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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.
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