Legal basis for cancellation of mining rights

Recently, a unit said that under the condition of legal existence, the mining rights held by its company did not involve the ecological red line and were within the validity period, but suddenly found that they had been included in the cancellation list issued by the natural resources department.

Is there a relevant legal basis for administrative organs to directly cancel mining rights? After combing through China's current laws and regulations on the management of mineral resources, the laws and regulations that administrative organs may cancel mining rights according to law are as follows:

I. at the legal level

Administrative license Law of the people's Republic of China (amended in 2019) (Chairman's order No. 29)

Article 70 in any of the following circumstances, the administrative organ shall go through the formalities for cancellation of the relevant administrative license in accordance with the law:

(1) the administrative license is not renewed at the expiration of the period of validity;

(2) an administrative license granted to a citizen with specific qualifications, and the citizen dies or becomes incapacitated;

(3) where a legal person or other organization terminates according to law;

(4) the administrative license is revoked or withdrawn according to law, or the administrative license certificate is revoked according to law;

(5) the administrative license item cannot be implemented due to force majeure;

(6) other circumstances in which the administrative license shall be cancelled as prescribed by laws and regulations.

According to the above-mentioned provisions, there are five main situations in which administrative organs should go through the formalities for cancellation of mining rights in accordance with the law:

(1) where the exploration license or mining license is not renewed at the expiration of the period of validity

(2) where the mining right holder terminates according to law;

(3) the exploration license or mining license has been revoked or withdrawn according to law, or has been revoked according to law;

(4) the exploration or mining project cannot be carried out due to force majeure;

(5) other circumstances in which the exploration license or mining license shall be cancelled as prescribed by laws and regulations.

Mineral Resources Law of the people's Republic of China (amended in 2009) (Chairman's order No. 18)

Article 40 whoever mines beyond the approved scope of the mining area shall be ordered to return to the mining area and compensate for the losses, the mineral products and illegal gains of cross-border mining shall be confiscated, and a fine may be imposed concurrently; if he refuses to return to the mining area and causes damage to mineral resources, the mining license shall be revoked, and the person directly responsible shall be investigated for criminal responsibility in accordance with the relevant provisions of the Criminal Law.

Article 42 whoever buys, sells, leases or transfers mineral resources by other means shall have his illegal gains confiscated and imposed a fine.

Whoever resells exploration or mining rights for profit in violation of the provisions of Article 6 of this Law shall revoke the exploration license or mining license, confiscate the illegal income and impose a fine.

Article 44 whoever, in violation of the provisions of this Law, adopts destructive mining methods to mine mineral resources shall be fined and the mining license may be revoked; if serious damage is caused to mineral resources, the person directly responsible shall be investigated for criminal responsibility in accordance with the relevant provisions of the Criminal Law.

According to the above provisions, there are the following circumstances in violation of the Mineral Resources Law of the people's Republic of China, and after the original license issuing organ revokes the exploration license or mining license, the administrative organ shall go through the formalities for cancellation of the relevant mining rights in accordance with the law:

(1) where mining exceeds the approved scope of the mining area, it shall be ordered to return and refuse to return to the scope of the mining area, thus causing damage to mineral resources;

(2) reselling exploration rights and mining rights for profit;

(3) exploiting mineral resources by destructive mining methods.

Mine Safety Law of the people's Republic of China (amended in 2009) (Chairman's order No. 18)

Article 42 where the design of safety facilities for a mine construction project is constructed without approval, the competent department in charge of the mining enterprise shall order it to stop the construction; if it refuses to do so, the competent department in charge of the mining enterprise shall submit to the people's government at or above the county level for a decision that the mining license and business license shall be revoked by the relevant competent department.

Article 43 where the safety facilities of a mine construction project are put into production without acceptance or unqualified acceptance, the competent department of labor administration in conjunction with the department in charge of the mining enterprise shall order it to stop production, and shall be fined by the competent department of labor administration; if it refuses to stop production, the competent department of labour administration shall submit to the people's government at or above the county level to decide that the mining license and business license shall be revoked by the competent department.

