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supreme people's court

Interpretation of Several Issues Concerning the Application of Law in the Trial of Mining Rights Dispute Cases

(Judgment Committee of the Supreme People's Court on February 20, 2017

Passed at the 1710th meeting, revised in accordance with the "Decision of the Supreme People's Court on Amending the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Trade Union Law of the People's Republic of China in Civil Trial Work" and other 27 civil judicial interpretations adopted at the 1823rd meeting of the Judicial Committee of the Supreme People's Court on December 23, 2020)

In order to correctly hear mining rights dispute cases and protect the legitimate rights and interests of the parties in accordance with the law, this interpretation is formulated in accordance with the provisions of the Civil Code of the People's Republic of China, the Mineral Resources Law of the People's Republic of China, the Environmental Protection Law of the People's Republic of China and other laws and regulations, and in combination with trial practice.

Article 1 When hearing cases involving mining rights disputes such as exploration rights and mining rights, the people's courts shall protect the transfer of mining rights in accordance with the law, maintain market order and transaction security, ensure the rational development and utilization of mineral resources, and promote resource conservation and environmental protection.

Article 2 If a mining rights transfer contract signed by the natural resources administrative department of the people's government at or above the county level as the transferor and the transferee, unless otherwise provided for by laws and administrative regulations, if the parties request confirmation that it will take effect from the date of legal establishment, the People's Court shall support it.

Article 3 If the transferee requests confirmation of its exploration and mining rights from the starting date of the validity period stated in the mineral resources exploration license and mining license, the people's court shall support it.

After the mining rights transfer contract comes into effect and before the mineral resources exploration license or mining license is issued, a third party crosses the boundary or conducts illegal exploration and mining in other ways. If the transferee, who has actually occupied the exploration operation area or mining area with the consent of the transferor, requests the third party to bear tort liability such as stopping the infringement, removing obstruction, compensating for losses, etc., the People's Court shall support it.

Article 4 If the transferor fails to hand over the exploration operation area or mining area, issue a mineral resources exploration license or mining license in accordance with the transfer contract, and the transferee requests to terminate the transfer contract, the people's court shall support it.

If the transferee's exploration and exploitation of mineral resources fails to meet the requirements of the mine geological environment protection and land reclamation plan approved by the natural resources department, and refuses to make corrections within the time limit specified by the natural resources department, or has its mineral resource exploration license or mining license revoked for violating laws and regulations, or fails to pay the mining rights transfer price as stipulated in the transfer contract, and the transferor terminates the transfer contract, the people's court shall support it.

Article 5 If a person signs a contract to hand over mineral resources to others for exploration and mining without obtaining a mineral resources exploration license or mining license, the people's court shall determine the contract to be invalid in accordance with the law.

Article 6 A mining rights transfer contract shall be legally binding from the date of its legal establishment. If the application for transfer of mining rights has not been approved by the natural resources authority, and the transferee requests the transferor to go through the registration procedures for change of mining rights, the People's Court will not support it.

If a party requests confirmation that the transfer contract is invalid solely on the grounds that the application for transfer of mining rights has not been approved by the natural resources authority, the People's Court will not support it.

Article 7 After a mining rights transfer contract is established in accordance with the law, if the transferee requests the transferor to perform the obligation to submit for approval or the transferor requests the transferee to perform the obligation to assist the transferee to perform the obligation to assist in filing for approval without statutory invalidity, the people's court shall support it, except where the conditions for performance are not met in law or in fact.

The people's court may, based on the facts of the case and the transferee's request, decide that the transferee should handle the approval procedures on his behalf, and the transferor should perform the obligation of assistance and bear the resulting expenses.

Article 8 After a mining rights transfer contract is established in accordance with the law, if the transferor refuses to perform its obligation to submit for approval without justifiable reasons, and the transferee requests to terminate the contract and return the paid transfer fee and interest, and the transferor bears the liability for breach of contract, the People's Court shall support the request.

Article 9 A mining rights transfer contract stipulates that the transferee shall go through the approval procedures after paying all or part of the transfer fee. If the transferor requests the transferee to perform payment obligations before going through the approval procedures, the people's court shall support the transfer, except where the transferee has definite evidence to prove that the transferor has transferred the same mining right to a third party, or that the mining right holder will be merged and reorganized, etc. in compliance with the provisions of Article 527 of the Civil Code.

Article 10: If the natural resources authority refuses to approve the application for the transfer of mining rights, resulting in the termination of the mining rights transfer contract, and the transferee requests the return of the paid transfer fee and interest, the mining right holder requests the transferee to return the mineral products and income obtained, or the exploration right holder requests the transferee to return the exploration data and mineral products recovered during the exploration and income, the people's court shall support it, but the transferee may request to deduct relevant costs and expenses.

