In the past five decades and more since the founding of the People’s Republic, China has gradually improved the management of its mineral resources, putting it on legal, standardized and scientific tracks.

— Enacting and gradually improving the laws and regulations on mineral resources management. China has put in place a legal system for its mineral resources, consisting of the “Mineral Resources Law” and other relevant laws and regulations, with the Constitution as its foundation. Since 1982, China has successively promulgated the “Mineral Resources Law,” “Land Administration Law,” “Coal Law,” “Law on Safety in Mines,” “Environmental Protection Law,” “Marine Environmental Protection Law” and “Law on the Use and Management of Sea Areas.” The Chinese government has also issued more than 20 supplementary statutes and regulations, including the “Detailed Rules for the Implementation of the Mineral Resources Law,” “Regulations on the Exploitation of Offshore Oil Resources in Cooperation with Foreign Enterprises,” “Regulations on the Exploitation of Onshore Oil Resources in Cooperation with Foreign Enterprises,” “Measures Governing the Registration and Management of Areas for Surveying Mineral Resources,” “Measures Governing the Registration and Management of Mineral Resources Exploitation,” “Measures Governing Administration of the Transfer of Prospecting and Mining Rights,” “Provisions on the Administration of the Collection of Mineral Resources Compensation Fees,” “Interim Measures on the Supervision and Control of Mineral Resources,” and “Regulations on the Management of Geological Data.” The various provinces, autonomous regions and municipalities directly under the Central Government have, in addition, formulated relevant local statutes. These laws and regulations have put in place China’s basic legal system for the management of its mineral resources, and provided the legal guarantee for exercising administration, managing mineral resources and operating mines according to law.

— Deepening the reform of the mineral resources management system. To constantly meet the requirements for economic restructuring, China has reformed the mineral resources management system, changed and strengthened government functions, and separated government functions from enterprise and institution management. From 1950 to 1981, the former Ministry of Geology and other relevant industrial administration departments exercised management over the country’s mineral resources. The geological departments chiefly performed the functions of organizing nationwide geological survey and prospecting, managing the reserves of mineral resources and controlling the collection and exchange of geological data, while the relevant industrial administration departments were responsible for the management of mineral resources exploitation. In 1982, the Ministry of Geology changed its name to the Ministry of Geology and Mineral Resources, and became responsible for the supervision and management of mineral resources exploitation as well as the industrial management of geological survey and prospecting. When the government was reorganized in 1988 and 1993, it made further clear the four basic functions of the Ministry of Geology and Mineral Resources — exercising comprehensive management of mineral resources, exercising industrial management of geological survey and prospecting, exercising supervision and management of the rational exploitation, utilization and protection of mineral resources, and exercising management of the monitoring, evaluation and supervision work regarding the geological environment. The National Mineral Resources Commission was established in January 1996 to strengthen the centralized management function of the Central Government over mineral resources and safeguard the rights and interests of the state as the owner of the country’s mineral resources. The government was restructured again in 1998, and the functions of mineral resources management belonging to the State Planning Commission and the coal and metallurgical industrial departments were transferred to the Ministry of Land and Resources, to achieve the centralized management of mineral resources of the whole country. At present, over 90% of the country’s prefectures and cities, and more than 80% of the counties have set up land and mineral resources administration organs.

— Strengthening the management of mineral resources planning. The plan regarding mineral resources is the guiding document for the survey, exploitation and utilization of the country’s mineral resources and the basis for exercising macro control. The Chinese government is further strengthening mineral resources planning, improving the planning system, fixing strict planning responsibility, check-up, announcement, revision and compilation and supervision systems, strengthening publicity work concerning the plans, and setting up a system for ensuring the implementation of the plans and information feedbacks, to guarantee the fulfillment of the planned targets.

