Core Viewpoint - The newly revised Mineral Resources Law, effective from July 1, 2025, marks a significant shift in China's coal industry from "scale and speed" to "quality and efficiency," promoting a modern coal industry system that is "safe, green, and efficient" [2][3]. Summary by Sections Legislative Changes - The revised law introduces a market-oriented mechanism for mineral rights allocation, moving from an administrative approval system to competitive bidding, auctioning, and listing as primary methods for mineral rights transfer [3][5]. - It establishes a clear property rights system, ensuring that mining rights are protected under law and that compensation is provided at market value if rights are revoked [5][6]. Environmental and Management Improvements - The new law includes a dedicated chapter on ecological restoration, establishing a clear responsibility framework for ecological management and requiring companies to incorporate restoration costs into their operational expenses [6][7]. - It emphasizes a principle of "natural recovery first, artificial restoration second," mandating a comprehensive management system for ecological restoration [6]. Impact on the Coal Industry - Short-term effects include increased barriers to resource acquisition, potentially accelerating the exit of smaller coal mines, as the costs associated with obtaining mining rights are expected to rise [7]. - The overall cost structure for coal production is likely to increase due to higher requirements for ecological restoration and safety upgrades, which may support coal prices [7][8]. - Long-term, the law is expected to drive market-oriented, green, and intensive development in the coal sector, fostering new business models that integrate resources, capital, and technology [8].

Core Points - The newly revised Mineral Resources Law in China officially took effect on July 1, marking the first major overhaul in 29 years, with significant changes made to nearly every article, expanding from 7 chapters and 53 articles to 8 chapters and 80 articles [1] Group 1: Key Changes in the Law - The new law includes specific provisions for mining land, addressing previous issues where mining companies faced difficulties in securing land use rights despite having exploration and mining rights, thus ensuring that mining land is not treated as general industrial land [2] - A "direct access" system for exploration and mining rights has been established, allowing exploration rights holders to convert their rights to mining rights more efficiently, addressing concerns about the lengthy process of transitioning from exploration to mining [2] - A compensation system for the recovery of mining rights has been introduced, ensuring fair and reasonable compensation for rights holders when their rights are reclaimed for public interest [2] Group 2: Market and Environmental Considerations - The new law introduces a market-oriented system for the allocation of exploration and mining rights through competitive methods such as bidding and auction, emphasizing the role of the market in resource allocation [3] - The law ends the previous dual-purpose licensing system, establishing a property registration system for exploration and mining rights, thus enhancing property rights protection [3] - A new chapter on ecological restoration in mining areas has been added, mandating that those who exploit mineral resources are responsible for ecological restoration, reinforcing the principle of "whoever mines, whoever restores" [3] Group 3: Investment Trends - Investment in mineral exploration in China has been rapidly increasing, with over 400 billion RMB allocated during the 14th Five-Year Plan period, and social funding accounting for over 90% of this investment, with projections of over 100 billion RMB in 2023 and 2024 [3]