mineral resources

Bosses who have been working hard in the mining industry know that holding mineral rights in their hands is like holding "real money". But the problem is that mining rights have a long realization cycle and a large amount of capital. Many private mining company owners have tens or even hundreds of millions of exploration and mining rights, but because of poor financing channels, the capital chain is so tight that they can’t sleep.

Turning mineral rights into a financing tool is an urgent need for many bosses. But you know what? There are three legal conditions for mineral rights mortgage financing, and one of them is indispensable. Otherwise, your mineral rights may become a "dead asset" in an instant, and the mortgage right cannot be established at all!

1. The new regulations clarify that mining rights can be mortgaged in accordance with the law.

Many bosses are still worried: Can mineral rights be mortgaged?The clear answer: Yes!

Article 37 of the Mineral Resources Law revised in 2024 (effective on July 1, 2025) stipulates:Exploration rights and mining rights can be guaranteed according to law. The "Regulations on the Implementation of the Mineral Resources Law" that will be implemented on June 15, 2026 is further detailed and clarifies the filing and registration procedures and effective requirements for mining rights mortgages.

This means that mineral rights mortgage financing finally has a clear legal basis. Private mining companies can use mining rights and exploration rights as collateral to apply for loans from banks or financial institutions.

But here comes the problem: not all mineral rights can be mortgaged, and three legal conditions must be met at the same time.

2. Three legal conditions, one of which is indispensable

According to the "Regulations on the Implementation of the Mineral Resources Law" and relevant judicial interpretations, the mortgage of mining rights must meet the following conditions at the same time:

Condition 1: The mining rights certificate is legal and valid

This is the most basic threshold. The mining license and exploration rights certificate must be within the validity period, and the content of the certificate must be consistent with the actual mining rights status.

Condition 2: The mining rights price (transfer proceeds) has been paid in full or paid in installments as agreed

This is a key point that many bosses tend to overlook! Article 42 of the Mineral Resources Law stipulates:Mining rights holders shall pay the proceeds from the transfer of mining rights in accordance with relevant national regulations.. The implementation regulations further clarify thatIf the proceeds from the transfer of mining rights have not been fully paid, the mining rights shall not be mortgaged.

Condition 3: There is no dispute, no seizure, and no encumbrance on the mining rights.

If there is a dispute over the ownership of the mineral rights, the court has seized the mineral rights, or the mineral rights have been established with other security interests, no further mortgage may be established.

3. Filing and registration: prerequisite procedures for mortgage rights to take effect

The three conditions have been met, but there is still one final step to go -Registration.

The "Regulations on the Implementation of the Mineral Resources Law" clearly stipulates:Mining rights mortgage adopts a filing system, the filing agency is the original issuing authority (natural resources department).Registration is a requirement for the validity of mortgage rights against third parties, unregistered mortgage rights shall not be used against bona fide third parties.

In layman’s terms:Banks will not recognize unregistered mineral rights mortgages!

4. Lawyer’s advice

1.Check yourself before financing: Confirm that the mining rights certificate is valid, the price is paid in full, and there are no rights encumbrances;

2.Contract terms should be strict: Clarify the scope of mortgage, liability for breach of contract, and method of realizing creditor's rights;

3.Complete filing in a timely manner: Filing is a prerequisite for the mortgage to take effect, so don’t delay;

4.Choose a reliable assessment agency: The appraisal report must withstand the inspection of banks and judicial authorities.

If you have a mine in your hand, don't panic - the premise is that your mine can "move".