Article 45 The administrative¹ penalties prescribed in Articles 39， 40 and 42 of this Law shall be decided² by departments in charge of geology and mineral resources under the people's governments at or above the county level within the limits of their authority prescribed by the department in charge of geology and mineral resources under the State Council. The administrative penalties prescribed in Article 43 shall be decided by administrative departments for industry and commerce under the people's governments at or above the county level. The administrative penalties prescribed in Article 44 shall be decided by departments in charge of geology and mineral resources under the people's governments of provinces， autonomous³ regions， or municipalities directly under the Central Government. The penalty of revoking⁴ the exploration and mining licences shall be decided by the departments that issue the licences.

　　If any department fails to give an administrative penalty， when it ought to do so in accordance with the provisions of Articles 39， 40， 42 and 44， the department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to order it to make corrections or shall directly give the administrative penalty.

　　Article 46 A party who refuses to accept the decision on administrative penalties may apply for reconsideration according to law or may directly bring suit in a people's court according to law.

　　If the party neither applies for reconsideration nor brings suit in a people's court nor complies with the decision on administrative penalties within the time limit， the agency that made the decision shall request the people's court to compel execution of the decision.

　　Article 47 If any of state functionaries⁵ who supervises and administers the exploration and exploitation of mineral resources or any of other relevant state functionaries， by engaging in malpractice for his personal gains， abusing his power or neglecting his duty and in violation⁶ of the provisions of this Law， grants an approval of the exploration and exploitation of mineral resources and issues exploration and mining licences， or fails to check and punish the unlawful mining activities according to law， when a crime has been constituted， the offender⁸ shall be investigated for criminal responsibility according to law； a disciplinary sanction shall be given when the action does not constitute a crime. The department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to withdraw the exploration and mining licences issued unlawfully.

　　Article 48 Whoever by means of force or threat obstructs⁹ the performance of duty by a state functionary¹⁰ who supervises and administers the exploration and exploitation of mineral resources according to law shall be investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law. If anyone， without resorting to force and threat， refuses or obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law， the public security organ shall punish him in accordance with the provisions of the Regulations on Administrative Penalties for Public Security.

　　Article 49 Disputes over the limits of mining areas between mining enterprises shall be settled by the parties through consultation¹¹； if no agreement is reached through consultation， the relevant local government at or above the county level shall handle the case on the basis of the limits that have been verified and fixed¹² according to law. Disputes over the limits of mining areas that straddle provinces， autonomous regions， or municipalities directly under the Central Government shall be settled by the people's governments of the relevant provinces， autonomous regions， or municipalities through consultation. If no agreement is reached through consultation， the disputes shall be settled by the State Council.

　　Chapter VII Supplementary¹³ Provisions

　　Article 50 If there are other provisions in laws and regulations concerning the exploration and exploitation of mineral resources with foreign investment， such provisions shall apply.

　　Article 51 Before this Law goes into effect， anyone who exploited mineral resources without going through approval procedures， having the mining area delimited and obtaining a mining licence shall complete the formalities in accordance with relevant provisions of this Law.

　　Article 52 Rules for the implementation¹⁴ of this Law shall be formulated¹⁶ by the State Council.

　　Article 53 This Law shall go into effect on October 1， 1986.

　　Appendix： Related articles in the Criminal Law

　　Article 117 Whoever engages in speculation¹⁷ in violation of the laws and regulations on the control of monetary¹⁸ affairs， foreign exchanges， gold and silver， or on the administration of industrial and commercial affairs， if the circumstances are serious， shall be sentenced to fixed-term imprisonment¹⁹ of not more than three years or criminal detention²⁰， or he may concurrently²¹ or exclusively be sentenced to a fine or confiscation²² of property. Article 118 Whoever makes a regular business of smuggling²³ or illicit²⁴ speculation， smuggles²⁵ or speculates in huge amounts or is the ringleader of a group that smuggles or engages in illicit speculation shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years， and may concurrently be sentenced to confiscation of property.

　　Article 156 Whoever intentionally²⁶ destroys public or private property， if the circumstances are serious， shall be sentenced to fixed-term imprisonment of not more than three years， criminal detention or a fine.

　　Article 157 Whoever by means of force or threat obstructs a state functionary from carrying out his functions according to law or refuses to carry out legally effective judgments²⁷ or orders of people's courts shall be sentenced to fixed-term imprisonment of not more than three years， criminal detention， a fine or deprivation²⁸ of political rights.

　　Article 158 It shall be prohibited for anyone to disturb public order by any means. If the circumstances of the public disturbance²⁹ are so serious that work， production， business， education or scientific research cannot be conducted and the state and society suffer serious losses， the ringleaders shall be sentenced to fixed-term imprisonment of not more than five years， criminal detention， public surveillance or deprivation of political rights.

