(Adopted by the 6th Executive Meeting of the State Council on June 29, 1993, promulgated by Decree No. 150 of the State Council of the People's Republic of China on February 27, 1994, and amended on July 3, 1997)
Article 1
For purposes of ensuring and promoting the exploration, protection and rational development of mineral resources and safeguarding the State's property rights and interests to mineral resources, and in accordance with the relevant provisions of the Mineral Resources Law of the People's Reoublic of China, these Provisions are formulated.
Article 2
The mining of mineral resources in the territory of the People's Republic of China and within other sea areas under its jurisdiction shall be subject to the mineral resources compensation in accordance with these Provisions. Where laws and administrative regulations provide otherwise, these provisions shall apply.
Article 3
The mineral resources compensation shall be computed and collected at a certain ratio of the sales revenue of mineral products. The mineral resources compensation paid by enterprises shall be included in the administration fees.
In the case where a concessioner holding the mining license processes mineral products by itself, its sales revenue shall be computed in accordance with the prices fixed by the State; if the State does not fix the prices, its sales revenue shall be computed in accordance with the average price of mineral products on the local market at the time of collection.
In the case where a concessioner sells mineral products out of the territory, its sales revenue shall be computed in accordance with the prevailing sales price on the international market.
The expression "mineral products" as employed in these Provisions means products which are no longer in their natural state after being extracted or mined and separated from mineral resources.
Article 4
Concessioners shall pay the mineral resources compensation.
The mineral resources compensation shall be settled in the currency used in selling mineral products or, if the mineral products are processed by concessioners themselves, shall be settled in the currency used in selling end products.
Article 5
The mineral resources compensation shall be computed in accordance with the following formulas:
The amount of mineral resources compensation to be collected = sales revenue of mineral products x compensation rate x coefficient of mining recovery rate
where,
the coefficient of mining recovery rate =
approved mining recovery rate
________________________________
actual mining recovery rate
The approved mining recovery rate shall be the rate prescribed in the mine design that has been approved in accordance with the relevant regulations of the State. In the case where a mining enterprise, in accordance with the relevant regulations of the State, is not required to prescribe the mine design in addition to the mining plan, the mining recovery rate shall be approved by the administrative department in charge of geology and mineral resources of the local people's government at or above the county level together with other relevant departments at the same level.
In the case of those minerals whose mineral resources compensation cannot be computed in the formulas provided for in paragraphs 1 and 2 of this Article, the competent department of geology and mineral resources of the State Council shall provide other formulas together with the department of finance of the State Council.
Article 6
The mineral resources compensation shall be collected at the rates prescribed in the appendix of these Provisions.
Any adjustment of the mineral resources compensation rates shall be decided jointly by the State Council's departments in charge of finance, geology and mineral resources and planning, and submitted it to the State Council for approval before implementation.
Article 7
Competent departments of geology and mineral resources shall, together with departments of finance, collect the mineral resources compensation.
In the case where a mining district is within a county-level administrative region, the administrative department of geology and mineral resources of the people's government at the county level in the place where the mining district locates shall be responsible for collecting the mineral resources compensation.
In the case where a mining district extends across more than one administrative region at or above the county level, the administrative department of geology and mineral resources of the people's government at the next higher level of all the administrative regions involved shall be responsible for collecting the mineral resources compensation.
In the case where a mining district extends across more than one provincial administrative region, or is within the territorial seas of the People's Republic of China or other sea areas under its jurisdiction, the competent department of geology and mineral resources of the people's government at the provincial level, authorized by the competent department of geology and mineral resources of the State Council, shall be responsible for collecting the mineral resources compensation.
Article 8
A concessioner shall pay the mineral resources compensation for the first half of each year on or before July 31 of the year and for the second half of the year on or before January 31 of the following year.
A concessioner desiring to suspend or terminate the mining activities shall settle and pay the mineral resources compensation.
Article 9
At the time of paying the mineral resources compensation, a concessioner shall submit such materials as the mineral, output, sales volume, sales price, actual mining recovery rate and others of mineral products he mined.
