Legal information

01 The new regulations will come into effect on June 15, and mining companies can no longer act according to old habits.

Mining company owners, please note that this new regulation is not something to be discussed in the future. It will be officially implemented on June 15, 2026. Article 79 of the "Mineral Resources Law Implementation Regulations" clarifies that these regulations will come into effect on June 15, 2026.

What does this mean?

Starting from this day, mining rights assignment, renewal, transfer, land use, ecological restoration, reserve reporting, and pit closure responsibilities will all enter a new system of rules.

The most dangerous thing about many mining companies is not that they don’t understand the law at all, but that they still use old habits to deal with new problems.

For example, the mineral rights are about to expire before they are ready to be renewed. If the mining plan changes, work on it first and then make up for it. Ecological restoration and other things will be done after the pit is closed. The reserve ledger is usually ignored and made up after inspection.

These practices may have been passed through experience in the past.

After the new regulations are implemented, supervision will be more systematic, procedures will be more advanced, and the chain of evidence will be more important.

Now make a list of mineral rights, land use, restoration, reserves, pit closure, and fee payment, and compare them with the new regulations one by one.

02 The old card will continue to be valid, but subsequent actions must follow the new regulations.

Corresponding Article 78

After the new regulations came out, many mining companies were most worried about one thing: Does the old certificate in my hand still count?

Article 78 of the "Regulations for the Implementation of the Mineral Resources Law" clarifies that exploration licenses and mining licenses issued in accordance with the law before July 1, 2025 will continue to be valid during the validity period.

This sentence first gave mining companies a reassurance.

Old certificates will not be suddenly invalidated due to the implementation of new regulations.

But don’t get this wrong.

The old license continues to be valid. It just means that your current license can still be used within the validity period. It does not mean that your subsequent renewal, change, transfer, adjustment of mining plan, and ecological restoration can still be carried out according to the old method.

The old guarantee guarantees the survival status, while the new regulation regulates follow-up actions.

Therefore, what companies really need to do is not just to see whether the certificate is valid, but to see whether the certificate will be renewed, transferred, changed, and whether it will trigger ecological restoration and reserve reporting obligations.

Keep a ledger of the validity period, renewal nodes, change requirements and supporting procedures of all old certificates. Don’t wait until expiration to renew them.

03 In principle, mining rights are subject to bidding, auction and listing. Don’t believe it, cancel first and then assign.

Corresponding Article 8

If anyone tells you "cancel the original certificate first, and then assign you to apply for a new one later", you must be extremely vigilant about this statement.

Article 8 of the "Regulations for the Implementation of the Mineral Resources Law" clarifies that mining rights should be transferred through competitive methods such as bidding, auction, and listing.

Transfer by agreement is possible, but it is only an exception and must comply with legal circumstances.

Therefore, for mining companies, the most dangerous routine is to "cancel first, then create a new one, and then designate".

You are now a mining rights holder and have the original rights basis.

Once you actively log out, your identity changes.

You may no longer be the original rights holder, but an applicant who re-enters the market competition.

By then, whether or not the mineral rights will be transferred, how they will be transferred, and who will get them cannot be guaranteed by a verbal promise.

When encountering claims that require cancellation, re-registration, or designated transfer, first check Article 8 to see if it has a legal basis.

04 Strategic minerals are not ordinary mines, and supervision and penalties will be more severe.

Corresponding Articles 5, 69 and 72

Once the same mine is classified as a strategic mineral, the intensity of supervision may be completely different.

Article 5 of the "Regulations for the Implementation of the Mineral Resources Law" specifically stipulates the catalog of strategic mineral resources and protective mining measures.

It emphasizes the need to coordinate the entire chain of exploration, production, supply, storage and marketing of strategic mineral resources.

This shows that strategic minerals are not just a mineral label, but are bound to national resource security and industrial and supply chain security.

Article 69 also stipulates that if the mineral resources involved in relevant illegal acts are strategic mineral resources, they shall be severely punished.

Article 72 also makes it clear that unauthorized exploitation of strategic mineral resources included in the production area reserve shall be severely punished.

Therefore, mining companies cannot just ask how much the mine is worth, but also ask first: is it a strategic mineral? Is it included in the reserve? Are there any special control requirements?

Before project establishment, mergers and acquisitions, and mining, verify the mineral attributes, reserve status, and strategic mineral management requirements.

