China's Ministry of Land and Resources (MOLR) is brewing reforming the way of collection and distribution of mineral resources compensation fee, sources of MOLR disclosed.

Besides raising the collection ratio moderately, China may change the distribution ratio in the past and give more preference to local governments.

Meanwhile, MOLR has recently issued a circular, requiring recording of unlicensed prospecting and mining and the illegal activities of mine owners.

The sources disclosed that the reform of mineral resources compensation fees headed by MOLR is underway, and the 1.18-percent collection standard is too low and will be raised. Meanwhile, the distribution ratio between central and local governments is 5:5 at present, and China will pay more attention to the benefits of local areas, especially some western areas and minority nationality areas in the reform.

China has combined the work of transfer of mining rights with the reform of mineral resources fees in 2006. Since then, the illegal activities have mushroomed in the sector. MOLR announces that all activities of illegal obtaining of prospecting and mining rights are violation of law, and the competent department must deny them certificate.