• Document Number：Order No.187 of the People’s Government of Shanxi Province
• Area of Law： Geology & Mining
• Level of Authority： Local Government Rules
• Date issued：02-28-2006
• Effective Date：02-28-2006
• Issuing Authority： People's Government of Shanxi Province
• Status： Effective

Order of the People's Government of Shanxi Province
(No.187)
Procedures of Shanxi Province for Redisposing, Coordinating and Paid Utilizing of Coal Resources was adopted on Feb. 21, 2006 at the 66th routine meeting of the Shanxi Provincial People's Government, now the Order is promulgated, and it comes into force upon promulgation.
Governor Yu Youjun
Feb. 28, 2006
Procedures of Shanxi Province for Redisposing, Coordinating and Paid Utilizing of Coal Resources
Chapter I General Provisions
Article 1 In order to have a more centralized coal-mining industry, strengthen the protection and rational development and utilization of coal resources and safeguard the legitimate rights and interests of the State-owners of mineral resources, The Procedures are stipulated in accordance with The Law of the People's Republic of China on Mineral Resources, and other pertinent laws and regulations, incorporating actual situations in Shanxi Province.
Article 2 The Procedures are applicable for redisposing, coordinating and paid utilizing of coal resources (RCPUCR) within the provincial administrative area.
Article 3 Redisposing, coordinating of coal resources (RCCR) shall stick to such principles as scientific planning, ousting the backwards, clarifying the property ownership, making production capacity and service life well match the amount of resources and deposits.
Paid utilizing of coal resources (PUCR) shall stick to the principles of being open, fair and just.
Article 4 The people's government at the county level or above shall be responsible for the work of RCPUCR within its administrative region.
The relative department of the people's governments at the county level or above shall perform the following duties:
(1)The administrative department of land and resources shall be responsible for the organization and coordination of the work of RCPUCR, verify the amount of coal resources/reserves, register the change of mining rights and levy the payments for the mining rights;
(2)The administrative department of coal industry shall be responsible for the verification of the coal-mining capacity, and also the examination and approval of the preliminary design of the mining construction projects after having been redisposed and coordinated, it shall also be responsible for the acceptance of project completion and for issuing Coal-mining Permits;
(3)The units in charge of the supervision of coal-mining safety shall be responsible for reviewing the design of the safety facilities for mining construction projects, the acceptance of project completion, the verification of the safe production conditions of the mines and also the issuing of the Safety Production Permits after the mines have been redisposed and coordinated;
(4)The administrative department of industries and commerce shall be responsible for examining the share structure of the coal-mining enterprises with their mining rights owners having been changed when having been redisposed and coordinated, and going through the formalities of the pre-verification/registration of enterprises' names in accordance with relevant laws;
(5)The administrative department of finance shall be responsible for supervising and managing retrieval of the payment for mining rights levied into country's revenue, and, together with the administrative department of land and resources, verifying the payment for mining rights being transferred into the State-owned shares and the State's capitals;
(6)The administrative department of supervision and management of the State-owned assets shall be responsible for the supervision and management of the mining right payment being transferred to state-owned shares and state-owned equities formed from State's capitals
(7)The administrative supervision department shall be responsible for supervising the RCPUCR work being performed by the administrative units and their staff members.
Chapter II Redisposing and Coordinating of Coal Resources (RCCR)
Article 5 RCCR means, on the basis of the present existing legal coal-mines, to merge the coalfields of two or more coal-mines and to merge the resources/reserves of closed coal-mines and other odd virgin resources/reserves in the corners or on the edges of a coalfield so as to realize unified planning and upgrade comprehensive capacity in mining production, technology, safety guarantee, etc., as well as to close the coal-mines with irrational layout, or those without safe production conditions, although having undergone rectification and reform.
Article 6 RCCR may be realized by means of procurement, mergence, share participation, etc. Large/medium-sized enterprises are encouraged to participate in RCCR so as to become even larger enterprise groups.

Article 7 The coal-mine (coal-pit) shall be closed and participate in RCCR, if with only one of the following conditions:
(1)Those that are located in the county with coal mining being the county's main industry, and yet its verified production capacity is less than 90,000t/a;
(2)Those with incomplete permits and certificates;
(3)Those without safe production conditions, although having undergone rectification and reform.
(4)Those without proper conditions for improving coal-mining methods;
(5)Those that cannot meet environmental protection requirement; and
(6)Those with irrational layout.
Article 8 The coal-mine shall be closed and its coal resources shall not be allowed to participate in RCCR, if with only one of the following conditions:
(1)Those located at a scenic spot or heritage site under protection;
(2)Those located at important water head sites;
(3)Those located at a city planning area;
(4)Those located at a hub of communications; and
(5)Those required by other laws or regulations.
