CHAPTER I GENERAL PROVISIONS
Article 1 This Law is hereby formulated in accordance with the Constitution of the People's Republic of China to promote the development of the mining industry; strengthen the prospecting, development, utilization and protection of mineral resources; and guarantee the current and long-term needs of socialist modernization construction.

Article 2 This Law applies to all prospecting and exploring of mineral resources on the territory of the People's Republic of China and in waters under China's jurisdiction.

Article 3 All mineral resources belong to the State, with the State Council exercising State ownership of mineral resources,either surfacial or underground, shall not change with the change of ownership or use right of the land they are attached to.

The State shall guarantee the rational development and use of mineral resources. It forbids organizations and individuals to seize or damage mineral resources by any means. People's governments at all levels shall strengthen their work in the protection of mineral resources.

In case of mineral resource prospecting or exploration, necessary procedures of application and approval shall be gone through respectively in accordance with law to obtain the right for prospecting or mining. Registration procedures shall also be gone through.

This excludes, however, cases whereas mining enterprises that have already applied for and obtained, in accordance with law, the right to mine carry out prospecting within designated zones for the purpose of their production.

The State protects prospecting and mining rights from violation,and saves the production and work order of mining and prospecting zones from influences or interruption.

Those to be engaged in the prospecting or mining of mineral resources shall meet qualifications as stipulated.

Article 4 The State protects the legitimate rights and interests of mining enterprises set up in accordance with law in the exploration of mineral resources.

State-owned mining enterprises are the main body in the exploration of mineral resources. The State guarantees the consolidation and development of State-owned mining industries.

Article 5 The State implements the system of paid acquisition of prospecting and mining rights, although it has the right to reduce or exempt payments for these rights according to specific circumstances.
Detailed rules in this regard and the steps of their implementation shall be stipulated by the State Council. Explorers of mineral resources shall pay resource taxes and resource redemption fees according to relevant State stipulations.

Article 6 Except for cases as stipulated below, prospecting and mining rights shall not be transferred:
(1) The owner of prospecting rights has the right to carry out authorized prospecting operations in designated prospecting zones and enjoys precedence in obtaining rights to mine mineral resources in these prospecting zones. After putting in the minimum amount of investment as stipulated, the owner of prospecting rights can transferred these rights
to others after approval is given in accordance with law.
(2) An enterprise that has already obtained mining rights can transfer these rights to others after approval in accordance with law in cases whereas as this enterprise is annexed, separated, or turned into a joint venture, or there arises the need to change the main body of mining rights due to sales of assets of this enterprise or other forms of change of its asset rights.Specific rules and implementation measures concerning transfers as stipulated in the preceding clause shall be worked out by the State Council.
It is forbidden to sell prospecting or mining rights for profiteering purposes.

Article 7 The State implements the principle of unified planning, rational distribution, comprehensive prospecting, reasonable exploration, and comprehensive utilization of mineral resources.

Article 8 The State encourages scientific and technological studies related to the prospecting and development of mineral resources, popularization of advanced technology, and improvement of the scientific and technical level in the prospecting and mining of mineral resources.

Article 9 Units and individuals that have made outstanding achievements in the prospecting, development and protection of mineral resources and in scientific and technical researches shall be awarded by people's governments at various levels.

Article 10 When the State explores mineral resources in autonomous areas, attention shall be paid to the interests of these areas and arrangements beneficial to the economic construction of these areas shall be made. Due consideration shall be given to the production and life of the broad masses of the minority people there.

The autonomous organs of autonomous areas enjoy the precedence in developing and utilizing mineral resources that can be developed by themselves in accordance with law stipulations and unified State programmes.

Article 11 The department of geology and mineral resources under the State Council shall take charge of supervision and management of the prospecting and development of mineral resources throughout the country with the help of other relevant responsible departments under the State Council.

Departments of geology and mineral resources under people's governments at the provincial, autonomous regional and municipal level shall take charge of the supervision and management of the prospecting and development of mineral resources in zones under their jurisdiction with help of other relevant responsible departments under people's governments at the provincial, autonomous regional and municipal governments.

