mineral resources

The mining license held by a coal mining company in a certain province was about to expire, and the company submitted an application for renewal according to procedures. However, the natural resources authorities decided not to approve the project on the grounds that "the scope of the mining area is inconsistent with the current planning." The company believes that it has been mining in accordance with the law and that all conditions have not changed. Why was the renewal rejected? This problem is common in mining practice, and many mineral rights holders are often at a loss when faced with similar dilemmas. This article will systematically analyze the common reasons for refusal of mining license renewal from a legal perspective and propose practical solutions.
According to the relevant provisions of the "Mineral Resources Law of the People's Republic of China" revised in 2024, the extension registration of mining rights should meet legal conditions. The law clarifies that the establishment of mining rights must comply with relevant regulations such as land spatial planning, mineral resource planning, green mine construction, ecological environment protection, and national industrial policies. Document No. 4 of the Ministry of Natural Resources' Natural Resources Regulations [2023] further refines the requirements for registration and management of mining rights, clarifying that applicants for mining rights must submit an extension application within the specified period, and the application materials must be complete and standardized. From the perspective of the elements that constitute the legal relationship, the approval of the renewal of the mining license is an administrative confirmation act. The administrative agency has statutory review authority, and the enterprise only has the right to apply rather than the right to automatically renew. It is worth noting that the newly revised Mineral Resources Law has strengthened planning connection requirements, and the consistency of the scope of mining areas and territorial spatial planning has become an important consideration for approval.
In judicial practice, a considerable proportion of cases where mining license renewals are refused due to planning adjustments. In an administrative case on the extension of mining rights heard by the Higher People's Court of a certain province, the mining scope of the mining area involved was included in the newly defined ecological protection red line. After hearing, the court held that according to relevant legal provisions, the rigid protection requirements of ecological red lines take precedence over the survival of existing mining rights, and the administrative agency’s decision not to extend it is in line with the needs of the public interest. At the same time, the court pointed out that before making a decision to disapprove, the administrative agency should fully explain the reasons and give the administrative counterpart an opportunity to state its defence. The gist of the ruling established by this case shows that although mining rights as usufruct rights are protected by law, they must be subject to higher-level planning control and ecological protection requirements. The boundary of judicial review's intervention in administrative discretion is based on procedural legality and substantive legitimacy as the review standards.
From the perspective of professional lawyers, there are five main reasons for refusal of mining license renewal: first, the scope of the mining area conflicts with the current land spatial planning or mineral resources planning; second, the applicant fails to apply for renewal within the legal period, resulting in the need to re-apply for a new certificate after it expires; third, the application materials submitted are incomplete or do not meet the format requirements; fourth, the company has records of violations of laws and regulations related to mine safety and environmental protection; fifth, resource depletion or major changes in mining conditions lead to ineligibility for renewal. A common misunderstanding among enterprises is that they believe that as long as the application is submitted before the certificate expires, it will be renewed, and they ignore the substantive review requirements for approval.
In response to the above issues, lawyer Liu Jingzhu of Beijing Yingting Law Firm made the following suggestions: First, companies should start the renewal application process at least 6 months before the expiration of the mining license, and reserve sufficient time for material correction and communication and coordination cycles to avoid rejection due to material defects; second, companies should proactively verify the mining license before submitting the application. Compare the district scope with the latest planning. If there is a conflict, you should communicate with the competent authorities as soon as possible to seek solutions such as planning adjustment or off-site resettlement. Thirdly, you should operate strictly in compliance with laws and regulations on weekdays, properly preserve the certification materials for safety production, environmental protection, etc., and accumulate a good credit record for renewal applications. The extension of mining rights involves complex legal relationships and professional judgment. It is recommended that companies promptly consult professional mining lawyers when encountering approval obstacles to seek optimal solutions within the legal framework.
——Lawyer Liu Jingzhu, Beijing Yingting Law Firm
Please consult a professional lawyer for specific questions. This content does not constitute legal advice.