mineral resources

Last week, a mine owner in Hebei complained to me that when he went to go through the formalities, the staff asked him, "Which one is your mining right certificate and your mining license?" He was confused on the spot - "Aren't these two the same thing? "I believe many friends in the mining industry have similar confusions. Today, Beijing Yingting Law Firm will help you thoroughly clarify this concept.

Let’s talk about the mining rights certificate first.

The full name of the mineral rights certificate is "Mining Rights Certificate", which includes exploration rights and mining rights. It is the property right certificate that gives you the right to possess, use, benefit from and dispose of specific mineral resources. To simply understand, the mineral rights certificate is your "real estate certificate", which proves that you have rights to this mineral resource. You can transfer, mortgage, or even pass it on to the next generation in accordance with the law. Article 22 of the new regulations clearly stipulates that the establishment, change, transfer, mortgage and elimination of mining rights must be registered in accordance with the law. This registration is the process of confirming your property rights.

Let’s talk about mining licenses.

A mining license is an administrative license issued by the state's natural resources authority that allows you to mine specific minerals in a specific area. This is your "business license". Without it, you can't put a hoe in the mine. Article 29 of the new regulations stipulates that when applying for a mining license, an application, mining rights certificate, mining plan and other materials must be submitted to the mining rights transfer department. A mining license will be issued only after approval.

What is the relationship between the two?

For example, if you buy a house, the real estate certificate proves that the house is yours, which is the property right; and the business license allows you to open a company and operate it, which is the administrative license. The relationship between mineral rights certificates and mining licenses is similar. You must first have a mineral rights certificate to prove your rights to mineral resources before you can apply for a mining license and be allowed to carry out mining activities.

What's the difference in practice?

First, the deadlines are different. The term of the exploration right is 5 years and can be renewed up to 3 times upon expiration; the term of the mining right is determined based on the resource reserves and construction scale, and the maximum term is no more than 30 years. Second, the renewal procedures are different. Renewal of the mining rights certificate requires re-registration, and renewal of the mining license requires re-approval. Third, the legal consequences are different. The expiration of the mineral rights certificate may lead to the elimination of property rights, while the expiration of the mining license means that you can no longer carry out mining activities.

Beijing Yingting Law FirmWe would like to remind all mining rights holders: after the implementation of the new regulations, the property rights attribute of mining rights will be further strengthened. The mining rights certificate is not only a certificate of rights, but also an important basis for you to claim compensation and apply for relief. Many times, it is clear that your mining rights certificate is still valid, but because the mining license has expired and has not been renewed, you have lost your rights protection qualification. There are too many such lessons in reality.

Lawyer Yingting reminds you:If you currently only have a mining rights certificate but no mining license, or the terms of the two certificates are inconsistent, you must clarify the situation and complete the procedures as soon as possible. After the implementation of the new regulations on June 15, there are new changes in relevant procedures and requirements. It is recommended to consult a professional lawyer in advance to avoid unnecessary losses due to incomplete procedures.

If you encounter legal issues related to mineral rights certificates or mining licenses, please contact Beijing Yanting Law Firm. Liu Jingzhu’s legal team will be happy to assist you.

Please consult a professional lawyer for specific questions. This content does not constitute legal advice.