Legal information

Article introduction: According to Article 19 of the "Coal Law of the People's Republic of China", to open a coal mining enterprise, an application must be submitted to the coal management department in accordance with the law; it shall be reviewed and approved in accordance with the conditions stipulated in this law and the hierarchical management authority stipulated by the State Council. To review and approve a coal mining enterprise, the geology and mineral resources department must review its mining scope and comprehensive resource utilization plan and sign an opinion. Coal mining enterprises that have been established upon approval shall be issued a mining license by the geological and mineral administration department based on the approval document. So, if the coal mine mining license has not expired and the coal company is forcibly closed, should compensation be given?

Part One: Case Story

1. Dozens of coal mines with complete procedures were closed down

In early 2010, dozens of coal mines in Shanxi Province were banned and closed without compensation. These coal mines have complete procedures and have been operating legally for many years. However, the relevant government documents do not clarify whether there will be compensation after the closure. Until now, the government has neither provided any compensation nor any explanation. Instead, the business owners are asked to go to the Land and Resources Bureau and the Work Safety Supervision Bureau for explanation.

2. It took eight years without any compensation.

The coal mine run by Mr. Wang was also shut down. Ying Ting learned that he began to raise funds to open a coal mine in early 2003. In 2004, Mr. Wang obtained a mining license, which is valid for 10 years. In the same year, the coal mine began production, and since then the annual output of the coal mine has been 15,000 tons. In the past few years, Mr. Wang has gone through various mining procedures in accordance with the requirements of the government departments at the time, and paid fees to the relevant departments in accordance with the law. Mr. Wang said that many business owners were forcibly closed down without any compensation before their mining licenses expired.

Part Two: Focus of Dispute - The coal mine was closed before the mining license expired. Should corresponding compensation be given?

1. This is the stance of the Land and Resources Bureau and the Work Safety Supervision Bureau:

(1) The person in charge of the Land and Resources Bureau stated that he had just taken office not long ago and did not understand the specific situation. However, according to the available information, the Land and Resources Bureau only implemented the city government's order. As for whether compensation will be paid or not, the Land and Resources Bureau has no say.

(2) The person in charge of the Work Safety Bureau stated that the city government closed these coal mines based on the provincial closure documents, led by the Bureau of Land and Resources, and jointly with the Work Safety Bureau, Public Security Bureau, Electric Power and other departments. No compensation was provided at that time. Now the coal mines that have been shut down have been compensated. You can also use capacity replacement and auction of production capacity indicators. Mine owners can get corresponding compensation, and companies that proactively shut down can also get rewards. However, it is still up to the city to decide whether these coal mines, which were closed in 2010, can receive compensation.

2. Mr. Wang and other coal mine owners think so

(1) When my coal mine was closed in 2010, the mining license had not expired, and the corresponding fees were paid to the government department, which was a legal operation. Moreover, the provincial government's documents do not clearly state that the closure is free of charge, so the city government should provide corresponding compensation.

(2) According to Article 8 of the "Administrative Licensing Law", if an administrative license that has already taken effect is withdrawn for the needs of the public interest, thereby causing property losses to citizens, legal persons or other organizations, the administrative agency shall provide compensation in accordance with the law. According to the fact that the coal mine was closed before the mining license expired, corresponding compensation should be given. Because according to the provisions of the "Administrative Licensing Law", after an enterprise obtains a mining license in accordance with the law, the administrative agency cannot withdraw the mining license at will while the mining license is still valid. Ying Ting believes that the local government's request to close the coal mine in this case is actually the withdrawal of the mining license. Compensation should be given to closed businesses.

Part Three: Relevant Laws and Regulations

1. According to the provisions of Article 8 of the Administrative Licensing Law, administrative licenses obtained by citizens, legal persons or other organizations in accordance with the law are protected by law, and administrative agencies may not change administrative licenses that have already taken effect without authorization. If the laws, regulations, and rules on which the administrative license is based are modified or abolished, or the objective circumstances on which the administrative license is granted change significantly, the administrative agency may change or withdraw the effective administrative license in accordance with the law to meet the needs of the public interest.

2. According to the provisions of the "Regulations on the Registration and Management of Mineral Resources Exploitation", if an enterprise wants to mine mineral resources, it must undergo approval and registration in accordance with legal procedures and obtain a mining license. Therefore, corporate mining rights are an administrative license with an authorized nature.

3. Reasonable compensation should be given to enterprises for withdrawing mining licenses. The basis is still Article 8 of the Administrative Licensing Law, which stipulates that if an administrative license that has already taken effect is withdrawn to meet the needs of the public interest, thereby causing property losses to citizens, legal persons or other organizations, the administrative agency shall provide compensation in accordance with the law. Article 8 of the "Administrative Licensing Law" is actually a manifestation of the protection of the trust and interests of the administrative counterpart in government agencies. That is, when the administrative counterpart has legally obtained an administrative license of an authorized nature, only if the law changes or the objective situation changes significantly, the administrative agency can withdraw the effective administrative license in accordance with the law. Therefore, enterprises should be compensated accordingly for losses caused by the withdrawal of administrative licenses by government agencies.

4. Article 7 of the "Measures for the Registration and Management of Mineral Resources Exploitation" stipulates that the validity period of a mining license is determined according to the scale of mine construction: for large and above, the mining license is valid for a maximum of 30 years; for a medium-sized mine, the mining license is valid for a maximum of 20 years; for a small mine, the mining license is valid for a maximum of 10 years. If the mining license expires and mining needs to continue, the mining right holder shall go to the registration management authority to complete the renewal registration procedures 30 days before the expiration of the mining license. In this case, Mr. Wang’s coal mine officially started production in 2004 and was shut down in 2010. The total operating time of the coal mine was only 6 years. However, its mining license is valid for 10 years, and as of 2010, its mining license has not expired. Therefore, the municipal government should provide Mr. Wang with corresponding compensation.

Yingting reminds you:

1. According to the "Mineral Resources Law of the People's Republic of China" and other legal provisions, mineral resources belong to the state. A mining license is required to operate a mining enterprise. In this case, the sand and gravel plant neither obtained the mining license required by law nor registered with the industrial and commercial department, which resulted in the invalidation of the transfer agreement signed by both parties and caused corresponding losses to the plaintiff. From this point of view, there are some industries in our country that have franchise rights. Before entering this industry, it is best to consult relevant professionals, or entrust a lawyer or legal consultant to intervene, apply for relevant professional qualifications, and obtain business rights. Before signing a contract, carefully review whether the contract is unfavorable to us and ensure that the signed contract is legal and valid. To avoid irreparable losses due to wrong investment.

2. According to the relevant laws and regulations of our country, the expropriated and demolished persons can file an administrative review within 60 days of receiving the expropriation decision, expropriation compensation decision and other specific administrative actions, and file an administrative lawsuit within 6 months. If your house is forcibly demolished, you must file a lawsuit to defend your rights within 6 months of knowing the date of demolition. Some relocated households will petition, but petitioning is not a legal channel, and no matter how long the petition lasts, it does not constitute a reason to interrupt the time limit for prosecution. Many people who were demolished were delayed in filing petitions and missed the statute of limitations. Even if they sued, the court would not accept it. Even if you find a lawyer, there is nothing you can do to help you! In practice, no matter how you report the situation to your superiors, report it to local staff, or visit everywhere, you can't actually solve the problem. What you only waste is your precious time to protect your rights and interests! If you cannot reach an agreement with the expropriation and demolition party, please contact a professional expropriation and demolition lawyer as soon as possible to find a solution.