CHAPTER II REGISTRATION OF THE PROSPECTING AND EXAMINATION AND APPROVAL OF THE DEVELOPMENT OF MINERAL RESOURCES

Article 12 The State implements the management system of unified registration of zones and blocks in the prospecting of mineral resources. The department of geology and mineral resources under the State Council shall be responsible for the registration of prospecting
of mineral resources, and the registration of prospecting of special mineral resources shall be put under the charge of relevant departments authorized by the State Council. Rules on the management of registration of prospecting zones and blocks shall be worked out by the State Council.

Article 13 Departments of the State Council charged to examine and approve mineral reserves and departments of people's governments at the provincial, autonomous regional and municipal level charged to examine and approve mineral resources shall be responsible for the examination and approval of prospecting reports for use in the construction and designing of mines,and give written replies to submitters of these reports within prescribed periods of time. Prospecting reports that have not been approved shall not be used as the basis for construction or designing of mines.

Article 14 The files and data produced from the prospecting of mineral resources and statistics of mineral reserves of various kinds shall be managed in a unified way, and summarized and reported in accordance with stipulations by the State Council.

Article 15 Qualifications set by the State shall be met when a mining enterprise is to be established, and examination and approval departments shall examine and approve, in accordance with State laws and relevant stipulations, the size of mining zones, the designing of mines, the development blueprints, the technical conditions for production, the safety measures, and the measures for environmental protection. Approval shall be given to only those that qualify.

Article 16 Those engaged is the exploration of mineral resources listed below shall be examined and approved by the department of geology and mineral resources under the State Council and obtain a mining license therefrom:
(1) Mineral resources inside mines planned by the State and in mining zones that have an important bearing on the national economy.
(2) Mineral resources with large explorable reserves outside zones stipulated in the preceding clause.
(3) Special minerals designated by the State for protective exploration.
(4) Mineral resources under territorial seas and other seas under China's jurisdiction.
(5) Other mineral resources prescribed by the State Council.

Those engaged in the exploration of petroleum, natural gas, radioactive minerals and other special minerals shall be examined and approved by relevant departments authorized by the State Council and obtain mining

licenses therefrom. Those engaged in the exploration of mineral resources not covered in clauses (1) and (2) shall be examined and approved by departments of geology and mineral resources of people's governments at the provincial, autonomous regional and municipal level and obtain mining licenses therefrom, if the reserves of the explorable mininerals are of medium size.Rules on the management of exploration of mineral resources not covered in clauses (1), (2) and (3) shall be worked out by the standing committees of people's congresses at the provincial, autonomous regional and municipal level in accordance with law.Departments of geology and mineral resources of people's governments at the provincial, autonomous regional and municipal level shall summarize cases of examination and approval and issuance of mining licenses in accordance with stipulations in clauses (3) and (4) and report them to the department of geology and mineral resources under the State Council for the record.The standards for determining whether the reserves of a mineral are large or medium-sized shall be set by departments of the State Council charged to examine and approve mineral reserves.

Article 17 The State shall carry out planned exploration in mines that are planned by the State or mines that have an important bearing on the national economy, and of special minerals designated by the State for protective exploration. No units or individuals shall explore these minerals without approval from relevant departments of the State Council.

Article 18 Once the scope of the mining zones planned by the State, of the mining zones that are of great value to the national economy, and of the mining zones of mining enterprises is determined in accordance with law, the responsible departments that have determined the scope shall notify relevant people's governments at the county level for public notice. If a mining enterprise plans to change the scope of its mining zones, it shall report such changes to the examination and approval department that have provided the examination and approval in the first place for approval and apply to the department that has issued mining licenses to it in the first place for new mining licenses.

Article 19 Local people's governments at various levels shall take measures to maintain normal order in the mining zones of State-owned mining enterprises and other mining enterprises set up in accordance with law.

No units or individuals shall mine in the mining zones of State-owned mining enterprises or other mining enterprise set up in accordance with law.

