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Law of the People's Republic of China on Mineral Resources - 1986

(Adopted by the 15th Session of the Standing Committee of the Sixth National People's Congress, revised according to the Resolution on Amendments to the Law of the People's Republic of China on Mineral Resources adopted by the 21st Session of the Standing Committee of the Eighth National People's Congress on August 29, 1996, and effective on October 1, 1986)

 

Contents

Chapter I General Provisions
Chapter II
Mineral Resources Prospecting Registration and Mining Consideration and Approval
Chapter III
Mineral Resources Prospecting
Chapter IV
Mineral Resources Mining
Chapter V
Collective Mine Enterprises and Individual Miners
Chapter VI
Legal Liability
Chapter VII
Supplementary Provisions


Chapter I General Provisions

Article 1
Pursuant to the Constitution of the People's Republic of China, this Law is hereby enacted for the purposes of developing the mining industry, reinforcing the mineral resources prospecting, exploitation, utilization and protection, and ensuring the satisfaction of the present and prospective needs of the socialist modernization construction.

Article 2
Any person who prospects or mines mineral resources in the territory of the People's Republic of China and within the sea areas under its jurisdiction must abide by this Law.

Article 3
All mineral resources are owned by the State, and the State Council shall exercise the State ownership over mineral resources. The State ownership of surface and underground mineral resources shall not be not changed by reason of variance in the ownership or the right to the use of the land to which they are attached.

The State maintains a rational exploitation and utilization of mineral resources. Any organization or person is prohibited from seizing or causing damage to mineral resources through any means. People's governments at all levels must reinforce the protective work over mineral resources.

Any prospecting or exploitation of mineral resources must be applied for separately according to law, be subject to obtaining the right for prospecting and the right for mining upon approval, and be subject to registration. The State protects the legitimate rights of prospecting and mining from any infringement and ensures the sequences of production and work within the mine and prospecting operation sites not being disturbed and harmed.

Any one who intends to engaging in the prospecting and exploitation of mineral resources must comply with the prescribed requirements.

Article 4
The State protects the legitimate rights and interests of mine enterprises established according to law in mining mineral resources.

State-owned mine enterprises are the main body in the mining of mineral resources. The State ensures the consolidation and progress of the State-owned mine enterprises.

Article 5
The State implements a system whereby the prospecting and mining rights of mineral resources shall be obtained in a paid way; however, the State may, in light of the actual circumstances, decide to reduce or exempt the fees to be charged on the requisition of the prospecting and mining rights. The specific measures and implementation procedures shall be made by the State Council.

Any mining of mineral resources must, according to relevant regulations of the State, be subject to payment of resources tax and resources compensation.

Article 6
With the exception of the transfers prescribed below, no prospecting right or mining right may be transferred:

1. An authorized prospecting party has the right to conduct prospecting operations within the designated area for prospecting operations, and shall have the precedence in obtaining the mining right over the mineral resources within the prospecting operation area. After an authorized prospecting party has satisfied the minimum input prescribed for the prospecting, the party may, upon approval according to law, transfer the prospecting right to others.

2. In case where a mining enterprise which has obtained the mining right needs to alter the body of the mining right due to merger, split, starting joint venture and contractual operation with others, or the sale of the assets of the enterprise or other circumstance requiring the change in the ownership over the assets of the enterprise, the said enterprise may, upon approval according to law, transfer the mining right to others to mine mineral resources.

Specific measures and implementation procedures for the provisions of the preceding paragraph shall be made by the State Council.

It shall be forbidden to speculate and profiteer from the prospecting and mining rights.

Article 7
The State implements the principles of unified planning, rational distribution, overall prospecting, reasonable mining and comprehensive utilization in the prospecting and exploitation of mineral resources.

Article 8
In the prospecting and exploitation of mineral resources, the State encourages the scientific and technological research, popularizes advanced technology and upgrades the scientific and technological level in prospecting and mining mineral resources.

Article 9
The people's governments at various levels shall reward those units and persons that have made outstanding achievements in such fields as prospecting, exploitation and protection of mineral resources, and scientific and technological research.

Article 10
The State shall, when mining mineral resources in the national autonomous areas, give full consideration to the interests of such areas, make arrangements favorable to the economic construction of such areas, and give full consideration to the production and life of the local minority masses.

The autonomous departments in the national autonomous areas may, in line with the provisions of laws and the State's unified planning, have the priority in rationally exploiting and utilizing the mineral resources that can be exploited by their respective localities.

