The perspective of prospecting. The three elements of prospecting rights.


Published:

2024-06-03

The exercise of prospecting right is a comprehensive work, including the acquisition, transfer, continuation and cancellation of prospecting right, among which the acquisition of prospecting right is the basis of the exercise of prospecting right. How to obtain the prospecting right, the author tries to analyze from the three aspects of the main requirements, the way of obtaining and the authorized organ.

Prospecting right refers to the right to explore mineral resources within the scope of the exploration license obtained in accordance with the law, and is one of the core assets of mining enterprises. The exercise of prospecting right is a comprehensive work, including the acquisition, transfer, continuation and cancellation of prospecting right, among which the acquisition of prospecting right is the basis of the exercise of prospecting right. How to obtain the prospecting right, the author tries to analyze from the three aspects of the main requirements, the way of obtaining and the authorized organ.

 

1. the main elements of the acquisition of prospecting rights.

Not any unit can apply for prospecting right, and the applicant for prospecting right should meet the following conditions:

1. The applicant shall be a for-profit legal person or a public institution legal person in a non-profit legal person, of which the non-oil and gas prospecting right holder may, in principle, be a for-profit legal person or a public institution legal person in a non-profit legal person, and the oil and gas prospecting right holder shall, in principle, be a for-profit legal person;

2. The applicant has not canceled the exploration right within the scope of the application block within 90 days, and the exploration license has not been revoked within 6 months;

3. The financial capacity of the applicant for prospecting right must be compatible with the type of prospecting minerals, the area of prospecting and the stage of prospecting work applied;

4. Obtake the exploration license.

Legal basis:

Articles 5 and 6 of the Detailed Rules for the Implementation of the the People's Republic of China Mineral Resources Law, Articles 24 and 33 of the Measures for the Registration and Administration of Mineral Resources Exploration Blocks, and Article 1 of the Notice of the Ministry of Natural Resources on Further Improving the Registration and Administration of Mineral Resources Exploration and Mining

 

2. the way of obtaining prospecting right

(I) competitive transfer

Participating in competitive transfer, including bidding, auction and listing, is the main way to obtain prospecting rights. Except for special circumstances such as agreement transfer, the prospecting right shall be transferred through open competition in the form of bidding, auction and listing in accordance with the Trading Rules for the Transfer of Mining Rights (No. 1 of the Natural Resources Regulation [2023]). Specific situations include:

1. If the newly established mineral exploration right has one of the following circumstances, the competent department shall grant it by way of bidding, auction and listing:

(1) Mineral sites funded by the State for exploration and which have been identified for further exploration;

(2) Mineral areas where prospecting rights are lost;

(3) Exploration blocks designated by special plans for mineral resources exploration at the national and provincial levels;

(4) Other circumstances specified by the competent department.

2. In any of the following circumstances within the scope of the above provisions, the competent department shall grant the prospecting right by way of bidding:

(1) State-funded exploration projects;

(2) The scale of mineral resources reserves is a large energy and metal mining area;

(3) Mineral areas with many associated components and high technical requirements for comprehensive utilization;

(4) mining areas of great value to the national economy;

(5) According to laws and regulations and national policies, new environmentally sensitive areas for prospecting rights and mining rights can be established and areas that do not meet the environmental quality standards set by the state.

Legal basis:

Articles 7 and 9 of the Measures for the Administration of Bidding, Auction and Listing of Exploration Rights and Mining Rights (for Trial Implementation) (Guotu Zifa (2003) No. 197)

 

(II) agreement transfer

Agreement transfer is a special way to obtain prospecting rights, there are only two situations in which prospecting rights can be obtained by agreement, namely:

1. For rare earth and radioactive mineral exploration and mining projects or key construction projects approved by the State Council, the competent department of natural resources may transfer mining rights to specific subjects by agreement.

2. Based on the requirements of mine safety production and rationality of mining right setting, if it is necessary to use the original production system to further explore and exploit mineral resources (except sand, gravel and soil minerals for ordinary construction), the mining right has been set up in the deep or upper part, surrounding and scattered resources, as well as the crack area with a distance of about 300 meters between adjacent mining rights belonging to the same subject, the exploration right or mining right can be transferred by agreement.

Legal basis:

Article 2 of the Opinions of the Ministry of Natural Resources on Several Matters Concerning Deepening the Reform of Mineral Resources Management (2023 No. 6)

 

Examination and approval authority for the acquisition of 3. prospecting rights

China's examination and approval authorities for prospecting rights include the Ministry of Natural Resources, provincial departments in charge of natural resources and departments in charge of natural resources at and below the provincial level, and departments in charge of natural resources at different levels are responsible for the transfer of prospecting rights in accordance with the strategic attributes of resources. Specific permissions are divided as follows:

1. The Ministry of Natural Resources is responsible for the registration of the transfer of mining rights of petroleum, hydrocarbon natural gas, shale gas, natural gas hydrate, radioactive minerals, tungsten, rare earth, tin, antimony, molybdenum, cobalt, lithium, potash, and crystalline graphite;

2. The provincial-level natural resources authority is responsible for the registration of the transfer of mining rights for coal, coalbed methane, iron, chromium, copper, aluminum, gold, nickel, zirconium, phosphorus, and fluorite;

3. The competent departments of natural resources at and below the provincial level shall be responsible for the registration of the transfer of mining rights for the remaining minerals.

Legal basis:

Article 4 of the Opinions of the Ministry of Natural Resources on Several Matters Concerning Deepening the Reform of Mineral Resources Management (Natural Resources Regulation [2023] No. 6)

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