Hunan Province issued the "Several Opinions," aiming to establish ten 100-billion-yuan mining industry clusters. Regarding the sand and gravel sector, the document emphasizes the following points

To promote green, clustered, safe, and cooperative development of the mining industry in Hunan Province, the General Office of the People's Government of Hunan Province recently issued the "Several Opinions on Effectively Enhancing the Capacity to Ensure Mineral Resources and Deepening the Green and High-Quality Development of the Mining Industry" (Xiang Zheng Ban Fa [2023] No. 41) (hereinafter referred to as the "Several Opinions"). The "Several Opinions" clearly outlines relevant measures and requirements covering mineral resource planning, exploration, development, transfer, industrial development, ecological protection, and service supervision.

The “Several Opinions” point out that by the end of the 14th Five-Year Plan, the province will have identified more than 60 prospective mineral exploration areas and discovered more than 30 new mineral deposits. The proportion of large- and medium-sized mines will increase to over 30%, and a “chain leader + chain” development model will be basically established. By 2035, the goal is to build 10 competitive mining industry clusters each with an output value of over 100 billion yuan, thereby shaping a new pattern of green and high-quality development in the mining sector.

The “Several Opinions” emphasize:

Promote the efficient supply of mineral resources. Encourage the utilization of mine tailings and waste resources, coordinate resource utilization across engineering projects, and clearly define management and disposal procedures for tailings and excess sand and gravel generated from engineering excavations.

Strictly verify the scope of mining rights areas. Prior to the transfer of any mining rights, a verification of the mining area’s scope must be conducted. For the transfer of mining rights, the county-level people’s government shall organize departments including natural resources, ecological environment, emergency management, and forestry to jointly conduct on-site inspections of newly established mining rights and submit recommendations for defining the mining area’s scope. Newly established open-pit sand and gravel mines shall not use ridgelines as boundary lines, and negative terrain mining is generally prohibited, thereby protecting the ecological environment from the source and reducing safety hazards. For the transfer of exploration rights, based on a comprehensive review of previous geological exploration work, the scope of the mining area should, in principle, be reasonably delineated in accordance with the requirements of integrated exploration.

Coordinate the utilization of project resources. For infrastructure and linear projects—such as energy, transportation, and water conservancy facilities—that have been approved by the people's governments at or above the county level, sand and gravel materials generated during construction within the land-use redline (excluding temporary land use) may be directly used for the construction of these projects themselves. Any surplus sand and gravel materials remaining after internal use shall be organized by the county-level people's government of the locality and disposed of through the public resource trading platform. After deducting necessary costs, the resulting revenue shall be turned over to the fiscal authorities.

Promote reform of the mineral rights transfer system, fully implement competitive bidding for mineral rights transfers, and refine the "clean mine" transfer mechanism. Support mining rights holders in legally using land and forests. Respect the wishes of local communities in mining areas; prior to transferring mining rights, it is necessary to solicit the opinions of the rural collective economic organizations in the relevant locality. If the transfer involves the use of forest land, the opinions of the forestry authorities must also be sought. Land acquisition or use of collectively-owned construction land shall be carried out in strict accordance with laws and regulations. Explore innovative approaches such as leasing collectively-owned commercial construction land or contributing the use rights of such land as equity in joint ventures, thereby ensuring that mines have access to appropriate land resources.

Opinions of the General Office of the People's Government of Hunan Province on Effectively Enhancing the Capacity to Ensure Mineral Resources and Deeply Promoting Green and High-Quality Development of the Mining Industry

Xiangzhengbanfa [2023] No. 41

People's Governments of all cities, prefectures, counties, and districts; all provincial government departments, commissions, and directly affiliated institutions:

To scientifically address the new situation in the development and utilization of mineral resources both internationally and domestically, and to pragmatically coordinate economic and social development with energy and resource security, with the approval of the Provincial People’s Government, we hereby put forward the following guidelines for effectively enhancing the capacity to ensure mineral resource supply and deeply promoting green, high-quality development of the province’s mining industry.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, firmly establish the Overall National Security Outlook, and fully, accurately, and comprehensively implement the new development philosophy. In response to the new requirements of the nation’s new round of mineral exploration breakthrough strategy and the deepening reform of mineral resource management, we will fully leverage our province’s endowment advantages in mineral resources, strengthen mineral exploration and ensure an effective supply, and strive to build a trillion-yuan mining industry cluster. We will promote green, clustered, safe, and cooperative development of the mining sector in our province, thereby accelerating the comprehensive realization of the “Three Highs and Four New” vision and building a new, modernized, socialist Hunan.