Article 11
The competent department of the State Council for geology and mineral resources shall be in charge of the supervision and control of the prospecting and mining of mineral resources in the whole country. Relevant competent departments of the State Council shall assist it in carrying out such supervision and control.

The competent departments for geology and minerals of people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall be in charge of the supervision and control of the prospecting and mining of mineral resources within the areas under their respective jurisdiction. Relevant competent departments of people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, at their respective level, assist them in carrying out such supervision and control.

 

Chapter II Mineral Resources Prospecting Registration and Mining Consideration and Approval

Article 12
The State implements an unified lot registration system on the prospecting of mineral resources. The competent department of the State Council for geology and minerals is responsible for the registration of mineral resources prospecting; As for the registration of the prospecting of some special minerals, the State Council may authorize relevant competent departments to take the responsibility. The State Council shall formulate the measures for the lot registration of mineral resources prospecting.

Article 13
The organ in charge of consideration and approval of mineral reserves under the State Council or the organs in charge of consideration and approval of mineral reserves in provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the consideration and approval of exploration reports which are to be used in the construction and designing of mineral mines, and make a written reply to the units which make the said submission within the prescribed time limit. No exploration report without approval may serve as the basis for the construction and designing of a mineral mine.

Article 14
Archive materials of achievements and results in mineral resources prospecting and various statistical information on mineral reserves shall be managed on a unified basis, and shall be compiled or prepared according to the State Council's regulations.

Article 15
The establishment of a mine enterprise must conform to the qualification requirements prescribed by the State, and the organ in charge of consideration and approval shall, pursuant to laws and relevant regulations of the State, conduct examination over its mining boundaries, mine design or mining plan, production and technical conditions, safety measures and environmental protection measures; approval may be granted thereto only after it is found to meet the requirements through such examination.

Article 16
Any one who intends to mine any of the following mineral resources shall be subject to examination and approval by the competent department of the State Council for geology and mineral resources, which will issue mining permit thereto:

1. Mineral resources in the State planned mine areas and in the mine areas of important value to the national economy;

2. Mineral resources beyond the areas prescribed in the preceding Item but whose reserves that could be mined are at or above the large-scale grade;

3. Special minerals on which the State allows only protective mining;

4. Mineral resources in the territorial seas and other sea areas under the Chinese jurisdiction; and

5. Other mineral resources stipulated by the State Council.

The mining of special minerals as petroleum, natural gas and radioactive minerals may be examined and approved by the relevant competent departments authorized by the State Council, which shall issue mining permits thereto.

In mining mineral resources other than those specified by Item 1 and Item 2, and when the mineral reserve that could be mined is of the medium-scale grade, the competent departments for geology and mineral resources of the provinces, autonomous regions and municipalities directly under the Central Government shall conduct examination, grant approval and issue mining permits thereto.

The standing committees of the people's congresses in provinces, autonomous regions and municipalities directly under the Central Government shall formulate, according to law, the measures for the control over the mining of mineral resources other than those specified in Item 1, Item 2 and Item 3.

Where examination is conducted, approval granted and mining permits issued according to the provisions of Item 3 and Item 4, the competent departments for geology and mineral resources of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall itemize and report the same to the competent department of the State Council for geology and mineral resources for the record.

The definition standards on the large-scale and medium-scale grades of mineral reserves shall be made by the organ in charge of the consideration and approval of mineral serves under the State Council.

Article 17
In regard to the State planned mine sites, mine sites of significant value to the national economy and special minerals for which the State adopts a protective mining, the State adopts a planned mining thereon; unless being approved by the relevant competent departments of the State Council, no unit or person may conduct mining.

Article 18
After the boundary of a State planned mine site, a mine site of significant value to the national economy or the mine site of a mine enterprise is delineated according to law, the competent organ which makes such delineation shall notify the people's government of the county level concerned to make an announcement thereof.

A mine enterprise intending to change the boundary of its mine site must report to the original organ in charge of consideration and approval for approval, and report to the original organ that issued the mining permit to reexamine and reissue the mining permit.

Article 19
The local people's governments at various levels shall take measures to ensure the normal order of the mine areas of State-owned mine enterprises and other mine enterprises within their respective administrative jurisdictions.

No unit or person may intrude into or mine in the mine sites of the State-owned mine enterprise and other mine enterprises which are established according to law.