　　DECISION OF THE STANDING³⁰ COMMITTEE OF THE NATIONAL PEOPLE'S CONGRESS ON AMENDING³¹ THE MINERAL RESOURCES LAW OF THE PEOPLE'S REPUBLIC OF CHINA

　　（Adopted at the 21st Meeting of the Standing Committee of the Eighth National People's Congress and promulgated³² by Order No. 74 of the President of the People's Republic of China on August 29， 1996）

　　The Decision

　　The 21st Meeting of the Standing Committee of the Eighth National People's Congress has decided to make the following amendments³³ to the Mineral Resources Law of the People's Republic of China：

　　1. The first paragraph of Article 3 is amended³⁴ as： “Mineral resources shall be owned by the state. The State Council shall exercise the ownership of mineral resources on behalf of the state. The state ownership of mineral resources， either near the earth's surface or underground， shall not change with the ownership or right to the use of the land which the mineral resources are attached to.”

　　The third paragraph of Article 3 is amended as： “Anyone who wishes to explore and exploit mineral resources shall apply for the rights of exploration and mining separately according to law and acquire them with approval， and shall go through registration³⁵， except those mining enterprises which conduct the exploration operations for their own production within the defined mining areas when having acquired the mining right according to law. The state shall protect rights of exploration and mining from violation and protect order in production and other work in the mining and exploration areas from interference and disruption.”

　　Add a new paragraph thereto as the fourth paragraph： “Anyone who is engaged in the exploration and exploitation of mineral resources shall be qualified³⁶ to meet requirements.”

　　2. The Article 4 is amended as： “The state shall guarantee the lawful⁷ rights and interests of mining enterprises established according to law in the exploitation of mineral resources.

　　“The state-owned mining enterprises shall be the principal force in exploiting mineral resources. The state shall guarantee the consolidation³⁷ and expansion of state-owned mining industry.”

　　3. The Article 5 is amended as： “The state shall adopt the system by which the rights of exploration and mining are to be acquired with compensation. However， the compensation for the acquisition of the exploration and mining rights maybe reduced or exempt³⁸ by the state according to circumstances. The specific measures and implementation procedures shall be formulated by the State Council.

　　“Anyone who exploits mineral resources must pay resources tax and compensation in accordance with relevant state provisions.”

　　4. The fourth paragraph of Article 3 is changed into Article 6 and amended as： “Exploration and mining rights may not be transferred with the exception of those as prescribed by the following provisions：

　　“（1） The explorer shall be entitled to conduct the approved exploration operations within the defined exploration area and to enjoy priority in the acquisition of the mining right in the area. He may transfer his exploration right to another person with lawful approval， provided that the minimum investment in the exploration has been made as required.

　　“（2） In the event of the merger³⁹ or division of enterprise， or joint⁴⁰ investment or joint operation with others， or in the event of a sale of assets or other changes in assets property which need change in the owner of mining right， a mining enterprise vested with the mining right may transfer its right to another person for mining with lawful approval.

　　“The State Council shall formulate¹⁵ the specific measures and implementation procedures for the provisions in the preceding paragraph.

　　“It is forbidden to resell rights of exploration and mining for profit.”

　　5. Article 10 is changed into Article 12 and amended as： “The state shall adopt a unified⁴¹ registration system for mineral exploration areas. The department in charge of geology and mineral resources under the State Council shall be responsible for registering the exploration of mineral resources. The State Council may authorize⁴² relevant departments to handle registration of the exploitation of special kinds of mineral ores. The procedures for registration of mineral exploration areas shall be formulated by the State Council.”

　　6. The first paragraph of Article 13 and Article 26 are combined as Article 15 and amended as： “Anyone who intends to establish a mining enterprise shall be qualified as required by the state， and the approval authority shall examine his application as to the limits of the mining area， design or mining plan， production technique and safety and environmental protection measures in accordance with the law and relevant state provisions. Approval shall be granted if it finds the enterprise meets these requirements.”

　　7. The second paragraph of Article 13 and Article 14 are combined as Article 16 and amended as： “The exploitation of the following mineral resources shall be subject to the approval of the department in charge of geology and mineral resources under the State Council and a mining licence shall be issued upon approval.

　　“（1） mineral resources within the mining areas which are to be exploited under the state plan， and which are of great value to the national economy；

　　“（2） mineral resources of at least large-scale recoverable reserves outside the areas prescribed in the preceding item；

　　“（3） special kinds of minerals for which protective mining is prescribed by the state；

　　“（4） mineral resources within the territorial⁴³ seas and other sea areas under the jurisdiction⁴⁴ of China； or

　　“（5） other kinds of minerals prescribed by the State Council.

　　“The exploitation of special kinds of minerals such as petroleum⁴⁵， natural gas and radioactive minerals may be approved by the relevant departments authorized⁴⁶ by the State Council and a mining licence shall be issued upon approval.

　　“The exploitation of other mineral resources than those prescribed in the first and second paragraphs shall， if their recoverable reserves are medium in scale， be subject to the approval of the departments in charge of geology and mineral resources of the people's governments of provinces， autonomous regions and municipalities directly under the Central Government and a mining licence shall be issued upon approval.

　　“Procedures for the administration of exploiting other mineral resources than those prescribed in the first， second and third paragraphs shall be formulated according to law by the standing committees of the people's congresses of provinces， autonomous regions， or municipalities directly under the Central Government.