Article 20 It is not allowed to explore mineral resources in the following areas without consent from relevant responsible departments authorized by the State Council:
(1) Inside harbours, airports, and zones marked for national defence facilities.
(2) Within certain distance to important industrial zones, large water conservancy facilities, and civic facilities.
(3) Within certain distance to railways and important highways.
(4) Within certain distance to important rivers and dams.
(5) In areas where nature reserves and important scenic spots
designated by the State, and immovable historic relics and places of historic interest and scenic beauty put under State protection.
(6) In other areas where exploration of mineral resources is forbidden by the State.

Article 21 In case of the closure of mines, reports on such closures and other data concerning excavation, hidden troubles, land reclamation and utilization, and environmental protection shall be submitted for examination and approval in accordance with State stipulations.

Article 22 Should any major scientific and cultural relics be discovered during the prospecting or exploration of mineral resources, they shall be put under protection and reported to relevant departments.

CHAPTER III PROSPECTING OF MINERAL RESOURCES

Article 23 Regional geological surveys shall be carried out in accordance with unified State plans. The reports and graphic documents of such surveys shall be examined and accepted in accordance with State stipulations and provided to relevant departments for use.

Article 24 At the same time when surveys of major varieties of minerals are surveyed, efforts shall also be made during general surveys of mineral resources in evaluating, on a preliminary basis, the geological conditions for forming mines including those of mineral intergrowths and associated minerals and the industrial prospects of mines in the zones covered.

Article 25 Prospecting of mineral deposits shall cover comprehensive evaluation of mineral intergrowths and associated minerals in the mining zones covered that are of industrial value, with their deposits being calculated. Prospecting reports not including such comprehensive evaluation shall not be approved. This does not cover, however, deposit prospecting projects stipulated otherwise by planning departments under the State Council.

Article 26 Reconnaissance and prospecting methods prescribed by relevant responsible departments under people's governments at and above the provincial level shall be used for the reconnaissance survey and prospecting of special non-metalic minerals and fluid minerals vulnerable to damages and minerals that are inflammable, soluble, vulnerable to explosion, or contain radiative elements. Necessary technical equipment and safety measures shall also be used.

Article 27 Initial geological logging, maps, drilling cores, test samples and other specimens in kind from mineral resource prospecting and various prospecting marks shall be protected and kept according to relevant stipulations.

Article 28 Deposit prospecting reports and other valuable prospecting data shall be used with pay according to stipulations of the State Council.

CHAPTER IV EXPLOITATION OF MINERAL RESOURCES

Article 29 Reasonable exploitation order and method and beneficial process shall be used for the exploitation of mineral resources. The co-efficient of recovery of exploitation, the hungry ratio of mining, and recovery rate of benefication of mining enterprises shall reach the equirements of designing.

Article 30 During the exploitation of major minerals, attention shall be paid to the unified planning and comprehensive exploitation and utilization of associated minerals with industrial value so as to prevent waste. Effective measures shall be taken to protect minerals that are not suitable for comprehensive exploitation for the time being or that must be exploited at the same time but can not be utilized in a comprehensive way for the time being, or mine tailings containing useful components to prevent loss and damage.

Article 31 State stipulations on labour safety and sanitation shall be observed in and necessary conditions for guaranteeing safety production shall be created for the exploitation of mineral resources.

Article 32 Relevant law stipulations on environmental protection shall be observed in exploitation of mineral resources to prevent environmental pollution.

Thrift in land use shall be practiced in the exploitation of mineral resources. If tilled land, grassland or forests are damaged due to mining, mining enterprises shall take reclamation, afforestation and other re-utilization measures according to local conditions. If losses are caused to the production or life of other people due to exploitation of mineral resources, compensation shall be made and necessary redemption measures shall be taken.

Article 33 Before construction of railways, factories, reserviors, oil pipelines, power lines, and various other buildings or building complexes, construction units shall get information from departments in charge of geology and minerals at the provincial, autonomous regional and municipal level about the distribution and exploitation of mineral resources in areas where these projects are to be constructed. Unless approved by departments authorized by the State Council, no projects shall stand on important deposits.