If one party is at fault for failing to approve the mining rights transfer application, it shall compensate the other party for the resulting losses; if both parties are at fault, they shall each bear corresponding responsibilities.

Article 11 After the mining rights transfer contract is established in accordance with the law and before the approval of the natural resources authorities, the mining rights holder transfers the mining rights to a third party and it is approved and registered by the natural resources authorities. If the transferee requests to terminate the transfer contract and return the paid transfer fee and interest, and the mining rights holder bears the liability for breach of contract, the People's Court shall support the request.

Article 12 If a party requests confirmation that a mining rights leasing or contracting contract shall take effect from the date of legal establishment, the People's Court shall support it.

If the mining rights leasing or contracting contract stipulates that the mining rights holder only collects rent and contracting fees, gives up mine management, fails to perform legal obligations such as safety production and ecological environment restoration, and does not assume corresponding legal responsibilities, the People's Court shall determine the contract to be invalid in accordance with the law.

Article 13: If a contract signed by a mining rights holder in cooperation with others for mineral resource exploration and mining is confirmed by the party concerned to be effective as of the date of legal establishment, the People's Court shall support it.

The provisions of this Interpretation on mining rights transfer contracts shall apply to the provisions regarding the transfer of mining rights in the contract.

Article 14 If the mining rights are mortgaged to the creditor in order to guarantee the performance of the debts of oneself or others, the mortgage contract shall take effect from the date of establishment in accordance with the law, unless the mortgage is prohibited by laws and administrative regulations.

If a party requests confirmation that the mortgage contract is invalid solely on the grounds that it has not been approved by the competent department or has not been registered or filed, the people's court will not support it.

Article 15 If a party requests confirmation that the mortgage right of a mining right was established when it was registered in accordance with the law, the people's court shall support it.

The mineral rights mortgage filing procedures handled by the natural resources authority that issues a mineral resources exploration license or mining license in accordance with relevant regulations shall be deemed to be registration as specified in the preceding paragraph.

Article 16 If the debtor fails to perform its due debts or the situation agreed by the parties to realize the mortgage rights occurs, and the mortgagee applies to realize the mortgage rights in accordance with Articles 196 and 197 of the Civil Procedure Law, the people's court may auction or sell the mining rights or rule to use the mining rights to pay off the debt, but the bidder and transferee of the mining rights shall have corresponding qualifications.

Article 17 During the period of mining right mortgage, if the mining right is completely or partially lost due to reasons such as the mortgagor being merged and reorganized or the mine deposit being suppressed, and the mortgagee requests that the insurance money, compensation money or compensation money obtained by the mortgagee as a result be repaid in priority or the money be deposited, the people's court shall support it.

Article 18 If the parties agree to explore and exploit mineral resources in areas such as nature reserves, scenic spots, key ecological functional areas, ecologically sensitive areas, and fragile areas, violating the mandatory provisions of laws and administrative regulations or harming environmental public interests, the people's court shall determine the contract to be invalid in accordance with the law.

Article 19: If a tort liability dispute arising from cross-border exploration and mining of mineral resources involves duplication or unclear boundaries of the exploration and mining scope approved by the natural resources department, the People's Court shall inform the parties concerned to first apply to the natural resources department for resolution.

Article 20: If the mining right holder requests the infringer to bear tort liability such as ceasing the infringement, removing the obstruction, returning property, and compensating for losses due to other people's cross-border exploration and mining of mineral resources, the People's Court shall support the request, except where the exploration right holder requests the infringer to return the mineral products and proceeds from cross-border mining.

Article 21 If the exploration and mining of mineral resources causes environmental pollution, or leads to geological disasters, vegetation damage and other ecological damage, and if an agency prescribed by the state or an organization prescribed by law files an environmental public interest litigation, the people's court shall accept it in accordance with the law.

If an agency prescribed by the state or an organization prescribed by law files a lawsuit to protect national interests and environmental public interests, it will not affect the filing of lawsuits by natural persons, legal persons and unincorporated organizations that have suffered personal or property damage due to the same exploration and mining act in accordance with the provisions of Article 119 of the Civil Procedure Law.

Article 22: If during the trial of a case, the People's Court discovers illegal activities such as unlicensed exploration and mining, falsification of exploration qualifications and geological data, or failure of exploration and mining to perform ecological environment restoration obligations, it may make judicial suggestions to the relevant administrative departments, which will handle the matter in accordance with the law; if the case is suspected of committing a crime, it shall be transferred to the investigation agency for handling in accordance with the law.

Article 23 After the implementation of this Interpretation, the provisions of this Interpretation shall apply to the first-instance and second-instance cases that have not yet been concluded by the People's Court. This Interpretation shall not apply to cases where effective judgments have been made before the implementation of this Interpretation and are retried in accordance with the law after the implementation of this Interpretation.