PRC Laws on Mineral Resources – Part 4

by David Richardson - Dorsey & Whitney

This series focuses on the basic legal and bureaucratic framework around the mining of mineral resources in the PRC.

Methods of Obtaining Gold Operating Permit

According to the “Provisions on the Administration of Gold Operating Permit’’, an applicant who wishes to mine gold must obtain a Gold Operating Permit.

The holder of a Gold Operating Permit is then entitled to exploit gold mineral resources in the areas specified in the Gold Operating Permit, provide it also has a corresponding mining permit.

An applicant for a Gold Operating Permit must submit the following documents to the National Development and Reform Commission of the PRC (the NDRC):

  • an application form for exploitation of gold minerals
  • a formal map indicating the scope of the mining area
  • file records or the approval documents regarding the ore reserves report
  • an environment influence evaluation report approved by competent environment protection
  • authorities
  • the contract and the articles of association of the company and the approval for establishment the company, if the applicant is a company limited by shares; and
  • the awards rendered by relevant authorities in respect of any boundary dispute concerning the mining area.

The NDRC must determine the application within 20 days of receipt of the application documents.

Gold Operating Permits are generally issued for a period from 5 years to 15 years in length, depending upon the production scale of the mine.

Applications for renewal of a Gold Operating Permit must be submitted to the NDRC at least 30 days prior to the expiration date of the permit.

David Richardson of the Hong Kong office of Dorsey & Whitney has over 20 years of experience in corporate finance in Hong Kong. David sits on a number of securities regulatory committees in Hong Kong and has acted in the listing Hong Kong Stock Exchange of several mining companies with interests in the People’s Republic of China (“PRC”). Dorsey & Whitney have a strong mineral resources practice.

Dorsey & Whitney have a strong mineral resources practice. For a list of representative transactions of this practice, please click here.

For further information, please contact:

David Richardson
Dorsey & Whitney
Hong Kong
Telephone: +852 2105 0234