mineral resources

A mining company in a certain province that had held a mining license for more than ten years suddenly received a written notice from the natural resources department after the new implementation regulations officially came into effect, requiring it to re-verify the mining rights registration information. After self-examination, the company discovered that some of the terms agreed in its mining rights transfer contract were inconsistent with the provisions of the new law, and that the scope of the mining area also overlapped with the latest land spatial planning. What is even more troublesome is that some of the electronic files of the continuation application materials were lost due to system migration. Companies face a dilemma: continued mining may hit a legal red line, while suspension of production verification will cause huge economic losses. This real-life dilemma reflects a typical question faced by many mineral rights holders during the transition period to new regulations – what exactly should be verified? To what extent is it verified?

The new "Regulations on the Implementation of the Mineral Resources Law of the People's Republic of China" will be officially implemented on June 15, 2026, making systematic adjustments to the management of mining rights. If the mineral rights holder fails to complete the rights confirmation in time, he may face the risk of administrative penalties or even criminal liability. From the perspective of legal analysis and case study, this article will sort out the core matters that should be confirmed by mineral rights holders.

(1) Basic legal basis for confirmation of mining rights

Article 16 of the new Mineral Resources Law clearly stipulates that the state implements a paid acquisition system for exploration rights and mining rights, and the acquisition, change, and extension of mining rights must be carried out in accordance with the law. This article establishes the basic premise for the recognition of mining rights: mining rights are obtained with compensation through legal procedures, and the right holder enjoys the legal rights to possess, use, and earn profits, but must bear corresponding legal obligations.

(2) Core changes in the new implementation regulations

First, the standardization of transfer methods. Article 8 of the Implementing Regulations lists in detail four situations in which mining rights can be transferred through agreement. It also clarifies that strategic mineral resources with a high degree of shortage and medium-sized or above resource reserves will be given priority for transfer through bidding. Mining rights holders should check whether the method of obtaining their mining rights complies with the legal provisions in effect at the time.

Second, the clarification of contract elements. Article 20 of the Regulations stipulates that the mining rights transfer contract shall specify the mineral types, areas, and time periods to be explored or mined, as well as core matters such as the amount and payment method of the mining rights transfer proceeds. Mining rights holders need to refer to the model contract text to review whether the terms of the existing contract are complete and whether there are any agreements that conflict with the new regulations.

Third, the adjustment of the transfer income system. Article 21 of the Regulations clarifies that the amount and method of payment of proceeds from the transfer of mining rights shall comply with national regulations on the collection of proceeds from the transfer of mining rights. This means that the terms of income from the transfer of some historical mineral rights may need to be re-evaluated.

(3) Planning compliance review

Article 6 of the Regulations emphasizes that mineral resource exploration and mining activities must comply with relevant plans for mineral resources. Mining rights holders should confirm whether the scope of their mining rights conflicts with the latest land spatial planning and mineral resources planning. If there are overlaps or conflicts, they should be reported to the natural resources authorities in a timely manner, apply for adjustments or seek appropriate solutions.

After the mining license of a coal mining company in a certain province expired, it continued mining because the renewal approval had not been completed, and was immediately investigated for illegal mining. The court of first instance found that the company committed the crime of illegal mining, but the court of second instance held that the company had submitted the renewal application on time before the license expired, and the delay in approval was due to administrative procedures. The company continued mining based on reasonable reliance on the administrative license, and had no subjective intention to engage in illegal mining. In the end, the court of second instance changed the verdict of the company not guilty.

The gist of this case is that delays in administrative procedures will not necessarily lead to criminal liability for mineral rights holders. However, the premise of this acquittal is that the company can prove that it submitted the renewal application within the legal period and that the delay in approval was not due to the company's own fault. If a company cannot provide sufficient evidence, it may face adverse legal consequences. The guiding significance of this case is that mining rights holders must be cautious during the renewal approval period, track the approval progress in a timely manner, and properly preserve the originals and delivery certificates of all application materials.

Based on the above legal analysis and case studies, the author believes that after the new implementation regulations take effect, mining rights holders should focus on confirming the following five core contents: whether the terms of the mining rights transfer contract are complete and standardized, whether the scope of the mining rights meets the current planning and control requirements, whether the payment of transfer proceeds complies with the latest national regulations, whether the mining rights registration information is consistent with the actual mining situation, and whether the relevant approval materials are completely preserved.

First, immediately conduct a self-examination of rights. It is recommended that mining rights holders set up a special working group to check mining rights files, transfer contracts, registration information and other key materials one by one against the requirements of the new implementation regulations, and correct any problems found in a timely manner.

Second, proactively communicate with the competent authorities. If it is discovered that there is a conflict between the scope of mining rights and the latest plan, or there are flaws in the terms of the transfer contract, it should be proactively reported to the natural resources authorities and strive to negotiate a solution within the compliance framework to avoid being passively punished.

Third, improve the material storage mechanism. Establish a standardized mining rights archives management system, electronically archive important materials such as transfer contracts, payment vouchers, and approval documents to prevent the loss of files due to system migration or personnel changes, and retain key evidence to deal with possible legal risks.

The protection of the rights and interests of mineral rights holders not only relies on the protection of the legal system, but also requires the prudence and diligence of the rights holders themselves. It is recommended that all mining companies attach great importance to the changes in compliance requirements brought about by the new implementation regulations, and if necessary, entrust professional mining lawyers to conduct special reviews to ensure that the company's production and operations are always carried out in an orderly manner on the track of the rule of law.

——Lawyer Liu Jingzhu, Beijing Yingting Law Firm

*Please consult a professional lawyer for specific questions. This content does not constitute legal advice. *