Article 20
Unless with consent of relevant competent departments authorized by the State Council, mining of mineral resources may not be conducted in the following areas:

1. within the areas delineated for harbors, airports and national defense facilities;

2. within a certain distance to the important industrial zones, large water conservancy projects and facilities, and urban engineering facilities;

3. within a certain distance to the railways and important highways;

4. within a certain distance to major rivers and dikes;

5. the locations of the State designated natural reserves, major scenic spots, and historical relics and sites of historical values which are immovable; and

6. other areas where mining, as stipulated by the State, is not allowed.

Article 21
Whichever intends to close down its mine site must submit a report for the closing of pits and relevant materials on mining operation, potential peril to safety, land reclamation and use and environmental protection, and shall apply for examination and approval according to the State's regulations.

Article 22
Any person conducting prospecting and mining of mineral resources shall, if discovering any rare geologic phenomenon or cultural relics having significant scientific and cultural value, protect them and report timely to the relevant departments.

 

Chapter III Mineral Resources Prospecting

Article 23
Regional geologic surveys shall be conducted in accordance with the unified planning of the State. Reports, maps and documents of regional geologic surveys shall, after being examined and accepted according to the State's regulations, be provided to the relevant departments for use.

Article 24
In a general survey of mineral resources, while completing the surveying tasks on major kinds of mineral ores, a preliminary general evaluation on the geologic mineralization conditions of mineral inter-growth or associated minerals within the surveying area and on the industrial perspective of the mineral deposits shall be made.

Article 25
In a mineral deposit exploration, comprehensive evaluation on the mineral inter-growth and associated minerals having industrial value within the mine site shall be made, and their total reserve shall be estimate. An exploration report which fails to make such comprehensive evaluation shall not be approved, except those exploration projects of mineral deposits for which the planning department of the State Council stipulates otherwise.

Article 26
With regard to special non-metal minerals which are vulnerable to damages, fluid minerals, inflammable, explosive and fusible minerals and minerals containing radioactive elements, the survey and exploration must be conducted by adopting the surveying and exploration methods prescribed by the relevant competent departments of the people's governments at or above the provincial level, and necessary technological equipment and safety measures must be available.

Article 27
The original geologic catalog and maps and documents for mineral resources prospecting, drill cores, test samples and other material samples as well as various prospecting marks shall be protected and kept in accordance with relevant regulations.

Article 28
The exploration reports of mineral deposits and other valuable prospecting materials shall be used in a paid manner according to the regulations of the State Council.

 

Chapter IV Mineral Resources Mining

Article 29
At the time of mining of mineral resources, the reasonable mining sequence, system of mining and ore dressing technique must be employed. The mining percentage of recovery, mining dilution rate and dressing recovery ratio of a mine enterprise shall reach the designed requirements.

Article 30
Any person shall, in mining main minerals, have unified planning, comprehensive mining and utilization on the mineral inter-growth or associated minerals having industrial value, and prevent the loss and waste thereof; and take effective protection measures to prevent the loss and waste of such minerals which could not be comprehensively mined or must be mined simultaneously but could not be utilized in a comprehensive manner, and tailings which contain useful elements.

Article 31
Any person must, in mining mineral resources, abide by the State's regulations for labor hygiene and safety and have the necessary conditions to guarantee the safety of production.

Article 32
Any person must, in mining mineral resources, abide by the relevant provisions of laws on environmental protection and prevent pollution to the environment.

Any person shall, in mining mineral resources, use the land in an economical manner. Where the farmland, grassland or forest land is damaged due to the mining operation, the mine enterprise concerned shall, in light of the local conditions, adopt such measures as reclamation for use, tree-planting, grass-planting or other utilization.

Any person who, in mining mineral resources, causes losses to the production or living of others, shall be liable for making compensation, and take necessary remedial measures.

Article 33
Before a railway, factory, reservoir, oil pipe, power transmission line or large-scale building or structure is constructed, the construction unit must learn from the competent department for geology and minerals of the province, autonomous region or municipality directly under the Central Government on the distribution and mining of mineral resources in the place where the construction is located. Unless with approval by the departments authorized by the State Council, such construction may not cover over any important mineral deposits.

Article 34
No other unit or person may purchase such minerals which, as stipulated by the State Council, shall be purchased in a unified manner by the designated unit; and the mining party may not sell such minerals to the non-designated units.

 

Chapter V Collective Mine Enterprises and Individual Miners

Article 35
The State implements the principles of active assistance, rational planning, correct guidance and strengthened control over the collective mine enterprises and individual miners, encourages the collective mine enterprises to mine mineral resources within the boundaries designated by the State, allows individuals to mine scattered and sporadic resources, and sand, stone and clay used only as general construction materials as well as a small quantity of minerals for self-use in their living.

