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Rules For Implementation Of The Mineral Resources Law
2012-05-28 13:28:30

Decree of the State Council of the People's Republic of China No.152 Rules for Implementation of the Mineral Resources Law of the People's Republic of China are hereby promulgated. They shall be implemented as from the date of promulgation.

Li Peng

Premier of the State Council

Rules For Implementation Of The Mineral Resources Law Of The People's Republic Of China

(Promulgated by the Decree No.152 of the State Council of the People's Republic of China on March 26,1994,and effective as of the date of promulgation.)

Chapter I General Provisions

Article 1 These Rules are formulated in accordance with the Mineral Resources Law of the People's Republic of China.

Article 2 The mineral resources refer to the natural resources with value for utilization, which are formed through geologic function and exist under solid, liquid or gaseous state. The varieties of the mineral resources and their classification are listed in the "Catalogue of the Mineral Resources" attached to these Rules. The department in charge of geology and mineral resources under the State Council shall report any discovery of the new varieties of the mineral resources to the State Council for approval, and then make publications.

Article 3 All mineral resources shall be owned by the state. The state ownership of the mineral resources, either near the earth's surface of underground, shall not be changed with the ownership of the land or the right to the use of the land which the mineral resources are attached to. The State Council shall exercise the ownership of the mineral resources on behalf of the state. The department in charge of geology and mineral resources under the State Council is authorized by the State Council to exercise a centralized management over the allocation of the mineral resources throughout the country.

Article 4 The exploration and exploitation of the mineral resources within the territory of the People's Republic of China and other sea areas under its jurisdiction must abide by the Mineral Resources Law of the People's Republic of China (hereinafter referred to as the Mineral Resources Law) and these Rules.

Article 5 The state shall adopt a license system for the exploration and exploitation of the mineral resources. Anyone to explore the mineral resources must apply for registration in accordance with the law, draw the exploration license, and obtain the mining right. The block divided based on the longitude and latitude shall be the basic unit in determining both the scope of exploration areas and the scope of exploitation areas of the mineral resources. The specific measures shall be formulated by the department in charge of geology and mineral resources under the State Council.

Article 6 The terms both in the Mineral Resources Law and in these Rules are defined as follows: "Exploration right" means the right to explore the mineral resources within the scope provided by the exploration license which is legally obtained. The units or individuals that have obtained the exploration licenses are called exploration licensees. "Mining right" means the right to exploit the mineral resources and to own the mineral products within the scope provided by the mining license which is legally obtained the mining licenses are called concessionaires. “The special kinds of the mineral ores for which protective mining is prescribed by the State” refers to those minerals are, in view of the need for the construction of the national economy and high-tech development, and in view of their scarcity and their value, specified by the State Council and granted to exploit by the competent departments concerned under the State Council according to the state plans. “Mining areas which are to be exploited under the state plan” refers to the areas where the mineral resources are located and zoned by the state for the construction of large or medium sized mines according to both the construction planning and the mineral resources planning. “Mining areas which are of great value to the national economy” refers to the mineral resources protection areas with large reserve, fine quality and a good prospect for development, where are zoned by the state in consideration of the need of the national economic development but have not yet been listed in the national construction plan.

Article 7 The state allows foreign companies, enterprises and other economic organizations as well as individuals to invest for exploration and exploitation of the mineral resources within the territory of the People's Republic of China and other sea areas under its jurisdiction pursuant to the relevant laws and administrative regulations of the People's Republic of China.

 

Article 8 The department in charge of geology and mineral resources under the State Council shall be responsible for the supervision and administration over the exploration and exploitation of the mineral resources throughout the country. Other competent departments concerned the State Council shall assist the department in charge of geology and mineral resources under the State Council to conduct the supervision and administration over the exploration and exploitation of the mineral resources according to their duties granted by the State Council. The departments in charge of geology and mineral resources under the people's governments directly under the Central Government shall be in charge of supervising and administering the exploration and exploitation of the mineral resources within their respective administrative areas. Other competent departments concerned under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall assist the departments in charge of geology and mineral resources at the same level to conduct the supervision and administration over the exploration and exploitation of the mineral resources. The people's governments of cities divided into administrative districts and the people's governments of autonomous prefectures and the people's governments at the county level as well as their departments in charge of mineral resources shall conduct the supervision and management over the state-owned mining enterprises approved by the respective people's governments at the same level according to law, and shall also conduct the supervision and administration over the collectively- owned mining enterprises,, privately-owned mining enterprises, individual miners within their respective administrative areas as well as the units and individuals who undertake the exploration within their respective administrative areas according to law. And they shall protect the lawful rights and interests of the exploration licensees and the concessioners pursuant to law. The competent departments in charge of geology and mineral resources at higher levels are authorized to redress or redress or revoke he illegal or improper administrative acts over the exploration and exploitation of the mineral resources taken by the competent departments in charge of geology and mineral resources at lower levels.

