mineral resources

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Recently, there has been a big event in the mining industry - Yangzhou Gaoyou City issued aThe first mining rights real estate certificate in the province.

This may not seem like a big deal, but it is of great significance. Why do you say that? Listen to me break it down for you.

## What is "warrant separation"? Why is it so important?

Although the previous mining rights were "books", compared with the real property rights, they always felt a little less interesting. The mine is yours, the mining license is yours, but if you want to use this mine to go to a bank for a mortgage loan, the bank may ask: Does this thing count as a real "property right"?

This time is different.

After the implementation of the new Mineral Resources Law, mining rights were officially included in the real estate registration system. The certificate obtained by the water company in Gaoyou is of the same nature as the real estate certificate——real estate title certificate. With this certificate, your mining rights are confirmed property rights, which can be mortgaged, transferred, and inherited, and the legal effect is clear.

## What are the legal implications behind this certificate?

First, the status of usufructuary rights of mining rights is established.

What does it mean? That means you have the right to possess, use and benefit from the mine, but the mine itself still belongs to the state. This kind of "right to use" property rights can legally be used for financing. When the bank sees that you have this notebook, it will feel at ease.

Second, it clears up the last mile of mortgage registration.

In the past, to mortgage mining rights, you had to go to the land and resources department to apply for mortgage registration, but the standards were not uniform in various places, and sometimes banks were unwilling to accept it. Now it's better. The real estate registration center issues certificates and registers uniformly, and the processes are standardized, so banks have less worries.

Third, it lays a legal foundation for the transfer of mining rights.

In order for mineral rights to be transferred and traded, the property rights must first be clear. The issuance of this certificate is equivalent to giving reassurance to the entire mining rights trading market.

## Ying Ting Lawyer Reminder

For our private mining companies, the significance of this certificate is not just "good-looking", but also the opening of real financing channels. But there are a few points to note:

1. Having mineral rights certificates is the foundation, but license compliance is more important.Is your mining license valid? Are there any records of cross-border mining? Have ecological restoration fees been paid? These will all affect whether you can successfully mortgage.

2. It is recommended to conduct a mining rights evaluation before mortgaging.The bank is not a professional mining institution. You have to come up with an authoritative evaluation report to prove how much your mine is worth. Find a qualified agency for evaluation, don't be cheap.

3. Mortgage registration must be timely.Once the contract is signed, it is not completed. You still have to go to the registration agency to register, and the registration certificate will not be officially effective until you get the registration certificate.

## If you have any questions, please contact Yingting

The property rights of mining rights is the highlight of this round of revision of the Mining Law, and there will be more supporting policies in the future. As a team of lawyers specializing in the mining field, we have been paying attention to the implementation of policies and helping mining companies turn policy dividends into real money.

If you have any questions about mineral rights mortgage, mineral rights transfer, or mineral rights renewal, please come and chat with us. I am lawyer Zhu Zi, specializing in mining legal services. See you in the next issue.