mineral resources

I recently had tea with several mine owners and everyone was discussing the new regulations. Someone asked: "What kind of mineral rights are the most dangerous after the new regulations are implemented?" I will give you an analysis based on many years of experience in the industry and the provisions of the new regulations.Beijing Yingting Law FirmI would like to remind you that the following three types of mineral rights should be paid special attention to.

Category 1: Mineral rights that conflict with national spatial planning.

Article 9 of the new regulations clearly requires that the mining rights transfer department shall ensure that the area to be transferred meets the requirements of land and spatial planning and control. This sentence has two meanings: first, the newly transferred mining rights must comply with the plan; second, if the existing mining rights conflict with the new plan, they will also face the risk of adjustment.

In reality, some mineral rights were obtained more than ten years ago, and the plans at that time may be completely different from those now. For example, some mining areas are now classified as ecological red lines, permanent basic farmland or urban development boundaries, and mineral development is prohibited or restricted in these areas. If you fall into this situation, you need to plan in advance - whether to apply for compensation to exit or adjust the scope of the mining area, you must make plans in advance.

Category 2: Mineral rights with unpaid mining rights transfer proceeds.

Article 14 of the new regulations stipulates that the transferee of mining rights shall pay the proceeds from the transfer of mining rights in full and on time in accordance with relevant national regulations and the transfer contract. If payment is not made in full and on time, liquidated damages shall be paid in accordance with relevant national regulations and the transfer contract.

Many old mining rights have historical arrears. For example, some mining rights were obtained through agreements, and the agreed-upon transfer income was relatively low at the time. Later, after the policy was adjusted, the price difference had to be paid. If you fail to pay up, you will not only have to bear liquidated damages, but your mining rights may also be revoked. The new regulations have strengthened this provision, greatly increasing the risk of having arrears mineral rights cleared.

Category 3: Mineral rights that do not meet ecological restoration requirements.

The new regulations specifically set up a chapter on "Ecological Restoration of Mining Areas", making it clear that mining rights holders are the person responsible for ecological restoration of mining areas. Mining right holders shall prepare a mining area ecological restoration plan in accordance with regulations and extract mining area ecological restoration costs on an annual basis.

If your mine has stopped mining but has not completed ecological restoration, or if your mine is mining but fails to collect restoration fees as required, you may face administrative penalties. In serious cases, mining rights may be revoked. Especially those "zombie mines" - those that are still nominally valid, but have actually stopped operating long ago and have no plans to continue production, are most likely to be targeted for removal.

Lawyer Yingting reminds you:The withdrawal of mining rights is not a trivial matter and involves huge investments and the livelihood of employees. If your mineral rights have the above problems, you must attach great importance to them. Suggestions: First, conduct a comprehensive self-examination as soon as possible to identify the problem; second, actively communicate with government departments for planning adjustments; third, for arrears, formulate a repayment plan and proactively clear the arrears; fourth, for ecological restoration issues, prepare plans and implement funds as required.

Beijing Yingting Law FirmHe has long been focused on mining rights legal services and has extensive experience in the fields of mineral rights protection, dispute resolution, and administrative review. If you are worried about the safety of your mining rights, please feel free to contact lawyer Liu Jingzhu. We can help you conduct a comprehensive "legal physical examination".

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