Chapter II Registration for Mineral Exploration and Examination and Approval for Mineral Exploitation

Article 9 In exploring any mineral resources, anyone shall go through the formalities concerning the application, examination, approval and the registration in accordance with the regulations on the exploration registration of the mineral resources which issued by the State Council. Where exploring the special kinds of minerals, anyone shall go through the formalities concerning the application, examination, and approval and registration for exploration in accordance with the relevant regulations of the State Council.

Article 10 Where the state-owned mining enterprises exploit the mineral resources, they shall go through the formalities concerning the application, examination and approval and mining registration in accordance with the State Council’s regulations governing mining registration. Where they want to exploit the mining areas which are to be exploited under the state plan, the mining areas which are of great value to the national economy, or the special kinds of mineral ores for which protective mining is prescribed by the state, they shall, with the approval documents issued by the relevant competent departments under the State council, go through the formalities concerning the application, examination and approval and the mining registration. Where they want to exploit the special kinds of minerals, they shall go through the formalities concerning application, examination and approval and mining registration in accordance with the relevant regulations of the State Council.

Article 11 The establishment of state-owned mining enterprises shall meet the following requirements in addition to conditions as provided by the relevant laws and regulations: (1) having the mineral exploration report required for the mine construction; (2) having the feasibility study report required for mine construction project ( including the resources utilization proposal and the mine environment impact report ); (3) having the definite scope of the mine area and mining area; (4) having the mine design; and (5) having the appropriate technical conditions required for production. The State Council, the relevant competent departments under the State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, pursuant to the state regulations governing fixed assets investment and the conditions stipulated in the preceding paragraph, exercise examination over the application for establishment of the state-owned mining enterprises, and then grant the approval to the eligible.

 

Ariticle12 The examination and approval and the mining registration relating to the application for establishing the collectively-owned mining enterprises and privately-owned mining enterprises as well as individual miners shall be conducted in accordance with the relevant regulations issued by the province, autonomous region and municipality directly under the Central Government.

Article13 Application for establishing the collectively-owned mining enterprises or privately-owned mining enterprises shall meet the following requirements in addition to the conditions as provided by the relevant laws and regulations; (1) having the mineral exploration materials required for the mine construction and which shall also be appropriate to the mining scale; (2)having the definite exploiting area which has been approved without dispute; (3) having the necessary funds, equipments and technical personnel appropriate to the scale of mine to be constructed; (4)having the feasibility study report, mine design or mining proposal appropriate to the mine to be constructed, and also in line with the state industrial policies and the technical regulations; and (5)the mine chief shall be equipped with basic knowledge regarding to the mining production, safety control and environmental protection.

Article14 Where the individuals apply for mining, they shall meet the following requirements: (1)having the definite approved exploiting area which has no dispute; (2)having the necessary funds, equipments and technical personnel appropriate to the scale of mine to be constructed; (3)having corresponding mineral exploration materials and the approved mining proposal; and (4)having the necessary conditions and proper measures required for safety production and for environmental protection.

Chapter III Mineral Exploration

Article15 The state shall carry out the unified planning for the mineral exploration. The department in charge of geology and mineral resources under the State Council shall organize and map out the national medium and long term plans over the mineral exploration under the guidance of the department in charge of planning under the State Council, in accordance with the medium and long term national economic and social development programs and based on the exploration plans adopted by the relevant competent departments in charge under the State Council. The national annual mineral exploration plan and the annual mineral exploration plans of provinces, autonomous regions and municipalities directly under the Central Government shall be made respectively by the department in charge of geology and mineral resources under the State Council and the competent departments in charge of geology and mineral resources under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government with other competent departments concerned, in accordance with the national medium and long term exploration plans. After the approval granted by the competent departments in charge of planning under the people’s governments at the same level, they shall be carried out. Where laws stipulate otherwise the authority of the examination and approval upon the exploration planning, the relevant provisions of such laws shall prevail.

