mineral resources

"Mr. Zhang, your exploration right will expire in three months. If it is renewed, the exploration area will have to be reduced by 30%. What do you think we should do?" On the other end of the phone, Mr. Zhang, the person in charge of a mining company in a certain province, was stunned. He invested nearly 20 million yuan in exploration and found a little outcrop of ore body, but it was not enough to transfer the mining rights. If you renew, a large amount of area will be reduced; if you don't renew, several years of investment will be in vain. This situation is all too common in mining circles. Article 25 of the newly revised Mineral Resources Law in 2024 gives a clear answer: **Exploration rights are reserved**. In layman's terms, retaining exploration rights means "pausing" the exploration results and not invalidating them due to the expiration of time. **During the period when the exploration rights are retained, the calculation of the term of the exploration rights will be suspended. ** According to the provisions of Article 25, Paragraph 2 of the Mineral Resources Law, if one of the following circumstances is met, the holder of the exploration right may apply for the retention of the exploration right, and the original mining rights transfer department shall handle it for him: 1. For the sake of **public interest**, the exploration right cannot be temporarily converted into a mining right 2. Due to **force majeure or other special circumstances**, the conditions for mining are no longer met. The "Regulations on the Implementation of the Mineral Resources Law" that will be implemented on June 15, 2026 further clarifies that during the retention period of the exploration rights, the exploration rights holder shall not transfer the exploration rights, nor may they dispose of the exploration rights without authorization. Not all exploration rights can be applied for reservation, and certain conditions need to be met: **1. Exploration level requirements** According to the Ministry of Natural Resources' "Notice on Further Improving the Registration and Management of Mineral Resources Exploration and Mining" (Natural Resources Regulations [2023] No. 4): - To apply for the reservation of ** large and medium-sized coal and large non-coal ** exploration rights, ** other ** applications for the reservation of exploration rights should reach the ** level of exploration** **2. The ore bodies must have been proven to be exploitable** When applying for the retention of exploration rights for the first time, a description of the ore bodies that have been proven to be exploitable within the scope of the exploration rights must be submitted. To put it simply: your exploration work has achieved certain results and you have found a "mine", but for some reason it cannot be mined yet. This is the issue that many mine owners are most concerned about. **Retention period of the exploration right:** - The period of the exploration right** is suspended** (equivalent to the "pause button") - Limited exploration activities can be carried out, but ** large-scale mining is not allowed** - **The exploration right cannot be transferred** During the retention period of the exploration right, if **one of the following circumstances occurs, the exploration right will be extinguished: - The owner of the exploration right applies for cancellation - Failure to apply for renewal upon expiration of the retention period - Not renewed according to law While handling a large number of exploration rights cases, the mining lawyer team of Beijing Yingting Law Firm found that many mining companies did not understand the exploration rights retention system well enough and missed valuable "life extension" opportunities. **Special reminder:** 1. **The timing of application is very important** - The exploration right reservation should be applied within the validity period of the exploration right. If the exploration right is not applied within the expiration date, the exploration right may be extinguished 2. **Material preparation must be sufficient** - It is necessary to submit a description of the proven ore body available for mining, a summary report on exploration work, a resource reserve assessment report and other materials 3. **Attention should be paid to policy changes** - The reserved exploration rights cannot be transferred to the mining rights due to policy changes that lead to an increase in the level of exploration work and other non-mining rights holders' own reasons. If they need to continue to carry out exploration work, they can apply for the extension of the exploration rights --- **Beijing Yuting Law Firm Lawyer Liu Jingzhu** > If you encounter any problems in the process of retaining, renewing, or transferring exploration rights, you are welcome to consult the professional mining lawyer team of Beijing Yingtong Law Firm. We will provide professional legal advice and solutions based on your specific situation. *Warm reminder: This content is for reference only and does not constitute legal advice. Please consult a professional attorney for specific questions. *