PRC Laws on Mineral Resources – Part 6

by David Richardson - Dorsey & Whitney

This is the sixth and final part of a series focusing on the basic legal and bureaucratic framework around the mining of mineral resources in the PRC.

Rights and Obligations of Holders of Mining Permits

The rights of a holder of a Mining Permit include rights:

  • to engage in mining activities in the designated area and within the term prescribed under the Mining Permit;
  • to set up prod uction facilities and amenities within the designated area;
  • to sell the mineral products, except for those minerals which are required by the State Council to be sold to designated entities; and
  • to acquire the land use rights legally based on the requirement of its production and construction.

The obligations of a holder of a Mining Permit include obligations:

  • to carry out mining activities in the designated area and within the term of the Mining Permit;
  • to effectively protect and reasonably extract the mineral resources and integrate the use of the mineral resources;
  • to pay resources tax and mineral resources compensation fees;
  • to comply with laws and regulations relating to labour safety, soil and land conservation, land rehabilitation and environment protection; and
  • to submit a report on the utilisation of mineral resources to the relevant government authority.

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
Email: richardson.david@dorsey.com