Article16 The exploration licensees shall enjoy the following rights: (1) conducting exploration operations in the areas, within the terms and on the proper objects, prescribed by the exploration license; (2) erecting electricity supply lines, water supply pipes and communication lines in the exploration areas and in the neighboring areas, but they may not affect or damage the original electricity, and water supply facilities and the communication lines from functioning; (3) passing through the exploration areas and the neighboring areas; (4) using the land temporarily according to the need of exploring project; (5) possessing the priority in obtaining the exploration right to explore the newly discovered minerals within the exploration areas; (6) possessing the priority in obtaining the mining right to exploit the minerals within the exploration areas; (7) selling by themselves the mineral products recycled during the exploration operation in accordance with the project design that has been approved, except for those minerals which shall be sold to the designated units only as prescribed by the State Council. When exercising their rights provided in the preceding paragraph, the exploration licensees shall abide by other laws and regulations which require them to obtain the approval or go through other formalities.

 

Article 17 The exploration licensees shall fulfill the following obligations: (1) starting the exploration operation within the time limit prescribed, and completing the exploration within the time limit prescribed by the exploration license; (2) reporting to the exploration registration authorities the situation relating to the start of exploration, etc.; (3) the exploration shall be conducted in accordance with the exploration construction designs. No arbitrary exploitation will be permitted; (4) conducting comprehensive exploration as well as evaluation over the paragenetic and associated minerals while ascertaining the key minerals; (5) compiling the mineral resources exploration reports, submitting them to the relevant departments for examination and approval; (6) submitting the mineral resources exploration achievement files in accordance with the relevant provisions of the State Council; (7) complying with the relevant laws and regulations regarding labor safety, land reclamation and environmental protection; and (8) taking immediate efforts upon the completion of exploration to block the wells and holes left by the exploration or adopting other measures to eliminate hidden dangerous elements.

Article 18 The exploration licensees may exploit the complex type mineral deposits which are permitted by the state to be exploited by the exploration licensees. But they shall submit the supporting proof documents to the original licensing authorities, the mineral reserves examination and approval agency and the competent departments in charge of the exploration project. After the approval is granted, the mining registration shall be made in accordance with the regulations of the State Council regarding mining registration.

Article 19 The mineral exploration report shall be examined and approved in accordance with the following provisions: (1) the mineral reserves examination and approval agency under the State Council shall be responsible for the examination and approval of the important large-scale mineral deposits exploration report used for mine construction and of the ground water exploration report used for the construction of large-scale water supply bases; (2) the mineral reserves examination and approval agencies of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the examination and approval of the ordinary large, medium and small scale mineral deposits exploration reports used for mine construction and of the ground water exploration report used for the construction of medium or small sized water supply bases; The mineral reserves examination and approval agencies and the competent departments in charge of the exploration units shall examine and give a reply within six months after the receipt of the mineral exploration reports.

Article 20 The mineral exploration reports and other valuable exploration data shall be provided for use with compensation in accordance with the relevant provisions of the State Council.

Article 21 In case the exploration licensees, after obtaining the temporary right to use the land, damage the properties of other people during the exploration, they shall make compensation according to the following provisions: (1) compensation for damages caused to the arable land shall be made on the annual basis according to the average yield of the land in the past three years, and to be calculated according to the local market average price, to be paid annually. They shall also be responsible for the reclamation of the arable land and return the land in due course; (2)compensation for damages caused to the grass land shall be made in accordance with the provisions of the preceding item and shall be paid in annual basis. They shall also be responsible for rehabilitation of the grassland vegetation and return them in due course; (3)compensation for damages caused to the agricultural or economic crops on the cultivated land shall be made according to the average annual yield of the land damaged in the past three years, and shall be calculated according to the local market average price at the time of the compensation; (4)compensation for damages caused to bamboo or trees shall be made according to the actual number of bamboo and trees damaged. And the amount of compensation shall be calculated on a number basis according to the local market average price; (5)compensation for damages caused to the fixtures on the land shall be made according to the actual damages degree and shall be calculated according to the local market price.

