Ministry of Natural Resources
17th April, MNR(Ministry of Natural Resources): exploration and mining rights administration of 14 kinds of strategic minerals including: oil, hydrocarbon natural gas, shale gas, natural gas hydrate, radioactive mineral, tungsten, rare earth, tin, antimony, molybdenum, cobalt, lithium, potassium salt and crystalline graphite will be managed by the MNR. Specific mining right administration work involves: new registration, extension, amendment, suspension, cancelation and delimitation of mining areas. The notice will come to effect on 1st May, 2020.
Regarding other mineral exploration rights and mining rights already registered by the MNR before May 1, 2020, as well as the approved trial mining and approved delimitation of mining areas, the following administration work will be handed over to and conducted by the provincial level or a lower level of administration. Specifically, the follow-up registration of 11 kinds of resources: including coal, coal bed methane, iron, chromium, copper, bauxite, gold, nickel, zirconium, phosphorus and fluorite, shall be managed by the provincial level of natural resources authorities.
The notice of the MNR may send a positive signal to domestic refineries in Shanxi and Henna, indicative of increased supply of local bauxite over the mid-long term. However, according to market commentators, domestic costs of bauxite mining are unlikely to drop significantly given continued environmental and safety operation pressures during 2020.