— Reforming the management system for mineral resources prospecting and mining rights. The Constitution and the “Mineral Resources Law” of China explicitly state that “mineral resources are owned by the state.” The State Council exercises the state ownership of the mineral resources. At the same time, China has reformed the management system for mineral resources prospecting and mining rights, clearly defined the property right attribute of the prospecting and mining rights, and established the system of acquisition of the prospecting and mining rights with compensation and the transfer of them according to law. China has established a legal system whereby the holder of the prospecting right enjoys priority in acquiring the mining right in the area explored, and strengthened the exclusiveness of the prospecting and mining rights. It has changed the limits of authority regarding giving approval to mineral resources prospecting and exploitation and issuing the prospecting and mining licenses. The prospecting and mining rights can be obtained with compensation by such means as competition through bidding, auction and listing. The transfer of prospecting or mining rights shall follow the market rules, be subject to approval from government departments, and go through the procedure for transfer according to law. The Chinese government will continue to cultivate and standardize the prospecting and mining rights market, and exercise stricter supervision and control over the operation of the market in accordance with the requirements of clearly defined ownership, complete rules, effective regulation and control, and standard operation.

— Improving the system of compensation for the use of mineral resources. China’s “Mineral Resources Law” clearly provides for the system of compensation for the use of mineral resources. The Chinese government started levying compensation fees for mineral resources from the holders of mining rights in 1994, thus terminating the history of compensation-free mining in China. The collection of the compensation fees for mineral resources (fees for the use of mining areas in cooperative development of petroleum resources offshore or onshore) embodies the rights and interests of the state as the owner of the mineral resources, and is conducive to establishing an economic incentive mechanism to promote the protection and rational utilization of mineral resources. The compensation fees for mineral resources collected by the Chinese government are included in the state budget; they are specially managed and used chiefly in mineral resources prospecting. Holders of mining rights who conform to the stipulations of the laws and statutes shall have their compensation fees remitted or reduced. The Chinese government has stipulated that, beginning in 1998, it will collect fees for the use of prospecting and mining rights, and the costs for the prospecting and mining rights formed in the course of prospecting with state investment from the holders of the prospecting and mining rights. Fees and costs for the use of prospecting and mining rights shall be remitted or reduced for mineral resources exploration and exploitation, which meet the requirements, in the western regions, regions inhabited by ethnic minorities, remote and poor regions designated by the government, and offshore areas.

— Rectifying and standardizing the order of mineral resources management. Good order in the mineral resources management is a prerequisite for the protection and rational utilization of mineral resources. Since the “Mineral Resources Law” was promulgated in 1986, Chinese legislative organs have organized examinations on law enforcement on many occasions. Since 1995, the Chinese government has rectified the order of mineral resources management on a large scale throughout the country, resulting in some improvement in the order of mineral resources management. The Chinese government will continue to intensify supervision over the enforcement of the law, rectify and standardize the order of mineral resources management, strengthen supervision over production safety, safeguard the rights and interests of the state as the owner of mineral resources and the legitimate rights and interests of the holders of prospecting and mining rights.

— Improving the services of the government departments. It is necessary to improve the style of service and make the appropriate administrative affairs known in accordance with the requirements of being open, transparent, standardized and highly efficient. Mineral resources administrative departments at all levels shall announce to the general public on their work system, matters for approval, important documents, standards and time limits, and subject themselves to public supervision. They shall establish systems for internal joint hearings, handling procedures or documents at windows, and ascertaining administrative responsibilities. They shall establish a communiqué system, release information on the mineral reserves and the progress in mineral resources exploration and exploitation, and gradually make the geological data and information known to the general public. They shall establish a system for access to information so that the general public can promptly inquire about the state plan, policies, laws and statutes concerning mineral resources, and criteria for the classification of the reserves of the resources, seek information on the registration of prospected areas, on registration of exploitation, and rates of compensation fees for mineral resources and ways of payment. At the same time, they shall make great efforts to apply information technology, raise their work efficiency and improve their services.

China is a developing country with a large population and a relative shortage of resources. China will continue to deepen the reform, widen the opening-up, develop the socialist market economy unswervingly, take the road of sustainable development, and rationally use and protect its resources. China will, as usual, take an active part in international cooperation for the development of resources and environment protection, and join hands with all other countries in the world in advancing boldly to achieve the sustainable development of human society.