mineral resources

Boss Zhang has been running a coal mine in Inner Mongolia for more than ten years, and his mining rights are worth hundreds of millions. But every time he goes to the bank for a loan, the banker shakes his head: "Mining rights? This thing is not easy to evaluate and cannot be mortgaged. You might as well get real estate."

Boss Zhang's predicament is a common problem faced by countless private mine owners - they have mines but cannot turn them into cash.

But this situation is about to change.

On May 20, 2026, the State Council officially announced the "Regulations on the Implementation of the Mineral Resources Law", clarifying that from June 15, mining rights, as usufruct rights, can be mortgaged for financing in accordance with the law. This means that mine bosses can finally use their mining rights to get bank loans just like they use real estate mortgages!

Three steps to understand how to operate

Step 1: Confirm that the mineral rights "physical examination" is qualified

To mortgage your mining rights, you must first have a "clean" right - the certificates are complete, within the validity period, and there are no rights defects. Before a bank approves a loan, it will focus on checking three things: Are there any unpaid proceeds from the transfer? Have ecological restoration fees been withdrawn on time? Are there any lawsuits or disputes over the mineral rights?

If there is a problem with any of these, the loan may be rejected. Therefore, before mortgaging, it is recommended to conduct a "comprehensive physical examination" on the mineral rights.

Step 2: Make a professional evaluation report

The bank is not a roundworm in the stomach of the mine owner. They need a professional appraisal report to confirm how much your mining rights are worth. This evaluation report cannot be done by just any agency. It must be done by a professional agency with mining rights evaluation qualifications.

The assessment content includes: resource reserves, ore grade, mining conditions, market price trends, etc. The more detailed and professional the report, the more willing banks will be to lend.

Step 3: Sign the contract and register

After the appraisal is passed, the next step is to sign the mortgage contract. Notice! The contract is not over yet after the contract is signed - the mortgage must be registered with the natural resources authority for the mortgage right to officially take effect.

According to the "Regulations on the Implementation of the Mineral Resources Law", after both parties sign a mining rights mortgage contract, they should go to the registration authority for filing and registration with the contract, evaluation report and other materials. Those who have not registered shall not fight against bona fide third parties.

Yingting lawyer reminds

The promulgation of the "Regulations on the Implementation of the Mineral Resources Law" is definitely a major benefit to private mining companies. But before rejoicing, there are a few "pits" that must be avoided:

1. Transfer proceeds cannot be owed.If the proceeds from the transfer of mining rights are in arrears, the mortgage registration cannot be processed until the payment is paid in full. This is like if the mortgage payment is cut off and the bank can seize the auction at any time.

2. Ecological restoration must be in place.The regulations clearly stipulate that ecological restoration costs must be set up in a special account and accounted for separately, and must not be seized, frozen or allocated. If you don't have the funds to make repairs, your mortgage can also go wrong.

3. The evaluation agency must be qualified.The market is a mixed bag, and some evaluation agencies do not have the qualifications to evaluate mining rights at all. If you use their report to go to the bank for a loan, you are likely to be rejected, which is a waste of time and money.

4. Pay attention to the mortgage period.In principle, the period of mortgage of mining rights cannot exceed the remaining validity period of the mining rights. The mortgage value of mineral rights that are about to expire will be greatly reduced.

What should I do if I encounter a problem?

Mining rights mortgage financing is a new thing, and you will definitely encounter various problems during the implementation process: How to choose an evaluation agency? How to sign a mortgage contract? What is the registration procedure? What should you do if you encounter difficulties from the bank?

If you encounter any problems during the mining rights mortgage financing process, please contact Yingting Law Firm. Our mining legal team has focused on the field of mining rights for many years and has helped a large number of mining companies solve legal issues such as financing, mergers and acquisitions, and compliance.

Remember: policy dividends are coming, but opportunities are only reserved for those who are prepared.