Review | The Ten Major Regulations and Policies That Shaped China’s Mining Sector in 2020

In the just-concluded year 2020, guided by Xi Jinping’s Thought on Ecological Civilization, the CPC Central Committee, the State Council, and relevant departments including the Ministry of Natural Resources have, with a problem‑oriented and goal‑oriented approach, continuously advanced reforms in the mining sector and accelerated the effective implementation of various institutional frameworks, thereby providing robust support for the high‑quality development of the mining industry in the new era. As a leading domestic legal service provider specializing in the mineral and energy sectors, Beijing Yuren Law Firm is committed to building the most valuable legal think tank in this field. Under the initiative of Luan Zhengming, founder and managing partner of Beijing Yuren Law Firm, and with contributions from Shen Sheng, partner at Beijing Yuren Law Firm and director of its Mining Law Research Center, the firm, in collaboration with China Mining News, has meticulously compiled the ten major regulations and policies that shaped China’s mining economy in 2020. This marks the sixth consecutive year that Beijing Yuren Law Firm and China Mining News have jointly released their list of the top ten regulations and policies influencing China’s mining sector—ranked according to their date of promulgation.

I. The Ministry of Natural Resources has issued the “Opinions on Several Matters Concerning the Advancement of Mineral Resource Management Reform (Trial)”

[Abstract] On January 9, 2020, the Ministry of Natural Resources held a press conference to introduce its Opinions on Several Matters Concerning the Advancement of Mineral Resource Management Reform, outlining the background and key provisions of the document issued on December 31, 2019, titled “Opinions on Several Matters Concerning the Advancement of Mineral Resource Management Reform (Trial)” (hereinafter referred to as the “Opinions”). The Opinions cover three main areas—reform of the mineral rights transfer system, reform of oil and gas exploration and production management, and reform of reserve management—comprising a total of 11 provisions. Regarding the reform of the mineral rights transfer system: competitive bidding for mineral rights will be comprehensively promoted; negotiated transfers will be strictly controlled; “clean‑site” transfers will be actively advanced; and the registration and approval of exploration and mining rights for the same mineral type will be managed at the same administrative level, thereby addressing issues arising from disparate hierarchical oversight of such rights. Additionally, government‑funded geological exploration activities will be standardized, and the duration of exploration licenses will be adjusted. In terms of oil and gas exploration and production management reform: restrictions on oil and gas exploration and production will be lifted, and an integrated exploration‑production regime will be implemented. As for reserve management reform: the classification of mineral resource reserves will be overhauled; review, filing, and registration procedures will be streamlined and consolidated; and the scope of direct government review and filing will be narrowed. [Reason for Inclusion] The issuance of these Opinions carries significance in three key respects: first, it implements the decisions and arrangements of the CPC Central Committee and the State Council regarding reforms of the mineral rights transfer system, the oil and gas sector, the coordinated advancement of property‑rights reforms for natural resources, and the intensification of oil and gas exploration and development, while deepening the “delegation, regulation, and service” reform to better leverage the market’s decisive role in resource allocation and enhance the government’s functions. Second, grounded in the realities of mineral resource exploration and extraction, the Opinions distill and codify proven, viable practices into institutional frameworks, thereby providing policy support for the orderly and efficient administration of mineral resources. Third, by piloting relevant institutional reforms, they accumulate valuable practical experience that will inform future amendments to China’s Mineral Resources Law.

II. The Ministry of Natural Resources has issued the “Notice on Fully Launching the Preparation of the Mineral Resources Plan (2021–2025).”