Article 22 No compensation shall be made when the exploration licensees conduct exploration on the waste mountain slopes, waste hillsides, unreclaimed land, abandoned desert, or on the sand, river, lake or sea beaches where there are no agricultural crops or other fixtures attached. However, the exploration shall neither impede the navigation, irrigation or flood control activities nor shall it cause any damages to such facilities. Meanwhile, necessary measures shall be taken upon the completion of the exploration for preventing the soil erosion and for ecological environmental protection.

 

Article 23 Disputes among exploration licensees with regard to the scope of exploration areas shall be settled through consultation by the parties involved; In case no settlement can be reached through consultation, the competent departments concerned in charge of geology and mineral resources under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government of the places where the exploration areas located, shall be responsible for adjudicating. For disputes involving more than one province, autonomous region and municipality directly under the Central Government relating to the scope of exploration areas, if the settlement can not be reached through consultation by the parties concerned, the people’s governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government shall be responsible to make settlement through consultation. If the consultation fails, the department in charge of geology and mineral resources under the State Council shall be responsible for adjudicating. For disputes relating to the scope of the exploration areas of special kinds of minerals, if no settlement can be reached through consultation by the parties concerned, the relevant competent departments authorized by the State Council shall be responsible for adjudicating.

Chapter IV Mineral Exploitation

Article 24 The national allocation and development and utilization of the mineral resources shall be conducted in consideration of the interests of the long term and the present, and of both the Central Government and the localities, and shall be carried out by unified planning with sufficient protection, rational exploitation and comprehensive utilization.

Article 25 Under the guidance of the competent department in charge of planning under the State Council, the department in charge of geology and mineral resources under the State Council shall be responsible for organizing the relevant competent departments under the State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government to formulate the national mineral resources planning in consideration of the medium and long term national economic and social development programs. The planning shall be carried out after the approval from the State Council has been granted. The national mineral resources planning shall make an overall arrangement on the allocation of the national mineral resources, and shall delineate a rational scope within which the Central Government and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government are entitled to make the examination and approval over the development of the mineral resources.

Article 26 The mineral resources development planning shall be the overall planning regarding the development and construction of the mine areas. The mineral resources development planning shall consist of the industrial development planning and the regional development planning. The industrial development planning of the mineral resources shall be made and implemented by the relevant competent departments under the State Council in accordance with the allocation of the mineral resources given to the respective departments by the national mineral resources planning. The regional mineral resources development planning shall by made and implemented by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government in accordance with the allocation of the mineral resources given to the respective provinces, autonomous regions and municipalities directly under the Central Government by the national mineral resources planning; the regional planning shall also give an overall arrangement, and shall delineate a rational scope within which the people’s governments at levels of provinces, municipalities and counties are entitled to make the examination and approval over the mineral resources development. The industrial development planning and regional development planning of the mineral resources shall be submitted to both the competent department in charge of planning and the department in charge of geology and mineral resources under the State Council for records. Both the competent department in charge of planning and the department in charge of geology and mineral resources under the State Council are authorized to redress the industrial or regional development planning that is not fit into the national mineral resources planning.

Article 27 The establishment, modification or revocation regarding the mine areas which are to be exploited under the state plan or the mining areas which are of great value to the national economy shall be brought up by the relevant competent departments under the state Council attached with the reports on the detailed prospecting for the mineral resources and other supporting proof materials, Both the competent department in charge of planning and the department in charge of geology and mineral resources under the State Council shall be responsible for conducting the examination and approval, and jointly issue the notice in written form to the relevant people’s governments at the county level. The people’s governments at the county level shall make a public announcement within one month after receipt of the notice and shall submit it to both the competent department in charge of planning and the department in charge of geology and mineral resources under the State Council for records.

 

Article 28 The determination or revocation of the special kinds of mineral ores for which protective mining is prescribed by the state shall be brought up by the relevant competent departments under the State Council, attached with supporting proof documents, submitted to the State council for approval after the permission is granted by both the competent department in charge of planning and the department in charge of geology and mineral resources under the State Council upon the examination.