05 It is necessary to verify the plan before selling, and you may not be able to open the mining rights even if you take the photo.

Corresponding clauses 10 and 13

The most embarrassing thing is not not getting the mining rights, but getting the mining rights and finding out in the end that it can’t be opened at all.

Article 10 of the "Regulations for the Implementation of the Mineral Resources Law" stipulates that before the transfer of mining rights, the transfer department shall verify whether the area to be transferred complies with the national land spatial planning and control requirements.

This is both a protection and a reminder for the company.

Where is the protection?

Article 13 clarifies that if the mining rights do not meet the requirements of territorial spatial planning control and cannot be explored or mined due to verification errors by the mining rights transfer department, the transferee has the right to terminate the contract. After the contract is terminated, the transfer authority shall return the proceeds from the transfer of mining rights; if any property losses are caused, compensation shall be made in accordance with the law.

Where is the reminder?

Enterprises should not just look at the resource volume, price and procedures before bidding.

Planning controls, ecological red lines, urban development boundaries, and overlay restrictions must all be checked in advance.

Before bidding for mineral rights, you must make planning verification a core item of due diligence, and don’t just look at the reserve report.

06 The transfer authority has no authority, and there are hidden dangers behind the mining rights.

Corresponding Article 9

Not everyone’s grant of mineral rights counts. If the transfer authority has the wrong authority, there may be problems with subsequent registration, renewal, and financing.

Article 9 of the "Regulations on the Implementation of the Mineral Resources Law" stipulates the authority to transfer mining rights.

Strategic mineral resources, mineral resources across provinces, autonomous regions and municipalities directly under the Central Government, as well as mineral resources in my country’s territorial waters and waters under jurisdiction, shall be transferred by the natural resources department of the State Council or the provincial natural resources department authorized by it.

The authority to transfer mining rights for other mineral resources shall be stipulated by the provincial people's government.

This means that mining companies must verify two issues before signing a transfer contract.

First, what type of mineral is this?

Second, does the transfer authority have corresponding authority?

Especially for cross-regional, strategic mineral and maritime projects, we cannot just listen to local promises.

If the authority is unclear, the mineral rights obtained on the surface may be stuck in various places later.

Before signing a transfer contract, check the mineral type, area, transfer authority and authorization basis.

07 The boundaries of mining rights cannot be overlapped randomly. Overlapping is a major risk.

Corresponding Article 10

Two mining rights lie on the same ore body, and the final battle may not be about the boundary, but whether the entire project can be carried out.

Article 10 of the "Regulations for the Implementation of the Mineral Resources Law" clarifies that, except under certain circumstances, the scope of newly established mining rights shall not overlap with the vertical projection scope of existing mining rights.

This sentence is very critical for mining company mergers and acquisitions, boundary expansion, and new mining rights.

The risks in many mines are not found on the surface of the license, but on the coordinates, projections, ore body relationships and historical boundaries.

In the past, some issues relied on local coordination, historical formation, and discussions on the side.

After the new regulations, the border issue will be tougher.

Once they overlap or the ownership is unclear, it will not only affect the new establishment rights, but also affect the transfer, financing, and mining plan approval, and even cause administrative disputes.

Before mineral rights transactions, boundary expansion, or new establishments, coordinates, projections, ore body continuity and adjacent rights must be verified.

08 The same ore body cannot be demolished by force, and the risk of fragmented ownership increases.

Corresponding Article 10

If an ore body that can be developed intensively is split into several mining rights, it may not be possible in the future.

Article 10 of the "Regulations on the Implementation of the Mineral Resources Law" clarifies that more than two mining rights shall not be established for the same ore body that can be developed intensively.

This article targets the fragmentation of mineral rights.

For enterprises, when looking at mineral rights in the future, they cannot just look at “one certificate, one project”.

You have to look at whether the resource allocation is continuous, whether technically centralized development can be done, and whether the split settings are reasonable.

If an ore body is originally suitable for unified development but is artificially split into multiple mining rights, subsequent obstacles may be encountered in new establishment, integration, transfer, financing and development plan approval.

This is particularly important for mining M&A.

A greater number of certificates does not necessarily mean better assets.

Sometimes it just means complex boundaries and high integration costs.

When doing mining mergers and acquisitions, not only the licenses are checked, but also the relationship between the ore bodies, the continuity of development and the conditions for concentrated development.

