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Several Ministries Released Mineral Resource Plan, Tax Reform for Mineral Resource will Make Progress

In order to adapt to market changes, speed up adjustment and transition & upgrading of mining industry structure, on November 29, the Ministry of Land and Resources joined the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Environmental Protection, and the Ministry of Commerce, to jointly release the “National Mineral Resource Plan (2016-2020)”, which clarified targets for mineral resource management and mining development during the “Thirteenth Five Year Plan” period, as well as highlights of future work.

Currently, growth rate of China’s energy and resource demand is slowing down, but total demand still stays at high level. According to estimate made by the Ministry of Land and Resources, by 2020, China’s primary energy consumption is about 5 billion tonnes of standard coal, 750 million tonnes of standard iron ore, 13.50 million tonnes of refined copper, and 35 million tonnes of primary aluminum. Suffering from impact of international mining market, domestic prospecting investment declined, which increased the risk in the safe supply of China’s mineral resources.

On the other hand, due to factors such as sluggish global economy, slowdown in demand, and energy structure adjustment, the supply of global mining products is trapped in overall surplus, prices plunged, growth of investment in mining fixed assets slowed down. Domestic mining enterprises are experiencing widespread operation difficulty, coal, iron and steel, and cement industries experienced capacity surplus. Meanwhile, global strategic emerging industries such as new energy and new material industries are developing rapidly, China’s relevant mineral resource industries have low development level, resource protection efforts need to be strengthened.

Zhao Long, Deputy Minister of the Ministry of Land and Resources, said, according to the “Plan”, during the “Thirteenth Five Year Plan” period, detailed targets of national mineral resource development include: Firstly, develop a batch of important mineral resource strategic continuation zones. Strive to newly discover 5 to 8 100 million tonne grade oilfields and 5 to 10 100 billion cubic meter grade gas fields, newly discover and assess 300 to 400 large to medium-sized orefields.

Secondly, construct 103 energy resource bases, designate 267 nationally planned mining areas, consolidate domestic safe supply ability of strategic mineral products such as iron, copper, bauxite, and sylvite etc. Designate 28 mining areas with significant value for national economy, strengthen protection and reserve of important mineral resources.

In order to promote utilization structure and deployment adjustment in mineral exploitation, accelerate mining transition & upgrading, enhance quality and performance of mining development. The “Plan” put forward to begin optimization of regional deployment in mining exploitation; strengthen resource saving and intensive circular usage; promote technology innovation in mining field, develop “Internet + Mining” approach, promote transition & upgrading of traditional mining.

Zhao Long told journalist of the “Economic Information Daily’ that, the “Plan” clarified some system design in guiding reform of mineral resource management, and enlivening mining development aspects. Including: Firstly, open up oil & gas, uranium prospecting and exploitation market. Accelerate popularization of Xinjiang’s reform pilot project, propel oil & gas prospecting and exploitation system and mechanism reform, progressively open upstream prospecting and exploitation market, introduce social capital. Based on the principle of socialized prospecting, marketized mining right, diversified investment, and specialized exploitation, intensify efforts in uranium mine prospecting and exploitation system reform, relax uranium mine prospecting and exploitation market in an orderly manner, actively guide social capital to enter uranium mine prospecting field, accelerate uranium mine prospecting and exploitation progress.

Secondly, expand scope of competitive transfer for mining right. Adhere to market competition as orientation, establish mining right transfer ways conforming to market economic requirement and mining rules. Explore ways to expand scope of competitive transfer for mining right, further propel adoption of transfer through bidding, auction and listing ways for exploration right & exploitation right, focus on solving system-incurred barrier, fully mobilize the initiative of all kinds of entities in the market, attract social capital and venture capital.

Thirdly, propel reform in mineral resource tax system. Establish national license fee system for mineral resource, improve related supporting systems. Adjust usage fee standard for exploration right & exploitation right, establish dynamic adjustment mechanism, improve minimum prospecting contribution system.