Article 29 Before the exploitation of the mineral resources, the units or individuals shall entrust the units that hold the relevant mine design certificates to conduct the feasibility study and designing. Feasibility study and design may not be required for mining the scattered minerals or for mining sand, rocks and clay that can only be used as building materials, but the mining proposals and the environmental protection measures are required. The mine design must be made in accordance with the mine design assignment instruction and shall adopt rational mining sequence, mining method and ore-dressing technology. The mine design must be examined and approved in accordance with the relevant provisions of the state; No construction may be permitted without the approval.</p>
<p>Article 30 Any concessioners shall enjoy the following rights: (1) conducting the mining activities within the term and the mining area prescribed by the mining license; (2) selling the mineral products by themselves, except for those mineral products which the State Council has prescribed for unified purchase by the designated units; (3) constructing the production and living facilities necessary for the mining operation within the mine area; (4) obtaining the right to use the land necessary for the production and construction in accordance with the law; and (5) other rights granted by laws and regulations. When exercising their rights as provided in the preceding paragraph, the concessioners shall abide by other laws and regulations which require them to obtain the approval or go through other formalities.

Article 31 The concessioners shall fulfill the following obligations; (1) conducting mine construction or mining activities within the term approved; (2) conducting efficient protection, rational mining and comprehensive utilization of the mineral resources; (3) paying the resources tax and the mineral resources compensation pursuant to law; (4) complying with the state laws and regulations regarding the labor safety, water and soil conservation, land reclamation and environmental protection; and (5) being subject to the supervision and management from both the competent departments in charge of geology and mineral resources and the relevant competent departments, and filling out and presenting the mineral reserve forms and mineral resources development and utilization statistics reports according to the relevant provisions.

Article 32 Where the concessioners close down the mines either at the expiration of the mining license or within the term of the mining licenses, while there is mineral resources left there, they shall take measures to maintain the mineral resources in the state under which the mining activities can be resumed, also shall complete in advance the following works: (1) compiling the mine exploitation progress report and the surveying-in-site charts; (2) making a statement on the reserves that has been exploited pursuant to the relevant provisions; and (3) completing the respective actual work in accordance with the original design regarding labor safety, water and soil conservation, land reclamation and environmental protection, or completing the payment in full the expenditures for the land reclamation and the environmental protection. The concessioner&rsquo;s application on closing down of the mines shall be approved by the competent departments which originally approved the setting up of the mine and shall also be given permission by the original mining licensing authorities before revocation of the relevant license.

Article 33 The mining enterprises shall go through the following procedures regarding the examination and approval in case of a need to close down a mine: (1) submitting the application for the closing down of the mine to the competent departments which originally approved the setting up of the mine, and submitting the geological report on closing down of pits, one year prior to the completion of exploitation; (2) the geological report on the closing down of pits shall be examined and permitted by the competent departments which originally approved the setting up of the mine, and shall be submitted to the competent departments in charge of geology and mineral resources and mineral reserves agency for approval; and (3) the concessioners shall, after the geological reports on the closing down of pits are approved, compile reports on the closing down of mines and submit them for approval to the competent departments which originally approved the setting up of the mines and the competent departments in charge of geology and mineral resources at the same level and other relevant competent departments in accordance with the relevant industrial provisions.

 

Aricle34 After the reports on the closing down of pits are approved, the mining enterprises shall complete the following works: (1) classifying and filing up the geological, surveying and mining documents, and submitting the reports on the closing down of pits, the reports on the closing down of mines and other relevant materials according to the relevant provisions of the state; (2) completing the works regarding labor safety, water and soil conservation, land reclamation and environmental protection or completing the payment in full the charges for the reclamation and environmental protection in with the report on the closing down of mines approved. The mining enterprises, with the approval documents on the closing down of mines and the proof documents supplied by the relevant departments for proving the completion of above works, apply to the original mining licensing authorities for the revocation of the mining licenses.

Article 35 Prior to the construction of railways, roads, factories, reservoirs, oil pipelines, electricity transmission lines and various large buildings, any construction unit must seek data about the distribution of the mineral resources in the place where the proposed building project located from the competent departments in charge of geology and mineral resources under the people&rsquo;s governments of provinces, autonomous regions and municipalities directly under the Central Government that is located in the particular area, and shall attach proof documents issued by the department in charge of geology and mineral resources while presenting the construction designing assignment instruction for the examination and approval. In case the above mentioned construction project contradicts to the exploitation of key mineral deposits, the competent departments under the State Council or the people&rsquo;s governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for proposing a settlement upon which the department in charge of geology and mineral resources under the State Council shall make comment. And then the proposed settlement shall be submitted to the competent department in charge of planning under the State Council for making decision.

