{"id":139808,"date":"2026-04-21T13:27:45","date_gmt":"2026-04-21T13:27:45","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=139808"},"modified":"2026-04-21T13:33:38","modified_gmt":"2026-04-21T13:33:38","slug":"china-mining","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/china-mining\/","title":{"rendered":"China: Mining"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-139808","comparative_guide","type-comparative_guide","status-publish","hentry","guides-mining","jurisdictions-china"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Dacheng Law Office<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/05\/dentons-PRC.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Dacheng Law Office<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/05\/dentons-PRC.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Mining laws and regulations applicable in China<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Legal framework for mining<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China is one of the most abundantly endowed countries with mineral resources globally, and its mining industry plays a pivotal role in the national economy. As a major global power in mineral resources, China has discovered 173 types of minerals, comprising 13 energy minerals, 59 metallic minerals, 95 non-metallic minerals, and 6 water and gas minerals. Core resources include energy minerals such as coal, petroleum, and natural gas, as well as metallic minerals such as iron, copper, aluminium, gold, lithium, rare earths, tungsten, molybdenum, and antimony. Among them, the reserves of strategic mineral resources such as rare earths, tungsten, molybdenum, antimony, fluorite, and crystalline graphite rank among the top in the world, demonstrating significant resource advantages.<\/p>\n<p>China&#8217;s mining legal framework is a multi-dimensional regulatory system centred on the Mineral Resources Law, presenting a &#8216;pyramid-style&#8217; hierarchical structure: the Constitution establishes the fundamental principle of state ownership of mineral resources; the newly revised Mineral Resources Law (effective in 2025), serving as the basic law, constructs core systems such as the acquisition of mineral rights, ecological restoration of mining areas, and the protection of strategic minerals; subordinate administrative regulations, departmental rules, and local legislation systematically detail procedural rules for permit registration, granting, and transferring, forming a regulatory network covering the entire life cycle of exploration, exploitation, utilisation, protection, and restoration, adjusting the rights and obligations among diverse subjects including the state, government, enterprises, and communities.<\/p>\n<p>China has established specialised mining regulatory authorities. The competent department of natural resources under the State Council (ie the Ministry of Natural Resources) is responsible for the unified supervision and administration of activities such as the exploration and exploitation of mineral resources and the ecological restoration of mining areas nationwide. The competent departments of natural resources of local people&#8217;s governments at or above the county level are responsible for the supervision and administration of mineral resources within their respective administrative regions. Furthermore, institutions authorised by the State Council conduct inspections on the development, utilisation, supervision, and administration of mineral resources by provincial people&#8217;s governments, forming a regulatory system of hierarchical management between the central and local governments and authorised inspections.<\/p>\n<p>The judicial jurisdiction of the People&#8217;s Republic of China belongs to the civil law system. The law primarily originates from statutes, and court judgments do not have general binding force.<\/p>\n<p>On 2 December 1986, China decided to accede to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), which officially entered into force for China on 22 April 1987. China is a member state of the New York Convention and bears the international obligation to recognise and enforce foreign arbitral awards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a critical or strategic minerals policy? If so, please provide a brief description.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China has established a systematic strategic minerals policy framework. According to the National Mineral Resources Planning (2021-2025), the state has identified a catalogue of 36 strategic minerals, including energy minerals (petroleum, natural gas, uranium, etc), metallic minerals (iron, chromium, copper, aluminium, lithium, cobalt, nickel, rare earths, tungsten, tin, antimony, etc), and non-metallic minerals (phosphorus, sylvite, fluorite, graphite, etc). The Mineral Resources Law, newly revised in 2024, establishes a special protection system for strategic minerals, authorising the State Council to designate specific minerals for protective exploitation, construct a reserve system integrating product reserves, production capacity reserves, and origin reserves, and implement dynamic monitoring and scale adjustment of reserves.