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Regulations for Transferring Exploration Rights and Mining Rights
2012-05-28 13:29:44

Article 1 These Regulations are formulated in accordance with the Mineral Resources Law of the People’s Republic of China, in an effort to strengthen the administration of the transfer of exploration rights and mining rights, safeguard the lawful rights and interests of the exploration licensees and concessioners and promote the wise development of the mining industry.

Article 2 These Regulations shall be observed in the transfer of exploration and mining rights that have been obtained in accordance with law within the territory of the people’s Republic of China and other sea areas under its jurisdiction.

Article 3 Exploration rights and mining rights shall not be transferred except under the following circumstances, subject to approval in accordance with law: 1) The exploration licensee has the right to carry out exploration activities within the designated exploration areas and has the privileged priority to obtain the mining rights to the mineral resources in this exploration area. The exploration licensee may transfer the exploration rights to others upon meeting the minimum exploration expenditure requirements. 2) A mining enterprise has already obtained the mining rights but needs to change the ownership of these mining rights for a variety of reasons: a) the enterprise has been merged or split b) the enterprise enters into equity joint ventures or cooperative joint ventures with others; c) the enterprise sells its enterprise assets; or d) other situations that will lead to the alteration of enterprise property ownership.

Article 4 The transfer of exploration rights and mining rights shall be examined and approved by the department in charge of geology and mineral resources under the people’s government of provinces, autonomous regions and municipalities directly under the central Government. The department in charge of geology and mineral resources under the State Council shall be responsible for the examination and approval of the transfer of the exploration rights and mining rights that have been examined, approved and licensed by the department itself. The transfer of exploration rights and mining rights beyond the prescription of the second paragraph of this Article shall be examined and approved by the department in charge of geology and mineral resources under the people’s government of provinces, autonomous regions and municipalities directly under the Central Government.

Article 5 Any exploration licensee who wishes to transfer the exploration rights shall meet the following requirements: 1) 2years or more have passed since the date of issue of the exploration license, or the mineral resources already located are worthy of further exploration or mining; 2)the minimum exploration expenditure requirements have been met; 3)the licensee has undisputed ownership of the exploration rights; 4)the exploration fee and any reimbursement fee for exploration right have been paid in accordance with the provisions of the State; and 5)other requirements otherwise specified by the department in charge of geology and mineral resources under the state Council.

Article 6 Any mining concessioner who wishes to transfer mining rights shall meet the following requirements: 1)one year or more have passed since the mining enterprise began mining; 2)the mining concessioner has undisputed ownership of the mining rights; 3)the mining fee and any reimbursement fee for mining right, the mineral resources compensation and resource tax have been paid in accordance with relevant provisions of the State; and 4)other requirements specified by the department in charge of geology and mineral resources under the state Council. Any State-owned mining enterprise shall get consent from the department in charge of that mining enterprise prior to the application for transferring the mining rights.

Article 7 the assignee of the transfer of exploration rights and mining rights shall meet the relevant requirements provided in regulations for Registering to explore for Mineral resources Using the Block System and Regulations for Registering to Mine mineral Resources.

Article 8 The exploration licensee or mining concessioner shall present the following materials to the licensing authorities when applying to transfer exploration rights or mining rights: 1)an application for transfer; 2)a transfer contract signed by the transferor and assignee; 3)documents of proof showing the qualifications of the assignee 4)documents of proof showing that the requirements provided in Articles 5 and 6 of these Regulations have been met by the transferor; 5)a report detailing the status of the exploration an /or mining projects: and 6)the relevant materials otherwise specified by the examining and approving agency. If a state-owned enterprise wishes to transfer exploration rights and/or mining rights, the approval documents issued by the relevant departments shall be presented to the licensing authorities.


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