By the end of the 14th Five-Year Plan period, our province will have achieved significant breakthroughs in mineral exploration, with increased reserves and production of advantageous mineral resources. We will have identified more than 60 prospective mineral exploration areas across the province and discovered over 30 new mineral deposits. The exploration and mining balance for our province’s key minerals will be essentially achieved. The order of resource development will be comprehensively standardized, the level of large-scale resource utilization will further improve, and the proportion of large- and medium-sized mines will rise to over 30%. The ecological environment of mining areas will see substantial improvement, and most operating mines will have been transformed into green mines. The concentration of the mining industry will continue to increase, and a “chain leader + supply chain” industrial development model will be largely established. By 2035, resource security will be even stronger, resource development will become more rational, and resource utilization will be better coordinated with ecological protection. We will strive to build 10 competitive, hundred-billion-yuan-level mining industry clusters and create a new pattern of green, high-quality development in the mining sector.

II. Strengthen Source Management of Mineral Resources

(1) Uphold the guiding role of mineral resource planning. Scientifically formulate the provincial mining development plan, and strengthen source control over strategic and advantageous minerals such as non-ferrous metals, precious metals, “three rare” minerals (rare earth, rare, and dispersed minerals), and energy minerals. Ensure smooth coordination among various plans, guaranteeing that the exploration and utilization of mineral resources are aligned with land space planning, industrial development planning, as well as ecological environment and forestry plans. Effectively implement the overall mineral resource plan, reinforce rigid constraints, and promote precise implementation of the plan.

(2) Optimize the spatial layout of mineral resource exploration and development. Focus on exploring and developing mineral resources in five major ore-forming belts: northeastern Hunan, northwestern Hunan, central Hunan, southern Hunan, and the Xuefeng Arc-shaped Belt. Encourage the exploration and utilization of strategically important minerals designated by the state, minerals in which our province has competitive advantages, as well as minerals required for project construction and the development of people’s livelihoods. Prohibit the mining of clay deposits used for bricks and tiles on arable land; restrict the mining of high-sulfur, high-ash coal, vanadium, gypsum, and pyrite; and completely phase out mercury mines and single-use shale coal mining, both of which have significant environmental impacts. In accordance with the principle of “one mining deposit—one exploration and development entity,” scientifically formulate integrated development plans for advantageous mineral resources in key mining areas and promote the consolidation and reorganization of mining rights concentration zones.

(3) Strictly verify the boundaries of mining rights areas. Prior to the transfer of any mining rights, a verification of the mining area boundaries must be conducted. For the transfer of mining rights, the county-level people’s government shall organize departments including natural resources, ecological environment, emergency management, and forestry to jointly conduct on-site inspections of newly established mining rights and submit recommendations for delineating the mining area boundaries. Newly established open-pit sand and gravel mines shall not use ridgelines as boundary markers, and negative terrain mining is generally prohibited, thereby protecting the ecological environment from the outset and reducing safety hazards. For the transfer of exploration rights, based on a comprehensive review of previous geological exploration work, the mining area boundaries should, in principle, be reasonably delineated in accordance with the requirements of integrated exploration.

3. Increase the intensity of geological exploration.

(4) Launch an initiative to achieve breakthroughs in mineral exploration. Strengthen basic geological and mineral resource surveys and evaluations, and advance initiatives aimed at achieving breakthroughs in the exploration of strategic minerals. Intensify fundamental, public-interest geological surveys and exploratory work on strategic mineral resources; conduct large-scale regional geological surveys of minerals, focusing on both nationally strategic minerals and our province’s advantageous mineral resources to carry out exploration and prospecting activities, and promote the development of energy resource bases. Deploy exploration and prospecting projects around key metallogenic belts and the deep and peripheral areas of medium- and large-sized mines.

(5) Increase investment in exploration funding. Coordinate the allocation of fiscal funds at all levels, improve the investment mechanism for mineral resource exploration, and increase exploration funding by more than 10% annually. At the provincial level, focus on surveying and evaluating key ore-forming regions and exploring nationally strategic minerals; at the city and county levels, concentrate on mineral exploration that supports industrial chains and meets the needs of people’s livelihoods. By effectively leveraging the provincial geological exploration fund, maximize the multiplier effect of fiscal funds, attract private capital into geological exploration, and establish a stable, diversified, and sustainable pattern of exploration investment.

IV. Promote the effective supply of mineral resources

(6) Strengthen the commercialization of exploration results. Prioritize the results of national geological surveys and mineral exploration projects, and systematically allocate commercial exploration rights. Safeguard the legitimate rights and interests of exploration right holders: For exploration rights that meet the nationally prescribed exploration standards and comply with industrial policies and ecological protection requirements, legally convert exploration rights into mining rights. For exploration rights that have not yet completed paid disposal, upon application for conversion from exploration to mining rights, the corresponding mining right transfer fees shall be paid in accordance with the law. For exploration rights that have already undergone paid disposal in compliance with regulations, they may be directly converted into mining rights without further payment of mining right transfer fees (except for newly added mineral types). Improve the policy-based closure and exit mechanism for mining rights: For mining rights that are closed and exited under policy directives, explore diversified compensation methods such as monetary compensation or resource swaps.