Individuals may not mine such mineral resources as mineral resources whose mineral reserves are suitable for mining by mine enterprises, special mineral ores on which the State adopts a protective mining and other mineral resources on which the State forbids individual mining.

The State guides and assists the collective mine enterprises and individual miners to continuously improve their technological level, resources utilization rate and economic efficiency.

The competent departments for geology and minerals, geological operation units and State-owned mine enterprises shall, according to the principles of active assistance and mutual benefits and in a paid manner, provide the collective mine enterprises and individual miners with geologic materials and technical services.

Article 36
Any collective mine enterprise which is within the boundary of the mine site of a mine enterprise approved to be established by the State Council and its relevant competent department shall be closed down or move to any other designated site to conduct mining, the mine construction unit shall grant reasonable compensation thereto and arrange a proper living for the people; and also may, in accordance with the unified plan of the mine enterprises, conduct a joint operation with it.

Article 37
The collective mine enterprises and individual miners shall improve their technological level and the recovery rate of mineral resources. Rampant or excessive digging and mining and damage to mineral resources are forbidden.

The collective mine enterprises must survey and make the comparative maps on the engineering projects under and above the pits.

Article 38
The people's governments at or above the county level shall guide and help the collective mine enterprises and individual miners in carrying out technological renovations, improving their operation and management and strengthening safety production.

 

Chapter VI Legal Liability

Article 39
Whoever, in violation of the provisions of this Law, mines minerals without a mining permit, enters without authorization into the State planned mine site or the mine site having significant value to the national economy, or mines without authorization the special minerals for which the State adopts a protective mining, shall be ordered to stop mining and to make compensation, with confiscation of the minerals already mined and its illegal proceeds therefrom, and may be imposed a fine concurrently; if the said party refuses to stop mining and damage to mineral resources is caused thereby, criminal liability of the person(s) directly responsible shall be investigated according to the provisions of Article 156 of the Criminal Law.

Any unit or individual that intrudes into and mines in the mine areas of State-owned mine enterprises and other mine enterprises established by others according to law, shall be dealt with and punished in accordance with the provisions of the preceding paragraph.

Article 40
Whoever mines minerals outside its approved mine boundary shall be ordered to return to its own boundary to conduct mining and to make compensation, with confiscation of the minerals mined outside its boundary and its illegal proceeds therefrom, and may be imposed a fine concurrently; if refusing to return to its own boundary to conduct mining and thereby causing damage to mineral resources, the mining permit shall be revoked and criminal liability of the person(s) directly responsible shall be investigated according to the provisions of Article 156 of the Criminal Law.

Article 41
Whoever steals or robs the mineral products and other properties of the mining enterprises or prospecting units, damages the mining or prospecting facilities, or disturbs the production or working order of the mine or prospecting site, shall be investigated for the criminal liability respectively according to the relevant provisions of the Criminal Law; If the circumstance is remarkably minor, penalty shall be given according to the relevant provisions of the Regulations on Public Security Control and Penalty.

Article 42
Whoever purchases or sells, leases or transfers mineral resources in any other manner, shall be confiscated of its illegal proceeds and shall be imposed a fine therefore.

Whoever, in violation of the provisions of Article 6 of this Law, speculates and profiteer from the prospecting right and mining right, shall be revoked of its prospecting permit or mining permit, be confiscated of its illegal proceeds therefrom and be imposed a fine.

Article 43
Whoever, in violation of the provisions of this Law, purchases and sells the mineral products which should be purchased exclusively by the State, shall be confiscated the mineral products in question and its illegal proceeds therefrom and shall be imposed a fine concurrently; where the circumstance is serious, the criminal liability shall be investigated according to the provisions of Articles 117 and 118 of the Criminal Law.

Article 44
Whoever, in violation of the provisions of this Law, takes a destructive method in mining mineral resources shall be imposed a fine, and may be revoked of its mining permit; if serious damage is caused to mineral resources, criminal liability of the person(s) directly responsible shall be investigated according to the provisions of Article 156 of the Criminal Law.

Article 45
The decision of an administrative penalty under Article 39, 40 or 42 of this Law shall be made by the competent departments for geology and mineral resources of the people's government at or above the county level according to the limits of power authorized by the competent department of the State Council for geology and mineral resources. The decision of an administrative penalty under Article 43 of this Law shall be made by an administrative department for industry and commerce of the people's government at or above county level. The decision of an administrative penalty under Article 44 of this Law shall be made by the competent departments of geology and minerals under the people's government of provinces, autonomous regions or municipalities directly under the Central Government. A penalty under which the prospecting permit or mining permit is to be revoked shall be made by the original department that issued such a permit.

