PRC Laws on Mineral Resources – Part 5

by David Richardson - Dorsey & Whitney

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

Rights and Obligations of Holders of Exploration Permits

The rights of a holder of an exploration permit include:

  • rights to carry out exploration in the designated area and within the prescribed time;
  • rights to set up apparatus for power supply, water supply and communication channels without prejudice to the original equipments for power supply, water supply and communication channels;
  • access to the exploration area and its adjacent areas;
  • use temporarily of the land in accordance with the needs of the exploration project;
  • priority in obtaining the mining right of the mineral resources as specified on the exploration permit and the exploration right of other newly discovered minerals within the designated exploration area;
  • upon fulfillment of the prescribed minimum expenditure requirements, the right to transfer the exploration right to any third party upon government approval; and
  • rights to sell the mineral products extracted from the surface of the land in the exploration area, except for those mineral products which are required by the State Council to be sold to designated entities.

The obligations of a holder of an exploration permit include obligations:

  • to commence and complete the exploration work within the term of the exploration permit;
  • to carry out the exploration work in accordance with the exploration plan and to ensure that there are no occurrences of unauthorised mining activities in the designated area;
  • to carry out integrated exploration and assessment activities on the para-genetic and associated mineral resources; and
  • to submit an exploration report of the mineral resources to the relevant government authority for approval.

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