Mining Law in China
Mining Law in ChinaUpdated on Tuesday 19th April 2016
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Local or foreign businessmen interested in the mining industry in China should know the legislation under which this industry functions. Companies carrying out mining activities in China are regulated by the Mineral Resource Law, which is imposed by the Ministry of Land and Resources. Investors who want to know more about the mining legislation can receive a presentation from our lawyers in China.
Provisions of the mining legislation in China
According to the Mineral Resource Law, all mineral resources fall under the ownership of the state. Foreign mining companies can receive the right to extract natural resources in China through various ways and they will also need an exploration license or a mining license, according to the specific activities carried out by the company.
Foreign companies carrying out mining activities in China must receive an approval from the Ministry of Commerce; furthermore, such companies are also required to obtain an environmental approval from the local authorities, under the Law of Appraising of Environmental Factors.
If the mining company carries its operations on a forest land, it is required to receive a permit under the Forestry Law; our Chinese attorneys can provide you with further information on this matter.
Foreign mining companies in China
Investors interested in obtaining the right to perform mining activities in China should know that they have several options in this sense. As such, the local legislation offers the following possibilities:
• purchase the right to mine from a local company;
• enter a joint venture with a local company;
• receive approval to mine from the local authorities;
• receive the right to mine through an auction.
As mining activities can harm the environment, local legislation stipulates that a mining company should perform an environmental impact report, assessing the risks to which the area will be exposed to.
If you need further information on the mining law in China, please contact our Chinese law firm for assistance on this subject.