(7) Encourage the utilization of mine tailings and waste resources. Under the condition of meeting safety, environmental protection, and relevant standards, and upon verification and approval by the county-level people’s government and the departments of natural resources, emergency management, and other relevant authorities at or above the city level, tailings pond resources may be developed and utilized. For mining operations that comprehensively utilize tailings and waste rock resources in accordance with the approved development and mining plans, if these resources have already been disposed of through paid transfer, they may be directly utilized; if they have not yet been disposed of through paid transfer, such disposal must be completed first on a paid basis. The unauthorized disposal or utilization of tailings and waste rock resources is strictly prohibited.

(8) Coordinate the utilization of project resources. Construction projects—including infrastructure such as energy, transportation, and water conservancy facilities, as well as linear projects—approved by the people's governments at or above the county level may directly use the sand and gravel materials generated during construction within the land-use redline boundary (excluding temporary land use) for the purposes of these very projects. Any surplus sand and gravel materials remaining after internal use shall be organized by the county-level people's government of the locality to be disposed of through the public resource trading platform. After deducting necessary costs, the proceeds from such disposal shall be turned over to the fiscal authorities.

V. Promote the industrialization of the mining sector.

(9) Strengthen the development of the mineral rights market. Scientifically determine the mining rights transfer plan, and in accordance with the principle of "boosting industries through resource development," refine the mining rights trading system. In the public auction of mining rights, clearly specify requirements related to the deep processing of mineral resources and supporting infrastructure for the mining industry. Further standardize the transfer of mining rights and strengthen supervision and management of state-owned mining rights transfers. Foster a market characterized by integrity and establish a joint punishment mechanism for those who breach trust.

(10) Fully build a trillion-dollar mining industry cluster. Cultivate leading enterprises in the mining industry, support existing key mining companies within the province to integrate their superior resources and assets, and encourage mergers and acquisitions of enterprises engaged in mineral exploration, mining, beneficiation, smelting, and processing, thereby perfecting the deep-processing industrial chain. Establish a provincial mineral resource group to strengthen control over and stockpiling of strategic and advantageous mineral resources. Promote the development of the mining industry along the “chain leader + chain” model, and build a full-lifecycle industrial ecosystem for mineral resources across the entire province. Guided by our advantageous resources, focus on developing industries such as new energy, new manufacturing, and new materials, and attract well-capitalized, technologically advanced, and talent-rich enterprises to set up their headquarters in our province. Cultivate “chain leader” enterprises in non-ferrous metals such as tungsten, antimony, lead, and zinc; precious metals such as gold and silver; ferrous metals such as iron, manganese, and vanadium; “three rare” minerals including lithium and rare earths; energy minerals such as coal and coalbed methane; non-metallic minerals such as fluorite, barite, and quartz for glass production; and hydrothermal and mineral water resources—thus extending the industrial chain and striving to create 10 trillion-yuan-level mining industry clusters.

6. Deepen reforms in mineral resource management.

(11) Promote reform of the mineral rights transfer system. Fully promote the competitive allocation of mining rights. For rare earth and radioactive mineral exploration and mining projects, or key construction projects approved by the State Council, mining rights may be allocated to specific entities through negotiated agreements. Based on the requirements for safe mine production and the rationality of mining right establishment, existing mining rights that involve further exploration and mining of mineral resources—excluding ordinary construction sand, gravel, and soil minerals—within the deeper or upper sections, surrounding areas, and sporadically dispersed resources of previously established mines, as well as interstitial areas between adjacent mining rights belonging to the same entity and located within approximately 300 meters of each other, may directly have their exploration or mining rights allocated via negotiated agreements.

(12) Adjust the collection and management system for revenue from the transfer of mineral rights. In accordance with the "Measures for the Collection of Proceeds from the Transfer of Mining Rights" (Cai Zong [2023] No. 10) issued by the Ministry of Finance, the Ministry of Natural Resources, and the State Administration of Taxation, as well as other relevant provisions, we have formulated pricing rules for the initial offering prices of mining rights in our province, aiming to effectively reduce the burden on mining enterprises and lower exploration risks. For the 144 types of minerals, the proceeds from the transfer of mining rights will be collected annually based on annual sales revenue and a prescribed rate of return. For mining rights pertaining to other mineral types, installment payments are permitted, and the proportion of the initial payment can be reduced. Furthermore, no additional proceeds from the transfer of mining rights will be collected for prospecting rights that cannot be converted into mining operations.

