mineral resources

# The registration of mining rights and property rights is here! Has the spring of financing for mining companies arrived? On July 1, 2025, the newly revised "Mineral Resources Law of the People's Republic of China" was officially implemented. This is the largest revision of this law since it was promulgated in 1986. One of the most eye-catching highlights is the establishment of a registration system for mineral rights and property rights. what does that mean? What does it mean for hundreds of thousands of mining companies across the country? **Registration of Mining Rights and Real Rights: Breaking the Ice on a Thirty-Year-Old Issue** At the beginning of the promulgation of the Mineral Resources Law in 1986, mining rights were positioned as an "administrative license" whose main function was to confirm exploration and mining qualifications. This positioning was not a problem in the era of planned economy, but with the development of market economy, the disadvantages have become increasingly prominent: mining rights cannot be publicized like real estate and land, and cannot be used as collateral for financing, which seriously restricts the vitality of the mining market. An attempt was made to liberalize the transfer of mining rights in 1996 when the law was revised, but the issue of the nature of registration has never been fundamentally resolved. Banks dare not collect mineral rights mortgages, and mining companies have narrow financing channels, which has become a long-standing problem that has plagued the industry for many years. The revision of the new Mineral Resources Law has completely solved this problem. Article 22 clearly stipulates: Mining rights shall have the effect of real rights after being registered in accordance with the law. This is fully consistent with the principle of property rights disclosure stipulated in the Civil Code, marking that China's mining rights system has officially entered the "property rights registration era" from the "administrative licensing era". **Three major changes brought about by the new regulations****Change 1: Mining rights can be used as "hard currency" for mortgage financing**The new law clarifies that mining rights can be mortgaged and establishes unified registration rules. If a mining company holds a mining right certificate or a prospecting right certificate, it can use the mining right certificate to apply for a loan from a bank just like using a real estate certificate to mortgage a loan. **Change 2: There are unified national standards for mortgage registration** The Ministry of Natural Resources issued the "Temporary Service Guidelines for Registration of Mining Rights Mortgage" in July 2025, which clarified specific requirements such as the list of application materials, processing procedures, and time limits for settlement. Mining companies have rules to follow when registering mortgages, and banks have well-documented procedures for approving loans. **Change 3: The realization of mortgage rights has legal protection** The new law clarifies that mortgagees have priority in receiving repayment in accordance with the law. When the debtor fails to pay its due debts, the mortgagee can apply to the court to auction or sell the mining rights, and receive priority in repayment of the proceeds. **Yingting lawyer reminds: Although spring has arrived, there is still "spring cold"** Liu Jingzhu, a lawyer from Beijing Yingting Law Firm, reminds that although the establishment of a mining rights and property registration system is a major benefit, the financing of mining companies is not always smooth sailing. In practice, the following issues still need to be paid attention to: **Issue 1: Not all mineral rights can be mortgaged** If the mineral rights have the following conditions, the bank is likely to refuse to mortgage them: - There is an ownership dispute over the mineral rights - The mineral rights are sealed or restricted from transfer - The mine is located within the ecological protection red line - The mine does not have safe production conditions - The proceeds from the transfer of mineral rights have not been paid in full** Issue 2: Mineral rights evaluation is still difficult ** Banks are very cautious in evaluating the value of collateral. Mineral rights evaluation involves multiple factors such as resource reserves, mineral product prices, development costs, and policy risks. The evaluation is difficult, and the conclusions of different institutions vary greatly. Mining companies should choose a qualified and experienced appraisal agency and be prepared to fully communicate with banks. **Question 3: Mortgage registration is just the beginning** After receiving the loan, the mining company still needs to repay it on schedule. In the event of default, banks have the right to dispose of mineral rights, which may result in the mine being forced to change hands. Therefore, mining companies should reasonably determine the size of loans based on their own operating conditions to avoid excessive debt. **Advice to mining companies** Lawyer Liu Jingzhu suggested that mining companies with financing needs should make preparations from now on: 1. Sort out the legal status of mineral rights to ensure that there are no rights defects; 2. Choose a professional evaluation agency to issue an evaluation report; 3. Communicate with banks in advance to understand the mineral rights mortgage policies of each bank; 4. Hire professional lawyers to monitor the entire process to avoid legal risks. Beijing Yingtong Law Firm has been engaged in mining legal services for many years and has extensive experience in the field of mineral rights mortgage financing. If you have relevant needs, please feel free to call us. (This article is for reference only. Please consult a professional lawyer for specific questions. This content does not constitute legal advice.)