A mining company in Anshan, Liaoning Province was fined 24,000 fruit trees for occupying land without a license: Where is the red line for land use by private companies?

1. Review of hot events

According to multiple media reports including The Paper, Huolong Mining Co., Ltd., a subsidiary of Houying Group in Anshan City, Liaoning Province, was exposed to have occupied agricultural land without a license for a long time to mine iron ore, destroying approximately 24,000 fruit trees in the orchards contracted by villagers.

Event core information:

• Huolong Mining started mining in 2004. Since then, the mining area has been approved to cover an area of 3,580.5 acres.
• About 1,800 acres of agricultural land were occupied and destroyed, and 24,000 fruit trees were cut down and bulldozed.
• The company's mineral processing plant and office building (covering an area of nearly 300 acres) also have no construction approval procedures.
• The villagers have won all four consecutive rounds of administrative litigation, but the regulatory authorities have not yet implemented the investigation and punishment

This case is a wake-up call for all mining companies:Land occupation without a license is not only a matter of administrative penalties, but may also face huge civil compensation..

2. Legal analysis: legal consequences of occupying land without a license

1. Administrative responsibilities

According to Article 77 of the Land Management Law, if land is illegally occupied without approval, the natural resources department at or above the county level shall order the return of the illegally occupied land, demolish the newly built buildings and other facilities on the illegally occupied land within a time limit, and restore the land to its original condition.

If the circumstances are serious, you may also face:Confiscation of illegal buildings and fines (100-1,000 yuan per square meter of illegally occupied land).

2. Civil liability

In this case, the villagers have claimed civil compensation for the destroyed fruit trees. If the company cannot prove that the land occupation is legal, it may face:

• Fruit tree value compensation
• Land restoration costs
• Possible loss of available profits

3. Risk of criminal liability

If the occupation of cultivated land or forest land reaches a certain scale or causes serious consequences, the relevant responsible persons may be suspected ofCrime of illegal occupation of agricultural land(Article 342 of the Criminal Law).

3. Typical Cases: Key Points for Winning Land Use Disputes between Private Enterprises

[Case] A mining company in a province was sued by villagers for occupying contracted land

Facts of the case: The company holds a mining license, but exceeds the scope of the license and occupies about 50 acres of land contracted by villagers outside the scope of the license to plant fruit trees.

Judgment: The court found that the fact that the company occupied land outside the scope was clear. Although it held a mining license, it still had to bear infringement liability for the over-occupied part.

Referee gist: The acquisition of a mining license does not cover the legal occupation of all surface features. Enterprise land must have both a mining license and a land use license.

4. Lawyer’s point of view: Suggestions for mining companies to use land in compliance with regulations

Based on many years of practical experience, the author puts forward the following suggestions:

1. Pay equal attention to land use approval and mining license

Many companies "focus on mining licenses and neglect land use approvals". This is the biggest misunderstanding.Mining license ≠ legal land use permit, both are indispensable.

2. The scope of the mining area must be consistent with the actual occupation scope

Regularly check whether the actual mining scope exceeds the approved scope of the mining license, and if any excess is found, work will be stopped immediately and additional procedures will be completed.

3. Mining land needs separate approval

The "Regulations on the Implementation of the Mineral Resources Law" (implemented on June 15, 2026) lists mining land as an independent land category for the first time, divided intoExploration landandDevelop local, need to go through separate approval procedures.

4. Temporary land use also has time limit requirements

The land used for exploration is temporary land and requires approval procedures for temporary land use. The period of use is generally not more than two years and must be restored to its original state upon expiration.

5. Enlightenment from private enterprises

Preventive Measures for Risk Points ------------------ Regular measurement and verification of over-scope land use, verification of the actual scope of the mining area, lack of land use procedures, simultaneous processing of land use approval and mining licenses, temporary land use overdue, establishment of a land use period ledger, renewal or reclamation of land before expiration, compensation for land use, and negotiation of compensation plans with village collectives and contractors.