Wang Min, deputy minister of Land and Resources, has recently denoted that the government would boost a system wherein resources shall be used with compensation, further improve a system wherein the exploration right and mining right shall be obtained with compensation, and consummate a system wherein mineral resources shall be exploited with compensation, according to Decision of the State Council on Strengthening the Geological Work.

He emphasized that the income-sharing proportion of remising the mining rights shall be further regulated and the use of such income determined.

The above denotation was made by Wang Min in the land and resources management mayor seminar held recently. It is said that the exploration rights for mineral resources with large exploring risk, long cycle, and low success rate will be obtained mainly following the principle of  "preceding application". Any block that hasn't been registered by others can be applied for registration. In case no minerals are found, the exploration licensees will undertake the risks by their own; if minerals are found, they will possess the mining rights, which can either be mined or transferred after being approved. The government will protect their rights and interests against infringement according to the laws and regulations.

In addition, as for mineral resources with small exploring risk or those that can be directly exploited without exploration, the fundamental role of the market in configuring resources must be brought into a full play. The mining rights will be remised in the form of public tender, auction, and listing. Mining enterprises that obtained the mining rights without compensation in the past should repay the cost after an evaluation.

As disclosed by Wang Min, the Ministry of Land and Resources together with the Ministry of Finance are trying to shape up a set of reforming opinions on how to dispose the mining rights that were obtained by mining enterprises free of charge in history, how to adjust the charge of exploration rights and mining rights, how to carry out floating rate policy on resources compensation fees, and how to build the responsibility mechanism for governing the mining environment and restoring the ecology. Relevant measures are being promulgated in succession.

It is said that the Ministry of Land and Resources will further regulate the remising of mining right and strict the examination and approval of remising mining rights. The exploration licensees, who have got the exploration license less than two years but haven't made any substantial progress in exploration, or haven't organized the construction and invest funds according to the approved exploring design, are not permitted to transfer the exploration rights.

Partial transfer and illegal transfer are prohibited, and speculations on the mining rights for profits should be prevented.

Wang Min said that from this year on, the Ministry of Land and Resources shall begin to launch a dynamic supervision and management on the mining reserves throughout the country. Provinces, autonomous regions, and municipalities with better conditions where experiments have been conducted should comprehensively implement dynamic supervision and management, whilst other provinces, autonomous regions, and municipalities stress on important mineral resources like coal, iron, copper, and aluminum this year. By the end of next year, all provinces, autonomous regions, and municipalities should have built a system of dynamic supervision and management on mining reserves.

He expressed that the administrative departments of land and resources will supervise the consumption and loss of mineral resource reserves as well as the business of geological exploration institutions, and strictly assess the actual mining recovery rate of mining enterprises based on the results of dynamic supervision and management. Through the combination of inspector system and annual-inspection system, each mine and their staff should undertake the responsibilities and tasks so as to further reinforce the supervision and management over the whole process of exploring and exploiting mineral resources and improve the management over mineral resources in an all-around way.

Moreover, the reporter got to know, from the land and resources management mayor seminar, that only about one third of China's major mineral resources have been proved up; thus, there is still substantial potential for mineral resources and oil exploration.

As introduced by relevant principals of the Ministry of Land and Resources, there are lots of clear areas in the Western and Middle China where no exploration for solid minerals is conducted. East China, in spite of high mining degree, the mining depth is normally less than 300 meters or 500 meters, which is much inferior to 800-1000 meters or even 4,000 meters (the deepest) of developed countries. There is a large space for second exploration.

He also said at one time that present exploration of mineral resources is still not allowed to be optimistic. Firstly, the exploration is disordered in some areas. Secondly, a benign mechanism for exploring investment has not been formed yet. Thirdly, the general exploration capability is not able to meet the new requirements.

Therefore, the Ministry of Land and Resources will reinforce the exploitation of mineral resources from the following four aspects on the basis of Decision of the State Council on Strengthening Geological Work: insist on emphasizing both exploration for new resources and cutting down the consumption, take saving as the priority, and strive for the grand target of realizing GDP quadrupled by consuming double or a little more than double mineral resources; insist on using resources both at home and abroad, actively explore abroad while being established in domestic, and make use of international market to adjust surplus and deficiency; insist on reasonable exploration and comprehensive utilization so as to furthest improve the efficiency of resource-using; insist on the combination of market regulation and government guidance, fully exert the fundamental role of market in resource configuration.

Editor: Yan