Article 34 No other units or individuals shall purchase mineral products that should be purchased in a unified way by designated units according to State Council Stipulations. Exploiting units shall not sell these products to units not designated to purchase.

CHAPTER V COLLECTIVE MINING ENTERPRISES AND INDIVIDUAL EXPLORERS

Article 35 The State implements the policy of active support, rational planning, correct guidance, and intensified management toward collective mining enterprises and individual explorers, encourages collective mining enterprises to explore mineral resources in areas marked by the State, and allows individuals to mine sporadic and dispersed minerals and sand, stone and clay that can only be used as ordinary building materials and exploit a small amount of minerals for their own use in life.

Individuals shall not exploit mineral resources with deposits suitable for exploitation by mining enterprises, special minerals marked for protection exploitation only by State stipulations, and other mineral resources banned by State stipulations from exploitation by individuals.

The State shall guide and help collective mining enterprises and individuals to continuously raise their technical level, ratio of resource utilization, and economic efficiency.Departments in charge of geology and mineral resources, geological units, and State-owned mining enterprises shall provide collective mining enterprises and individuals with geological data and technical services according to the principle of active support, paid services, and mutual benefit.

Article 36 Collective enterprises already operating in the mining areas of mining enterprises set up with approval by the State Council and its relevant responsible departments shall be closed up or moved to other areas to carry out exploitation operations, with mine construction units providing these enterprises certain compensation and making appropriate arrangement for the life of the people involved. Joint operation can also be arranged according to unified arrangement of the said enterprise.

Article 37 Collective mining enterprises and individual explorers shall raise their technical level, and expand their rate of recovery of mineral resources. It is forbidden to exploit randomly and subsequently damage mineral resources. Collective mining enterprises must draw maps of engineering works both above and under ground.

Article 38 People's governments at and above the county level shall guide and help collective mining enterprises and individual explorers to carry out technical renovation, improve management, and strengthen safety production.

CHAPTER VI LEGAL RESPONSIBILITIES

Article 39 Those who carry out exploitation without obtaining mining licenses in violation of stipulations of this Law, enter without authorization into mining areas planned by the State or mining areas with important value to the national economy, or exploit special minerals marked by the State for protective exploitation shall be ordered to stop exploitation and make compensations. The mineral products these people have already turned out and the incomes they have earned therefrom shall be confiscated. punishment may also be imposed. Those who are directly responsible for refusing to stop exploitation and cause damages to mineral resources as a result shall be brought to bear legal responsibilities in line with stipulations in Article 156 of the Criminal Law.Units and individuals carrying out exploitation in the mining areas of State-owned and other mining enterprises set up in accordance with law shall be punished according to stipulations in the proceeding clause.

Article 40 Those who carry out exploitation beyond approved areas shall be ordered to withdraw into these areas and make compensations. The mineral products they have already turned out and the incomes they have earned therefrom shall be confiscated. Punishment may also be imposed. The mining licenses of those who refuse to withdraw and cause damage to mineral resources as a result shall be revoked, with the people directly responsible being asked to shoulder legal responsibilities in line with stipulations in Article 156 of the Criminal Law.

Article 41 Those who steal or rob the mineral products and other properties of mining enterprises and prospecting units, destroy mining or prospecting facilities, and disrupt production and work order in mines and prospecting zones shall be asked to shoulder legal responsibilities according to relevant stipulations of the Criminal Law, and those involved in noticeably minor cases shall be punished according to relevant stipulations in the Regulations on Punishment of Those Disrupting Public Order.

Article 42 Those who trade, lease or transfer mineral resources through illegal means shall have their illegal incomes confiscated, with fines imposed.

Those who trade their prospecting and mining rights in violation of stipulations in Article 6 of this Law for profiteering purposes shall have their prospecting and mining rights revoked, the incomes they have earned therefrom shall be confiscated, and fines shall be imposed.

