Mining rights can be mortgaged! But 90% of bosses don’t know how many pitfalls there are

1. The new law clarifies: Mining rights can be mortgaged

Article 22 of the "Regulations on the Implementation of the Mineral Resources Law" that will be implemented on June 15, 2026 clearly states:Mining rights holders may mortgage their mining rights in accordance with the law.

What does this mean? Your mine is no longer just a "dead asset", it can be turned into "real gold and silver".

Many mine owners hold mining rights worth tens or even hundreds of millions, but they don’t know how to monetize them. The new regulations finally give a clear answer:Mining rights can be mortgaged.

2. Five conditions that must be met for mortgage

Mining rights mortgage is not completed by signing a loan contract. According to relevant regulations of the Ministry of Natural Resources, mining rights mortgages must meet the following conditions at the same time:

Description of serial number conditions ------------------1 The valid mining right certificate is within the validity period, and there is no revocation or cancellation. 2 The ownership is clear and has no disputes, no overlaps, and no seizures. 3 The price has been paid in full, and the transfer proceeds, resource taxes, etc. have all been settled. 4 The mine is operating legally and there is no record of major violations of laws and regulations. 5 The mortgage period does not exceed the validity period of the license. The mortgage period needs to be renewed before the expiration of the license.

3. Three pitfalls that must be avoided

Pitfall 1: Just sign the contract but not register it

Consequences: The mortgage right is not effective.

Many bosses think that everything will be fine once they sign a mortgage contract with the bank and get a loan. Actually,The mortgage of mining rights must be registered with the natural resources authority for the mortgage to take effect.. If you only sign a loan contract and a mortgage contract without going through registration, you are legally a general creditor and cannot receive priority in repayment.

Pitfall 2: Choosing the wrong agency for the evaluation report

Consequences: The appraised value is not recognized and the loan amount is reduced.

Mineral rights assessment must select an assessment report issued by a professional organization with mineral resource assessment qualifications. If you choose the wrong institution, the bank will not recognize the evaluation results, and the loan approval may be rejected.

Pitfall 3: Ignoring the risks during the mortgage period

Consequences: The value of the collateral shrinks, and the bank requires additional guarantees or early repayment.

Once the following circumstances occur in a mine, the bank has the right to require additional guarantees or even withdraw the loan in advance:

• Be included in the ecological red line range
• A major safety incident occurred and ordered to stop production.
• Mining license has been suspended or revoked
• Major environmental pollution incidents occurred

4. Typical case analysis

[Case] A coal mine mortgage loan dispute case in a certain province

Facts of the case: A coal mining company borrowed 150 million yuan from a bank with the mortgage of mining rights, and signed a loan contract and a mortgage contract, but has yet to complete the mortgage registration. Later, the company's capital chain was broken, and the bank sued to demand priority payment for the mining rights.

Judgment: The court found that because the mortgage registration was not completed and the mortgage right was not established, the bank could only participate in the distribution as a general creditor, and the reimbursement ratio was significantly reduced.

Lesson: This step of mortgage registration must not be skipped.

5. Lawyer’s point of view: the correct approach to mortgage financing

1. Do a legal medical examination before taking out a mortgage

Entrust a lawyer to check: the status of the mining rights certificate, whether there is any dispute over the ownership, whether the price has been paid in full, whether there is a prior mortgage, etc.

2. Choose the right assessment agency

Choose a qualified and reputable evaluation agency to issue a formal mining rights evaluation report. Fully communicate with the bank before the assessment to ensure that the assessment method meets the bank's requirements.

3. Pay attention to the terms of the mortgage contract

in the mortgage contractRepayment period, liability for breach of contract, conditions for realizing mortgage rightsTerms such as these are directly related to the company’s subsequent autonomy. It is recommended to hire a lawyer to participate in negotiations.

4. Strengthen compliance management during the mortgage period

After mortgage, mine compliance management must be strengthened to avoid license revocation or early repayment due to violations.

6. Enlightenment from private enterprises

Key points of the steps------------The first step is to check whether the mining rights certificate is valid and the ownership is clear. The second step is to hire a lawyer to do legal due diligence before mortgage. The third step is to select a qualified evaluation agency to issue an evaluation report. The fourth step is to go to the natural resources department to register the mortgage. The fifth step is to strengthen compliance management after the mortgage to avoid triggering default clauses.