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By Li Weiming & Gu Shuzhong, Research Institute of Resources and Environment Policies, DRC; Fan Zhenlin, Chinese Academy of Natural Resources Economics; Yu Chang & Hu Wei, Institute of Industrial Economics, Chinese Academy of Social Sciences

Research Report, No. 91, 2020 (Total 5835) 2020-4-29

Abstract: Reforming and improving the mining rights transfer proceeds system is an inevitable option to perfect the compensation system for the exploitation of mineral resources and uphold the rights and interests of the state owners over mineral resources. Since the implementation of the transfer proceeds system three years ago, it has played a positive role in the reform of safeguarding the rights and interests of state owners and advancing the competition for the transfer of mining rights. However, in the course of the system’s implementation, due to the inconsistent implementation of policy measures, improper implementation standards, and non-standard evaluation and tax collection methods, some companies have to face an increased financial burden and their enthusiasm for exploration and investment is weakened. In order to properly address these issues, we need to flesh out the policy portfolio to ensure a smooth transition from the previous arrangements and set a national unified benchmark price and benchmark rate as well as reduction provisions for the smooth transfer of mining rights in a swift manner. We need to improve the evaluation methods, clarify the rights and interests of state owners and the exploration and investment proceeds of mine owners, determine the tax collection methods case by case, take the proved reserves as the tax levy base, and clarify the relationship between relevant taxes and fees in the mineral resources field to avoid repeated collection.

Keywords: mining rights transfer proceeds system, rights and interests of state owners, problems, policy options