mineral resources

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Recently, the Central Environmental Protection Supervision Group reported a number of typical cases, several of which are particularly worthy of our mine bosses’ vigilance.

In Yulin, Guangxi, several places were named and criticized by the inspection team - under the guise of "project construction" and "land leveling", they were actually mining. What was the result?The inspection team checked and found that no one could escape.

Let me tell you a few typical cases. After reading them, you will know how dangerous this kind of "edge ball" is.

## Typical case: three pits, three ways to die

Case 1: Mining in the name of logistics park

There is a project in Xingye County, which is to build a logistics park and level the land. The result? It is planned to flatten a 156-meter-high mountain and mine more than 60 million tons. One million tons have been dug up and sold to cement plants.

It was only after the inspection team arrived that we stopped. What we are facing now is: illegal mining, ecological destruction, illegal land use, and a bunch of other problems.

Case 2: Mining in the name of farming

There is a company in Beiliu City that is engaged in breeding and has been granted 283 acres of land. Normal farming only requires 20 acres of land. What are you doing with all the land? Mining!

4.31 million tons of limestone were excavated. The results were captured by satellite. After an inspection, the inspection team found that the land approved was for breeding, but it was actually mining of mineral resources. The illegal facts were clear.

Case 3: Mining in the name of ecological restoration

Rong County is even more ironic, using the banner of "ecological restoration", but as a result, mining continued during the restoration process, and an 80-degree steep slope was dug out, which became a new safety hazard. The inspection team’s evaluation is:Destruction in the name of restoration.

## How serious are the legal issues here?

First, mining requires a mining license.

No matter what your name is, as long as you are actually mining mineral resources, you must obtain a mining license. Avoiding mining licenses in the name of "land leveling", "project construction", "ecological restoration", etc. is legally called "concealing illegal purposes in legal forms". The contract is invalid, the behavior is illegal, and in serious cases, criminal liability is required.

Second, environmental damage must be repaired at your own expense.

The new Mineral Resources Law clearly stipulates that ecological restoration costs must be stored in a special account, and this money must not be seized, frozen or transferred. It means: you have to fill the hole you dug; and this money is "untouchable".

Third, it may constitute the crime of illegal mining.

The threshold for illegal mining is not high: if the value of the mined mineral products or damage to ecological resources exceeds 100,000 yuan, it may constitute a crime. The value of the mineral products involved in the above cases exceeds this figure every minute.

## Ying Ting Lawyer Reminder

These cases tell us a truth:Regardless of the name, a violation is a violation. The eyes of the Central Inspection Team are sharp.

As a mine owner, I understand that everyone wants to find opportunities. But don't play this kind of "edge ball". Once it is determined to be illegal, not only will the mine not be obtained, but you may also face criminal liability.

Compliance management is the long-term solution. My suggestion is:

-Mining requires a license: Regardless of size, mining licenses are the bottom line
-The project land must comply with regulations: The procedures for the conversion of construction land and agricultural land must be complete
-Ecological restoration needs to be planned in advance: The repair plan must withstand inspection
-Don't believe in "edge balls": Policies are tightening, and there is no room for luck.

## If you have any questions, please contact Yingting

Mine development is a systematic project, involving mining licenses, land use approvals, environmental assessments, safety production and other links. Each link has compliance requirements. Our team has handled many mining compliance cases, helping companies investigate risks and improve systems.

If you have any questions about the compliance of your mining project, or have received a rectification notice from the regulatory authorities, don’t panic, consult a professional lawyer first. I am lawyer Zhu Zi, specializing in mining legal services. See you in the next issue.