Article 44 if a mining enterprise that has already been put into production forcibly exploits without the conditions for safe production, the competent department of labor administration, together with the competent department in charge of the mining enterprise, shall order the improvement within a time limit; if the conditions for safe production are not met within the time limit, the competent department of labor administration shall submit to the people's government at or above the county level for decision to order the suspension of production for rectification or the relevant competent department to revoke its mining license and business license.

According to the above provisions, there are the following circumstances in violation of the Mine Safety Law of the people's Republic of China, and after the relevant competent departments revoke their mining warrants, the administrative organs shall go through the formalities of cancellation of the relevant mining rights in accordance with the law:

(1) if the design of the safety facilities of a mine construction project is constructed without approval, the competent department in charge of the mining enterprise shall order it to stop the construction and refuse to carry it out;

(2) where the safety facilities of a mine construction project are put into production without acceptance or unqualified acceptance, the competent department shall order it to stop production and refuse to stop production;

(3) if a mining enterprise that has been put into production forcibly exploits because it does not have the conditions for safe production, it shall be ordered to make corrections within a time limit.

Law of the people's Republic of China on production Safety (amended in 2021)

Article 113 where a production and business operation entity has any of the following circumstances, the department responsible for the supervision and administration of production safety shall apply to the local people's government for closure, and the relevant departments shall revoke their relevant licenses in accordance with the law. The principal responsible person of a production and business operation unit shall not serve as the principal responsible person of any production and business operation unit within five years; if the circumstances are serious, he shall not serve as the principal responsible person of the production and business operation unit of the industry for life

(1) where there is a hidden danger of major accidents and is subject to administrative punishment as provided for in this Law three times within 180 days or four times in a year;

(2) after suspending production and business for rectification, it still does not have the conditions for safe production as stipulated in laws, administrative regulations, national standards or industry standards;

(3) failing to meet the conditions for production safety stipulated in laws, administrative regulations, national standards or industry standards, resulting in major or especially serious production safety accidents;

(4) refusing to implement the decision made by the department responsible for the supervision and administration of production safety to suspend production and business for rectification.

According to the above provisions, there are the above-mentioned circumstances in violation of the Law of the people's Republic of China on production Safety, and after the relevant competent departments revoke their mining warrants, the administrative organs shall go through the formalities for cancellation of the relevant mining rights in accordance with the law.

II. Legal level

Measures for the Administration of Registration of Mineral Resources Exploration blocks (revised in 2014) (decree No. 653 of the State Council of the people's Republic of China)

Article 21 paragraph 4 the exploration license shall be cancelled when the retention period of the exploration right expires.

Article 24 under any of the following circumstances, the exploration right holder shall, within the period of validity of the exploration license, submit to the registration administrative organ a report on the completion of the exploration project or a report on the termination of the exploration project, and submit a report on the investment of funds and relevant supporting documents, after the actual exploration input has been approved by the registration administration authority, it shall go through the formalities for cancellation of registration of the exploration license:

(1) failing to apply for renewal of registration or apply for the retention of exploration rights when the term of validity of the exploration license expires;

(2) applying for mining rights;

(3) where it is necessary to cancel the exploration project for some reason.

According to the above-mentioned provisions, the term of retention of the exploration right expires and the term of validity of the exploration license expires; those who do not apply for renewal registration or do not apply for the reservation of the exploration right; apply for the mining right; if it is necessary to cancel the exploration project for some reason, the registration administration organ shall go through the formalities for cancellation of the registration of the exploration license after verifying its actual exploration investment.

Article 29 if anyone, in violation of the provisions of these measures, commits any of the following acts, the department in charge of the administration of geology and mineral resources under the people's government at or above the county level shall, in accordance with the limits of authority prescribed by the competent department of geology and mineral resources under the State Council, order him to make corrections within a time limit; if he fails to make corrections within the time limit, a fine of not more than 50,000 yuan shall be imposed; if the circumstances are serious, the original license

(1) failing to put on record, report the relevant situation, refuse to accept supervision and inspection or practise fraud in accordance with the provisions of these measures

(2) failing to complete the minimum exploration input;

(3) for an exploration project for which an exploration license has been obtained, the construction of the project has not started for 6 months, or the exploration work has been suspended for 6 months without reason after the construction.