<\/p>\n<p>At the domestic implementation level, China is vigorously advancing the &#8216;New Round of Strategic Action for Breakthroughs in Mineral Prospecting&#8217;, focusing primarily on critical minerals required by the new energy industry (lithium, cobalt, nickel), industrial foundations (copper, aluminium, iron), as well as oil and gas, uranium, and sylvite. By empowering exploration with technology and green practices, China aims to enhance domestic resource guarantee capabilities, having offered over 1,400 strategic mineral exploration blocks in 2024, a record high in the past decade. Concurrently, total exploitation volume control and capacity restrictions are imposed on specific minerals such as rare earths, tungsten, and molybdenum. A full-process traceability system from exploitation and smelting to circulation is established to prevent over-exploitation. Furthermore, the lifelong responsibility system for ecological restoration by mining right holders is strengthened to promote the coordination of resource development with the security of industrial and supply chains as well as ecological and environmental protection, thereby converting resource advantages into industrial advantages.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the government in your jurisdiction provide state support for the mining industry (whether in your jurisdiction or abroad), for example by way of grants, loans, revenue support mechanisms or tax incentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China provides national support for the mining industry, primarily including:<\/p>\n<p>(1) Financial and credit support. By strengthening financial services for enterprises, mining enterprises are supported in accelerating the increase of reserves and production of critical minerals on the premise of complying with national industrial policies.<\/p>\n<p>(2) Preferential tax support. For instance, the resource tax is reduced by 50% for coal replaced through backfill mining; enterprises recognised as qualified high-tech enterprises may be subject to a reduced enterprise income tax rate of 15% in accordance with the law; coalbed (seam) methane extracted by coal mining enterprises is exempt from the resource tax; and the resource tax is reduced or exempted for the exploitation of co-occurring and associated minerals and the extraction of tailings.<\/p>\n<p>(3) Reform of the collection of earnings from the assignment of mineral rights. The collection method alleviates the payment pressure on mining enterprises. For example, where the earnings are collected based on the granting yield rate, in addition to the starting price, the earnings from the assignment of mineral rights are collected year by year based on the annual sales revenue of the mineral products; for mineral resources for which the state encourages comprehensive development and utilisation, the earnings from the assignment of mineral rights may be reduced based on the comprehensive utilisation of such mineral resources.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on foreign investment into the metals and mining [sector\/value chain]? If so, briefly outline the regime, including:  -\tWhich types of investments, investors, and transactions are subject to the restrictions? -\tDoes the acquisition of minority interests fall within the scope of the restrictions? -\tDo the restrictions apply to asset acquisitions? -\tAre there any pending proposals to amend the foreign investment review policy or related legislation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign investment restrictions exist in the metals and mining sector. Specifically:<\/p>\n<ul>\n<li>Foreign investment is prohibited to invest in the exploration, mining and beneficiation of rare earth, radioactive minerals, and tungsten.<\/li>\n<li>For foreign investors intending to invest in the aforementioned negative list sectors, the competent Chinese authorities will not process relevant matters such as licensing and enterprise registration; where the approval of fixed-asset investment projects is involved, relevant approval matters will not be processed. Minority equity acquisitions fall within the scope of restrictions, and such restrictions apply equally to asset acquisitions.<\/li>\n<li>Such foreign investment restriction policies were updated in September 2024, and there are currently no pending proposals to revise foreign investment review policies or related legislation.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on foreign investors repatriating their capital, profits, interest, dividends, or other related returns from mining investments in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no substantive legal prohibitions or quota restrictions on foreign investors repatriating capital, profits, interests, dividends, and other proceeds from mining investments in China. Under the current account, the principle of convertibility is implemented; investors can directly process outward remittances through banks simply by paying taxes in accordance with the law and providing authentic verification materials such as audited financial statements and board resolutions. The repatriation of capital (capital reduction or liquidation) also requires the completion of corresponding approval procedures before processing. As long as the investment itself is compliant and meets tax and procedural requirements, the outward remittance of proceeds is generally free.