09 The mining rights renewal window has become clear, and you will be very passive if you miss the time.

Corresponding Article 16

The mining rights are about to expire, and the biggest fear is not that they won't be approved, but that you even stepped on the wrong application window.

Article 16 of the "Regulations for the Implementation of the Mineral Resources Law" clarifies that when applying for renewal of mining rights, the mining rights holder shall apply to the original mining rights transfer department within 6 months to 3 months before the expiration of the mining rights.

This time window is very important.

Too late and it may be too late to correct the material.

Too early and possibly outside the legal window.

Therefore, mining companies cannot rely on temporary thinking to renew, let alone wait until the certificate is about to expire before looking for someone to coordinate.

The truly prudent approach is to start the renewal physical examination one year in advance.

Whether the fees have been paid, whether the reserves have been reported, whether there are any problems with ecological restoration, whether there have been changes to the mining plan, and whether there are any penalty records, all these must be cleared up in advance.

Keep a ledger of the validity period of all mineral rights, start renewal preparations one year in advance, and formally submit them 6 to 3 months before expiration.

10 Renewal cannot be postponed indefinitely. The administrative agency must make a decision before expiration.

Corresponding Article 16

Mining companies are most afraid that the approval will be delayed, the certificate will expire soon, and the department will not give approval.

Article 16 of the "Regulations for the Implementation of the Mineral Resources Law" also clarifies that the original mining rights transfer department shall make a decision on whether to approve the renewal before the expiration of the mining rights.

This sentence is very crucial.

It means that the renewal is not an indefinite wait, nor is it a verbal "leave it aside".

If the enterprise has submitted complete renewal materials within the legal window, the administrative agency should make a clear decision before the expiration of the period.

The most important thing for the company at this time is not repeated verbal communication, but leaving evidence.

When the application was submitted, who signed for it, whether it was accepted, whether there was a notice of correction, and what was communicated, all must be recorded in writing.

Once administrative reconsideration or litigation is required, these will be the core evidence.

After the renewal application is submitted, all receipts, acceptances, corrections, and communication records must be kept. Don’t just rely on phone calls and verbal promises.

11 The conversion from exploration to mining is not an automatic upgrade, and there are hard conditions in Article 18

Corresponding Article 18

Exploring a mine does not necessarily mean that you will be able to obtain mining rights.

Article 18 of the "Regulations on the Implementation of the Mineral Resources Law" stipulates that if the exploration right holder applies to convert the exploration right into a mining right, he shall apply to the original mining rights transfer department within the period of the exploration right and submit a reserve report and other materials.

This shows that the conversion from exploration to mining does not happen automatically.

You must apply within the exploration rights period and be supported by key materials such as reserves reports.

Article 18 also lists exceptions.

For example, if the proven mineral resources need to be mined by specific entities, or do not meet the reserve scale and production capacity requirements stipulated in industrial policies, or cannot be diverted due to public interests, the transfer may not be possible.

Therefore, the prospecting stage must be reversed according to the mining conversion standards.

Don’t wait until resources are discovered, only to find that planning, production capacity, and reserve scale are not up to standard.

From the first day of an exploration project, reserves, plans, industrial policies and compliance materials are prepared according to future exploration-to-mining requirements.

12 The reserve scale and production capacity are not up to standard, and the conversion from exploration to production may be directly stuck.

Corresponding Article 18

Tens of millions were invested in the early stage, but in the end it was discovered that the resource scale was not up to standard, and the mining rights may still not be obtained.

Article 18 of the "Regulations for the Implementation of the Mineral Resources Law" clarifies that if the proven mineral resources do not meet the reserve scale or production capacity requirements stipulated in relevant industrial policies, mining rights may not be established.

This is a major reminder to prospecting rights holders.

Prospecting is not just about whether there are mines.

It also depends on whether the mine can form a development scale that complies with industrial policies, whether it can meet production capacity requirements, and whether it can enter the subsequent mining process.

If the resource scale is too small, or the development conditions are too poor, it may end up being "discovered but not developed".

In the exploration stage, enterprises must make economic, industrial policy and feasibility judgments for mining.

During the exploration phase, reserve scale, production capacity requirements, development economics and feasibility of conversion to mining are simultaneously evaluated.

