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Last updated at: (Beijing Time) Tuesday, November 27, 2001

China Restricts Mining License Grants

China has restricted grants of mining permits to curb mismanagement and irregularities in small mines, which are thought to be the cause of frequent mining accidents around the country. Meanwhile, all level local departments are supposed to take measures to cooperate with the central government.


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China restricting grants of mining permits

China has restricted grants of mining permits to curb mismanagement and irregularities in small mines, which are thought to be the cause of frequent mining accidents around the country.

Tian Fengshan, minister of Land and Resources, said at a national video-telephone meeting on the management of mining resources held here Monday, that the ministry has just concluded a nationwide overhaul of mining management.

Since the middle of September, the ministry has sent four investigative groups to inspect mining management in 50 counties and townships and 40 mines in 20 provinces, autonomous regions and municipalities.

The move was one of the remedial measures taken after a series of serious industrial safety problems in the mining sector this year, such as the landslide in a quarry in Leping, east China's Jiangxi Province and the tin mine flood in Nandan, southwest China 's Guangxi Zhuang Autonomous Region.

According to the requirements of the State Council, the authority for approving mining licenses in localities is now done by provincial land and resources administrative departments.

In terms of evaluating exploration applications for the 34 different types of mines in China, provincial land and resources authorities should provide evaluations before applying to provincial governments for their final project approval.

Local departments supposed to cooperate

Meanwhile, local land and resources regulatory departments are asked to cooperate with relevant government organs at various levels to step up the supervision of mining management and to cope with existing problems.

The ministry vowed to continue shutting down mines operating without permits or which illegally transfer their operation rights before the end of this year.

China now has 7,000 mining projects in operation, involving 160, 000 mining companies.

He said that if mines are found conducting illegal or random exploration of resources, authorities will have their licenses suspended and be given a grace period to make an appeal. Those who fail to meet the state's operational standards by next June will have their operation licenses canceled.



Chinese Mining Law Overview

The Mineral Resources Law of China was adopted in 1986, with subsequent regulations being promulgated in 1993 and 1994. All mineral resources belong to the State, pursuant to the Chinese Constitution. The State Council (the Executive Cabinet) exercises control over the mineral resources on behalf of the State. With recent changes in the principal mining laws and related laws and regulations, the government hopes to encourage foreign exploration and exploitation mineral projects, to meet its economic expansion needs and, thereby achieve national economic and social objectives. Recent mineral investment activities and production statistics indicate movement in that direction, with some disappointments. Foreign investment still lags, but government changes in mining regulations continue in an attempt to attract further investment, while at the same time protect State interests. New discoveries encourage continued interest in the vast, untapped resources of the country.

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