mineral resources

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"My exploration rights are about to expire. Should I renew them or keep them?"#p#page title#e#

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This is the most common problem that lawyers Ying Ting encounters when receiving inquiries from mining companies. To answer this question, we must first understand two things: Have you found the mine? Can your mine be transferred to mining rights? #p#Paging title#e#

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Today, we will talk in detail about the difference between renewal and retention, and how to choose. #p#Paging title#e#

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Let’s make it clear first: renewal and retention are two concepts#p#Paging title#e#

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Exploration rights renewal#p#Page title#e#

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#p#Paging title#e#Definition: #p#Page title#e#After the exploration rights expire, the validity period of the exploration rights will continue to be extended and exploration work will continue. #p#Paging title#e#

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#p#Paging title#e#Legal basis: #p#Paging title#e#Article 24 of the Mineral Resources Law#p#Page Title#e#

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#p#Paging title#e#Core features: #p#Paging title#e#- The term of exploration rights is extended - Exploration activities continue - Exploration area needs to be reduced#p#page title#e#

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Exploration rights reserved#p#Page title#e#

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#p#Paging title#e#Definition: #p#Page title#e#The exploration rights are temporarily "suspended" and the period is suspended until the conditions are mature, and they will be converted into mining rights or renewed. #p#Paging title#e#

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#p#Paging title#e#Legal basis: #p#Paging title#e#Article 25 of the Mineral Resources Law #p# Page Title #e#

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#p#Paging title#e#Core features: #p#Paging title#e#- The calculation of the expiration date of the exploration rights is suspended - Exploration activities are suspended (limited work can be carried out) - Large-scale exploration or mining is not carried out#p#page title#e#

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Conditions applicable to renewal and retention#p#Page title#e#

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Conditions for renewal#p#Page title#e#

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#p#Paging title#e#Exploration work is carried out normally#p#Pagination title#e#——Carry out substantive exploration work in accordance with the transfer contract#p#page title#e#

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#p#Paging title#e#Failure to carry out or not carry out substantively without legitimate reasons#p#page title#e#——No renewal#p#Page title#e#

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#p#Paging title#e#Apply within the deadline #p# Pagination title #e#——6 months to 3 months before expiration#p#Page title#e#

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#p#Paging title#e#Rules for area reduction during renewal: #p#Page title#e#- The area of the exploration area needs to be reduced proportionally for each renewal - Areas with proven mineral resources are not included in the reduction base - If exploration cannot be carried out due to public interests or force majeure, the area that needs to be reduced can be deducted #p#page title#e#

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Retention conditions#p#Paging title#e#

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#p#Paging title#e#Proven ore bodies available for mining#p#Page title#e#——This is the most basic requirement#p#Paging title#e#

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#p#Paging title#e#Temporarily cannot be converted to mining rights#p#Page title#e#——Because of special circumstances such as public interest needs or force majeure#p#page title#e#

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#p#Paging title#e#The level of exploration is up to standard#p#Page title#e#：#p#Paging title#e#

- Large and medium-sized coal and large non-coal mines: to the level of exploration - Other minerals: to the level of detailed investigation (inclusive) and above#p#Page title#e#

The core difference between renewal and retention#p#Paging title#e#

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| Comparison item | Renewal | Retain ||------|-----|-----|| Purpose | Continue prospecting | Keep the ore that has been found || Conditions | Normal exploration | Mine has been found, temporarily cannot be mined || Period calculation | Continue calculation | Suspend calculation || Exploration activities | Normal development | Suspended or limited development || Area reduction | Required reduction | Not involved || Can mining rights be transferred | Cannot be transferred directly | You can directly apply for transfer |#p#Paging title#e#

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How to choose? Just look at these three points#p#Paging title#e#

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See if you have found the mine#p#Page title#e#

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#p#Paging title#e#Mine not found#p#Page title#e#→ Can only be renewed (continue to search)#p#Paging title#e#

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#p#Paging title#e#Found the mine#p#Paging title#e#→ See if you can transfer mining rights#p#Page title#e#

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See if you can transfer the mining rights#p#Page title#e#