13 You can’t just sell mineral rights if you want. Please check Article 19 before transferring.

Corresponding clauses 19, 20 and 21

Mineral rights are valuable, but not all mineral rights can be transferred.

Article 19 of the "Regulations on the Implementation of the Mineral Resources Law" clarifies several types of situations that are not allowed to be transferred.

Mining rights obtained through agreement transfer and held for less than 5 years shall not be transferred.

Mining rights that have been sealed up in accordance with the law shall not be transferred.

If the ownership is unclear or disputed, it shall not be transferred.

If the transfer contract stipulates that the transfer is not allowed, it shall not be transferred.

Article 20 also requires that the transferee should possess the technical capabilities and other conditions required when the mining rights are transferred.

Article 21 requires that the mining rights transfer contract must clearly stipulate the performance of ecological restoration obligations in the mining area.

Therefore, mineral rights transactions are not just about price.

The real first step is to do a transferability review.

Before merging or acquiring a mine, first check the transfer method, holding period, seizure disputes, contract restrictions, transfer qualifications and ecological restoration responsibilities.

14 If the equity transfer results in a change in the actual controller, it must also be reported to the transfer department

Corresponding Article 19

Buying a mine is not just about changing the industrial and commercial shareholders. The actual controller changes, which may also trigger mineral rights reporting obligations.

Article 19 of the "Regulations for the Implementation of the Mineral Resources Law" stipulates that if the actual controller changes due to equity transfer, etc., the mining rights holder shall report to the original mining rights transfer department.

This article has a great impact on mining mergers and acquisitions.

In the past, some transactions were designed as equity transfers. It was felt that if the mineral rights were not transferred directly, there would be no need to go through the mineral rights transfer procedures.

However, the new regulations clearly include changes in actual controllers within the reporting scope.

This means that mining equity transactions cannot only focus on industrial and commercial changes.

You also need to determine whether the actual controller of the mining rights holder has changed after the transaction is completed.

If so, consider reporting it to the original transfer department.

If reporting obligations are missed, subsequent renewal, supervision, financing, and re-transfer may be followed up.

Before mining equity transactions, the obligation to report changes in actual controllers should be included in the transaction documents and delivery list.

15 The mining plan is not a decoration. You cannot extract whatever you want on site.

Corresponding Articles 28 and 32

Just because the mining license is obtained, it does not mean that the site can be modified at will according to convenience.

Article 28 of the "Regulations for the Implementation of the Mineral Resources Law" stipulates that before carrying out exploration and mining operations, the mining rights holder shall prepare an exploration plan and a mining plan respectively, submit them to the original mining rights transfer department for approval, and obtain an exploration license and a mining license.

Article 32 further clarifies that the mining right holder shall conduct exploration and mining operations in accordance with the approved exploration plan and mining plan.

This shows that the mining plan is not an attachment in the approval materials, but the basis for subsequent supervision.

In order to save costs and increase production, if the mining sequence, mining method, and mining scope are changed without authorization at the site, the risks will be magnified.

In the future, we will check you not only to see if you have a certificate, but also to see if you are collecting according to the approved plan.

Before making changes to on-site production, first compare with the approved mining plan to determine whether adjustments and approval are needed.

16 Major changes in mining methods require re-approval or even re-issuance of mining licenses

Corresponding Article 32

Once the mining method is changed, if the approvals are not kept up, technical problems will become administrative risks.

Article 32 of the "Regulations for the Implementation of the Mineral Resources Law" stipulates that if there is a major change in the mining method or the main mineral species being mined changes, the mining right holder shall adjust the mining plan, submit it to the original mining rights transfer department for approval and re-issue a mining license.

This is very critical to mine site management.

For example, switching from open pit to underground, major adjustments to mining methods, and changes in main mineral types cannot be decided only at the company's internal technical meeting.

As long as it is a major change, administrative approval must be considered simultaneously.

Otherwise, once it is determined that mining has not been carried out according to the approved plan, it may be ordered to make rectifications and punished, and even the renewal and regulatory evaluation may be affected.

Before adjusting production technology, the technology, legal affairs, external relations, and compliance departments must jointly evaluate whether Article 32 is triggered.

17 Having mining rights does not mean that construction can start, and all supporting procedures must be completed

Corresponding Article 33

Even though the mining rights have been obtained, the project still cannot be launched. Many mining companies are stuck at this step.