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on exports of any minerals and metals from your jurisdiction (for example, a ban on export of raw materials or government licenses or quotas required for the export of minerals)? Are there any local beneficiation requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China implements strict export restrictions on various minerals and metals, regulated primarily through export licence management, export control, and state trading management. The legal basis mainly includes the Export Control Law, the Foreign Trade Law, and the Catalogue of Goods Subject to Export Licence Management and the Catalogue for the Administration of Import and Export Licences for Dual-use Items and Technologies issued by the Ministry of Commerce and the General Administration of Customs. The scope of controlled minerals and metals is extensive, including natural sand, bauxite, phosphate rock, magnesia, talc lumps (powder), fluorite (fluorspar), rare earths, tin, tungsten, molybdenum, antimony, coal, coke, crude oil, refined oil, paraffin, certain metals and their products, silver, platinum (platinum or white gold), and indium. Regarding the methods of control, items involving dual uses require an application for a dual-use items and technologies export licence; those listed under export licence management require a licence application to the competent commerce department; while state trading management applies to tungsten, antimony, and silver, requiring corresponding export qualifications. Although China does not explicitly require minerals to be beneficiated locally prior to export, the aforementioned series of export restriction policies make the direct export of raw ores of certain minerals considerably difficult.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any tariffs imposed by the government in your jurisdiction on export or import of minerals and metals out of or into your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China levies tariffs on the import and export of minerals and metals.<\/p>\n<ul>\n<li>Regarding imports, China implements lower or even zero tariffs on certain resource products and critical materials, and applies provisional import tariff rates lower than the most-favoured-nation (MFN) rates to a large number of commodities annually. For example, the import tariff rate for steel raw materials is 0%, and the provisional import tariff rates for products such as ferrotungsten and ferromolybdenum are also maintained at a low level of 1%. Under specific circumstances, China may also impose additional tariffs on imported commodities, primarily as a countermeasure in international trade disputes.<\/li>\n<li>Regarding exports, China levies export tariffs on most strategic minerals, generally higher than import tariffs. For example, the export tariff rate for ferrochromium is 40%, and the export tariff rate for tungsten ores and concentrates is 20%.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government or local party requirements for any type of project across the metals and mining value chain in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At the legal level, China has not established mandatory government equity participation requirements for metals and mining projects, but differences exist in specific local practices.<\/p>\n<p>In principle, the state encourages private capital to participate in the development of mineral resources. For instance, policies in provinces such as Hunan and Gansu explicitly support private capital holding shares in eligible mining projects, and some regions even encourage private enterprises to hold controlling stakes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the legal nature of the mining rights and who owns them.  Can foreign investors own mining assets \u2013 or are JVs with local entities required?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The legal attribute of mineral rights is usufructuary rights. Mineral resources are owned by the State, and the State Council shall represent the State in exercising ownership of mineral resources. State ownership of mineral resources, either on surface or underground, shall not be changed with alteration of ownership or use rights of the land to which the mineral resources are attached.<\/p>\n<p>China adopts the management system of pre-establishment national treatment and negative list for foreign investment. Foreign investors may lawfully hold mining assets, and current laws and regulations do not impose a universal mandatory requirement for them to establish joint ventures with local Chinese entities. Up until now, the foreign investment access negative lists issued by China mainly include: Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition); Special Administrative Measures (Negative List) for Foreign Investment Access in Pilot Free Trade Zones (2021 Edition); and Special Administrative Measures (Negative List) for Admission of Foreign Investments in Hainan Free Trade Port (2020 Edition).<\/p>\n<p>According to the aforementioned negative lists, foreign investment is prohibited to invest in the exploration, mining and beneficiation of rare earth, radioactive minerals, and tungsten.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the land tenure in the mining context, e.g.  -\tis the mining tenure separate from land tenure? -\tthe surface land owners\u2019 rights and obligations vis-\u00e0-vis the rights of the owner of the minerals sitting under the surface land (access, compensation etc).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ol>\n<li>Mining rights and land rights are mutually independent. Although a mining right grants the right holder the right to exploit relevant mineral resources and obtain the extracted mineral products within the registered exploitation area, it does not include the right to use the surface land. A mining right holder intending to lawfully use the land must separately acquire the land use right subject to the surface land.