The Mining Act establishes a legislative framework to improve public welfare by developing mineral resources. Minerals include ores containing copper, iron, nickel and other metals as well as oil, gas, coal and other materials. All exploration and production activities regarding minerals are governed by the Mining Act. The regulatory body responsible for enforcing the Mining Act is the Ministry of Economy, Trade and Industry (Article 190, Chapter VIII).
The Act sets out specific rules about mining rights. The State has the power to grant the right to mine and acquire minerals that are yet to be mined (Article 2, Chapter I). It provides two types of mining rights: prospecting and exploiting (Article 11, Chapter II). Although a landowner is not allowed to explore or exploit resources on their land, a mining right holder will still need permission from the landowner to use the land for such purposes. Compensation for damage or pollution to land shall be paid by holders of mining rights to landowners in the mining area concerned (Article 109, Chapter VI).
The Act also provides for the establishment of the Local Mining Council in the Regional Bureau of Economy, Trade and Industry and defines its organization (Article 165, Chapter VI-ii).