Article 30 whoever, in violation of the provisions of these measures, fails to go through the formalities for the registration of alteration or cancellation of the exploration license shall be ordered by the registration administrative organ to make corrections within a time limit; if it fails to make corrections within the time limit, the exploration license shall be revoked by the original license issuing authority.

Article 31 whoever, in violation of the provisions of these measures, fails to pay the fees payable under these measures on time shall be ordered by the registration administration authority to pay within a time limit, and an additional fine of 2/1000 per day shall be charged from the date of late payment; if he still fails to pay within the time limit, the exploration license shall be revoked by the original license issuing authority.

According to the above-mentioned provisions, the exploration right holder violates the measures for the Administration of Registration of Mineral Resources Exploration blocks under the following circumstances, and after the original license issuing organ revokes the exploration license, the administrative organ shall go through the formalities for cancellation of the exploration license in accordance with the law:

(1) failing to put on record, report the relevant situation, refuse to accept supervision and inspection, or practise fraud in accordance with the relevant provisions, if the case fails to change within the time limit and the circumstances are serious;

(2) failing to complete the minimum exploration input, failing to change within the time limit and the circumstances are serious;

(3) for an exploration project for which an exploration license has been obtained, if the construction of the project has not started for six months, or the exploration work has been stopped for not more than six months after the construction, the time limit is not changed and the circumstances are serious;

(4) failing to go through the formalities for the registration of alteration or cancellation of the exploration license and failing to make corrections within the time limit;

(5) if the fee that should be paid is not paid on time, or if the fee is not paid within the time limit.

Measures for the Administration of Registration of Mineral Resources Exploitation (revised in 2014) (decree No. 653 of the State Council of the people's Republic of China)

Article 16 if the mining right owner closes or closes the mine within the period of validity or expiration of the mining license, he shall, within 30 days from the date on which the decision is made to suspend or close the mine, apply to the original license issuing authority for the formalities of cancellation of registration of the mining license.

In accordance with the above-mentioned provisions, if the mine is closed or closed, the mining right holder may apply for cancellation of the mining license.

Article 18 whoever fails to submit an annual report in accordance with the provisions of these measures, refuses to accept supervision and inspection or practices fraud, the department in charge of the administration of geology and mineral resources under the people's government at or above the county level shall, in accordance with the limits of authority prescribed by the competent department of geology and mineral resources under the State Council, order the illegal act to stop, give it a warning, and impose a fine of not more than 50,000 yuan; if the circumstances are serious, the mining license shall be revoked by the original license issuing authority.

Article 21 whoever, in violation of the provisions of these measures, fails to pay the fees payable under these measures on time shall be ordered by the registration administration authority to pay within a time limit, and an additional fine of 2/1000 per day shall be charged from the date of late payment; if he still fails to pay within the time limit, the mining license shall be revoked by the original license issuing authority.

Article 22 whoever, in violation of the provisions of these measures, fails to go through the formalities for the registration of alteration or cancellation of a mining license shall be ordered by the registration administration authority to make corrections within a time limit; if it fails to make corrections within the time limit, the mining license shall be revoked by the original license issuing authority.

According to the above-mentioned provisions, the mining right holder violates the measures for the Administration of Mining Registration of Mineral Resources in the following circumstances, and after the original license issuing organ revokes the mining license, the administrative organ shall go through the formalities for cancellation of the relevant mining license in accordance with the law:

(1) the circumstances of failing to submit an annual report in accordance with the relevant provisions, refusing to accept supervision and inspection, or practicing fraud are serious;

(2) if he fails to pay the prescribed fees on time, he shall be ordered to pay within a time limit and still fail to do so;

(3) those who fail to go through the formalities for registration of alteration or cancellation of the registration of mining license shall be ordered to make corrections within a time limit, and those who fail to make corrections within the time limit.