministerial Office Meeting and approved the "Notice of the Ministry of Land and Resources on Further Standardizing the Approval and Registration Management of Mineral Resource Exploration" (hereinafter referred to as the "Mineral Exploration Approval Notice"). The "Mineral Exploration Approval Notice" revises and consolidates five normative documents related to the approval and registration management of mineral resource exploration, totaling 28 articles. The key contents include standardizing the entry requirements for mineral resource exploration, improving the approval and management of establishing, renewing, and retaining prospecting rights, strictly regulating the approval process for changes to prospecting rights, strengthening the supervision and management of prospecting rights, clarifying procedures for submitting application materials for prospecting rights, addressing issues related to revenue from the transfer of mining rights, and handling the reissuance of lost exploration permits.
The key highlights are as follows across ten areas: First, the establishment of exploration rights must comply with ecological and environmental protection requirements; second, applicants for exploration rights may either prepare the exploration implementation plan themselves or entrust others to do so; third, the exploration area applied for in a newly established exploration right shall not overlap with that of any existing mining rights; fourth, when renewing non-oil and gas exploration rights without upgrading the exploration stage, the area should be reduced accordingly; fifth, applications for the retention of exploration rights must meet the prescribed level of exploration maturity; sixth, if an application for renewal or retention is filed late due to force majeure or reasons attributable to government authorities, supporting documentation must be submitted; seventh, the transfer of exploration rights must adhere to the stipulated time limits; eighth, any change in the mineral species explored under an exploration right shall follow the agreed-upon terms; if no agreement exists, such changes shall be subject to certain restrictions; ninth, exploration rights that have been auctioned off or awarded to others through court rulings must be handled in accordance with the law; tenth, expired exploration rights will be included in the list of mining rights that have been voluntarily revoked and publicly announced.
Commentary: The “Notice on Approval of Mineral Exploration” is an important measure for implementing the spirit of the 19th National Congress of the Communist Party of China, thoroughly carrying out Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and promoting coordinated advancement of ecological land development. It is a concrete manifestation of earnestly implementing the CPC Central Committee and the State Council’s requirements regarding ecological civilization construction as well as the reform initiatives of “streamlining administration and delegating power, combining deregulation with regulation, and optimizing services,” and further deepening the reform of the mineral rights management system. This notice plays a crucial role in ensuring the healthy and orderly development of the mineral exploration market, safeguarding the state’s ownership rights over mineral resources, and protecting the legitimate rights and interests of mineral rights holders.