Article 36 Disputes among the concessioners over the scope of mine areas shall be settled through consultation among the parties involved; if the consultation fails, the disputes shall be handled by the relevant local people&rsquo;s governments at or above the county level of the place where the mineral resources are located in accordance with the scope of the mine areas designated according to law; disputes over the scope of mine areas involving more than one province, autonomous region or municipality directly under the Central Government, if the parties involved fail to reach the settlement through consultation, it shall be settled through consultation among the people&rsquo;s governments of the relevant province, autonomous region and municipality directly under the Central Government; if the consultation fails, the department in charge of geology and mineral resources under the State Council shall present the proposal on the settlement of the disputes to the State Council for making decision.

Chapter V Collectively-Owned Mining Enterprises, Privately-owned Mining Enterprises and Individual Miners

Article 37 The state shall protect the lawful rights and interests of and exercise supervision and management over the collectively-owned mining enterprises, privately-owned mining enterprises and individual miners pursuant to law.

Article 38 Collectively-owned mining enterprises may exploit the following mineral resources: (1) the mineral deposits and mineral spots unfit for the construction of large or medium sized mines by the state; (2) the scattered minerals close to the boundaries of the mining area within the mine areas of the state-owned mining enterprises by obtaining the consent of the state-owned mining enterprises and the approval from the competent department in charge of the state-owned mining enterprises at higher level; (3) the remaining ore bodies in the already closed mines by obtaining the approval from the original department in charge of the mining enterprise that the resumption of mining is safe and will not result in serious environmental consequences; and (4) other mineral resources allowed to be exploited by the collectively-owned mining enterprises pursuant to state plan. Where exploiting the mineral resources listed in (2) of the preceding paragraph, the collectively-owned mining enterprises must sign the agreement with the state-owned mining enterprises regarding the rational development and utilization of the mineral resources and mine safety, and shall not cause waste or damages to the mineral resources, and shall not influence production safety of the state-owned mining enterprises.

 

Article 39 The scoped of the mineral resources to be exploited by the privately-owned mining enterprises shall be referred to the provisions in Article 39 of these Rules.

Article 40 The individual miners may exploit and tap the following mineral resources: (1) the scattered small ore bodies or mineral spots; and (2) sands, rocks or clay that can only be used as ordinary building materials.

Article 41 When the state sets up the mining areas which are to be exploited under the state plan and the mining areas which are of great value to the national economy, the state shall give rational compensation pursuant to the relevant provisions to the original concessioners who shall withdraw from the above areas.

Chapter VI Legal Liability

Article42 Any fine imposed in accordance with the provisions in Article 39, 40, 42, 43 and 44 of the Mineral Resources Law shall be implemented according to the following provisions; (1) anyone who mines without a mining license, or enters into the mining areas which are to be exploited under the state plan, the mining areas which are of great value to the national economy the other person&rsquo;s licensed mining areas for exploitation without authorization, or exploits special kinds of mineral ores for which protective mining is prescribed by the state without authorization, shall be imposed a fine of or below 50% of the value of the illegal proceeds; (2) anyone who mines beyond the approved scope of his mining areas shall be imposed a fine of or below 30% of value of the illegal proceeds; (3) where anyone sells, leases or transfers mineral resources by any means, or sells or purchases, leases the mining right, the party that commits the selling, leasing or transferring shall be imposed a fine of or below 100% of the value of the illegal proceeds; (4)anyone who illegally puts his mining right in pledge shall be imposed a fine of or below 5000 RMB Yuan; (5) anyone who illegally purchases or sells mineral products which are to be purchased exclusively by the state shall be imposed a fine of or below 100% of the value of the illegal proceeds; (6) anyone who exploits mineral resources in destructive mining methods and causes heavy damage to mineral resources shall be imposed a fine of or below 50% of the value of the mineral resources damaged.

Article 43 Where anyone, in violation of these Rules, conducts one of the following acts, the personnel in charge and the directly responsible personnel shall be imposed the administrative sanctions, if the case is serious as to constitute a crime, he or she shall be held for criminal responsibility according to law: (1) approving the unqualified units or individuals to start the establishment of mines; or (2) granting mining licenses to the mining enterprises or individual miners who are not approved according to law.

Chapter VII Supplementary Provisions

Article44 The ground water resources have a dual nature of water resources and mineral resources. The Mineral Resources Law and these Rules shall apply to the exploration of ground water resources; the Water law and the relevant administrative regulations shall apply to the development, utilization, protection and management of the ground water resources.