Article 43 Those who purchase or sell, in violation of stipulations of this Law, mineral products that should be purchased by the State in a unified way shall have their mineral products and illegal incomes
confiscated. Fines may also be imposed. Those involved in serious cases shall be asked to shoulder legal responsibilities in accordance with stipulations in articles 117 and 118 of the Criminal Law.

Article 44 Fines shall be imposed on those who exploit mineral resources with destructive methods in violation of stipulations of this Law. Their mining licenses may be revoked. Those who are directly responsible for seriously destroying mineral resources shall be brought to shoulder legal responsibilities in accordance with stipulations in Article 156 of the Criminal Law.

Article 45 The administrative punishments stipulated in articles 39, 40 and 42 shall be imposed by departments in charge of geology and mineral resources under people's governments at and above the county level in line with their limits of authority prescribed by departments in charge of geology and mineral resources under the State Council, and the administrative punishment stipulated in Article 43 shall be imposed by administrations for industry and commerce under people's governments at and above the county level. The punishment stipulated in Article 44 shall be determined by departments in charge of geology and mineral resources under people's governments at the provincial, autonomous regional and municipal level. As for cases whereas prospecting and mining licenses are to be revoked, they shall be decided upon by departments who have issued these licenses in the first place.Those who fail to impose administrative punishments as required in articles 39, 40, 42 and 44 shall be ordered by departments in charge of geology and mineral resources at a higher level to make corrections, or these departments shall directly impose such punishments.

Article 46 If the party involved has any objection to the administrative punishments it has suffered, it may apply for rediscussion of their cases in accordance with law or directly file a lawsuit with a people's court.

If the party involved fails to apply for rediscussion of their cases or raise a lawsuit with a people's court beyond prescribed limit of time,and refuses to implement punishment decisions, the department that has made the punishment decision shall apply to a people's court for enforcing implementation of its decision.

Article 47 Government workers in charge of management of prospecting and exploitation of mineral resources and other relevant government employees shall be asked to shoulder criminal responsibilities if they are involved in criminal cases of doing wrong to serve their friends or relatives, usurping their power, neglecting their duties,approving prospecting or exploitation of mineral resources or issuing prospecting or mining licenses in violation of stipulations of this Law, or failing to stop and punish illegal mining behaviours shall be brought to shoulder criminal responsibilities in accordance with law.
If their cases are not so serious as to be criminal, they shall be administratively disciplined. Departments in charge of geology and mineral resources under people's governments at and above the county level shall have the right to revoke the prospecting and mining licenses issued in violation of law.

Article 48 Those who use violence, threat or other methods to prevent government workers in charge of supervision and management of prospecting and exploitation of mineral resources from performing their duties in accordance with law shall be brought to shoulder criminal responsibilities in line with stipulations in Article 157 of the Criminal Law.

Those who refuse or prevent government workers in charge of supervision and management of prospecting and exploitation of mineral resources from performing their duties in accordance with law but do not use methods such as violence or threat shall be punished by public security departments in line with stipulations in the Regulations on Punishment of Those Disrupting Public Order.

Article 49 Disputes over mining ranges between mining enterprises shall be settled by the parties involved through consultation.If no agreement can be reached through such consultation,the cases shall be handled by local people's governments at and above the county according to the sizes of the mining zones marked in accordance with law.Disputes over mining zones spanning over several provinces, autonomous regions or municipalities shall be settled by people's governments of these provinces, autonomous regions or municipalities through consultation.If no agreement can be reached through such consultation ,the cases shall be handled by the State Council.

CHAPTER VII SUPPLEMENTARY RULES

Article 50 Overseas investment in the prospecting and exploitation of mineral resources shall be governed by stipulations in other laws or administrative regulations if these laws or administrative regulations contain stipulations in this regard.

Article 51 Application shall be filed retroactively in accordance with relevant stipulations in this Law to go through approval procedures, determine the range of mining areas, or obtain licenses for mining mineral resources if such procedures have not been gone through, the range has not been determined, or the licenses have not been obtained before the implementation of this Law.

Article 52 Implementing rules of this Law shall be worked out by the State Council.

Article 53 This Law shall be effectuated on October 1, 1986.