(Cai Jian [2006] No. 694) Relevant ministries and commissions of the State Council, relevant agencies directly under the State Council, finance departments (bureaus) and land and resources departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning, and relevant centrally managed enterprises: In order to further promote the payment of mineral resources

Reform of the utilization system, gradually rationalize the price formation mechanism of mineral resources, and promote resource conservation. According to the "Notice of the State Council on Comprehensively Rectifying and Standardizing the Order of Mineral Resources Development" (Guofa [2005] No. 28) and the "State Council on Agreeing to Deepen the Comprehensive Rectification and Standardization of the Order of Mineral Resources Development"

In accordance with the relevant requirements of the Approval of the Pilot Implementation Plan for the Reform of the Utilization System (Guohan [2006] No. 102) and other relevant laws and regulations, the relevant issues regarding deepening the reform of the system for the paid acquisition of exploration rights and mining rights are hereby notified as follows: 1. Exploration

A comprehensive system of paid acquisition of rights and mining rights will be implemented.

New exploration rights and mining rights transferred by the state shall be transferred by market competition methods such as bidding, auction, and listing, except those that are allowed to be transferred by prior application or by agreement according to regulations.

2. The holders of exploration and mining rights shall pay the price of exploration and mining rights to the state in full and in a timely manner in accordance with relevant national regulations. Unless otherwise provided in this notice, the price of exploration and mining rights will no longer be transferred to the state capital or used as capital.

Payment is made in the form of converted shares.

3. Before the issuance of this notice, the holders of exploration rights and mining rights have free possession of exploration rights and free exploration rights in proven mineral lands that are funded by the state (including central financial investment, local financial investment, or central financial investment and local financial investment, the same below).

The acquired mining rights will be cleared by the land and resources management department in conjunction with the financial department, and the cleared exploration rights and mining rights will be evaluated. Among them: Mining rights will be evaluated based on the remaining resource reserves.

The holder of exploration rights and mining rights shall first pay the price of exploration rights and mining rights to the state in the form of funds according to the price evaluation results confirmed, approved or filed by the approval, registration and management authority of exploration rights and mining rights;

If there is any difficulty in paying the price of mining rights, the payment can be made in the form of converted shares after approval in accordance with the voluntary principle of the exploration and mining rights holders and in accordance with the relevant provisions of this notice.

4. If it is really difficult to pay the price of exploration rights and mining rights in one lump sum in the form of funds, with the approval of the approval and registration management authority of exploration rights and mining rights, payment can be made in installments during the validity period of the exploration rights and mining rights.

Among them, the price of exploration rights can be paid in up to 2 years, and the payment ratio in the first year should not be less than 60%; the price of mining rights can be paid in up to 10 years, and the payment ratio in the first year should not be less than 20%.

Owners of exploration rights and mining rights who pay the price in installments shall bear a capital occupation fee that is not lower than the bank loan interest rate for the same period.

5. Before the issuance of this notice, the holders of exploration rights and mining rights had free of charge possession of exploration rights and mining rights obtained for free from proven mineral areas invested by the central government or jointly funded by the central government and local governments. For exploration rights paid in the form of funds,

. If there is indeed difficulty in paying for the mining rights and one of the following conditions is met, in accordance with the principle of voluntariness of the exploration and mining rights holders and after approval by the Ministry of Finance and the Ministry of Land and Resources, the part of the payment for the exploration and mining rights that should be paid can be

Or all paid to the state in the form of converted shares: (1) Obtained free of charge before the promulgation of the "Registration and Management Measures for Mineral Resources Exploration Blocks" (State Council Order No. 240) and the "Registration and Management Measures for Mineral Resources Exploitation" (State Council Order No. 241)

Exploration rights and mining rights that are still valid; (2) Reorganization and restructuring approved by the State Council or the provincial people's government, and the assessed value of the exploration and mining rights as assets enters the restructured enterprise; (3) State Council documents clearly state

stipulated or submitted to the State Council for approval.

If part of the price of exploration rights and mining rights is paid to the state in the form of shares converted into shares, the remaining unconverted portion of the price shall be paid to the state in full and in a timely manner in the form of funds.

6. If the price of exploration rights and mining rights is approved to be paid in the form of stock conversion, the shares shall be calculated based on the proportion of the price to be converted into shares of the enterprise's net assets.

The equity formed by converting shares is managed in accordance with the following principles: (1) For exploration rights and mining rights formed by exploration funded by the central government, the price of the exploration rights and mining rights will be paid in the form of shares converted into shares, and the equity formed will be held by the Central Geological Exploration Fund; (2)

For exploration rights and mining rights formed by jointly funded exploration by the central government and local governments, the price of the exploration rights and mining rights will be paid in the form of shares, and the equity formed by the central geological exploration fund and relevant local agencies will be paid according to the respective contributions from the central government and local governments.

Proportions are held separately.

The specific measures for the management of the exploration and mining rights and the resulting equity paid in the form of shares converted into shares shall be separately formulated by the Ministry of Finance in conjunction with the Ministry of Land and Resources.

7. With the approval of the Ministry of Finance and the Ministry of Land and Resources or the provincial finance department and the land and resources management department, if part or all of the price of the exploration and mining rights has been transferred to the state capital, the holder of the exploration and mining rights shall first submit the application to the state.

If it is really difficult to make up the payment for exploration rights and mining rights in the form of funds, the holders of the exploration and mining rights may also voluntarily choose to pay the increased state capital by converting shares into shares.

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