<\/li>\n<li>The rights and obligations of surface land users include: (a) Refusing illegal land occupation. Mining right holders shall not occupy land without authorisation prior to obtaining lawful land use approvals. (b) The right to obtain reasonable compensation. This includes compensation for land expropriation, compensation for temporary land use, and compensation for mining damages. (c) The right to require mining right holders to complete land reclamation and ecological restoration to restore the original functions of the land. (d) Based on contiguous relations, surface land users shall tolerate reasonable development and utilisation acts conducted by mining right holders in accordance with the law. The administrative departments of natural resources under the people&#8217;s governments at or above the county level shall ensure the lawful use of the land by holders of mineral right through assignment, lease or capital contribution at the appraised value.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline regime for granting exploration rights, including:  -\tscope of the licence\/permit\/concession  -\ttypical term and extension rights  -\tprocess \/ steps to acquire exploration rights  -\tobligations of the licence\/permit\/concession holder  -\ttransition from exploration rights to mining rights -\ttypical timelines and costs for applications<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China implements a system of the separation of the property right registration of exploration rights from exploration permits. As a usufructuary right to explore mineral resources, the creation, modification, assignment, mortgage and extinguishment of exploration rights shall be valid after legal registration; the exploration permit is a prerequisite administrative licence for the exploration right holder to conduct exploration operations. Before conducting exploration operations, an exploration right holder must simultaneously hold a lawfully registered exploration right and a lawfully acquired exploration permit.<\/p>\n<p>Exploration rights are, in principle, granted through competitive methods such as bidding, auction and listing, with granting by agreement acting only as a statutory exception. Investors obtain exploration rights through competitive methods and sign granting contracts, and subsequently apply for mineral rights registration with the mineral right assignment authority, receiving an exploration right certificate upon meeting the conditions. However, after obtaining the exploration right certificate, direct construction cannot commence immediately; an exploration plan must be prepared and submitted for approval, and exploration operations may only commence after obtaining the exploration permit. Currently, the specific time limit for mineral rights registration remains to be clarified by supporting regulations; regarding exploration permits, a decision on whether to grant the permit shall be made within 20 working days from the date of accepting the application.<\/p>\n<p>In terms of fees, the earnings from the assignment of mineral rights are primarily paid. After the transaction price is determined through competitive methods, the transaction price is paid at the time of granting; for minerals subject to collection based on the granting yield rate, the earnings from the assignment of mineral rights shall also be collected year by year during exploitation by multiplying the sales revenue of the mineral products by the yield rate stipulated in the contract.<\/p>\n<p>Exploration right holders must conduct operations in accordance with the area, mineral type, and term specified in the exploration permit and the approved exploration plan, and fulfill the following obligations: timely conducting exploration work and reporting annually as stipulated in the contract, lawfully paying the earnings from the assignment of mineral rights, submitting geological data, and fulfilling obligations such as the ecological restoration of the mining area.<\/p>\n<p>The term of an exploration right is five years, and it may be renewed for a maximum of three times upon expiration, with each renewal lasting five years. Upon renewal, the exploration area shall be reduced in accordance with regulations (generally a 20% reduction of the original area specified on the certificate). If exploration has not been substantially carried out without justifiable reasons, the term shall not be renewed upon expiration.<\/p>\n<p>China implements the direct application system for the conversion from exploration right to mining right. After the holders of exploration rights have verified the mineral resources for mining, they may, within the duration of the exploration rights, apply to change their exploration rights to mining rights. The original mineral right assignment authority shall sign with these holders of exploration rights a contract for the assignment of mining rights, in order to establish mining rights. If conversion is temporarily unfeasible due to public interests or other reasons, an application for the retention of the exploration right may be submitted; during the retention period, the calculation of the term of the exploration right is suspended.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the regime for granting mining rights, including:  -\tscope of the licence\/permit\/concession  -\ttypical term and extension rights  -\tsteps to acquire mining rights  -\tobligations of the licence\/permit\/concession holder<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China implements a system of the separation of the property right registration of mining rights from mining permits. As a usufructuary right to exploit mineral resources, the creation, modification, assignment, mortgage and extinguishment of a mining right shall take effect upon lawful registration; the mining permit is a prerequisite administrative licence for the mining right holder to conduct exploitation operations. Before conducting exploitation operations, a mining right holder must simultaneously hold a lawfully registered mining right and a lawfully acquired mining permit.