Article 33 of the "Regulations for the Implementation of the Mineral Resources Law" clarifies that before carrying out mineral resource exploration and mining operations, mining rights holders must handle relevant procedures in accordance with the law in terms of construction project approval or filing, land and sea use, ecological environment, and safety production.

This sentence must be heard clearly.

Mining rights are not a universal passport.

Mineral rights solve the problem of resource rights.

However, whether the project can actually start construction depends on whether the land use, sea use, environmental impact assessment, safety assessment, project approval and filing and other procedures can be connected.

Many mines die not from the mineral rights themselves, but from the breakpoint between the mineral rights and other approvals.

Make a roadmap for the entire approval process before you get the mining rights. Don’t wait until you get the certificate to find out that the procedures are not completed.

18 Temporary land use is tied to ecological restoration. If the restoration fails, new land use may not be approved.

Corresponding Article 37

In the future, if the temporary land used by mining companies is stuck, it may not be a matter of relationship, but because ecological restoration has not passed the test.

Article 37 of the "Regulations for the Implementation of the Mineral Resources Law" stipulates that land occupied by open-pit mining of strategic mineral resources can be temporarily used if it is scientifically proven that the conditions for simultaneous mining and reclamation are met.

But there are two key limitations here.

First, the temporary use of land must be approved in zoning and phases. In principle, each phase should not exceed 5 years.

Second, if the mining right holder fails to perform land reclamation and other ecological restoration obligations in the mining area in accordance with regulations, the relevant natural resources authorities shall not approve its new temporary land use.

This sentence is very strong.

If the restoration is not done well, subsequent land use may be cut off.

Therefore, temporary land use is not a temporary solution, but must be arranged together with reclamation, restoration, acceptance, and the next phase of approval.

Each phase of temporary land use must be simultaneously arranged for reclamation, restoration, acceptance and approval for the next phase.

19 Ecological restoration is not about making up lessons after the pit is closed, but that it must be calculated clearly before mining.

Corresponding Articles 50, 51, and 52

Ecological restoration of mines is not something that can be done after the mines are closed.

Article 50 of the "Regulations for the Implementation of the Mineral Resources Law" stipulates that before mining mineral resources, the mining rights holder shall prepare an ecological restoration plan for the mining area and submit it with the mining plan to the original mining rights transfer department for approval.

Article 51 stipulates that if it is possible to carry out mining and restoration at the same time or to restore in zoning or phases, ecological restoration shall be carried out in a timely manner.

If restoration while mining is not possible, ecological restoration must be completed before or within 2 years after the mine is closed.

Article 52 also stipulates that after ecological restoration is completed, you must apply for acceptance; if you fail the acceptance, you must make rectifications according to the written rectification opinions and reapply.

This shows that ecological restoration is no longer a finishing work, but a full-process responsibility that must be planned before mining, promoted during mining, and accepted after the pit is closed.

When making a mining plan, the cost, timing, acceptance nodes, and funding arrangements for ecological restoration should be calculated simultaneously.

20 Supervision will become more information-based, and unclear accounts of mining companies are risks.

Corresponding Articles 60, 68, 70, 71, and 72

In the future, mining companies will not be inspected by anyone, but will be inspected more accurately and systematically.

Article 60 of the "Regulations on the Implementation of the Mineral Resources Law" stipulates that the natural resources authorities and other relevant departments must strengthen supervision and inspection, implement joint inspections where possible, and encourage off-site inspections and non-contact technical means.

This shows that supervision will be more collaborative and information-based.

Article 68 stipulates that those who fail to regularly report changes in reserves and development and utilization, or fail to submit a geological report after the pit is closed, will be ordered to make corrections and fined.

Article 70 stipulates that those who fail to pay mining rights occupation fees as required and fail to pay within the time limit may be punished.

Article 71 stipulates that the construction unit of a construction project shall dispose of the sand, stone, and clay excavated for construction by itself, and there are also clear penalties.

Article 72 stipulates that those who exploit strategic mineral resources included in the production area reserve without approval shall be severely punished.

Therefore, the space for enterprises to rely on experience, improvised materials, and verbal explanations in the past will become smaller and smaller.

A truly stable mining company must have complete information, clear ledgers, and consistent site and license requirements.

From now on, reserves, expenses, pit closures, ecological restoration, inspection records, construction, mining and disposal will all be made into dynamic ledgers.