mineral resources

# Is your mining right a "dead asset" in the eyes of the bank? From today on, Boss Zhang has been operating a coal mine in Inner Mongolia for more than ten years. The value of the mining rights is at least 200 million. But every time I go to the bank to apply for a loan with a mining right certificate, the banker shakes his head: "Mineral rights are difficult to evaluate and dispose of, and we can't take them." Boss Zhang is puzzled: "My mining rights are obviously real gold and silver, so why do they become a piece of waste paper when it arrives at the bank?" This problem that has troubled countless mining company bosses for many years, with the official implementation of the newly revised "Mineral Resources Law" on July 1, 2025, finally has a clear answer. **Mineral Rights: The leap from "identity certificate" to "property rights certificate"** On November 8, 2024, the 12th meeting of the Standing Committee of the 14th National People's Congress reviewed and approved the new Mineral Resources Law, establishing a property rights registration system for mining rights for the first time. What does this mean? To put it simply, mining rights officially possess the property rights attributes stipulated in the Civil Code - they can be registered, transferred, and mortgaged. Article 22 of the new "Mineral Resources Law" clearly stipulates: "The establishment, change, transfer, mortgage and elimination of mining rights will be effective after being registered in accordance with the law; without registration, they will not be effective." This article solves the core problem that has long plagued mining companies: the mortgage rights of mining rights finally have a clear legal basis. **The bank does not recognize the mineral rights? The new regulations stipulate that ** Prior to this, banks were unwilling to accept mineral rights mortgages, mainly because the nature of mineral rights registration was unclear. Under the old law, the registration of mining rights was more of an "administrative approval" than a "property rights publicity." What banks are worried about is: in the event of bad debts, can the mining rights be auctioned? Is it worth the money? The new law completely changes this situation. In July 2025, the Ministry of Natural Resources issued the "Temporary Service Guidelines for Registration of Mining Rights Mortgage", which clarified the specific process of mortgage registration: 1. **Joint application**: Mortgage registration requires joint application by both the mineral rights holder (mortgagor) and the bank (mortgagee); 2. **Submit five materials**: registration application, business licenses of both parties, mining rights certificates, principal creditor's rights contract, and mortgage contract; 3. **20 working days for processing**: From the date of acceptance, the natural resources department will make a registration decision within 20 working days; 4. **Free registration**: No fees are charged for the entire process. After the registration is completed, the bank can see the mortgage note on the mining right certificate, including the mortgagee, mortgage amount, effective date and other information. what does that mean? The bank's concerns were completely dispelled - mineral rights mortgages could finally be as "justifiable" as real estate mortgages. **Ying Ting Lawyer Reminder** Lawyer Liu Jingzhu of Beijing Ying Ting Law Firm reminds all heads of mining companies: Although the policy for mineral rights mortgage loans has been liberalized, the following points still need to be paid attention to in operation: - **Whether the mineral rights themselves are defective**: If the mineral rights are subject to seizure, ownership disputes, or failure to pay the transfer proceeds on time, the bank is likely to refuse the mortgage; - **Whether the mine has actual mining conditions**: Although some mineral rights are of high value, they are actually difficult to dispose of due to ecological protection red lines and lack of safe production conditions; - **The terms of the mortgage contract must be standardized**: The amount of the main creditor's rights, mortgage period, guarantee scope and other terms must be clearly agreed to avoid subsequent disputes. If you are preparing to apply for a loan with mineral rights, it is recommended to consult a professional lawyer to evaluate the "mortgageability" of the mineral rights to avoid running into the bank in vain. **Mining companies with financing needs, what should they do now? **After the implementation of the new law, the policy channel for mineral rights mortgage loans has been fully opened. However, the situation of each mining company is different. The type of mineral, scale, length of mining rights, and whether there are any historical issues will all affect the feasibility of mortgage loans. If you have mineral rights financing needs, please contact Beijing Yuting Law Firm. Liu Jingzhu’s legal team will provide you with full-process legal services for mineral rights mortgage loans, from material preparation to registration, to solve your financing problems in one stop. (This article is for reference only. Please consult a professional lawyer for specific questions. This content does not constitute legal advice.)