New Regulations On Mineral Exploration In China

On July 18, 2008, the Ministry of Commerce ("MOFCOM") and the Ministry of Land and Resources ("MOLAR") jointly promulgated the Measures for the Administration of the Foreign-invested Mineral Exploration (the "Measures"). The Measures come into force on August 20, 2008. For the most part, the Measures consolidate existing rules governing the establishment and operation of foreign-invested exploration enterprises ("Exploration FIEs") rather than creating a new regulatory framework. In some cases they clarify requirements. It may be that promulgation of the Measures signals the intention of regulators to give greater scrutiny to foreign investment in exploration, although this remains to be seen.