[Abstract] To strengthen unified planning for the exploration, development, utilization, and protection of mineral resources, the Ministry of Natural Resources issued on March 11, 2020 the “Notice on Launching the Preparation of Mineral Resource Plans (2021–2025)” (hereinafter referred to as the “Notice”), which calls for a comprehensive launch of plan‑making at all levels—national, provincial, and city/county—following the principles of top-down guidance, vertical coordination, and phased implementation. The base year for the plans is 2020, with 2025 set as the target year. The Notice covers four key areas: “fully initiating the preparation of mineral resource plans at all levels,” “focusing on priority aspects of plan formulation,” “clarifying procedures for plan submission and approval,” and “strengthening support mechanisms for plan‑making.” In particular, it emphasizes several critical priorities: clearly defining the roles and objectives of plans at each level; reinforcing resource security; optimizing the spatial layout and structural framework for resource exploration, development, and protection; promoting efficient resource utilization; and accelerating green development in the mining sector. The Notice also stipulates that the construction of a corresponding planning database should proceed in parallel, with both the database and the plan‑making process completed concurrently. [Reason for inclusion] The issuance of this Notice will help ensure that the preparation of mineral resource plans thoroughly implements the decisions and arrangements of the CPC Central Committee and the State Council, aligns with national economic and social development plans and territorial space planning, enhances resource security, and appropriately balances the relationships among development and conservation, short-term and long-term interests, overall and local considerations, and domestic and international factors. By enabling the market to play a decisive role in resource allocation while better leveraging government functions, the Notice seeks to coordinate mineral resource exploration, development, and protection activities, advance green mining, and ensure that resource supply meets the needs of economic and social development, that resource exploitation and environmental protection are mutually compatible, and that planning-based regulation is seamlessly integrated with management reforms.

III. The National Development and Reform Commission and fourteen other departments have issued the “Guiding Opinions on Promoting the Healthy and Orderly Development of the Sand and Gravel Industry.”

[Abstract] On March 25, 2020, the National Development and Reform Commission, together with fifteen other departments, issued the “Notice on Guiding Opinions for Promoting the Healthy and Orderly Development of the Sand and Gravel Industry” (NDRC Price [2020] No. 473) (hereinafter referred to as the “Opinions”). The Opinions emphasize accelerating the implementation of the “Several Opinions on Promoting High-Quality Development of the Manufactured Sand and Gravel Industry,” and explicitly state that coordinated efforts should be strengthened across planning and layout, process equipment, product quality, pollution prevention, comprehensive utilization, and workplace safety, so as to expedite the transformation and upgrading of the manufactured sand and gravel sector and better meet the demand for construction sand. The document also advocates a balanced approach—curbing illegal activities while opening up legitimate channels—by cracking down on unauthorized sand extraction while vigorously promoting the scientific, rational, and orderly development and utilization of river sand resources, thereby alleviating supply‑demand imbalances in the sand and gravel market. Furthermore, subject to compliance with safety and ecological‑environmental standards, the Opinions encourage and support the comprehensive utilization of waste rock, mining tailings, and other by‑products as sand and gravel resources, turning waste into valuable materials. At the same time, they promote the use of solid waste such as construction demolition debris to produce alternative sand and gravel products, call for the removal of unreasonable regional restrictions, and work to increase the supply of recycled sand and gravel. For approved engineering projects and restoration initiatives carried out within integrated rehabilitation zones in accordance with ecological restoration plans, sand and gravel excavated during construction—beyond what is required for project use—may, in compliance with applicable laws and regulations, be sold externally. [Reason for Inclusion] Sand and gravel are among the most fundamental and indispensable construction materials. In recent years, the sand and gravel industry has made significant progress; however, it continues to grapple with challenges such as limited supply capacity and low levels of green development. The implementation of these Opinions will effectively address pressing issues—including acute supply‑demand imbalances, rapid price increases, and illegal sand extraction in certain river areas—thereby contributing to stable market supplies, overall price stability, and the healthy, orderly development of the industry. Moreover, by balancing resource utilization with ecological and environmental protection, the Opinions help achieve win‑win outcomes that deliver economic, environmental, and social benefits.

IV. Two national standards, “Classification of Reserves of Solid Mineral Resources” and “Classification of Reserves of Oil and Gas Mineral Resources,” have been released.

