Talking about Mineral Rights

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Talking about Mineral Rights
2
Where Comes Our rights Obligations

• Innate rights v.s. Man-made rights
• Mining Rights Obligations created and vested by
  law

3
Layers of Validity of Chinese Mining Law

• Law enacted by National Peoples Congress NPC
  LAWS
• Regulations, rules by State Council SC decree
• Rules, policies published by Ministries
• Local laws and regulations

4
NPC Mineral Laws

• Mineral Resources Law of 1986
• National Enforcement C2, this law must be
  observed to undertake exploration, mining of
  mineral resources in the territory and ocean
  areas of jurisdictions of PRC.c-2
• Ownership of title in mineral resources
   b)  Ownership of title in mineral resources C3,
  Mineral resources belongs to ownership of the
  Country. The state council maintains and manages
  the ownership rights.

5
SC Decrees

• Implementation Rules of Mineral Resources Law
  ,Decree No. 152, 1994. 
• Administration Regulation on Registration of
  Exploration Blocks of Exploration of Mineral
  ResourcesSC decree No. 240, 1998
• Administration Regulation on Registration of
  Mining of Mineral ResourcesSC decree No. 241,
  1998
• Regulation on Transfer of Exploration and Mining
  RightsSC decree No. 242, 1998
• Regulation on Collection of Compensation for
  Mineral Resources. SC decree No. 150, 1994

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Local Laws Regulations
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Mineral Rights Obligations Vested by Law

• MRL,
• C3 To explore, mine mineral resources,
  application must be filed separately in line with
  law, and subject to obtaining of exploration
  right, mining right upon approval, and
  registration as well.
• C3, professional qualification must be met to
  undertake exploration and mining of mineral
  resources. qualified explorers certificate
• C50, Wherever laws and administrative regulations
  provides otherwise for foreigners investment in
  exploration and mining of mineral resources, such
  laws and administrative regulations shall be
  followed.

8
SCs Implementation Rules of MRL

• C7 -the country permits alien companies,
  enterprises and other economic organizations and
  individual persons to invest in exploring, mining
  mineral resources in the territory and ocean
  areas of PRC jurisdiction in line with provisions
  of laws and administration regulations. Decree
  No. 152, 1994.

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Mineral Rights

• Exploration rights
• Mining rights

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Who owns mineral rights?

• Mineral resources mineral rights
• Owners of mineral rights
• Government owned at all levels
• State owned companies and entities
• Private companies and individuals
• Free open properties.

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How do I own mineral rights

• Government owned
• Bidding, auction and listing, application
• State owned companiess rights
• evaluation and internal approval
• Private companies and individuals
• Negotiation and purchase from companies and
  entities.

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Application and Approval for Exploration Rights

• C4 of SC decree No. 240 provide that
• State Councils department of Geology and
  minerals shall be responsible for examination and
  approval of, issuance of licenses for exploration
  of mineral resources invested by foreigners
• You can start from provincial bureau or molar
  directly.

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Approval for Mining licenses

• C16 of mineral resources law provides
• Mining of the following mineral resources is
  subject to examination and approval of Authority
  of Geology and minerals of State Council, who is
  responsible for issuance of mining license.
• C3 of SC decree 241
• Molar is responsible for mining of mineral
  resources invested by foreign investors.

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Transfer of Mineral Rights

• SC 242
• Evaluation
• Examination and approval of Transfer Contracts by
  MOLAR or its local bureau,contract comes into
  effect upon approval.
• Renew of licenses

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THANK YOU!

• BJ PARTNERS LAW FIRM
• July 2007