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China to Establish a New Mineral Resources Equity System

Recently, the State Council issued the Mineral Resources Equity System Reform Plan, deciding to establish a new mineral resources equity system that suits China's characteristics in order to safeguard and realize the rights and interests of mineral resources in our country and create a fair environment for competition in the mining market.

The Plan puts forward the following measures. First, the current costs of prospecting and mining rights are adjusted to the income from the transfer of mining rights that applies to all mining rights transferred by the government and reflects the owner's equity of the government, and the sharing ratio between the central and local governments is 4:6. Second, the usage fees of prospecting and mining rights are integrated into the occupancy fees of mining rights that are subject to dynamic adjustments based on the price changes of mineral products and economic development needs, and the sharing ratio between the central and local governments is 2:8. Third, the organization and implementation of resource tax reform shall be properly carried out during mineral exploration. Fourth, the current mine environmental restoration deposit is adjusted to the mine environmental restoration fund characterized by standard management, unified power and responsibility and convenient use.

The Plan proposes the related supporting policies. First, the income from the transfer of mining rights and the occupancy fees of mining rights will be brought under general public budget management and used for geological survey and ecological protection and restoration of mines and other purposes after overall planning by the financial departments at all levels. Second, the policy of transferring the costs of prospecting and mining rights of state-owned geological prospecting units to national capital will be cancelled, such costs that have been transferred to national capital may no longer be paid, and state-funded enterprises shall fulfill the state-owned capital maintenance and appreciation responsibility and accept the supervision of institutions performing the duties of state-owned asset contributors. Third, a credit constraint mechanism for mining rights holders shall be established and improved.