This Plan for Mineral Resources Ownership Benefit System Reform is a sectoral policy document issued by the State Council with a view to building a new ownership benefit system to protect national mineral interests and create a fair mineral market environment. In addition to safeguarding national mineral interests, the Plan also aims to urge efficient exploitation of mineral resources and environment rehabilitation, and maintain reasonable financial shares between central and local government. According to the plan, fees for mining exploration and exploitation rights will be turned into mineral resource ownership benefits for the government, the share proportion of which is 4:6 between central and local governments. The occupation of mineral resources will also be charged, divided 2:8 between central and local governments. Grant proceeds of mineral rights reflect the reimbursement of the investments made in the exploration and development of resources. They will be collected through competitive tendering or through a bidding process. The Plan provides that the rental fee for possession of mineral rights should be adjusted based on market conditions and economic development needs. Furthermore, the tax reform regarding mineral resources exploitation will be carried out so that a self-regulated and flexible tax mechanism will be established. The Plan reduces the rate of mineral resources compensation for all resources to zero and implements a system of charging ad valorem resource tax. This arrangement integrates mineral resources compensation into a single resources tax system. As for environment rehabilitation after mining activities, environment restoration funds will be allocated by the mining companies to ensure environmental protection and social administration. Benefits generated by mining rights transfer and use of mineral resources will be included in the general public budget, which can be used by governments at all levels for geological surveys, ecological protection and rehabilitation in mining areas. Credit mechanism and black lists will be established to regulate the activities of mining companies.
China · 2017-01-01