SteelOrbis Shanghai
China's Ministry of Commerce and Ministry of Land and Resources have jointly issued provisions for foreign investments in exploration and mining of mineral resources, effective as of August 20. According to the provisions, the Chinese government encourages foreign investors who have experience in mineral resource exploration or who have a strong background in financing to develop mineral resource exploration in China. In addition, foreign investors who have their mineral resource results listed on overseas stock markets should submit these details to the Ministry of Commerce and the Ministry of Land and Resources for archival purposes.
Foreign investors who have obtained exploration licenses are allowed to engage in the related exploration activities as stipulated by the license. These enterprises are to submit the following materials to the examination and approval authorities within three months: exploration progress; tax payment record; environmental protection record; land use report; combined annual examination report. In addition, foreign investors should engage in mineral resources exploration within the areas permitted to foreigners.
The foreign investors who want to transfer mineral resource exploration rights should also go through the approval procedure at the Ministry of Land and Resources, as laid down by the law; meanwhile, they should also submit the relevant materials to the Ministry of Commerce for record purposes. Foreign investors intending to explore newly-discovered mineral resources included in the Guide of Foreign Investment Industries should apply for an exploration license according to national regulations and then apply to the approval authorities to alter the data concerning the enterprise's business activities. Upon obtaining approval, the enterprise should apply to register the changes in its activities with the Administration for Industry and Commerce. In accordance with the law, investors are allowed to establish a foreign venture, to transfer exploration rights, or to apply for the mineral resource exploration license directly through the formed foreign venture.