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#p#Paging title#e#Can transfer mining rights#p#Page title#e#→ Directly apply for transfer of mining rights#p#Page title#e#

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#p#Paging title#e#Temporarily unable to transfer#p#Page title#e#→ Choose to keep #p# pagination title #e#

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Look at the exploration block value#p#Page title#e#

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#p#Paging title#e#The main minerals that have been discovered in the exploration block#p#Page title#e#→ Even if it is renewed, the proven area will not be reduced, and renewal can be considered#p#page title#e#

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#p#Paging title#e#The exploration block is of little value#p#Page title#e#→ Comprehensive consideration of input and output, decide whether to renew#p#page title#e#

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Practical suggestions#p#Paging title#e#

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Case 1: What should I do if I haven’t found the mine yet? #p#Paging title#e#

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A company obtained a copper mine exploration right in 2019, which expires in 2024. About 8 million yuan was invested in the exploration, but only some mineralization clues were discovered, and no ore bodies for mining were discovered. #p#Paging title#e#

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#p#Paging title#e#Suggestion: #p#Paging title#e#Apply for renewal to continue exploration work. #p#Paging title#e#

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Case 2: The mine was found but cannot be mined for the time being#p#Page title#e#

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A company obtained an iron ore exploration right in 2020, and a medium-sized iron ore was discovered before expiration in 2024. However, the exploration area involves adjustments to provincial nature reserves, and mining procedures are temporarily unable to be processed. #p#Paging title#e#

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#p#Paging title#e#Suggestion: #p#Paging title#e#Apply for the retention of exploration rights and wait for the adjustment of the protected area to be completed before applying for transfer of mining rights. #p#Paging title#e#

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Case 3: Found the mine and can transfer the mining rights#p#Page title#e#

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A company obtained the exploration rights for a gold mine in 2021. In 2024, the gold ore body available for mining was discovered and met the conditions for mining. #p#Paging title#e#

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#p#Paging title#e#Suggestion: #p#Paging title#e#Apply directly to convert exploration rights into mining rights. #p#Paging title#e#

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Special reminder#p#Paging title#e#

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About "Ore bodies that have been proven to be mineable"#p#Page title#e#

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This is the core condition for applying for reservation. But many companies are confused about what counts as "proven and ready for mining." #p#Paging title#e#

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According to the regulations of the Ministry of Natural Resources: - A resource reserve report needs to be submitted - The report needs to be reviewed and filed - Different types of minerals have different requirements for the degree of exploration.#p#Page Title#e#

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About retention period#p#Paging title#e#

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Exploration rights are not retained indefinitely. According to current regulations: - The retention period generally does not exceed 2 years - The retention period can be extended upon expiration - The total retention period must be reasonable#p#page title#e#

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About transferring mining rights#p#Page title#e#

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During the retention period of the exploration rights, once the conditions are mature, you can apply to convert the exploration rights into mining rights at any time. #p#Paging title#e#

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Lawyer Ying Ting suggested #p# pagination title #e#

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The mining lawyer team of Beijing Yingting Law Firm has handled a large number of exploration rights renewal and retention cases and has summarized the following experience: #p#page title#e#

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#p#Paging title#e#1. It’s important to plan ahead#p#page title#e#- Start evaluation 6 months before the expiration of the exploration right - Prepare materials for renewal or retention in advance#p#page title#e#

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#p#Paging title#e#2. Whether or not the mine is found is the key #p#page title#e#- Not found: Can only be renewed - Found: Evaluate whether the mining rights can be transferred #p# Pagination title #e#

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#p#Paging title#e#3. The materials must be fully prepared#p#page title#e#- Renewal: summary of exploration work, proof of capital investment, etc. - Retention: resource reserve report, review and filing documents, etc.#p#Pagination title#e#

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#p#Paging title#e#4. If you are not sure, ask a lawyer#p#page title#e#- The choice of renewal and retention involves complex legal judgments - it is recommended to consult a professional mining lawyer#p#page title#e#

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#p#Paging title#e#Warm reminder: This content is for reference only and does not constitute legal advice. Please consult a professional attorney for specific questions. #p#Paging title#e##p#Paging title#e#

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