<\/p>\n<p>Mining rights are, in principle, granted through competitive methods such as bidding, auction, and listing, with granting by agreement acting only as a statutory exception. Exploration right holders apply directly for conversion into mining rights. Investors obtain mining rights through competitive methods and sign granting contracts, and subsequently apply for mineral rights registration with the mineral right assignment authority, receiving a mining right certificate upon meeting the conditions. However, after obtaining the mining right certificate, direct construction cannot commence immediately; an mining plan must be prepared and submitted for approval, and exploitation operations may only commence after obtaining the mining permit. Currently, the specific time limit for mining right registration remains to be clarified by supporting regulations; regarding mining permits, a decision on whether to grant the permit shall be made within 20 working days from the date of accepting the application.<\/p>\n<p>In terms of fees, the earnings from the assignment of mineral rights are primarily paid. After the transaction price is determined through competitive methods, the transaction price is paid at the time of granting; for minerals subject to collection based on the granting yield rate, the earnings from the assignment of mineral rights shall also be collected year by year during exploitation by multiplying the sales revenue of the mineral products by the yield rate stipulated in the contract. Reductions or exemptions may be legally applied for those meeting state-encouraged conditions.<\/p>\n<p>Mining right holders must conduct operations in accordance with the area, mineral type, and term specified in the mining permit and the approved exploitation plan, and fulfill the following obligations: timely conducting exploitation work and reporting annually as stipulated in the contract, lawfully paying the earnings from the assignment of mineral rights, submitting geological data, and fulfilling obligations such as the ecological restoration of the mining area.<\/p>\n<p>The term of a mining right is determined based on the mine construction scale, with a maximum of thirty years for large-scale mines, twenty years for medium-scale mines, and ten years for small-scale mines. If continued exploitation is required upon expiration of the term, the mining right holder shall apply for renewal at least six months prior to the expiration. If remaining resources are still available for exploitation within the registered exploitation area, the renewal shall be granted in accordance with the law. If exploitation has not been substantially carried out without justifiable reasons or if no remaining resources are available for exploitation, the term shall not be renewed upon expiration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the royalties regime \u2013 i.e. any payments due to the government under any licenses and\/or leases described above.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The primary fees payable by mineral rights holders include the earnings from the assignment of mineral rights, mineral rights occupation fees, and resource taxes. The earnings from the assignment of mineral rights are the consideration collected by the state when granting mineral rights, with the transaction price determined through competitive methods; for most minerals, the earnings from the assignment of mineral rights must also be paid year by year at a certain percentage of the sales revenue of the mineral products during the exploitation stage. Mineral rights occupation fees are the occupation fees paid annually by mineral rights holders for occupying state mineral resources; exploration rights are levied based on the area of the exploration permit, and mining rights are levied based on the area of the mining area boundary. The resource tax is primarily levied on an ad valorem basis on the actual extracted mineral products during the exploitation stage; a few minerals may be subject to volume-based collection, payable by multiplying the sales revenue or sales volume by the corresponding tax rate. Investors need to make full-cycle arrangements regarding the timing of payment, basis of calculation, and management requirements for all three.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to assign and\/or grant security over tenements in your jurisdiction? If so please briefly describe the process, including any regulatory requirements (e.g. approvals).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China permits the lawful assignment and establishment of guarantees (mortgages) over mineral rights. The assignment of mineral rights shall be valid after legal registration, and prior approval is no longer required; the rights and obligations specified in the granting contract and the register are transferred accordingly following the assignment. To process the registration, materials such as the assignment agreement and the original mineral right certificate must be submitted to the mineral right assignment authority. Upon acceptance, it is generally completed within 20 working days.