The applicant for mineral prospecting rights and exploitation rights for mineral resource exploration and mining by foreign enterprises must be either the investor or the legal person entity setup by the investor.  The enterprise will be the applicant for mineral prospecting rights and exploitation rights, if the mineral resources exploration and mining are conducted by an equity joint venture or cooperative joint venture established by two or more investors.  For mineral resources exploration and mining conducted without setting up a cooperative enterprise, the investors shall designate an applicant for mineral prospecting rights and exploitation rights with jointly provided written documents.

The applicant for mineral exploitation rights must be the legal person entity. If the applicant is applying for mineral prospecting rights and is a Sino-foreign equity joint venture, cooperative joint venture, branch office or representative office,  which  has  officially  registered  with  China's administrative authorities for industry and commerce, and has obtained a non-legal person enterprise business license, it can be treated as an applicant with legal person qualifications in this case.

The  foreign  enterprises  involving  in  exploration  and exploitation of mineral resources shall be conformity with the relevant stipulation in <foreign investment Industry Guidance Categories>. From the date of September 30, 2005, the ministry of land and resources of China adjusted the authority relating to approval for mineral prospecting rights and exploitation rights. (see figure 3-1)

In light of the laws and regulations on mineral resources, the Chinese government formulated <Notice on Improving  Our Work relating to the Management of Exploration and Exploitation of Coal Resources>. The Notice focuses on the following aspects: delimiting coalmine area planned by the state and implementing the strict management system;

working out a plan for mineral prospecting and exploitation rights offered in those areas; strengthening efforts to manage the mineral prospecting and exploitation rights in said areas; making great efforts to manage mineral exploitation license and fixing appropriate service year according to mutual adaptation of the scale of exploitation and reserves;

formulating the minimum access standard to coalmine production and construction scale, then putting it on records to the Ministry of Land and Resources, when permission exploitation  license  awarded  to  small-sized  or  under small-sized  coalmines  and  strictly  control  mineral prospecting  rights  offered;  providing  mineral  land  of supporting coal resources for key projects of coal exploitation and key development projects sanctified by the State Council;

already existing mineral exploitation rights need to be conformed and extending the adjacent areas to the scope of exploration and exploitation by using old production system; large-scale projects of coal development approved by the State Council  and  prospecting  projects  for alternative resources for crisis mine by using national funds are allowed to assign the mining rights by agreement after authorizing.

The assignment of mineral prospecting and exploitation rights in the abovementioned areas confirm the exploration and exploitation subject designedly by adopting public bidding, auction and listing.