(13) Improve the “clean mine” transfer mechanism. Support the lawful use of land and forests for mining rights. Respect the wishes of local communities in mining areas; prior to granting mining rights, it is necessary to solicit the opinions of the local rural collective economic organizations. If the use of forest land is involved, the opinion of the forestry authorities must also be obtained. Land acquisition or the use of collectively-owned construction land shall be carried out in strict accordance with laws and regulations. Explore innovative approaches such as leasing collectively-owned commercial construction land or contributing the use rights of such land as equity investments or joint ventures, thereby ensuring that mines have access to appropriate land resources.

(14) Explore the establishment of a mineral resource acquisition and reserve system. Encourage enterprises to explore and engage in the acquisition and stockpiling of mineral products. For bulk mineral commodities—such as coal, iron, and copper—that are severely in short supply domestically, actively expand both domestic and international markets to enhance regulatory capabilities. With regard to nationally strategic minerals and our province’s advantageous mineral resources, explore establishing reserves of mineral deposits within the province.

7. Strengthen ecological and environmental protection and governance.

(15) Strictly protect the ecological environment of mines. Strengthen the principal responsibility of mining enterprises in ecological protection and restoration, and strictly regulate the accrual, use, and supervision of mining ecological restoration funds. Fully implement an annual acceptance system for mining ecological protection and restoration. Improve the system for compensating ecological and environmental damages, and promote public interest litigation related to mining ecological environments.

(16) Promote green exploration and mining. Strictly implement exploration standards and specifications, and comprehensively promote green exploration. Encourage mining enterprises to use resources in a more economical and intensive manner, and rigorously enforce national standards for mine recovery rates, mineral processing recovery rates, and comprehensive utilization rates. Further refine the green mine standard system, and steadily advance the construction of green mines. Newly established mines must be planned, designed, constructed, and operated in accordance with green mine standards. We also encourage existing mines to accelerate their upgrades and transformations to become green mines.

8. Enhance the capacity to provide services and guarantees for mining development.

(17) Strengthen policy support for science and technology talent. The departments of Development and Reform, Science and Technology, Industry and Information Technology, Finance, Human Resources and Social Security, Natural Resources, Ecological Environment, Commerce, Emergency Management, State-owned Asset Supervision, Forestry, and Financial Regulation shall study and introduce specific policy measures to support the development of the mining industry. We will increase investment in scientific and technological innovation in the mining sector, launch a science and technology research program for green and high-quality development of the mining industry, and establish a database of green mining technology innovation projects. Relying on geological exploration institutions, higher education institutions, and enterprises, we will carry out joint research efforts, accelerate the commercialization of research findings, promote advanced exploration, mining, smelting, and processing technologies, and encourage the recycling of resources. We will also support “chain leader” enterprises in the mining industry to reserve and attract high-level talents, providing strong talent support for the high-quality development of the mining sector.

(18) Strengthen service supervision. Enhance the efficiency of government services, optimize the business environment for the mining industry, streamline approval and registration procedures related to mining industry development in accordance with regulations, and establish a mining industry service system characterized by coordinated efforts between different levels and departments. Strengthen data and information sharing and joint construction among departments including public security, natural resources, ecological environment, emergency management, forestry, market regulation, taxation, and mine safety supervision, and reinforce comprehensive oversight over mineral resource exploration and utilization, safe production, and ecological environmental protection. Encourage the establishment of the Hunan Provincial Mining Association to serve as a bridge between the government and the market, fostering exchanges, collaboration, and development among mining enterprises.

(19) Strengthen assessment and evaluation. Integrate the achievements of green and high-quality development in the mining sector into the assessment and evaluation system used by the provincial Party committee and provincial government to evaluate the governments of cities, prefectures, counties, and districts, as well as relevant departments. Give commendation and incentives—such as recognition for practical and effective work—to regions that have achieved outstanding results. Regularly assess “chain leader” enterprises in the mining industry in terms of output value growth, technological innovation, and industrial extension, and link the assessment results to relevant reward and support policies.

(20) Strictly pursue accountability and hold individuals accountable. State officials are prohibited from illegally engaging in mining-related commercial activities, and they must not leverage their positions or official authority to unlawfully benefit others in such activities. Any violation, once verified, will be strictly dealt with in accordance with discipline and regulations; if the violation involves criminal or illegal conduct, the case will be promptly referred to the judicial authorities for prosecution. Those who shirk responsibility, fail to act, neglect their duties, engage in favoritism and corruption, or demonstrate dereliction of duty in the supervision and management of mining resource development and utilization, production safety, ecological environmental protection, and other related areas will be referred to the disciplinary inspection and supervision authorities for accountability and disciplinary action.

These Opinions shall take effect as of the date of their promulgation. At the same time, the “Several Opinions of the General Office of the People’s Government of Hunan Province on Fully Promoting Green Development in the Mining Industry” (Xiang Zheng Ban Fa [2019] No. 71) shall be repealed.