<\/p>\n<p>The mortgage of mineral rights is also subject to the doctrine of taking effect upon registration, with the mortgage right established at the time of registration. The mortgagor and the mortgagee shall jointly apply for mortgage registration with the mineral right assignment authority, submitting materials such as the principal claim contract, the mortgage contract, and the mineral right certificate. The registration authority will issue a mortgage certificate after recording the mortgage information in the mineral rights register. If a mortgaged mineral right needs to be transferred, the alteration registration may only be processed with the consent of the mortgagee.<\/p>\n<p>Unless otherwise stipulated by the state or agreed upon in the contract for assignment of mineral rights, investors should review the specific contractual clauses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline any indigenous or local community rights relevant in the mining context, including implementation of FPIC (Free, Prior, and Informed Consent) principles in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China&#8217;s current legal framework does not establish a specific rights system targeting &#8216;indigenous peoples&#8217;, nor has it established the FPIC (Free, Prior, and Informed Consent) principles under the international framework as a mandatory rule of domestic law. However, regarding the local rural collective economic organisations, residents, and groups in minority-concentrated areas involved in mining projects, the law has clarified relevant rights. For instance, Where land collectively owned by farmers is genuinely needed for the mining of strategic mineral resources, it may be expropriated according to law, and fair and reasonable compensation shall be provided; when conducting environmental impact assessments, preparing ecological restoration plans, and inspecting and accepting the ecological restoration of mining areas for mining projects, a public announcement procedure must be fulfilled to fully solicit the opinions of local communities and the public; the autonomous authorities of the ethnic autonomous areas may, in accordance with the law and the unified plans of the State, give priority to the rational development and utilisation of mineral resources that may be developed locally.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the environmental protection regime applicable to the mining industry, including:  -\tWhat environmental impact assessments are required? -\tany requirements for rehabilitation bonds and guarantees -\tany mine closure obligations -\tconsequences for failure to comply with applicable environmental laws and regulations<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The state implements an environmental impact assessment system for construction projects and enforces classified management based on the degree of environmental impact caused by the construction projects:<\/p>\n<ol>\n<li>In the event of possible significant environmental impact, an environmental impact report shall be prepared for comprehensive assessment of the environmental impact.<\/li>\n<li>In the event of slight environmental impact, an environmental impact statement shall be prepared for analysis or assessment of specific items relating to the environmental impact.<\/li>\n<li>In the event of minimal environmental impact which does not warrant an environmental impact assessment, an environmental impact registration form shall be completed.<\/li>\n<\/ol>\n<p>An environmental impact report for a construction project shall include the following items: overview of the construction project; description of current environmental situation of the construction project; analysis, forecast and assessment of the possible environmental impact of the construction project; measures for environmental protection taken by the construction project and the corresponding technical and economic analyses of such measures; analysis of economic gains and losses incurred as a result of the environmental impact of the construction project; recommendations for application of environmental monitoring for the construction project; conclusion on the environmental impact assessment etc.<\/p>\n<p>The mine geological environment treatment and restoration fund refers to the expenses set aside by mining right holders to legally fulfill their obligations of mine geological environment treatment and land reclamation. The expenditures determined based on the environmental protection and ecological restoration obligations expected to be undertaken, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, are included in the recorded cost of the relevant assets. The principal and interest of the fund belong to the mineral rights holder, and no unit or individual may manage it on their behalf or misappropriate it.<\/p>\n<p>Prior to mining of mineral resources, a holder of mining right shall formulate an ecological restoration plan for the mining area and submit the same along with the mining plan to the original mineral right assignment authority for approval. Prior to mine closure, the mining right holder shall fulfill the obligations of mine geological environment protection and land reclamation in accordance with the approved ecological restoration plan for the mining area. If the treatment and restoration obligations are not fulfilled upon expiration of the time limit, or if the treatment and restoration still fail to meet the requirements, the competent department of natural resources shall organise the treatment using the deposited mine geological environment treatment and restoration guarantee deposit, and any shortfall shall be borne by the mining right holder.