mineral resources

The Ministry of Natural Resources just issued the "Notice on the Management of Mineral Resources Overwhelmed by Construction Projects" just issued on July 7. There is a sentence that deserves the attention of all mine owners: "Strategic mineral resources must not, in principle, be overturned."

This sentence carries a lot of weight. In the past, many mines were overwhelmed by road construction, factory construction, and development. Bosses often felt that their arms could not squeeze their thighs, so they could only accept low-price compensation. Now the new regulations have given you a "protective umbrella". The key is whether you can use it.

What are "strategic minerals"?

Strategic minerals are not mentioned casually. The country has a clear catalog. Mainly include:

• **Energy and minerals**: oil, natural gas, coal, uranium, etc.
• **Metal minerals**: iron, copper, aluminum, tungsten, tin, molybdenum, antimony, rare earth, lithium, cobalt, nickel, etc.
• **Non-metallic minerals**: crystalline graphite, fluorite, etc.

In particular, the protection of new energy and strategic emerging industry minerals such as lithium, cobalt, and rare earths will only become stronger and stronger under the current background of international competition.

What does "principles must not be overridden" mean?

"Principle must not" does not mean "absolutely must not". The new regulations leave a loophole: specific construction projects that are really difficult to avoid can apply for suppression, but they must meet strict conditions.

**Project types that can apply for override**:

• Airport, railway, highway, water transportation, energy, water conservancy and other infrastructure projects that are included in the national-level planning or land spatial planning approved by the State Council
• Construction projects included in the list of major projects of the investment authority of the State Council

**Note**: Only major national projects can apply to cover strategic minerals. Ordinary projects at the provincial and municipal levels cannot touch strategic minerals.

**Approval authority**: Strategic minerals involving transfer by the Ministry of Natural Resources shall be reported to the Ministry of Natural Resources for approval; others shall be reported to the provincial natural resources authorities for approval. The approval time limit is 10 working days.

How do mining companies use this "protective umbrella"?

**Step one: Confirm whether your mine is a strategic mineral**

Check the national strategic mineral catalog to confirm whether the minerals involved in your mineral rights are listed. If so, congratulations, you have stronger protection.

**Step 2: Pay attention to override queries**

The new regulations require construction projects to conduct overriding inquiries when selecting sites and routes, and the provincial natural resources department will provide feedback within five working days. If you find that your mine may be overturned, contact a lawyer as soon as possible to intervene.

**Step Three: Review whether the other party’s project is of a type that can be applied for override**

If the other party is not a major national project, it will not be qualified to apply to overturn strategic minerals. At this time, you can directly refuse to suppress the situation instead of passively talking about compensation.

**Step 4: Take the initiative in compensation negotiations**

Even if the other party meets the conditions and really needs to be suppressed, you are in a more advantageous negotiating position - because in principle your mine should not be suppressed and the other party is "specially approved". Compensation standards should be discussed from the perspective of protecting the security of strategic mineral resources, and not simply "split one and compensate one".

A risk to be aware of

The new regulations also clarify special rules for "energy resource-rich areas": In energy resource-rich areas, if a construction project has overwritten the mineral rights and may need to be resited or rebuilt, in this case the construction unit can obtain reasonable compensation.

This shows that the new regulations provide two-way protection - not only to protect mineral resources from being overturned at will, but also to protect the rights and interests of legal construction projects in enriched areas. Specific to your situation, a professional lawyer is needed to determine which rule applies.

Yingting lawyer reminds

The rule that "strategic mineral principles shall not be overridden" is one of the biggest benefits for mining companies in the new round of mineral management system reform. But legal protection will not automatically turn into money in your pocket. The key depends on how you use it.

It is recommended that mining companies:

• Immediately verify whether your minerals are strategic minerals
• Establish an overburden risk early warning mechanism and pay attention to the planning information of surrounding construction projects
• Once you are notified of suppression, find a professional lawyer to intervene and review the other party’s qualifications as soon as possible.
• Make good use of the card of "principles must not be overridden" to strive for maximum rights and interests in negotiations

Beijing Yingtong Law Firm focuses on mining rights legal services, helping mining companies make good use of policy tools and protect mineral rights assets.