After the Spring Festival, the Ministry of Land and Resources issued intensively the Notice on Continuing Suspension of Applications for Coal Prospecting Rights and the Notice on Further Perfecting Issues Concerning the Registration Management of Mining Rights. The author believes that the two notifications are intended to regulate the handling of domestic exploration rights and mining rights, and further regulate the long-term development of the domestic coal market from the supply side. The main purpose of the notice is basically to focus on the bid and approval of new mineral rights, and there are some new changes compared with the past, but the impact on the deposit rights is relatively small.

Notice No. 1 “Notice on Further Perfecting the Issues Concerning the Registration Management of Mining Rights” on the scope of mining rights for domestic mining resources; the establishment, extension and approval of mining rights; the transfer and alteration of mining rights; and the recording and cancellation of mining rights mortgages Comprehensive planning. In terms of Xinli mining rights, it is clarified that the main entity that applies for the mineral rights must have an independent corporate legal person qualification, and the registered capital of the enterprise should not be less than 30 percent of the total investment in mine construction measured by the approved mineral resources development and utilization scheme. . In addition, in the process of the transfer of mining rights, it also explicitly regulates the transfer of mining rights and the integration of mineral mining rights.

The notice sets a new threshold for the qualifications and operational capabilities of the mining right applicant, which will help avoid the hot money speculation and control of irrational investment and transactions in the coal industry as a whole.

Notice No. 2 “Circular Concerning the Continued Suspension of Applications for Coal Prospecting Rights” is in fact a continuation of past policies. Since February 2007, the Ministry of Land and Resources has suspended the trial of new domestic exploration rights. The implementation of this policy lasted until 2008. The end of the year. Since then, the examination and approval of prospecting rights has not been released at the national level, and some provinces and cities, such as the Xinjiang Autonomous Region, have also introduced new mining prospecting rights in 2010. The exploration right is to control the total size of the coal industry from the exploration stage. The fundamental purpose of restricting the examination and approval of exploration rights is to prevent unqualified enterprises from blindly expanding their resources. Investment suggestion: From the second half of last year, we have always insisted that the importance of coal supply control in the coal market is higher than that of coal demand changes. The notice issued by the Ministry of Land and Resources this time is to strengthen the control over the total supply of the industry from the source of mineral rights. From an investment point of view, controlling the examination and approval of mining rights is conducive to standardizing industry standards and controlling coal production, which is conducive to long-term development of the industry. Moreover, the coal sector currently has both high growth and low valuation, and investors are advised to actively intervene. In February, the two types of companies focused on bullishness in the monthly report are maintained: 1. Suizhong Energy, Yanzhou Coal, and Shenhuo, which have significant valuation advantages; 2. Shanxi Coal International and Luan Ring Energy Xishan Coal and Pingzhuang Energy.