The Top Ten News Stories in China’s Mining Industry for 2020 Have Been Announced.

On January 19, the Top Ten News Stories in China’s Mining Industry for 2020 were announced, as selected jointly by the China Mining Association and industry associations and media outlets representing coal, metallurgy, nonferrous metals, building materials, gold, and other sectors.

The top ten news stories are as follows:

I. The Resource Tax Law of the People’s Republic of China came into effect on September 1.

On August 26, 2019, the Resource Tax Law was adopted and came into effect on September 1, 2020. The law stipulates that the tax rate for raw coal or beneficiated coal is between 2% and 10%, while the tax rate for coalbed methane is between 1% and 2%.

Compared with the current resource tax system, the Resource Tax Law introduces three major changes. First, it standardizes the tax categories, listing all taxable resource products in the law—totaling 164 items. Second, it revises the authority for determining specific tax rates: for resources subject to a range‑based tax rate, the specific applicable rate is to be proposed by the provincial people’s government and submitted to the standing committee of the people’s congress at the same level for decision. Third, it clarifies the rules governing tax exemptions and reductions; for example, coalbed methane extracted by coal mining enterprises for safety‑production purposes is exempt from the resource tax.

II. China Has Implemented Major Reforms in Mineral Resources Management

On January 9, 2020, the Ministry of Natural Resources issued the “Opinions on Several Matters Concerning the Advancement of Mineral Resource Management Reform (Trial)” (hereinafter referred to as the “Opinions”), which introduced major reforms to China’s mineral resource management system. The Opinions comprise 11 measures across three key areas—reform of the mineral rights transfer system, reform of oil and gas exploration and production management, and reform of reserve management—aimed at deepening the “delegation, regulation, and service” reform, fully leveraging the market’s decisive role in resource allocation while enhancing the government’s role. At the same time, grounded in the realities of mineral resource exploration and exploitation, the document addresses longstanding, salient issues in mineral resource management, distilling and codifying proven, viable practices into institutional frameworks. This provides policy support for the orderly and steady advancement of mineral resource management and accumulates valuable practical experience for future amendments to the Mineral Resources Law.

III. China’s Second Round of Trial Production of Natural Gas Hydrates in Its Maritime Areas Has Been Successfully Completed

On March 26, 2020, the second round of pilot extraction of natural gas hydrates in China’s offshore waters, organized and implemented by the China Geological Survey under the Ministry of Natural Resources, was successfully completed, surpassing all set targets. In the Shenhu area of the South China Sea, at a water depth of 1,225 meters, the trial production set two new world records—total gas output of 861,400 cubic meters and an average daily production of 28,700 cubic meters—and achieved breakthroughs in core technologies for horizontal well drilling and production in deep-sea, shallow, soft formations. This marked a major leap from “exploratory pilot extraction” to “experimental pilot extraction,” yielding significant, landmark achievements in the drive toward industrialization.

IV. Fifteen national departments jointly issued the “Guiding Opinions on Promoting the Healthy and Orderly Development of the Sand and Gravel Industry.”

On March 27, 2020, in order to stabilize the supply of sand and gravel in the market, maintain overall price stability, and promote the healthy and orderly development of the industry, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and thirteen other departments and agencies jointly issued the “Guiding Opinions on Promoting the Healthy and Orderly Development of the Sand and Gravel Industry” (hereinafter referred to as the “Guiding Opinions”).

The “Guiding Opinions” provide a systematic exposition covering such aspects as overall requirements, promoting the high-quality development of the manufactured sand and gravel industry, strengthening the comprehensive remediation and utilization of river‑bed sand extraction, steadily and orderly advancing the exploitation and utilization of marine sand, actively promoting the substitution and alternative use of sand resources, further reinforcing local responsibilities, enhancing market supervision, and establishing and improving working mechanisms.

V. A super-large lead–zinc deposit has been discovered in Hezhang, Guizhou, with an economic value exceeding RMB 70 billion.

On April 21, 2020, a super-large lead–zinc deposit—completely concealed, high-grade, and thick—was discovered at Zhugangtang in Shuitang Township, Hezhang County, Guizhou Province, with an estimated economic value exceeding RMB 70 billion.

