A new equity benefit system will be built to protect national mineral interests and create a fair mineral market environment, according to a plan issued by the State Council on April 20.
In addition to safeguarding national mineral interests, the move also urges efficient exploitation of mineral resources and environment rehabilitation, and maintains reasonable financial shares between central and local government.
According to the plan, fees for mining exploration and exploitation rights will be turned into mineral resource equity benefits for the government, the share proportion of which is 4:6 between central and local governments.
The occupation of mineral resources will also be charged, divided 2:8 between central and local governments.
Furthermore, the tax reform regarding mineral resources exploitation will be carried out so that a self-regulated and flexible tax mechanism will be established.
As for environment rehabilitation after mining activities, environment restoration funds will be allocated by the mining companies to ensure environmental protection and social administration.
Benefits generated by mining rights transfer and use of mineral resources will be included in the general public budget, which can be used by governments at all levels for geological surveys, ecological protection and rehabilitation in mining areas.
Credit mechanism and black lists will be established to regulate the activities of mining companies.