Article 45 The Ministry of Geology and Mineral Resources shall be responsible for the interpretation of these Rules.

Article 46 These Rules shall come into force as of the date of promulgation. Appendix Catalogue of the Mineral Resources (1)
Energy minerals Coal,coal-related gas,stone coal, oil shale, petroleum, natural gas, oil sand, natural bitumen, uranium,
thorium, geothermalresources. (2)Metal minerals iron, manganese, chromium,vanadium, titanium; copper,lead,zinc,bauxite,
nickel,cobalt,tungsten,tin,bismuth,molybdenum,mercury,antimony,magnesium,platinum,palladium,ruthenium,osmium,iridium,
rhodium; gold, sliver; niobium,tantalum,beryllium,lithium,zirconium,strontium,rubidium,cesium; lanthanum,cerium,praseodymium,
neodymium,samarium,europium,yttrium,gadolinium,terbium,dysprosium,holmium,erbium,thulium,ytterbium,lutetium; scandium,
germanium,gallium,indium,thallium,hafnium,rhenium,cadmium,selenium,tellurium.(3)Non-metal minerals; diamond, graphite,
phosphate, natural sulphur, pyrite, potash, boron,quartz, crystal (piezoelectric quartz, fused quartz, optical quartz,
technological quartz),corundum cyanite,sillimanite,andalusite,wollastonite,soda-niter,talc,asbestos,crocidolite,mica,feldspars,
garnet,pyrophyllite,diopside,tremolite,vermiculite,zeolite,alunite,mirabilite (carbonaceous mirabilite),gypsum,anhydrite,
barite,witherite,trona,calcite,iceland,spar,magnesite,fluorite (ordinary fluorite,optical fluorite),gemstone, topaz,jade,
tourmaline, agate, pigment minerals (ocher, pigment loess),limestone (limestone for calcium carbide production, limestone for
soda ash production, limestone for chemical fertilizer production, limestone for fluxing agent, limestone for glass making,
limestone for cement production, limestone as building stone, limestone for lime, decorative limestone),marl, chalk, potassic
rocks, dolomitite (metallurgicaldolomitite, dolomitite for glass making,dolomitite for chemical fertilizer production, building
dolomitite),quartzite (metallurgical quartzite, quartzite for glass making, quartzite for chemical fertilizer production),
sandstone (metallurgical sandstone, sandstone for glass making, sandstone as a cement batch, sandstone for brick and tile,
sandstone for chemical fertilizer production, moulding sandstone, sandstonefor making ceramics and porcelain),natural quartz
sand (glass sand, moulding sand, construction sand, sand as a cement batch, standard cement sand, sand for brick and
tile),vein quartz (metallurgical vein quartz, vein quartz for glass making) ,powder quartz, natural oil stone,potassic
sandstone-shale, diatomite, shale (shale for ceramic balls, shale for brick and tile, shale as a cement batch),kaolin, ceramic
clays, fire clays, attapulgite clay, sepiolite clay, illite clay, rectorite clay, bentonite, ferri-bauxite, other clays
(moulding clay, clay for brick and tile, clay for ceramic balls,clay as a cement batch, red clay as a cement batch, loess as a
cement batch, mudstone as a cement batch, clays as thermal insulating material), peridotite (peridotite for chemical fertilizer
production, peridotite for construction), serpentinite (serpentinite for chemical fertilizer production, serpentinite for
fluxing agent, decorative serpentinite),basalt (petrurgical basalt, basalt for rock wool), diabase (diabase for cement production,
petrurgical diabase, decorative diabase, diabase for construction), andesite (decorative andesite, andesite for construction,
andesitic porphyrite for cement mixture),diorite (dioritic porphyrite for cement mixture,diorite for construction),granite
(granite for construction, decorative granite), maifanlite, perlite, obsidian, pitchstone, pumice, trachyte (trachyte for cement
production, petrurgical trachyte), nepheline-syenite, tuff (tuff for glass making, tuff for cement production, tuff for
construction),volcanic ash scoria, marble (decorative marble, marble for construction, marble for cement production, marble for
glass making),slate (decorative slate, slate as a cement batch), gneiss, amphibolite, peat, mineral salt (lake salt, rock salt,
natural brine),magnesium salt, iodine, bromine, arsenic. (4) water and gaseous minerals ground water, mineral spring water,
carbon dioxide, hydrogen sulphide, helium, radon.

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