[Abstract] The national standards “Classification of Solid Mineral Resource Reserves” (GB/T 17766-2020) and “Classification of Oil and Gas Resource Reserves” (GB/T 19492-2020), proposed by the Ministry of Natural Resources and approved for promulgation by the State Administration for Market Regulation and the National Standardization Management Committee, officially came into effect on May 1, 2020. The newly released “Classification of Solid Mineral Resource Reserves” primarily covers: scope, terms and definitions, classification of resource and reserve types, the interrelationship between resources and reserves, and the public disclosure of resource and reserve information. The newly issued “Classification of Oil and Gas Resource Reserves” mainly includes: scope, terms and definitions, delineation of exploration and development stages, classification of reserve types, reserve status, and provisions for public disclosure and utilization. The new national standard for solid mineral resource reserves divides mineral exploration into three stages—prospecting, detailed investigation, and exploration—and categorizes mineral resource reserves into two classes: resources and reserves. Resource estimates are further subdivided into three levels—indicated, inferred, and measured—based on increasing geological confidence. Reserves, in turn, are classified into two tiers—probable and proven—according to geological reliability and the results of feasibility studies. This revised classification system departs from the previous three‑axis framework, streamlining the economic significance categories of reserves. The updated standard reduces the number of resource and reserve types from 16 in the 1999 edition to just five. The new national standard for oil and gas resource reserves divides the exploration and development process into three phases—preliminary exploration, appraisal, and development—and classifies oil and gas resources into two categories: resources and geological reserves. Resource estimates are no longer graded. Geological reserves are categorized into three levels—predicted, controlled, and proved—based on geological reliability, thereby simplifying the economic significance classification of reserves. [Reason for Inclusion] The national standards for classifying solid mineral and oil and gas resource reserves serve as the cornerstone of China’s technical standard system for mineral resource reserves and constitute fundamental, guiding technical norms underpinning mineral resource management in the country. These new classification standards address the needs of China’s mineral resource administration, market‑driven investment and financing, enterprise operations, and international cooperation, helping to minimize societal cognitive and informational transaction costs. Their implementation will accelerate mutual recognition between China and leading mining nations, enhance domestic mining technology and human capital, further integrate China’s mining sector into the global market, and support the country’s long-term economic and social development.

V. The General Office of the Ministry of Natural Resources has issued the “Notice on Several Matters Concerning the Review and Filing Management of Mineral Resource Reserves.”

[Abstract] To further advance the “delegation, regulation, and service” reform, in accordance with relevant provisions of the Mineral Resources Law and the Ministry of Natural Resources’ Opinions on Several Matters Concerning the Advancement of Mineral Resources Management Reform (Trial) (No. 7 [2019] of the Ministry of Natural Resources), the General Office of the Ministry of Natural Resources issued on May 19, 2020 the Notice on Several Matters Relating to the Review and Filing Management of Mineral Resource Reserves (No. 26 [2020] of the General Office of the Ministry of Natural Resources) (hereinafter referred to as the “Notice”). The Notice clarifies the concept of review and filing of mineral resource reserves, specifies the circumstances under which a mineral resource reserve report must be prepared and an application for review and filing submitted, delineates the procedures, competent authorities, and time limits for such applications, and sets forth measures to address cases where the submitted materials are false or involve fraudulent practices. It also establishes an expert pool for the review and filing of mineral resource reserves, outlines the development of information‑based systems for this process, and provides other relevant guidelines. [Reason for Inclusion] The review and filing of mineral resource reserves is an administrative procedure through which the natural resources authority fulfills the legal requirement that mineral resources are owned by the state and exercises the duties of the owner. By reviewing and confirming the mineral resource reserves declared by applicants upon request, this process incorporates the data into the national physical account of mineral resources, serving as an important basis for state management of these resources. The issuance of this Notice is of great significance for standardizing the conduct of review and filing of mineral resource reserves, ensuring the authenticity and reliability of national mineral resource reserve data, and safeguarding the state’s ownership rights over mineral resources.

VI. The General Office of the Ministry of Natural Resources has issued the “Notice on Strengthening Supervision and Management of Territorial Spatial Planning.”

[Abstract] On May 22, 2020, the General Office of the Ministry of Natural Resources issued the “Notice on Strengthening the Supervision and Management of Territorial Spatial Planning” (No. 27 [2020] of the General Office of the Ministry of Natural Resources) (hereinafter referred to as the “Notice”). The Notice further clarifies and emphasizes the requirements for supervising and managing territorial spatial planning by standardizing planning preparation and approval, strictly regulating planning permits, improving full‑cycle planning management, and strengthening the development of the cadre workforce, thereby providing operational guidance for effective oversight during the transitional period prior to the enactment of the Territorial Spatial Planning Law. For the first time, the Notice introduces the requirement of implementing full‑cycle planning management and, in line with this mandate, sets out detailed stipulations for each stage of the closed-loop process—planning preparation, approval, amendment, and implementation supervision. Notably, at the planning preparation stage, it establishes a “lifetime accountability system for the preparing entity.” [Reason for Inclusion] Establishing a territorial spatial planning system and overseeing its implementation is a major decision and deployment made by the CPC Central Committee and the State Council. It is imperative to firmly safeguard the seriousness and authority of planning, ensure that plans are prepared and implemented in strict accordance with laws and regulations, and prevent such issues as unauthorized plan preparation, arbitrary adjustments, illegal permitting, construction without prior approval, weak regulatory oversight, as well as inadequate service awareness and an unpragmatic work style—thus ensuring rigorous enforcement. Throughout the document, the language is resolute and unequivocal, both upholding the integrity of planning and articulating clear, actionable guidelines. The Notice represents a robust follow-up to the significant decisions set forth in the “Several Opinions of the CPC Central Committee and the State Council on Establishing a Territorial Spatial Planning System and Overseeing Its Implementation,” issued in May 2019.

