矿业权出让转让管理暂行规定 Administration of Granting and Assigning Mining Industry Rights Tentative Provisions

by shares, it may, after appraising the mining industry right, invest it into the listed company as capital, or assign the mining industry right to the listed company for disclosure to the public, provided that before completing the procedures for examination and approval

of the assignment and for the change of registration, it shall have the mining industry right appraised by entrustment and report the result of the appraisal to the State Council department in charge of geology and mineral resources for confirmation.

　　If the company limited by shares is listed abroad, it may have the mining industry right appraised by an appraisal institution abroad in accordance with the provisions of the country where it is listed, but it shall file the appraisal report to the State Council department in charge of geology and mineral resources for the record.

　　Article 44　If a mining industry right holder sells a mining industry right or establishes a cooperative or equity joint venture legal person to explore or exploit mineral resources, it shall apply to complete the procedures for the examination and approval of the assignment and for the change of registration thereof of the mining industry right.

　　Exploration or exploitation of mineral resources without establishing a cooperative or equity joint venture legal person, the cooperative or equity joint contract shall be filed, after conclusion, with the registration authority for the record.

　　If a mining right applicant establishes an equity or cooperative mining joint venture with another party after it has obtained a mining licence, it may be exempt from the requirement of having been in mining production for one full year.

　　Article 45　If a mining industry right holder needs to sell part of a mining industry right, it must file to the registration authority an application for division of the mining industry right before the sale, and it shall complete the procedure for the change of registration of mining industry right after the application has been approved.

　　In principle, a mining right shall not be assigned in part.

　　Article 46　The parties to an assignment of a mining industry right must conclude a contract for the assignment of the mining industry right in accordance with the law. Depending on the method of assignment, the assignment contract may be a sale assignment contract, an equity joint assignment contract or a cooperative joint assignment contract.

　　An assignment contract shall be effective as of the date of approval of the application for assignment.

　　Article 47　A contract for assignment of a mining industry right shall include the following basic contents:

　　1. the names of the assignor and the assignee, their legal representatives, and their registered addresses;

　　2. the basic information about the mining industry right being assigned, including its current ownership, the licence number, the licensing authority, the geographic coordinates and boundaries of the area covered by the mining industry right, the valid period of the licence and the extent of the exploration or the status of the exploitation;

　　3. the method of assignment, the price for the assignment, the method of payment or the means to realize the rights and interests;

　　4. the method of dispute resolution; and

　　5. the liability for breach of contract.

　　Article 48　Upon receipt of the approval notice of the assignment, the assignor and the assignee shall complete the procedure for change of registration within the prescribed time limit; and if they fail to do so, they shall be deemed to have automatically abandoned the assignment, and the approved application for assignment shall be void.

　　Section Two: Leasing

　　Article 49　Leasing of a mining industry right means that the mining industry right holder, acting as a lessor, leases the mining industry right to a lessee and receives rents from the lessee.

　　Leasing of a mining industry right shall comply with the conditions stipulated by the State Council for assignment of mining industry rights.

　　The mining industry right holder shall continue to perform the statutory

obligations and bear the legal responsibilities as a mining industry right holder during the term of the lease of the mining industry right.

　　Article 50　If a mining right over a mineral resource area formed by exploration with State funding is to be leased, the mining right shall be appraised and the result of the appraisal shall be confirmed in accordance with the provisions applicable to assignment of mining rights, and the mining right fee shall be handled in accordance with the relevant provisions.

　　A mining right that has been leased shall not be sold, used for an equity or cooperative joint project or a listing, or mortgaged.

　　Article 51　To apply for leasing of a mining industry right, the mining industry right holder shall provide the following materials to the registration authority:

　　1. an application for leasing;

　　2. a photocopy of the licence;

　　3. a contract for the lease of the mining industry right;

　　4. the qualification certificate or business licence of the lessee; and

　　5. other relevant information required by the registration authority.

　　Article 52　A contract for leasing of mining industry right shall include the following major contents:

　　1. the names of the lessor, lessee and their legal representatives as well as their registered addresses or domicile;

　　2. the name of the mining industry right to be leased, the licence number, the licensing authority, the valid period of the licence, and the geographic coordinates, boundaries and mineral resource of the area covered by the mining industry right;

　　3. the term and the purpose of the lease;

　　4. the amount of the rent and the method of payment;

　　5. the rights and obligations of the parties to the lease;

　　6. the effective term of the lease contract;

　　7. the method of dispute resolution; and

　　8. the liability for breach of contract.

　　Article 53　The lessee of a mining industry right shall not sub-lease the mining industry right.

　　If the lessee of a mining right needs to change the mining method and the main mineral resource during the course of mining operation, it must have the lessor apply to the registration authority for approval and complete the procedure for change of registration.

　　If the mining right holder's mining licence is revoked in accordance with the law, the party in fault shall be liable for the consequences arising therefrom.

　　Article 54　When a leasing relationship is terminated, the lessor shall apply to the registration authority for cancellation of the lease within 20 days.

　　Section Three: Mortgage

　　Article 55　Mortgage of a mining industry right means that the mining industry right holder being a debtor provides a security interest over the mining industry right it owns to its creditor without transferring the possession of the mining industry right.

　　The debtor who mortgages the mining industry right is the mortgagor, the creditor is the mortgagee, and the mortgaged mining industry right is the mortgage security.

　　Article 56　If the creditor requires the mortgagor to provide the value of the mortgage security, the mortgagor shall appoint an Appraisal Institution to appraise the mortgage security.

　　Article 57　If a mortgage is created over a mining industry right, the mining industry right holder shall bring the mortgage contract and the mining industry right licence to the original licensing authority to complete the filing procedures. When the mortgage over the mining industry right is discharged, the mining industry right holder shall notify the original licensing authority in writing within 20 days.

　　Article 58　Where the debtor defaults on the debt, the creditor has the right to apply for realization of the mortgage and receive a compensation from the proceeds of the disposal of the mining industry righ

t. The new mining industry right applicant shall meet the qualification requirements prescribed by the State and the parties concerned shall complete the procedures for the assignment and change of registration of the mining industry right in accordance with the law.

　　If the mining right holder's mining licence is revoked in accordance with law, the debtor shall be liable for the consequences arising therefrom.

　　PART FOUR　SUPERVISION AND ADMINISTRATION

　　Article 59　Default of a mining industry right holder on its commitment to pay the mining industry right fee shall be punished by the registration authority in accordance with Article 31 of the Administration of Registration of Mineral Resource Exploration Blocks Procedures and Article 21 of the Administration of Registration for Exploitation of Mineral Resources Procedures.

　　Article 60　If an appointed intermediary, the bid evaluation committee, a bidder or an auction bidder has committed an act against laws and regulations in the course of the invitation for bids or the auction for a mining industry right, the registration authority shall impose penalties in accordance with the relevant provisions of laws and regulations.

　　If an Appraisal Institution divulges the appraised value in the course of the invitation for bids or the auction, in addition to pursuing the legal liability of the Appraisal Institution according to the law, the State Council department in charge of geology and mineral resources shall order it to s

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