Article 9 The coal mines that are located in the county with coal mining being the county's main industry, and with a verified production capacity less than 30,000t/a are not allowed to redispose/coordinate the resources/reserves of the closed coal-mines or other virgin ones.
The underneath coal seams which have not been entirely opened up are not allowed to be redisposed or coordinated.
Article 10 After the work of RCCR having been accomplished within the administrative region at the county's level, the newly added resource area shall not exceed 10% of the total resource area occupied and utilized before the work of RCCR, and the newly increased production capacity shall not exceed 10% of the total verified production capacity before the work of RCCR.
Article 11 The people's government at the county level shall, in accordance with the principles of RCCR, draw up a scenario for the work of RCPUCR, and report it to the provincial people's government level by level.
The people's government at the county level shall publish to the society its scenario for the work of RCPUCR, ready to report to the upper level.
Article 12 The provincial people's government shall, within 15 days after receiving the scenario of the work of RCPUCR, entrust the administrative department of land and resources together with the administrative department of coal industries and the provincial unit of supervision of coal-mining safety to organize experts to argue the scenario and then to put forward their opinions.
The scenario of the work of RCPUCR shall be implemented after it has been approved by the Provincial People's Government.
The people's government at the county level or above shall announce to the society the approved scenario of the work of RCPUCR.
Article 13 The relative provincial administrative departments shall, within 30 days from the day when the scenario is approved, revoke or take back the relative certificates and permits issued to the coal-mine which is to be closed in accordance with the scenario of RCPUCR approved by the provincial people's government, and the closing of the mine is to be executed by the county people's government in accordance with the stipulated standards. For those shafts which are possible to be reused after being redisposed or rebuilt, all the equipment and facilities therein shall be dismantled and be attended by specially assigned persons, and the shaft shall be reused or exploded after the revamping design has been completed.
Article 14 The coal-mine, with its work of RCCR having been completed, shall implement its mining in a wall-to-wall way (with no coal pillar left---Tr.), and meet the safe production conditions of one coal-mine with one shaft and two safety exits, its ventilation should be fully under negative pressure, etc., which are stipulated in the relevant laws and regulations. As for the coal-mine, with multi-shafts formed due to historical reasons and still not able to be re-disposed into such a mine with only one shaft due to its geologic structural factors, the administrative department of coal industries under the provincial people's government together with the provincial administrative department of land and resources and the units of supervision of coal-mining safety, shall give verifications, and if the result is positive, the department of land and resources shall issue a separate mining permit.
The extraction rate in thick coal seam undercutting areas shall be no less than 75%; in medium-thick ones 80%, and in thin ones 85%.
Article 15 The coal mine, with its work of RCCR having been completed, shall obtain its Mining Permit, Coal-mine Safety Production Permit, Coal Production Permit, and Business License of the Enterprise Legal Person, and the director of the coal mine shall obtain his Coal-mine Director Safety Qualification Certificate, as well as his Coal-mine Director Qualification Certificate.
Chapter III Paid Utilizing of Coal Resources (PUCR)
Article 16 PUCR means that the mining rights owner, having obtained its mining rights through administrative examination and appraisal, shall still effect his mining rights payment, besides paying the mining rights usage.
In the process of the work of RCCR, bargain margins shall be opened properly, and the resource amount owned by the closed coal-mines shall be sold in accordance with the way of open competitive bidding.
Article 17 The administrative department of land and resources under the people's government at the county level shall be responsible for levying the mining right payment.
For the payment standards of the mining right, please refer to the Appendix below. The provincial people's government may adjust the payment standards for the mining right on the basis of market situations.
Article 18 The mining right payment collected by the administrative department of land and resources under the people's government at the county level shall be distributed in accordance with the proportion of 3:2:5 among the province, municipality and county. The mining right payment collected in the process of the work of RCCR with sales of mining right by open competitive bidding shall be distributed in accordance with the proportion of 2:3:5 among the province, municipality and county.
The mining right payment collected by the administrative department of land and resources under the people's government at the county level shall be turned over into a specified financial account at the same administrative level, and shall then, in accordance with the proportion mentioned-above, be turned in by the financial department under the people's government at the county level to the specified financial accounts of the province and municipality with administrative districts established respectively.
Article 19 The coal resources/reserves of the coal-mines not having been re-disposed and coordinated and that of the coal-mines having been re-disposed and coordinated shall be investigated by a qualified intermediary agent, which shall put out a report on their resources/reserves. And this report shall be examined and verified by the administrative department of land and resources under the people's government of the municipality with administrative districts established, and the report shall then be submitted to the administrative department of land and resources under the provincial people's government to be put on file, which shall serve as the basis to levy the mining right payment.
