Measures for Collection of Proceeds from the Assignment of Mining Rights

Last updated: 11 December 2023

The Ministry of Finance, the Ministry of Natural Resources and the State Taxation Administration have jointly issued the "Measures for Collection of Proceeds from the Assignment of Mining Rights" (G.D. MoF Measure [2023] No.10), which replaces the previous G.D. MoF Measures [2017] No. 35 and [2019] No. 11. This new regulation is aimed at refining the paid use system for mineral resources, ensuring China's energy resource security, safeguarding the rights of national mineral resource owners and regulating the distribution of income derived from mineral resources.
One of the most notable amendments concerns the methods of calculating income from the assignment of mining rights (hereafter, "assignment income"). This income is now determined through two components: (1) the transaction price during mineral rights bidding; and (2) the assignment income rates applied when selling mineral products. The regulation introduces a comprehensive catalogue comprising 144 types of minerals, each with distinct assignment income rates. Based on these specified rates, holders of mining rights are obligated to submit a specific portion of their sales income to the relevant departments.
Furthermore, the regulation has reduced the initial down payment required for the assignment income and extended the period for instalment payments. This change is intended to ease the initial financial burden on mining companies. Moreover, the regulation outlines the allocation of assignment income under various scenarios and provides clarity on the management responsibilities across different departments.

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