mineral resources

Friends who are engaged in engineering construction may have encountered this kind of thing: they excavated foundation piles at the construction site, dug out a pile of sand and gravel, and wanted to use it on the spot, but they were reported as "mining without a license." This situation happened frequently in the past, and many project bosses suffered huge losses as a result.

Now, this gray area finally has a clear legal basis. Article 24 of the "Regulations on the Implementation of the Mineral Resources Law" that will be implemented on June 15, 2026, clarifies this issue clearly in the form of administrative regulations for the first time.

Core regulations: Mining rights are not required for construction sand and gravel mining

Article 24 of the regulations stipulates that construction project construction units do not need to obtain mining rights when excavating sand, stone, and clay that can only be used as ordinary building materials due to construction needs within the approved operation area and construction period.

Translated into vernacular: you don’t need to apply for a mining license for ordinary sand and gravel dug out during construction on legal construction sites.

But there are three prerequisites

**First, it must be within the approved operating area. ** Note that what is mentioned here is the "approved operation area" and does not include the temporary land area. You can dig within the red line without any problem, but if you go beyond it, it won't work.

**Second, it must be within the specified construction period. ** If the project has not started yet or has been completed and sand and gravel are still being excavated, this clause does not apply.

**Third, it can only be sand and gravel that are "ordinary building materials". ** If you dig out minerals with economic value (such as gold mines, rare earths), then sorry, this exemption does not apply.

The most critical restriction: no self-disposal

The regulations clearly stipulate that the disposal of sand and gravel excavated during construction must comply with local provincial regulations and shall not be disposed of by oneself (except for personal use during construction projects).

What does it mean? You can use the excavated sand and gravel yourself on the construction site, but you cannot sell it. If you sell excess sand and gravel to make money, it is suspected of illegal mining.

**Don’t touch this red line. ** Article 71 of the Regulations stipulates administrative penalties for violations, and the penalties are not light.

From "fuzzy zone" to "clear rules"

In the past, the rules in this field were scattered in documents of different departments, and the standards were not consistent. Some said that "excess parts are allowed to be sold externally", while others said that "the excess parts will be disposed of by government organizations", leaving companies at a loss as to what to do.

Article 24 of the Regulations now unifies the approach: comply with provincial regulations and shall not dispose of the waste on its own, except for personal use during construction. Simple, clear, and unified national framework.

Practical suggestions for engineering companies

• **Understand local provincial regulations before construction** - Each province may have different specific methods for sand and gravel disposal, so you need to understand the specific local requirements.
• **Strictly control the scope of work**——Construct within the approved work area and do not exceed the scope
• **Remaining sand and gravel should go through formal channels** - If there is excess sand and gravel that needs to be disposed of, contact the local natural resources authority and include it in the public resource trading platform for processing
• **Keep complete construction records** - The operating area, construction period, and excavation volume must be recorded so that you can prove your innocence in the event of an inspection.

Yingting lawyer reminds

Article 24 of the Regulations is a major benefit in the field of engineering construction, but "benefits" does not mean "you can dig at will". The core of compliance operations is: excavate at the right time, at the right place, and for the right purpose. You can use the excavated things yourself, but you can never sell them.

If your company has been subject to administrative penalties or even been held criminally responsible for excavating sand and gravel for construction, it is recommended to entrust a professional lawyer to intervene as soon as possible. The key to such cases is whether it meets the exemption conditions of Article 24 and whether there is subjective intention.

Beijing Yingting Law Firm specializes in mining rights legal services, providing engineering construction companies with sand and gravel disposal compliance consulting and legal support for administrative penalties.