mineral resources

Preface "Mr. Zhang, your exploration right will expire in three months. If it is renewed, the exploration area will be reduced by 30%. What do you think we should do?" On the other end of the phone, Mr. Zhang, the person in charge of a mining company in a certain province, was stunned. He invested nearly 20 million yuan in exploration and found a little outcrop of ore body, but it was not enough to transfer the mining rights. If you renew, a large amount of area will be reduced; if you don't renew, several years of investment will be in vain. This situation is all too common in mining circles.

What is a prospecting rights reservation? The "life-saving clause" for mine bosses. Article 25 of the newly revised "Mineral Resources Law" in 2024 gives a clear answer:Exploration rights reserved. In layman's terms, retaining exploration rights means "pausing" the exploration results and not invalidating them due to the expiration of time.During the period of retention of the exploration rights, the calculation of the term of the exploration rights shall be suspended.According to the provisions of Article 25, Paragraph 2 of the Mineral Resources Law, if one of the following circumstances is met, the holder of the exploration right may apply for the reservation of the exploration right, and the original mining rights transfer department shall handle it for him: 1. For the purpose ofpublic interest needs, the exploration rights cannot be converted into mining rights temporarily. 2. BecauseForce majeure or other special circumstances, no longer has the conditions for mining. The "Regulations on the Implementation of the Mineral Resources Law" that will be implemented on June 15, 2026 further clarifies that during the retention period of the exploration rights, the exploration rights holder shall not transfer the exploration rights, nor may they dispose of the exploration rights without authorization.

What are the conditions for retention? Not all exploration rights can be applied for and retained, and certain conditions need to be met:1. Exploration level requirementsAccording to the Ministry of Natural Resources’ “Notice on Further Improving the Registration and Management of Mineral Resources Exploration and Mining” (Natural Resources Regulations [2023] No. 4):

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The scale of resource reserves reachesLarge and medium-sized coal and large non-coalTo apply for retention of exploration rights, the following requirements must be met:Exploration level

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OthersTo apply for retention of exploration rights, the following requirements must be met:Detailed inspection (including) the above level2. The ore body that can be mined must have been identifiedWhen applying for the retention of exploration rights for the first time, a description of the ore bodies that have been proven to be exploitable within the scope of the exploration rights must be submitted. To put it simply: your exploration work has achieved certain results and you have found a "mine", but for some reason it cannot be mined yet.

What can I do during my stay? This is the issue that many mine owners are most concerned about.Exploration right retention period:

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Exploration right periodabort calculation(Equivalent to "pause button")

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Limited exploration activities can be conducted, butNo large-scale mining is allowed

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Not transferableExploration rightsDuring the retention period of the exploration rights,Under any of the following circumstances, the exploration rights will be extinguished:

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Exploration rights holder applies for cancellation

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Failure to apply for renewal after the retention period has expired

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Not allowed to stay in accordance with the law

Ying Ting Lawyer Reminder: The mining lawyer team of Beijing Ying Ting Law Firm found in handling a large number of exploration rights cases that many mining companies did not know enough about the exploration rights retention system and missed valuable "life extension" opportunities.Special reminder:1.Timing of application is important——The application for retaining the exploration right must be made within the validity period of the exploration right. If the application is not made within the validity period, the exploration right may be extinguished 2.Prepare enough materials——It is necessary to submit a description of the ore bodies that have been proven to be mineable, a summary report of exploration work, a resource reserve assessment report and other materials 3.Pay attention to policy changes——If the prospecting rights that have been reserved cannot be transferred to the mining rights due to policy changes that lead to an increase in the level of exploration work or other reasons other than the mining rights holder's own reasons, and it is necessary to continue the exploration work, you can apply for the extension of the exploration rights ---Beijing Yingting Law Firm Lawyer Liu Jingzhu> If you encounter any problems during the process of retaining, renewing, or transferring exploration rights, please feel free to consult the professional mining lawyer team of Beijing Yingtong Law Firm. We will provide professional legal advice and solutions based on your specific situation. *Warm reminder: This content is for reference only and does not constitute legal advice. Please consult a professional attorney for specific questions. *