Article 10
The mineral resources compensation collected shall be timely and fully turned in to the respective treasures in accordance with the distribution ratio between the Central Government and provinces, autonomous regions or municipalities directly under the Central Government set forth in the following paragraph, and shall not be settled again at the end of the year.
The distribution ratio of the mineral resources compensation between the Central Government and provinces or municipalities directly under the Central Government shall be 5:5; and that between the Central Government and autonomous regions shall be 4:6.
Article 11
The mineral resources compensation shall be included in the State's budget, specially managed and mainly used for mineral resources exploration.
The State Council's departments in charge of finance, geology and mineral resources and planning shall jointly formulate the concrete measures for the use and management of the mineral resources compensation received by the Central Government.
The people's government of the province, autonomous region or municipality directly under the Central Government shall formulate the concrete measures for the use and management of the mineral resources compensation it received.
Article 12
With approval of departments in charge of geology and mineral resources and finance of the people's government at the provincial level, a concessioner may be exempted from the mineral resources compensation under one of the following circumstances:
1. recovering mineral products from barren rock (waste rock);
2. with approval, mining non-security left-over ore bodies of closed mines in accordance with the relevant regulations of the State; or
3. other circumstances prescribed by the competent department of geology and mineral resources of the State Council together with the department of finance of the State Council.
Article 13
With approval of departments in charge of geology and mineral resources and finance of the people's government at the provincial level, the mineral resources compensation may be reduced under one of the following circumstances:
1. recovering the mineral products from tailings;
2. mining the low grade mineral resources that are below the industrial grade or whose reserves have not been calculated;
3. mining according to law the mineral resources under waters, buildings, or vital communication lines;
4. having policy loss as a result of carrying out the State-fixed prices; or
5. other circumstances prescribed by the competent department of geology and mineral resources of the State Council together with the department of finance of the State Council.
Where the mineral resources compensation to be reduced for a concessioner exceeds 50% of the amount of the mineral resources compensation payable, approval of the people's government at the provincial level shall be obtained.
Approval relating to reduction of the mineral resources compensation shall be reported both to the competent department of geology and mineral resources of the State Council and the department of finance of the State Council for the record.
Article 14
In the case where a concessioner fails to pay the mineral resources compensation in full within the period of time specified, the collection authority shall order him to make payment within a given limit of time and impose thereon an overdue fine of 0.2% per day on the amount in arrears, counting from the day on which the payment becomes overdue.
If the concessioner fails to respond in accordance with the provisions of the preceding paragraph, the collection authority shall impose thereon a fine not exceeding three times the amount of the compensation payable. If the circumstances are serious, the original issuing authority shall revoke his mining license.
Article 15
In the case where a concessioner fails to pay or underpays the mineral resources compensation by means of misrepresenting the minerals, concealing the output, sales volume, or misrepresenting the selling prices or actual mining recovery rate, the collection authority shall pursue the payment of the compensation payable and impose thereon a fine not exceeding five times the amount of the compensation payable; if the circumstances are serious, the original issuing authority shall revoke his mining license.
Article 16
In the case where a concessioner fails to submit the relevant materials in accordance with Article 9 of these Provisions, the collection authority shall order him to submit within a given limit of time; if the concessioner fails to respond within the given limit of time, the collection authority shall impose thereon a fine not exceeding 5,000 yuan; and in case the concessioner still fails to submit, the original issuing authority may revoke his mining license.
Article 17
The fines and overdue fines paid by concessioners in accordance with these Provisions shall be turned in to the State Treasury.
Article 18
A party concerned disagreeing with the decision on administrative penalty may, within 15 days following the date of receipt of the notification on the penalty, apply for reconsideration to the authority at the next higher level than that which made the decision; or the party may, within 15 days following the date of receipt of the notification on the penalty, bring directly an action before a people's court.
In the event of the party concerned failing both to apply for reconsideration or to bring an action before a people's court and to comply with the penalty decision within the specified period of time, the authority which made the decision on the penalty may apply to the people's court for enforcement.
Article 19
Where the contents of any local regulations or local people's governments' rules or administrative documents, existed before the promulgation of these Provisions, are in conflict with these Provisions, the latter shall prevail.
Article 20
People's governments of provinces, autonomous regions and municipalities directly under the Central Government may, in accordance with these Provisions, formulate measures for the implementation thereof.
