mineral resources

## A real case In 2019, a mining company in a southern province obtained the exploration rights of a gold mine through bidding, auction and listing. After more than three years of exploration and an investment of more than 30 million yuan, a gold ore body of a certain size was discovered. In 2022, when the exploration rights expire and apply for renewal, according to the regulations at the time, 30% of the exploration area needs to be reduced. This gold ore body happens to be within the area that may be reduced. what to do? If you continue to renew, the discovered gold ore bodies may be deducted; if you give up the renewal, several years of investment will be wasted. Later, under the guidance of a professional mining lawyer, the company applied for the retention of exploration rights and successfully retained the rights. It waited for the conditions to mature before applying for transfer of mining rights. ## What is prospecting rights reservation? **Reservation of Exploration Rights** is an important system established by the Mineral Resources Law to protect the legitimate rights and interests of holders of exploration rights. The simple understanding is: **You have found the mine, but for some reason you are not able to mine it yet. The law allows you to "pause" this period of time and continue when the conditions are mature. ** According to paragraph 2 of Article 25 of the newly revised "Mineral Resources Law" in 2024: "For the needs of public interests, or due to force majeure or other special circumstances, the exploration rights cannot be temporarily converted into mining rights, the exploration rights holder may apply for the retention of the exploration rights, and the original mining rights transfer department shall handle it for him. During the retention of the exploration rights, the period of the exploration rights shall be suspended." ## Under what circumstances can I apply for retention? **Legal situations (one of them is sufficient):** 1. **For public interest**, exploration rights cannot be converted into mining rights temporarily - For example: the exploration area has been classified into a nature reserve and needs to be adjusted - For example: the exploration area involves major national infrastructure projects - For example: local government planning adjustments, temporarily freezing the transfer of mining rights in the area 2. **Due to force majeure or other special circumstances**, the conditions for mining are no longer met - For example: exploration facilities are damaged due to natural disasters (earthquakes, floods, etc.) - For example: Tensions in border areas - For example: Major changes in the market environment leading to a break in the capital chain ## What conditions need to be met to apply for retention? **Exploration level requirements:** | Type of minerals | Required level of exploration | |---------|-------------------| | Large and medium-sized coals | Exploration | | Large non-coal solid minerals | Exploration | Other materials that indicate "mine has been found" ## How long is the retention period? The issue of the period of retention of exploration rights is a focus of concern for many mine owners. According to current regulations: 1. **The retention period of exploration rights** is generally 2 years. 2. After expiration, you can apply for **retention**. 3. The total period of retention and renewal shall, in principle, not exceed the remaining period of the exploration rights. However, it should be noted that the retention of exploration rights is not indefinite. If the mining rights cannot be transferred for a long time, the exploration rights will eventually be extinguished. ## What are the restrictions on the retention period? **Rights Restrictions:** - No mining activities are allowed - Exploration rights are not allowed to be transferred - Exploration rights are not allowed to be used as mortgages or pledges **Things that can be done:** - Continue to carry out limited exploration work - Carry out preliminary preparations for mine construction - Apply to convert the exploration rights to mining rights ## Yingting Lawyer Reminder Lawyer Liu Jingzhu of Beijing Yingting Law Firm reminds all mine owners: **Retention of exploration rights is an important "life-saving" system, but it also has strict applicable conditions and procedural requirements. ** If you encounter the following situations, it is recommended to consult a professional lawyer as soon as possible: - The exploration right is about to expire, but the exploration area involves sensitive areas - The ore body has been discovered, but the mining conditions are not yet met - The exploration work is blocked due to policy changes - You want to retain the exploration rights and wait for a better time **Plan in advance to keep your exploration rights! ** --- *Warm reminder: This content is for reference only and does not constitute legal advice. Please consult a professional attorney for specific questions. *