mineral resources

[Introduction to practical issues]
A coal mining company in a certain province has been in trouble recently: it submitted an application for renewal three months before the expiration of its mining license. However, the natural resources authority did not respond in writing after accepting the application. The company continued to maintain production while waiting, but the downstream partner suspended the procurement contract on the grounds of uncertainty about the license. The person in charge of the company called the natural resources department to inquire about the progress, and the reply was "still under review and approval." This is not an isolated case. In mining practice, the issue of the time limit for renewal of mining licenses has long troubled the majority of mineral rights holders - how long should the administrative agencies give a reply? What are the legal consequences of failure to respond within the time limit? Can companies continue to mine during this period? This article will systematically analyze the time limit rules for mining license renewal approval based on relevant legal provisions and practical experience.
[Analysis of laws and regulations]
According to the "Mineral Resources Mining License Approval" service guide issued by the Ministry of Natural Resources, the time limit for the Ministry of Natural Resources to process the extension of a mining license is to make an approval decision within 20 working days from the date of acceptance of the application. This time limit means that after the administrative agency receives the complete application materials and accepts them, it must complete the review and make a written decision to grant or disapprove the application within twenty working days.
It is worth noting that there are statutory deductions under this time limit. The service guide clearly states that the processing process requires time for hearings, bidding, auctions, inspections, testing, quarantine, identification and expert review, etc., which are not included in the above-mentioned processing time limit. This means that if the renewal application involves expert review of ecological environment restoration plans and other links, the approval time may be extended accordingly.
As far as the protection of applicants' rights is concerned, according to relevant laws and regulations, after receiving application materials, if the natural resources department believes that the materials are incomplete or do not comply with the legal form, they should inform the applicant at once within five working days of all the content that needs to be supplemented and corrected. If the natural resources department fails to notify the request for correction within the time limit, the applicant has the right to require it to make corrections in accordance with the law. In addition, if the natural resources department is unable to make an administrative licensing decision within the statutory time limit, the applicant has the right to ask it to explain the reasons for extending the time limit.
In addition, Article 33 of the Mineral Resources Law of the People's Republic of China revised in 2024 clearly stipulates that before mining rights holders carry out mineral resource mining operations, they must obtain a mining license in accordance with the law. This regulation further emphasizes the importance of mining licenses as a prerequisite for legal mining, and also makes the issue of the time limit for license renewal more realistic and urgent.
[Relevant case analysis]
In an administrative review of a mining license heard by the Higher People's Court of a certain province, the mining company involved filed an administrative review requesting to confirm that the administrative inaction was illegal because the natural resources department failed to make an extension decision after the mining license expired. In this case, the court held that the natural resources department should review and make a decision in accordance with legal procedures and time limits after accepting the extension application; failure to make a decision within the time limit constitutes administrative inaction. But at the same time, the court also clearly pointed out that the approval of mining licenses falls within the scope of administrative licensing and must be reviewed by legal procedures. Companies that continue to mine while waiting for approval still need to obtain corresponding legal basis.
The gist of the judgment in this case is that administrative agencies have the obligation to take administrative actions within the statutory time limit, and failure to act beyond the time limit constitutes a violation of the law; however, the legal procedural requirements for licensing approval are not exempted due to the expiration of the time limit, and companies should still pay attention to their own legal mining basis. This judicial approach has important warning significance for mineral rights holders—even if there is a delay in approval by administrative agencies, mineral rights holders should take the initiative to follow up and actively assert their rights instead of waiting passively.
[Lawyer’s point of view]
Based on the above analysis, lawyer Liu Jingzhu of Beijing Yingting Law Firm believes that the time limit for mining license renewal is directly related to the core interests of mineral rights holders. Mineral rights holders must attach great importance to the following three practical points:
First, be sure to allow sufficient time to submit your application before your license expires. According to current regulations, the administrative agency must make a decision within 20 working days after acceptance, but supplementary materials, expert review and other steps are not included in the time limit. Therefore, it is recommended that mining rights holders submit applications at least three to four months before expiration to avoid license window periods caused by delays in approval.
Second, proactively exercise the supervision rights granted by law. If the administrative agency fails to make a decision within the statutory time limit, the mining rights holder has the right to require it to explain the reasons; if it is believed that the administrative agency's inaction is illegal, it can file an administrative review or administrative lawsuit in accordance with the law and require it to perform its legal duties within a time limit.
Third, properly keep the receipt of application materials. When submitting an application, the administrative agency should be required to issue a written acceptance certificate and record the date of submission so that it can be used as a basis for calculating the starting point of the time limit when subsequent claims are made.
If mining companies encounter legal issues during the renewal process of mining licenses, they are welcome to consult Beijing Yingtong Law Firm, and we will provide you with professional legal services.
——Lawyer Liu Jingzhu, Beijing Yingting Law Firm
Please consult a professional lawyer for specific questions. This content does not constitute legal advice.