<\/p>\n<p>Any holder of mining right who fails to fulfil the obligation of ecological restoration of mining areas or failing to carry out ecological restoration of mining areas pursuant to the approved ecological restoration plan for mining areas shall be ordered by the administrative department of natural resources under the people&#8217;s government at or above the county level to make correction and may be subject to a fine of not more than two times the expenses required for ecological restoration of mining areas; where the holder refuses to make correction, a fine ranging from two to five times the expenses required for ecological restoration of mining areas shall be imposed on the holder, and the administrative department of natural resources under the people&#8217;s government at or above the county level shall assign a relevant organisation to carry out the restoration on their behalf, and the expenses incurred shall be borne by the holder of mining right.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline if any specific health and safety regulations apply to the mining industry.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China has established a specialised occupational health and safety regulatory system specifically applicable to the mining industry. The Mine Safety Law is a specialised law governing production safety in the mining industry, and its supporting Implementing Regulations of the Mine Safety Law formulate specific provisions on mine construction, mining safety guarantees, mine enterprise safety management, mine safety supervision and administration, and accident handling. The Work Safety Law, as a comprehensive law in the field of production safety, sets forth special provisions for the mining industry, and the Law on the Prevention and Control of Occupational Diseases also establishes fundamental provisions for preventing and controlling occupational diseases. Furthermore, multiple local governments have formulated corresponding implementation measures based on the Mine Safety Law. Targeting coal mining as a key sector, China has enacted the Regulations on Coal Mine Production Safety (State Council Decree No 774) to provide a regulatory framework for coal mine production safety.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline any obligations for disclosure of climate change risks applicable across the mining value chain in your jurisdiction. Please specify if there are any pending proposals to amend the applicable law to introduce or extend these obligations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The climate disclosure obligations for entities across the entire mining industry chain in China (excluding Hong Kong, Macao, and Taiwan regions) have achieved a fundamental leap. The Ecological and Environmental Code, passed in March 2026, mandates that key emitting entities must legally report carbon emission data, and violators will bear legal liability. The Mineral Resources Law further strengthens disclosure requirements spanning the entire life cycle, including the ecological restoration of mining areas. Driven by the 15th Five-Year Plan, a dual control system over total carbon emissions and intensity is comprehensively implemented, and key industries such as non-ferrous metals and iron and steel face more specific obligations regarding energy-saving and carbon-reduction retrofitting and disclosure. The disclosure content of mining enterprises has expanded from single emission data to multiple dimensions, including governance structures, climate risk strategies, and ecological protection.<\/p>\n<p>Currently, there are no pending proposals to revise existing laws to establish or expand climate disclosure obligations for mining enterprises.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any decarbonisation obligations applicable to the market players across the mining value chain in your jurisdiction? Please specify if there are any pending proposals to amend the applicable law to introduce or extend these obligations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Decarbonisation obligations for the entire mining industry chain in China (excluding Hong Kong, Macao, and Taiwan regions) have fully transitioned from &#8216;policy advocacy&#8217; to &#8216;legal mandate&#8217;. With the formal implementation of the Mineral Resources Law and the Energy Law in 2025, and the Ecological and Environmental Code taking effect on 15 August 2026, mining enterprises must fulfill effective statutory obligations. The core changes lie in the establishment of carbon emission &#8216;dual control&#8217; and the lifelong responsibility system for ecological restoration, as well as the inclusion of coal, non-ferrous metals, and iron and steel into the mandatory carbon market. Decarbonisation is no longer an optional choice for enterprises, but a compliance requirement crucial to asset value and development prospects, and the industry must adapt to high-standard legal or policy constraints.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any other relevant decarbonisation and climate change related laws and regulations in your jurisdiction  that could affect he market players across the mining value chain in your jurisdiction (e.g. carbon tax).