[Posted on the official website] Mining companies, please note: Mining rights can now be used as collateral for loans! Officially implemented from June 15

Article 3: Can mining also lead to "land leveling"? Mine bosses should not step on the trap exposed by the Central Inspection Team

Recently, the Central Ecological and Environmental Protection Supervision Group reported an incident that caused a stir in the mining circle.

In Yulin, Guangxi, many places were named and criticized. The reason is ironic - under the guise of "project construction" and "land leveling", they are actually mining.

The inspection team checked and found that no one could escape.

Three typical cases, each more outrageous than the last

Case 1: Logistics Park? Mining 60 million tons!

Yamu Dashan in Xingye County was originally a project approved in the name of a logistics park. The official story is to level the land. The result? It is planned to flatten a 156-meter-high mountain and mine more than 60 million tons.

Ironically, the project has already "begun" - 1 million tons of limestone have been dug up and sold to nearby cement plants.

It was only after the inspection team arrived that we stopped.

Case 2: The breeding project only requires 20 acres, and 283 acres were approved for mining.

Tenglong Company in Beiliu City declared to engage in breeding. How much area is required for normal farming? 20 acres is enough. But they approved 283 acres.

What is so much land for?

Mining!

The inspection team found out that the company mined 4.31 million tons of limestone in the name of breeding.

Case 3: Continue mining under the banner of "ecological restoration"

The situation in Rong County is even more outrageous. It was originally intended for "ecological restoration," but mining continued during the restoration process, and an 80-degree steep slope was dug out, creating a new safety hazard.

The inspection team made a very harsh assessment: it was called restoration, but it was actually destruction, and mining was actually carried out in the name of restoration.

Why can't we hit "marginal ball"?

Many mine owners may think: These people were caught out of bad luck, so normal operations should be fine, right?

Wrong!

The Central Inspection Team’s report sent a clear signal: no matter what the name, a violation is a violation.

In the name of land leveling, project construction, agricultural development, etc., mineral resource mining is actually carried out, which is a typical "selling sheep's head and selling dog meat". This operation faces three risks:

The first level: administrative penalties.Unlicensed mining or cross-border mining will face penalties such as orders to stop mining, confiscation of illegal gains, and fines. In serious cases, mining rights may be revoked.

The second level: the contract is invalid.A project contract signed with the government may be deemed invalid because the purpose is illegal. The funds that have been invested and the foundation laid may be wasted.

The third level: criminal liability.This is the scariest thing. According to Article 343 of the Criminal Law, anyone who violates the provisions of the Mineral Resources Law by mining without obtaining a mining license, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or surveillance, and concurrently or solely with a fine; if the circumstances are particularly serious, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall also be fined.

Moreover, illegal land occupation is a "continuation state", and the pursuit of responsibility will not stop until you restore the land to its original condition.

Compliance management is the long-term solution

As a mine owner, I understand that everyone wants to find opportunities. Mining is inherently a high-investment and high-risk industry, and many people want to take shortcuts and take advantage of loopholes.

But reality tells us that projects started on the sidelines will have to be paid back sooner or later.

The eyes of the central environmental protection inspectors are sharp, and the supervision methods of the natural resources department are becoming more and more advanced. Satellite remote sensing, drone inspections, big data analysis... It is almost impossible to avoid it by relying on cleverness.

Compliance management, securing mineral rights and correcting processes may seem slow, but in fact it is the most stable.

Yingting lawyer reminds

If your company is engaged in mineral resource development, it is recommended to conduct a compliance self-examination according to the following checklist:

1.Are mineral rights legal?Is the mining license valid? Is mining within the approved scope? 2.Is the land use legal?Have legal land use procedures been completed for mining operations, office areas, storage yards, etc.? 3.Is the environmental impact assessment in place?Has an environmental impact assessment report been prepared? Have environmental protection measures been implemented as required? 4.Is ecological restoration up to standard?Are the requirements for management while mining being implemented? Are restoration funds available? 5.Is there a case of "mining in the name of X"?If so, it is recommended to stop immediately and take the initiative to make corrections.

Taking the initiative to make corrections before being called out by the inspection team, and making corrections after being called out, have completely different consequences.

If you have any questions about mining compliance, please contact Yingting Law Firm. Our mining legal team can help you with compliance diagnosis, risk assessment, and rectification plan design to protect the stability and long-term development of your mining business.

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Source: Yingting Law Firm