China has further improved the registration and management of mineral resource exploration and mining.

Recently, the Ministry of Natural Resources issued the “Notice on Further Improving the Registration and Management of Mineral Resource Exploration and Mining” (hereinafter referred to as the “Notice”), which sets forth provisions on further refining matters related to the registration and management of mineral resource exploration and mining.

With regard to improving the registration and management of mineral resource exploration, the Notice clarifies the following: First, it refines the registration procedures for the establishment, renewal, and retention of exploration rights. The granting of an exploration right must comply with relevant regulations, including territorial spatial planning, mineral resource planning, ecological and environmental protection requirements, and national industrial policies. When a mining rights holder conducts exploration activities in the deeper or upper portions of a mining area, no separate registration for the establishment of an exploration right is required. For the establishment, renewal, or amendment of the types of minerals subject to exploration, as well as for the consolidation, division, or modification of the exploration area, an exploration implementation plan must be prepared; such plans shall conform to applicable geological exploration procedures, specifications, and standards. For the initial application for the retention of an exploration right, a description of the identified ore bodies within the exploration area that are ready for exploitation must be submitted. In cases where exploration cannot continue or be converted into a mining right due to force majeure or other reasons beyond the applicant’s control, the corresponding area may be offset against the reduction required under relevant provisions, upon presentation of appropriate supporting documentation. For exploration rights already placed on hold, if, owing to policy changes or other non‑mining‑rights‑holder‑related factors, the level of exploration required has been raised and the right cannot be converted into a mining right, but continued exploration is deemed necessary, an application for renewal of the exploration right may be filed.

Second, standardize the administration of registration for changes to prospecting rights. For prospecting rights obtained through tendering, auction, or public listing, applications to change the holder are not subject to the two-year holding requirement. For prospecting rights acquired by agreement, an application to change the holder must be accompanied by at least five years of continuous ownership. When applying to change the holder of a prospecting right, both the transferor and the transferee shall jointly submit the change application to the registration authority. If the proposed change involves overlapping rights and meets the relevant statutory conditions, the transferee shall provide an agreement ensuring non‑interference and protection of rights, or a commitment not to prejudice the rights of existing mining right holders. Existing mining rights held by the same entity, together with overlying or deeper‑level exploration prospecting rights, may not be transferred separately. Where a prospecting right holder conducts integrated exploration and comprehensive evaluation of mineral resources within the exploration area—excluding those minerals for which mining rights have been directly granted through tendering, auction, or public listing (such as common construction sand, gravel, and soil)—no separate registration is required for changing or adding the types of minerals under exploration; instead, a mineral resource reserve report shall be prepared based on the geological reserves or resources actually discovered. With respect to mineral resources identified through integrated exploration that meet the criteria for conversion to mining rights, an application for new mining‑right registration may be submitted to the competent registration authority in accordance with applicable regulations. If a people’s court auctions or adjudicates a prospecting right to another party, the transferee shall, in accordance with law, apply to the registration authority for registration of the change.

With regard to improving the registration and management of mineral resource extraction, the Notice stipulates the following: First, the approach to managing mine‑site boundaries is being adjusted. When a prospecting right is converted into an mining right, it shall be based on a mineral resource reserve report that has undergone review and filing. For non‑coal mines with large‑scale reserves and for medium‑ to large‑scale coal mines, the exploration stage must be reached; for other types of mines, the detailed exploration stage or higher must be attained. The holder of a prospecting right shall determine the scope of the mining‑rights application by delineating a three‑dimensional spatial area corresponding to the estimated reserve‑estimation zone, wellhead facilities, oil (or gas) pipelines (excluding export pipelines), gathering and transmission stations, the distribution of shaft and tunnel infrastructure, or the open‑pit stripping area. Following the preparation and review of a mineral resource development and utilization plan, the applicant shall submit a request to the registration authority for the establishment of a new mining registration. Where multiple mineral types are involved within the same mine site, the scope of the mining‑rights application shall be defined according to the principal mineral type and any associated co‑mineral types as specified in the reviewed and filed mineral resource reserve report, and the associated resources shall be comprehensively utilized.

Second, the management of new mining‑rights establishment and renewal registration shall be improved. The establishment of a mining right must comply with relevant regulations, including territorial spatial planning, mineral resources planning, green mine development, ecological and environmental protection, and national industrial policies. Applicants for mining rights may prepare a mineral resource development and utilization plan themselves or commission a qualified institution to do so; the registration authority may not designate specific intermediary agencies or individuals to provide such services. Where a prospecting right is converted into a mining right, upon granting registration for the new mining right, the original prospecting right shall be cancelled or its area shall be reduced and re‑registered accordingly.

Third, refine the management of registration for changes to and cancellation of mining rights. For applications to transfer or amend a mining right, the transferee must meet the prescribed eligibility requirements for applicants and assume all rights and obligations associated with the mining right. When state‑owned mining enterprises apply for registration of a transfer or amendment of a mining right, they must submit the approval document from the competent authority of the mining enterprise authorizing such transfer or amendment. Registration for the transfer or amendment of a mining right will not be processed in six circumstances, including partial transfers or amendments. For applications to change the principal mineral being mined, a mineral resource reserve report that has been reviewed and filed must be submitted. For mining rights pertaining to minerals subject to total‑output control, when applying for a change or renewal, the provincial natural resources authority shall provide written opinions on the allocation and utilization of the total‑output control quotas. In principle, mining rights may not be split; if splitting is indeed necessary, it must comply with relevant regulations, including those governing mineral resource planning. If a people’s court auctions off or adjudicates a mining right to another party, the transferee shall, in accordance with the law, apply to the registration authority for registration of the change. If a mine holding a valid mining right is ordered by a people’s government at or above the county level to close—due to ecological protection, workplace safety, public interest, industrial policy, or other reasons—and such decision is publicly announced, the natural resources authority at the same administrative level shall notify the original registration authority in writing. The mining right holder shall, within 30 days from the date of the closure decision, apply to the original registration authority to cancel the mining permit registration.