In case where an administrative penalty, according to the provisions of Article 39, Article 40, Article 42 and Article 44, should have been imposed but was not imposed, the competent department for geology and mineral resources of the people's government at the higher level shall have the power to order for a correction or directly impose an administrative penalty thereon.

Article 46
A party concerned which disagrees with an administrative penalty decision may apply for a reconsideration, and may also directly initiate legal proceedings to a people's court according to law.

In the event that a party fails to apply for a reconsideration nor initiates legal proceedings to a people's court, nor complies with the penalty decision, the organ which made the penalty decision shall request the people's court for compulsory enforcement.

Article 47
If a State functionary or staff in charge of the supervision and control over mineral resources prospecting and exploitation or any other State functionary or staff practices favoritism for personal gains, abuses his or her power or neglects his or her duty, or in violation of the provisions of this Law, approves prospecting or exploitation of mineral resources or issues prospecting and mining permits, or fails to put an end to or punish, according to law, illegal mining activities, thus constituting a crime, criminal liability shall be investigated according to law; if no crime is constituted, an administrative penalty shall be given thereto. The competent departments for geology and mineral resources of the people's governments at the higher level shall have the power to revoke those prospecting and mining permits issued illegally.

Article 48
Whoever obstructs, be means of force or threat, State functionaries and staff from performing, according to law, their duties and functions in supervising and controlling mineral resources prospecting and mining, criminal liability shall be investigated according to the provisions of Article 157 of the Criminal Law; whoever obstructs, without resorting to means as force or threat, State functionaries and staff from performing, according to law, their duties and functions in supervising and controlling mineral resources prospecting and mining, the public security organs shall give a penalty according to the Regulations on Public Security Control and Penalty.

Article 49
The parties to a dispute concerning the mine boundary among mine enterprises shall settle it on themselves through consultation; if such consultation fails, the people's government concerned at or above county level shall settle the dispute in pursuance to the officially approved mine boundary. Any dispute over the mine boundary involving different provinces, autonomous regions or municipalities directly under the Central Government shall be settled through consultation among the people's governments of the related provinces, autonomous regions and municipalities directly under the Central Government, and if the consultation among them fails, the State Council shall handle the case.

 

Chapter VII Supplementary Provisions

Article 50
Where laws and administrative regulations contain otherwise provisions on the prospecting and mining of mineral resources with foreign investment, such provisions shall apply.

Article 51
Those that have been mining mineral resources, prior to the enforcement of this Law, without completing procedures for approval, without having their mining boundary demarcated, or without having been obtained their mining permits, shall apply to complete the formalities according to relevant provisions of this Law.

Article 52
The State Council shall formulate the detailed rules for implementation of this Law.

Article 53
This Law shall enter into force on October 1, 1986.

Appendix: Relevant articles of the Criminal Law

Article 117
Whoever engages in speculation in violation of the laws and regulations on the control of monetary affairs, foreign exchange, gold and silver, or on the administration of industrial and commercial affairs, if the circumstances are serious, shall be sentenced to fixed-term imprisonment not exceeding three years or criminal detention, or he or she may concurrently or exclusively be sentenced to a fine or confiscation of property.

Article 118
Whoever makes a regular business of smuggling or illicit speculation, smuggles or speculates in huge amounts or is the ringleader of a group that smuggles or engages in illicit speculation shall be sentenced to fixed-term imprisonment exceeding three years but not exceeding ten years, and may concurrently be sentenced to confiscation of property.

Article 156
Whoever intentionally destroys public or private property, where the circumstances are serious, shall be sentenced to fixed-term imprisonment not exceeding three years, criminal detention or a fine.

Article 157
Whoever, by means of force or threat, obstructs a State functionary from carrying out his or her functions according to law or refuses to carry out legally effective judgments or orders of people's courts shall be sentenced to fixed-term imprisonment not exceeding three years, criminal detention, a fine or deprivation of political rights.

Article 158
It shall be prohibited for anyone to disturb public order by any means. Where the circumstances of the disturbance of public order are so serious that work, production, business, education or scientific research cannot be conducted and the State and society suffer serious losses, the ringleaders shall be sentenced to fixed-term imprisonment not exceeding five years, criminal detention, public surveillance or deprivation of political rights.

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