VII. The National Development and Reform Commission and the Ministry of Natural Resources have issued the “Overall Plan for Major Projects on the Protection and Restoration of Important Ecosystems Nationwide (2021–2035).”

[Abstract] On June 3, 2020, the National Development and Reform Commission and the Ministry of Natural Resources jointly issued the Notice on the “Overall Plan for Major Projects on the Protection and Restoration of Important National Ecosystems (2021–2035)” (NDRC Agricultural Economy [2020] No. 837) (hereinafter referred to as the “Plan”). The Plan covers overarching requirements, guiding principles, planning objectives, overall spatial layout, key projects, as well as specific tasks, measures, and supporting mechanisms. It establishes dedicated major projects for the protection of nature reserves and for the conservation of wild fauna and flora. The Plan coordinates nine major projects and sets clear targets for 2035. Its overall spatial layout is structured as “Three Zones and Four Belts.” Building on this framework, and taking into account the ecological baseline and principal challenges of each priority region, the Plan adopts an approach that combines sectoral and regional strategies, with a focus on regional implementation. Accordingly, it designates nine major projects: the Qinghai–Tibet Plateau Ecological Barrier Zone; the Yellow River Key Ecological Zone (including the Loess Plateau Ecological Barrier); the Yangtze River Key Ecological Zone (including the Sichuan–Yunnan Ecological Barrier); the Northeast Forest Belt; the Northern Sand‑Control Belt; the Southern Hilly and Mountainous Belt; the Coastal Zone for Ecological Protection and Restoration; the Key Project for Nature Reserve Construction and Wildlife Conservation; and the Major Project for the Support System of Ecological Protection and Restoration. [Reason for Inclusion] The Plan represents the first comprehensive national-level plan in the field of ecological protection and restoration since the 19th National Congress of the Communist Party of China. It outlines the overarching vision, primary objectives, overall spatial arrangement, major projects, key tasks, and supporting policies for implementing nationwide initiatives to protect and restore critical ecosystems. As the master blueprint for advancing these major projects, it serves as an essential reference for formulating and executing specialized construction plans for related projects, playing a strategic and guiding role in promoting ecological protection and restoration across the country.

VIII. The National Development and Reform Commission and five other departments have issued the “Notice on Effectively Carrying Out Work to Resolve Excess Capacity in Key Areas in 2020.”

[Abstract] On June 12, 2020, six government departments—including the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Finance—jointly issued the “Notice on Effectively Carrying Out Overcapacity Reduction in Key Areas in 2020” (hereinafter referred to as the “Notice”). The Notice stipulates that regions and central enterprises that have yet to meet their capacity‑reduction targets set under the 13th Five-Year Plan must ensure full completion of these tasks by the end of 2020. At the same time, special inspections and spot checks will continue to consolidate the achievements of steel and coal capacity reduction, resolutely preventing previously closed projects from being revived. It calls for a precise grasp of this year’s overall requirements for capacity reduction, comprehensive consolidation of past gains, further deepening supply‑side structural reform in the steel sector, persisting with the policy of phasing out smaller, less efficient facilities in favor of larger, more advanced ones in the coal industry, actively and prudently advancing the upgrading and optimization of coal‑power capacity, and expediting the disposal of “zombie enterprises.” Total production capacity must be strictly controlled; efforts to balance capacity reduction with ensuring stable supplies and managing market expectations should be coordinated; multiple measures should be taken to improve the quality of workforce reemployment; asset and debt resolution must proceed in accordance with laws and regulations; the effectiveness of special incentive and subsidy funds must be enhanced; progress toward high‑quality industry development must be accelerated; governance capabilities continuously strengthened; and oversight of illegal, non‑compliant, and untrustworthy behavior must be reinforced. [Reason for Inclusion] The issuance of this Notice is of great significance for solidifying the implementation of the “Six Stabilities” initiatives, fulfilling the “Six Guarantees” tasks, conducting comprehensive follow‑up reviews of capacity‑reduction projects, rigorously enforcing relevant provisions on capacity identification, closure criteria, use of incentive and subsidy funds, and capacity replacement, and ensuring timely rectification of issues identified through inspections and self‑examinations. Moreover, it plays a crucial role in coordinating epidemic prevention and control with economic and social development, deepening supply‑side structural reform, consolidating the gains of capacity reduction, optimizing industrial structure and production layouts, substantially improving supply quality and efficiency, steadily enhancing safety and environmental protection, effectively regulating market competition, and continuously refining long‑term mechanisms for the healthy development of the industry.

