mineral resources

A few days ago, a mine boss in the southwest region came to me and told me that a high-speed railway was going to be built there, which happened to pass through his mining area. When someone from the railway department came to talk about compensation for overburden, they said, "I'll give you a token compensation." The boss was anxious - his mine cost tens of millions to acquire, and its proven reserves are several hundred million. Is it so "symbolic"?

This is a good question.Beijing Yingting Law FirmToday let’s talk about the compensation standards for overturned mining rights.

Provisions on override compensation under the new Ordinance

Article 28 of the new regulations stipulates: After scientific evaluation, if a construction project overburdens mineral resources but does not directly affect normal exploration and mining activities, it may not be treated as overburdened mineral resources. The subtext of this sentence is: If overburden does affect normal exploration and mining, it is "overburden" and must be compensated.

Combined with Article 17 of the "Interpretation on Several Issues Concerning the Application of Law in the Trial of Mining Rights Dispute Cases" issued by the Supreme Court in 2026, the scope of override compensation includes:

First,Paid mining rights transfer income. This is the most direct one - the money you paid when you bought the mineral rights. If the mineral rights are wiped out or partially wiped out due to subjugation, this part of the money will be refunded to you or compensated in proportion.

Second,Exploration investment and interest. The exploration expenses invested by the exploration rights holder, including drilling, testing, geophysical prospecting, geological work and other reasonable expenses, must be included in the scope of compensation.

Third,Investments in established mining facilities and their interest. Compensation must be calculated for the fixed assets invested by the mining rights holder for mining, such as shafts, tunnels, dressing plants, equipment, etc.

Fourth,Cost of relocation of corresponding facilities. If equipment and facilities need to be relocated due to overlaying, this part of the relocation costs must also be compensated.

Why is "token compensation" untenable?

Some people may ask: The railway department is a public interest project, can it make less money? The answer is:Can't. Paragraph 2 of Article 17 of the Judicial Interpretation of the Supreme Court clearly stipulates: For energy, transportation, water conservancy and other construction projects involving public interests organized and implemented by the government, those that require overriding approval have been approved by the natural resources authorities; those that do not require overriding approval have completed project approval, planning permission and other procedures in accordance with the law, and the construction unit If a mineral resource is overturned without signing a compensation agreement with the mining rights holder, and the mining rights holder requests the construction unit to compensate for the losses related to the overturned mineral resources such as the paid mining rights transfer income, exploration investment, investment in established mining facilities and their interest, as well as the cost of relocation of corresponding facilities, etc., the People's Court shall support the request.

In other words, public interest projects must also be fully compensated, and there is no such thing as "less compensation for public interest".

Practical suggestions

First, you must negotiate compensation and sign a compensation agreement before overturning. Construction without signing an agreement constitutes illegal overlaying and may lead to claims of tort liability.

Second, the amount of compensation must be argued for based on reason. Don't be frightened by the other party's "public interest" rhetoric. The law protects your legitimate rights and interests.

Third, keep good investment evidence. Complete financial documents must be provided for exploration investment, facility construction, equipment procurement, etc.

Lawyer Yingting reminds you:The suppression of mineral rights is no small matter, and compensation negotiations are technical tasks.Beijing Yingting Law FirmHe has handled a large number of mineral rights overburden compensation disputes and has extensive experience in the selection of assessment methods, determination of loss scope, and formulation of negotiation strategies. If you are worried about compensation for compensation, please contact lawyer Liu Jingzhu and let us help you fight for the rights you deserve.

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