mineral resources

Boss Zhang has been operating a coal mine in Inner Mongolia for more than ten years, and his mining rights are worth at least 200 million. But every time I go to the bank to apply for a loan with the mining rights certificate, the banker shakes his head: "Mineral rights are difficult to evaluate and dispose of, so we can't take them."

This question that has troubled countless mining company owners for many years finally has a clear answer with the official implementation of the newly revised Mineral Resources Law.

Mining rights: the leap from “identity certificate” to “property rights certificate”

In November 2024, the Standing Committee of the 14th National People's Congress reviewed and approved the new Mineral Resources Law, establishing a property rights registration system for mining rights for the first time.

Article 22 of the new Mineral Resources Law clearly stipulates: “The establishment, change, transfer, mortgage and elimination of mining rights shall be effective if registered in accordance with the law; without registration, they shall not be effective.”

Banks don’t recognize mineral rights? The new regulations stipulate this

The Ministry of Natural Resources issued the "Temporary Service Guidelines for Registration of Mining Rights Mortgage", which clarified the specific process of mortgage registration:

• Both parties apply jointly:Mortgage registration requires joint application by both the miner and the bank;
• Submit five materials:Registration application form, business licenses of both parties, mining rights certificates, main creditor's rights contract, and mortgage contract;
• 20 working days to process:From the date of acceptance, the natural resources department will make a registration decision within 20 working days;
• Registration is free:There is no charge for the entire process.

Yingting lawyer reminds

Lawyer Liu Jingzhu from Beijing Yingting Law FirmWe would like to remind everyone in charge of mining companies: Although the policy for mineral rights mortgage loans has been liberalized, you still need to pay attention to the following during operation:

• Whether the mineral rights themselves are defective:If there are seizures, ownership disputes or failure to pay the transfer proceeds on time, the bank is likely to refuse the mortgage;
• Whether the mine has actual mining conditions:Some mineral rights are difficult to dispose of due to ecological protection red lines and lack of safe production conditions;
• The terms of the mortgage contract must specify:Terms such as the amount of the main claim, mortgage period, and scope of guarantee must be clearly agreed upon.