While the administrative department of land and resources under the people's government of the municipality with administrative districts established examines and verifies the report on the resources/reserves prepared by the qualified intermediary agent, the department shall organize experts to give assessment of the report.
The report on the resources/reserves prepared by the qualified intermediary agent, should be true and reliable.
Article 20 While the mining right owner effects the mining right payment, he may effect it in any of the three ways, namely, pay in cash, transfer it into the State-owned shares, or into the State capitals.
Article 21 The coal mines, with their resources/reserves being less than 8 million tons. and coal categories belonging to coking coal, 1/3 coking coal, fat coal, coal blends for coking (carbonaceous coal, carbonaceous/lean coal and fat/gas coal) and anthracite, and the coal-mines, with their resources/reserves being less than 10 million tons and coal categories belonging to carbonaceous coal, high-quality steam coal (weakly-caking coal), gas coal, and other coals, shall effect their mining right payment in cash, the payment standard to be decided once and for all, and the payment be effected in full.
Except the coal mines mentioned in the previous section, as for other coal mines with resources/reserves decided and purchased by stages and in sectors, its mining right payment shall be effected in accordance with the standards promulgated by the provincial people's government.
Article 22 The mining right payment as stipulated in Section 2 under Article 21 of the present Procedures may be transferred into the State-owned shares or into the State capitals according to the regulations concerned.
Article 23 The people's government at the county level or above shall manage the State-owned stock ownership generated from the State-owned shares and the State capitals transferred from the mining right payment levied in accordance with the present State property management system.
Article 24 The mining right payment shall be under the financial budget control at the same administrative level.
The mining right payment distributed and gained by the provincial people's government, the municipal people's government with administrative districts established shall be mainly used in the survey, protection and management of the mineral resources.
The portion of mining right payment gained by the people's government at the county level shall be mainly used as a compensation for the closed legal coal mines in the process of RCCR and in the improvement of the geological and ecological environment in the countryside with reference to coal-mining enterprises.
Chapter IV Supervision and Examination
Article 25 The administrative departments of land and resources, and coal industry under the people's government at the county level or above, the units in charge of coal-mining safety supervision at all levels and other relative departments shall cooperate closely, share information mutually, and strengthen their supervision and examination of the work of RCPUCR under their respective jurisdiction.
Their supervision and examination may be executed in the way of unified law enforcement.
Article 26 The administrative departments of land and resources and coal industry under the people's government at the county level or above, the units in charge of coal-mining safety supervision at all levels shall announce their telephone numbers and e-mail address, so as to accept reports and appeals from the public.
Chapter V Legal Responsibilities
Article 27 In case of violation of the provisions of Article 13 of the present Procedures, and the coal mine, decided to be closed, and yet has not been closed after the time limit, or closed not up to the standards thereof, the administrative supervision department shall take administrative sanctions against the main responsible person of the county people's government, the responsible person in direct charge of the work and relative responsible persons.
Article 28 In case of violation of the provisions of Article 19 of the present Procedures, and the qualified intermediary agent has submitted a false inspection report, the administrative department of land and resources under the people's government at the county level or above shall give a disciplinary warning to the institution, make a record of the enterprises' bad conduct, which may be published in relative media. If the case is serious, the relative qualification of the institution shall be disannulled in accordance with relevant provisions stipulated by the State. If a crime is constituted, the person(s) shall be investigated for criminal liabilities according to law.
Article 29 In case the main responsible person in charge of a coal mine and other relative persons obstruct the work of RCCR and violate the previsions on public security management stipulated in the relevant laws and regulations, the public security organ shall deal with the case in accordance with the laws. If a crime is constituted, the person(s) shall be investigated for criminal liabilities according to law.
Article 30 While performing the work of RCPUCR, in case the administrative units and their staff members bend the law for personal gain and engage in fraud, neglect their duty or abuse their power, and yet has not constituted a crime, administrative sanction shall be given to them according to law, If a crime is constituted, the person(s) shall be investigated for criminal liabilities according to law.
Chapter VI Supplementary Provisions
Article 31 The work of redisposing, coordinating and paid utilizing of non-coal mineral resources shall be executed with reverence to the present Procedures.
Article 32 The Procedures shall come into force on the day of promulgation.
Appendix:
The Payment Standards of the Mining Right Levied in 2006
(Unit: RMB￥/t)
(1)For coking coal, 1/3 coking coal, and fat coal: 3.80;
(2) coal blends for coking (i.e. carbonaceous coal, lean/carbonaceous coal and fat/gas coal): 3.10;
(3)For anthracite: 3.30;
(4)For lean coal: 2.70;
(5)For high-quality steam coal (weakly-caking coal), gas coal: 1.50; and
(6)For other coals: 1.30.
Keywords: land; resource; redisposing and coordinating; regulations.