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Although China (excluding Hong Kong, Macao, and Taiwan regions) has not directly levied a &#8216;carbon tax&#8217;, it has already formed systematic decarbonisation and climate change response constraints on the entire mining industry chain through a combination of laws, markets, and standards. At the legal level, laws such as the Ecological and Environmental Code and the Mineral Resources Law elevate &#8216;carbon peaking and carbon neutrality&#8217; and green mines to legal obligations; at the market level, the national carbon emission right trading market essentially covers the major emitting industries in the industrial sector, making carbon emissions a hard cost, while the carbon sinks generated from mine restoration can be monetised through the voluntary market; at the standard level, documents like the General Principles for Assessment of Green Mine establish full-chain carbon control, guiding low-carbon transition through carbon footprint accounting and quota rewards and penalties. This mechanism is profoundly reshaping the competitive landscape of the mining industry by increasing high-carbon costs and creating low-carbon revenues.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any unusual taxes that apply specifically to entities carrying out mining activities (in addition to the usual income and corporate taxes and excluding any carbon taxes that (if any) will be covered in the section above).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China imposes specific taxes and related fees exclusively applicable to mining operators. These include:<\/p>\n<p>(1) In the assignment of mineral rights. China collects earnings from the assignment of mineral rights, including two methods: collection in the form of a granting yield rate and collection in the form of a granting amount. For the minerals listed in the Catalogue of Minerals for which Earnings from the Assignment of Mineral Rights are Collected in the Form of Mineral Right Granting Yield Rate (Trial), earnings from the assignment of mineral rights are collected by means of the granting yield rate.<\/p>\n<p>(2) In the mineral rights possession stage. China collects mineral rights occupation fees.<\/p>\n<p>(3) In the mining production stage. China levies the resource tax. The resource tax is levied on an ad valorem or volume basis in accordance with the Table of Tax Items and Tax Rates stipulated in the Resource Tax Law.<\/p>\n<p>(4) In the mining exploration and exploitation stage. A treatment and restoration fund is raised by establishing a fund. Based on their mine geological environment protection and land reclamation plans, mining enterprises calculate the estimated asset retirement obligations for mine geological environment restoration and treatment expenditures in accordance with relevant provisions of the Accounting Standards for Business Enterprises, include them in the recorded cost of relevant assets, amortise them based on methods such as the production ratio within the estimated exploitation life, and account them into production costs. Concurrently, enterprises must establish a fund account with a bank to separately reflect the withdrawal of the fund. The fund is used independently by the enterprise and exclusively earmarked for addressing ground subsidence, landslides, destruction of topographic and geomorphological landscapes, and damage to underground aquifers caused by mineral resource exploration and exploitation activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Other key regulatory and market developments<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China&#8217;s mining sector has recently exhibited significant trends of judicial refinement and the deep integration of industrial intelligentisation and greening.<\/p>\n<p>At the judicial level, the Supreme People&#8217;s Court implemented the Interpretation on Several Issues Concerning the Application of Law in the Trial of Mineral Resources Dispute Cases, effective 1 February 2026. Addressing new situations following the implementation of the new Mineral Resources Law, this judicial interpretation makes explicit provisions on key legal issues such as the &#8216;separation of rights and certificates&#8217; of mineral rights (ie the separation of the real estate property right certificate and the mining permit), the circulation of mineral rights, ecological restoration liabilities of mining areas, and compensation for overriding mineral resources by construction projects, providing clearer judicial guidance and rights protection for market transactions.<\/p>\n<p>At the market and technical levels, the intelligent transformation of the mining industry is accelerating. As of the end of 2025, 1,066 intelligent coal mines have been built nationwide, with intelligent production capacity accounting for over 65%, and the accident rate of high-disaster-risk mines has significantly decreased. This trend indicates that intelligent exploitation has shifted from &#8216;policy advocacy&#8217; to the core driving force of industry development.<\/p>\n<p>Furthermore, the construction of green mines has become a hard threshold for corporate survival. According to planning, by the end of 2028, 90% of large-scale mines and 80% of medium-scale mines nationwide must meet green mine standards. This compels enterprises to internalise ecological restoration and environmental protection as core operating costs and strategic considerations, marking that China&#8217;s mining industry is accelerating its evolution into a new stage of rule of law, intelligentisation, and greening.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6077<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/139808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=139808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}