Recently, Xi Jinping presided over the 31st meeting of the Central Leading Group for Comprehensively Deepening Reform. The meeting reviewed and approved documents including the “Reform Plan for the Transfer of Mining Rights” and the “Reform Plan for the Mineral Resource Equity Fee System.”

　　The meeting emphasized that perfecting the system for the transfer of mining rights is a crucial safeguard for protecting the state’s ownership rights over mineral resources. It is necessary to promote competitive bidding for mining rights, strictly limit the practice of transferring mining rights through agreements, adjust the authority for approving mining rights, and strengthen regulatory oversight and services related to such transfers. With the core goal of safeguarding and realizing the state’s fundamental rights and interests in mineral resources, we must streamline the tax and fee system for mineral resources, appropriately regulate revenue from mineral resource exploitation, and establish a new system of mineral resource royalties that is tailored to China’s specific characteristics.

　　Among these, regarding the reform of the mineral resource rights and fees system, last year... 10 The “Reform Plan for the Mineral Resource Rights and Royalty System” (Draft for Comments) jointly researched and drafted by the Ministry of Finance and the Ministry of Natural Resources—released in June (hereinafter referred to as the “Plan”)—proposes the framework and key components of the mineral resource rights and royalty system, as well as supporting reform policies.

　　The specific contents of the “Plan” include:

　　First, in the stage of mineral rights transfer, we should improve the system for transferring mineral rights, further expand the scope of competitive bidding for mineral rights, and abolish the fees for exploration rights and mining rights, instead collecting revenue from the transfer of mineral rights. It is recommended that the sharing ratio between the central and local governments for revenue from the transfer of mineral rights be set as follows: 5:5 。

　　Second, at the stage of occupying mining rights, the exploration right usage fee and the mining right usage fee will be adjusted to a mining right occupation fee. Those who occupy mining rights and engage in mineral resource exploration and mining shall pay the mining right occupation fee in accordance with the law. The mining right occupation fee will be collected annually by the financial authorities in conjunction with the competent departments for mineral resources, based on the area occupied and a fixed rate per unit area. According to... 2:8 The proportions are remitted separately into the central and local treasuries, and are shared between the central and local governments.

　　Third, in the mineral extraction stage, appropriately integrate the mineral resource compensation fee into the resource tax and improve the resource tax system.

　　Fourth, in the stage of mine environmental remediation and restoration, we will abolish the mine environmental remediation and restoration deposit, establish a mine environmental remediation and restoration fund, set up a dynamic supervision mechanism, promote the internalization of environmental remediation costs, and ensure that mining enterprises truly fulfill their responsibilities for mine environmental remediation and ecological restoration. Mining enterprises must set up separate accounting accounts and, in accordance with the requirements for mine environmental remediation and ecological restoration, set aside a certain percentage of their sales revenue into the mine environmental remediation and restoration fund, which will be included as part of the enterprise’s costs. The funds thus set aside will be used by the enterprises to carry out mine environmental protection and comprehensive management.

　　The supporting reform policies proposed in the “Plan” include: First, fees for the occupation of mining rights and proceeds from the transfer of mining rights will be incorporated into general public budget management and centrally allocated by fiscal authorities at all levels for expenditures related to geological surveys and ecological conservation and restoration. Second, the policy allowing geological exploration units to convert mining right payments into capital contributions will be abolished. Third, the policy requiring the retroactive payment of mining right payments that have already been converted into state capital contributions will be abolished.

　　In addition, the “Plan” also sets out a timetable for several specific reform initiatives. It is necessary to... 2017 By the end of the year, the following tasks will be completed: The Ministry of Finance, together with the competent authorities for mineral resources, will study, revise, or formulate the “Administrative Measures for the Collection and Use of Fees for the Occupation of Mining Rights” and the “Administrative Measures for the Collection and Use of Proceeds from the Transfer of Mining Rights,” and launch pilot programs. A system for publicizing information on mining right holders will be established, characterized primarily by enterprise disclosure, social oversight, government spot checks, and industry self-regulation. The system will include in its disclosures mine environmental restoration and land reclamation plans as well as the status of payment of mineral resource taxes and fees. “ Blacklist ” (The List of Abnormal Entities and the List of Seriously Violating Enterprises). In 2020 One task completed before the new year was to study and revise the relevant provisions of the “Mineral Resources Law” and its supporting regulations.