Mine geology and environmental management recovery deposit canceled

Recently, the Ministry of Finance, the Ministry of Land and Resources and the MEP jointly released the Guiding Opinions on Canceling the Recovery Deposit for Geological and Environmental Management of Mines and Establishing the Mine Geological Environment Restoration Fund (hereinafter referred to as "Opinions"), explicitly canceling the guarantee deposit system, Ways to raise governance to restore funding. The Opinions stipulates that the enterprise should transfer the returned deposit into a fund for the governance of the geological environment of the mine that has already been produced. At the same time, the establishment of dynamic monitoring mechanism of geological environment of mines, strengthen the supervision and inspection of the recovery of the governance of mining geological environment.
"Opinions" clear, cancel the deposit system. Mining companies no longer set up a special deposit account, deposit deposit. The classification of margin accounts set up has been canceled according to the procedure. For the deposits that are owned by the enterprises but need approval after approval by the relevant departments of land resources and finance, and deposited and deposited in the special accounts of the banks, the relationship between the withdrawal of funds and the examination and approval procedures shall be lifted. For remittances to special financial accounts, the enterprise shall apply for the security deposit for examination and approval by the relevant departments of land and resources and finance, and return the enterprise according to the actual amount of funds paid by the enterprise and the difference in expenditures for harnessing the geological environment of the mine that has been used by the enterprise. For enterprises that have lost the main body of governance responsibility, the deposit shall not be refunded and the government shall use it for the restoration of the geological environment of the mine. The enterprise shall transfer the returned deposit into a fund for the governance of the geological environment of the mine that has been produced.
"Opinions" pointed out that after the cancellation of security deposit, the enterprise shall undertake the responsibility of restoring the mine geological environment, and compile the requirements of the geological environment protection and land rehabilitation of the mine in accordance with the requirements of "Notice on Doing a Good Job of the Mine Geological Environment Protection and Land Reclamation Plan" Reclamation program, the main responsibility for monitoring the implementation of enterprises to strengthen mineral geological environment monitoring.
The Opinion proposes to raise funds for governance recovery through the establishment of a fund. According to the principle of meeting the actual demand, the mining enterprises shall calculate the estimated costs of recovery from the cost of rehabilitation of the geological environment of the mine according to the relevant provisions of the Accounting Standards for Business Enterprises and calculate the recorded costs of the related assets according to the principle of the actual geological environment protection and land reclamation. Amortization is made according to output ratio and other methods and included in production costs. At the same time, mining companies need to set up fund accounts in their bank accounts, reflecting the withdrawal of funds alone. The fund shall be used independently by the enterprise and shall be specially used for the land subsidence, ground fissure, collapse and collapse caused by the exploration and mining activities of mineral resources according to the fund budget, project implementation plan and schedule determined according to the mine geological environment protection and land reclamation plan, Landslides, topographic and landscape damage, destruction of aquifers, prevention and restoration of surface vegetation damage, monitoring of mineral geology and environment (excluding land reclamation). The implementation of fund recovery, utilization and recovery plan for mine geological environment protection and management of mining enterprises shall be included in the exploration and exploitation information publicity system of the mining rights holder.

"Opinions" require the establishment of mine geological environment dynamic regulatory mechanism. Local land and resources departments at all levels, together with the department of environmental protection, should establish a dynamic regulatory mechanism to strengthen the supervision and inspection of the recovery of the governance of enterprises' geological environment for mines. For enterprises that fail to carry out recovery and management work in accordance with the program of mineral geology and environmental protection and land reclamation, they shall be inscribed in the list of abnormalities or serious unlawful trust of the mining rights holders and ordered to make rectification within a time limit. If the rectification is not completed within the time limit or is not in place, it may not approve the application for a new mining permit or apply for extension, alteration or cancellation of a mining permit, and may not approve the application for new construction land. For those refusing to carry out the obligation of mine geological environment restoration and management, the competent authorities will establish credit records of their illegal information, including the national sharing platform for publication to the public, according to the relevant laws and regulations to punish them and pursue their legal responsibilities.

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