Article 21
The Ministry of Geology and Mineral Resources shall be responsible for the interpretation of these Provisions.
Article 22
These Provisions shall enter into force on April 1, 1994.
Appendix:
Table for Mineral Resources Compensation Rates
Mineral | Rate ( % ) |
petroleum | 1 |
natural gas | 1 |
coal, coal-related gas | 1 |
uranium, thorium | 3 |
stone coal, oil sand | 1 |
natural bitumen | 2 |
geothermal resources | 3 |
oil shale | 2 |
iron, manganese, chromium, vanadium, titanium | 2 |
copper, lead, zinc bauxite, nickel, cobalt tungsten, tin, bismuth molybdenum, mercury antimony, magnesium | 2 |
gold, silver, platinum, palladium, ruthenium, osmium, iridium, rhodium | 4 |
niobium, tantalum, beryllium, lithium, zirconium, strontium, rubidium, cesium | 3 |
lanthanum, cerium, praseodymium, neodymium, samarium, europium, yttrium, gadolinium, terbium dysprosium, holmium, erbium, thulium, ytterbium, lutetium | 3 |
ion-type rare earths | 4 |
scandium, germanium, gallium, indium, thallium, hafnium, rhenium, cadmium, selenium, tellurium, | 3 |
gemstone, jade, gem diamond | 4 |
graphite, phosphorus, natural sulphur, pyrite, sylvite, boron, crystal (piezoelectric crystal, smelting crystal, optical crystal, craft crystal), corundum, kyanite, sillimanite, andalusite, tabular spar, nitratite, talc, asbestos, crocidolite, tabular spar, nitratite, talc, asbestos, crocidolite, mica, feldspar, garnet, pyrophyllite, diopside, tremolite, vermiculite, zeolite, alumstone, mirabilite (including glauberite) diamond, gypsum, anhydrite, barite, witherite, natural alkali, calcite, Iceland spar, magnesite, fluorite (including common fluorite and optical fluorite), topaz, tourmaline, agate, mineral pigments (ochre, pigment loess), limestone (for use in calcium carbide, manufactured soda, fertilizers, flux, glass, cement, construction stone, mortar, and facing), marl, chalk, rock containing potassium, dolomite (for use in metallurgy, fertilizers, glass, and construction), quartz (for use in metallurgy, glass, and fertilizers), sandstone (for use in metallurgy, glass, or as cement ingredient, or for use in brick, fertilizers, casting molds, and ceramics), natural quartz sand (for use in glass, casting molds, construction, or as cement ingredient or standard sand in cement, or for use in bricks), vein quartz (for use in metallurgy and glass), powdered quartz, natural oilstone, potassium-bearing shale, diatomite, shale (including ceramsite shale, shale used for bricks, and shale used as cement ingredient), kaolin, ceramic clay, refractory clay, clay for convexo-concave rod, sepiolite clay, illite clay, rectorite clay, bentonite, iron alum, miscellaneous clays (including clay for use in casting molds, brick, and ceramsite, clay used as cement ingredient, red clay used as cement ingredient, yellow clay used as cement ingredient, mudstone used as cement ingredient, and insulating clays), peridotite (for use in fertilizers and construction), serpentine (for use in fertilizers, flux, and facings), basalt (for use in stone casting and asbestos), diabase (for use in cement, stone casting, facings, and construction), andesite (including andesite for use in facings, andesite for use in construction, and andesite porphyrite for use in cement mixers), diorite (for use in cement mixers and construction), granite (for use in construction and facings), medical stone, perlite, obsidian, pitch stone, pumice stone, trachyte (for use in cement and stone casting), nepheline syenite, tuff (for use in glass, cement, and construction), volcanic ash, volcanic slag, marble (for use as facing, and construction, cement, and glass), slate (for use as facing and cement ingredient), gneiss, amphibole, peat, magnesium salt, iodine, bromium, arsenium | 2 |
lake salt, rock salt, natural brine | 0.5 |
carbon dioxide, hydrogen sulphide, helium, radon, | 3 |
mineral spring water | 4 |
groundwater ---The rate and measures for collection administration shall be formulated separately by the State Council | |