　　“Materials regarding the examination and approval of mineral exploitation and the issuance of mining licences under the provisions of the third and fourth paragraphs shall be collected and reported by the departments in charge of geology and mineral resources of the people's governments of provinces， autonomous regions and municipalities directly under the Central Government to the State Council for the record.

　　“The standard for dividing mineral reserves into large- and medium-scale reserves shall be set by the mineral reserves approval agency of the State Council.”

　　8. The third paragraph of Article 16 and Article 36 are combined as Article 19 and amended as： “Local people's governments at various levels shall take measures to maintain the normal order in mining areas of state-owned mining enterprises and other mining enterprises which are located within their administrative regions.

　　“No unit and individual may enter and mine in mining areas of state-owned mining enterprises and other mining enterprises which are established by others according to law.”

　　9. Article 34 is changed into Article 35 and a new paragraph added thereto as the second paragraph： “Individuals are prohibited from exploiting mineral resources which reserves are suitable for a mining enterprise to mine， special kinds of minerals for which protective mining is prescribed by the state， and other mineral resources for which mining by individuals is prohibited by the state.”

　　10. Article 39 is amended as： “Anyone who， in violation of the provisions of this Law， mines without a mining licence， enters without authorization⁴⁷ and mines in mining areas that the state has planned to develop， or in mining areas withers⁴⁸ of significant value to the national economy， or exploits special kinds of minerals that the state has prescribed for protective exploitation shall be ordered to stop excavation⁴⁹， compensate⁵⁰ for the losses caused， have his extracted mineral products and unlawful proceeds confiscated⁵¹， and may be fined concurrently. If the party refuses to stop mining and thus causes damage to mineral resources， the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law.

　　“Any unit or individual who enters and mines in mining areas of the state-owned and other mining enterprises which are established by others according to law shall be punished according to the provisions of the preceding paragraph.”

　　11. The second paragraph of Article 42 is amended as： “Anyone who， in violation of the provisions of Article 6 of this Law， resells rights of exploration and mining for profit shall have his unlawful proceeds confiscated， be fined and have his exploration and mining licences revoked⁵².”

　　12. Article 44 is amended as： “Anyone who， in violation of the provisions of this Law， exploits mineral resources in a destructive way shall be fined and may have his mining licence revoked； If heavy damage has been caused to mineral resources， the persons directly responsible shall be investigated for criminal responsibility in accordance with the provisions of Article 156 of the Criminal Law.”

　　13. Article 45 is amended as： “The administrative penalties prescribed in Articles 39， 40 and 42 of this Law shall be decided by departments in charge of geology and mineral resources under the people's governments at or above the county level within the limits of their authority prescribed by the department in charge of geology and mineral resources under the State Council. The administrative penalties prescribed in Article 43 shall be decided by administrative departments for industry and commerce under the people's governments at or above the county level. The administrative penalties prescribed in Article 44 shall be decided by departments in charge of geology and mineral resources under the people's governments of provinces， autonomous regions， or municipalities directly under the Central Government. The penalty of revoking the exploration and mining licences shall be decided by the departments that issue the licences.

　　“If any department fails to give an administrative penalty， when it ought to do so in accordance with the provisions of Articles 39， 40， 42 and 44， the department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to order it to make corrections or shall directly give the administrative penalty.”

　　14. Article 46 is amended as： “A party who refuses to accept the decision on administrative penalties may apply for reconsideration according to law or may directly bring suit in a people's court according to law.

　　“If the party neither applies for reconsideration nor brings suit in a people's court nor complies with the decision on administrative penalties within the time limit， the agency that made the decision shall request the people's court to compel execution of the decision.”

　　15. Add a new article as Article 47： “If any of state functionaries who supervises and administers the exploration and exploitation of mineral resources or any of other relevant state functionaries， by engaging in malpractice for his personal gains， abusing his power or neglecting his duty and in violation of the provisions of this Law， grants an approval of the exploration and exploitation of mineral resources and issues exploration and mining licences， or fails to check and punish the unlawful mining activities according to law， when a crime has been constituted， the offender shall be investigated for criminal responsibility according to law； a disciplinary sanction shall be given when the action does not constitute a crime. The department in charge of geology and mineral resources under the people's government at the higher level shall have the authority to withdraw the exploration and mining licences issued unlawfully.

　　16. Add a new article as Article 48： “Whoever by means of force or threat obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law shall be investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law. If anyone， without resorting to force and threat， refuses or obstructs the performance of duty by a state functionary who supervises and administers the exploration and exploitation of mineral resources according to law， the public security organ shall punish him in accordance with the provisions of the Regulations on Administrative Penalties for Public Security.”

　　17. Add a new article as Article 50： “If there are other provisions in laws and regulations concerning the exploration and exploitation of mineral resources with foreign investment， such provisions shall apply.”

　　18. “State-operated mining enterprises” mentioned in this Law shall be amended as “state-owned mining enterprises” and “collective mining enterprises of villages and towns” amended as “collective mining enterprises”。

　　This Decision comes into force on January 1， 1997.

　　The Mineral Resources Law of the People's Republic of China shall be republished after being correspondingly revised according to this Decision.

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