IX. Solicitation of Comments on the New Edition of the “Quality Management Specification for Geological Exploration Activities”

[Abstract] On December 22, 2020, the website of the Ministry of Natural Resources issued a notice soliciting public comments on the “Quality Management Specification for Geological Exploration Activities (Draft for Comments).” The revised specification incorporates updates from the ISO 9000 series of international standards and comprises eight sections: scope, normative references, terms and definitions, general principles, pre‑activity management, in‑process management, post‑activity management, and information disclosure and regulatory oversight. [Reason for Inclusion] Since September 22, 2017, when the State Council decided to abolish the approval requirement for geological exploration qualifications, the accompanying “Quality Management Specification for Geological Exploration Units” has likewise needed to evolve with the times. After three years, the new “Quality Management Specification for Geological Exploration Activities (Draft for Comments)” has finally been released. Serving as a complementary standard to the “Measures for the Supervision and Administration of Geological Exploration Activities,” this new specification will provide strong support for the effective implementation of those measures and can serve as the basis for quality management by geological exploration units, as well as for the supervision, inspection, and evaluation of quality management in geological exploration activities. Its adoption will help strengthen geological exploration units’ awareness of quality management and social responsibility, and holds significant practical importance for advancing the scientific, standardized, and legally grounded management of quality in this sector. At the same time, it will offer crucial guidance to geological exploration agencies and mining enterprises.

X. The Standing Committee of the National People’s Congress adopted the Eleventh Amendment to the Criminal Law of the People’s Republic of China.

[Abstract] The Eleventh Amendment to the Criminal Law of the People’s Republic of China was adopted at the 24th Meeting of the Standing Committee of the 13th National People’s Congress on December 26, 2020, and entered into force on March 1, 2021. The Amendment comprises a total of 48 articles, four of which are particularly relevant to the field of mineral resources: First, Article 3 establishes the crime of “forcing others to undertake hazardous operations in violation of regulations,” adding the circumstance of “knowing full well that there is a serious accident hazard yet refusing to eliminate it and still organizing operations despite the risk.” Second, Article 4 defines the crime of “major liability accident,” further specifying the circumstances constituting “violation of safety management regulations.” Third, Article 40 addresses the crime of “environmental pollution,” refining the specific scenarios of pollution, especially those occurring “in key protected areas legally designated, such as drinking water source protection zones and core protection zones of nature reserves.” Fourth, Article 42 creates the crime of “illegal occupation of agricultural land,” adding a provision stating: “Anyone who, in violation of the administrative regulations governing nature reserves, engages in reclamation, development, or construction within national parks or national-level nature reserves, thereby causing serious consequences or exhibiting other egregious circumstances, shall be sentenced to fixed-term imprisonment of no more than five years or criminal detention, and fined or subject to either penalty alone. Where such conduct also constitutes another crime, the offender shall be convicted and punished according to the provisions prescribing the heavier penalty.” [Reason for Inclusion] The amendments to criminal offenses related to mineral resources in the Eleventh Amendment to the Criminal Law of the People’s Republic of China strengthen mining enterprises’ obligations to safeguard workers’ lives; by advancing the stage at which criminal penalties are imposed in response to pressing issues in workplace safety, they facilitate early prevention of accidents; the addition of offenses involving illegal reclamation, development, or construction in national-level nature reserves—acts that severely damage the ecological environment and natural resources—enhances the severity of penalties for environmental pollution; and the inclusion of criminal liability for violations of nature reserve management regulations—such as engaging in reclamation, development, or construction in national parks or national-level nature reserves when such actions result in serious consequences or other aggravating circumstances—further protects public environmental interests and advances ecological civilization.