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MINERAL RESOURCES LAW OF THE PEOPLE'S REPUBLIC OF CHINA


(This Law was first passed at the 15th session of the Standing Committee of the 6th national People’s Congress on 19 March, 1996,and was amended at the 21st Session of the Standing Committee of the 8th National People’s Congress on 29 August, 1996.) TABLE OF CONTENTS Chapter 1 general Provisions Chapter 2 Registration for Mineral Exploration and Examining and Approving Mineral Mining Chapter 3 Mineral exploration Chapter 4 Mining Mineral resources Chapter 5 Collectively-owned Mining Enterprises and Mining Individuals Chapter 6 Legal Liability Chapter 7 Supplementary Provisions

Chapter 1 General Provisions

Article 1 This law is Formulated in accordance with the Constitution of the People’s Republic of china, with a view to developing the mining industry, to promoting the exploration, development, utilization and protection of mineral resources and to ensuring the present and long-term requirements of the socialist modernization.

Article 2 This law must be observed in exploring and mining mineral resources within the territory of the People’s Republic of China and the marine areas under its jurisdiction.

Article 3 Mineral resources shall be owned by the State. The State’s ownership of mineral resources shall be exercised by the State Council. The State’s ownership of mineral resources, either near the earth’s surface or underground, shall not change with the alteration of ownership of the land or right to use the land which the mineral resources are attached to. The State shall safeguard the rational development and utilization of mineral resources. Seizing or damaging mineral resources by any means and by any organization or individual shall be prohibited. People’s governments at all levels must make serious efforts to protect mineral resources. Anyone who wishes to explore or to mine mineral resources shall apply for and obtain upon approval, in accordance with law, the respective exploration and mining rights, and shall carry out the registration procedures, with the exception of exploring within the designated mining area, conducted by the mining enterprise which has already applied for and obtained mining rights in accordance with law, for the purpose of its own production. The State shall protect the lawful exploration rights and mining rights from disturbance and protect the order of production and other work in the mining and exploration areas from interference and disruption. Anyone who wishes to conduct exploration and mining of mineral resources shall meet the specified conditions of qualification.

Article 4 The State shall protect the lawful rights and interests of mining enterprises established in accordance with law to mine mineral resources. The state-owned mining enterprises shall be the principal force in mining mineral resources. The State shall guarantee the consolidation and development of state-owned mineral economy.

Article 5 The State shall adopt the system that exploration and mining rights are to be obtained with compensation, however, the State may also decide to reduce or grant exemption to the compensation for acquiring exploration and mining rights in consideration of specific situation. Detailed measures and implementation procedures shall be formulated by the State council. Anyone who mines mineral resources must pay resource tax and mineral resource compensation of relevant provision of the State.

Article 6 Exploration and mining rights shall not be transferred except under the following situation: (1) The exploration licensees have the right to carry out specified exploration activities within the designated exploration area and have the privileged priority to obtain the mining right to the mineral resources in the exploration area. The exploration licensees, after completion of stipulated minimum exploration expenditure and subject to approval in accordance with law, may transfer