New Regulations on Mineral Exploration in China


On July 18, 2008, the Ministry of Commerce (“MOFCOM”) and the Ministry of Land and Resources (“MOLAR”) jointly promulgated the Measures for the Administration of the Foreign-invested Mineral Exploration(??????????????)(the “Measures”). The Measures come into force on

August 20, 2008. For the most part, the Measures consolidate existing rules governing the establishment and operation of foreign-invested exploration enterprises (“Exploration FIEs”) rather than creating a new regulatory framework. In some cases they clarify requirements. It may be that promulgation of the Measures signals the intention of regulators to give greater scrutiny to foreign

investment in exploration, although this remains to be seen.

This memorandum briefly reviews provisions of the Measures of likely interest to foreign companies pursuing exploration projects in China. We would be pleased to discuss the specific implications of the Measures for your current and future investment projects. An English translation of the Measures is available upon request.

Please see full legal update for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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