According to reports, this ultra-large lead–zinc deposit has delineated 92 major ore bodies, with an average lead–zinc grade of 10% and a combined average grade of 6.76%. Exploration has confirmed lead–zinc metal resources totaling 3.2744 million metric tons, accompanied by significant associated mineral resources such as gold, silver, gallium, cadmium, germanium, and selenium. The ore body thickness is ten times the industrial mineable thickness, equivalent to that of six large-scale lead–zinc deposits. After eight years of relentless effort, a breakthrough was finally achieved at Zhu’gongtang in Shuitang Township, Hezhang County.

VI. Two National Standards on the Classification of Mineral Resource Reserves Have Been Released

On April 23, 2020, the National Standard “Classification of Reserves for Solid Mineral Resources” and “Classification of Reserves for Oil and Gas Mineral Resources,” proposed by the Ministry of Natural Resources, were approved for promulgation by the State Administration for Market Regulation and the National Standardization Management Committee. Both national standards entered into force on May 1. The newly released “Classification of Reserves for Solid Mineral Resources” primarily covers: scope; terms and definitions; classification of resource and reserve categories; the interrelationship between resources and reserves; and the public disclosure of resource and reserve information. The newly released “Classification of Reserves for Oil and Gas Mineral Resources” mainly includes: scope; terms and definitions; delineation of exploration and development stages; category classification; reserve status; and procedures for public disclosure and utilization.

VII. Zijin Mining Acquires a 3.883-billion-yuan Controlling Stake in Julong Copper, Aiming to Build China’s Largest Copper Mine

On June 7, 2020, Zijin Mining acquired a 50.1% stake in Tibet Julong Copper Industry for RMB 3.883 billion, gaining control over the development of China’s largest porphyry copper deposit in terms of proven copper reserves. Following the acquisition, Zijin Mining’s attributable copper resources exceeded 62 million tonnes, cementing its position as the undisputed leader in China’s copper mining sector.

VIII. Shandong Gold Group’s gold production has ranked among the top ten global gold producers.

On June 24, 2020, the launch of the “Global Gold Yearbook 2020” unveiled the 2019 ranking of the world’s top 20 gold-producing companies. Shandong Gold Group Co., Ltd. secured the 10th position for the first time, with a gold output of 47.9 tonnes, marking an initial achievement in the efforts of Chinese gold enterprises to grow stronger and larger.

IX. Shanxi Province Successfully Reorganized Its Provincial Coal Enterprises, Completing the First Batch of Asset Transfers

On October 10, 2020, Shanxi Provincial State-owned Assets Operation Company injected capital into the newly established Jinneng Holding Group and transferred the first batch of related assets.

Through a joint restructuring, the Datong Coal Group, Jincheng Anthracite Mining Group, and Jinneng Group were consolidated, while simultaneously integrating relevant assets of the Luan Group and the Huayang New Materials Technology Group, along with the reformed China (Taiyuan) Coal Trading Center, to establish Jinneng Holding Group Co., Ltd. Following the restructuring, Jinneng Holding Group will focus on optimizing its coal industry, strengthening its power sector, and expanding its intelligent coal‑machinery equipment manufacturing business. The group’s total assets now stand at RMB 1.11 trillion, with a coal production capacity of approximately 400 million tonnes, an installed power capacity of 38.1471 million kilowatts, and coal‑machinery equipment manufacturing assets valued at RMB 36.865 billion. This joint restructuring will effectively address the longstanding challenges facing Shanxi‑provincial coal enterprises—fragmented operations, large scale but weak competitiveness, and severe homogeneous competition—while transforming Shanxi’s coal resources into a competitive edge in the power sector and leveraging that advantage to foster strategic emerging industries.

X. Jiapigou has maintained continuous mining for 200 years, setting a record for the longest uninterrupted mining operation in the history of the mining industry.

By 2020, Jiapigou Mining Co., Ltd. of China National Gold Group had been mining gold continuously for 200 years. Since the founding of the People’s Republic of China, the Jiapigou gold mine has cumulatively produced over 80 tonnes of gold and trained more than 7,000 managerial personnel and technical specialists for the national nonferrous metals and gold industries, earning it the reputation as “the cradle of China’s nonferrous and gold industries.”