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MEASURES FOR ADMINISTRATION OF COAL PRODUCTION LICENSE

Category  GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1994-12-20 Effective Date  1994-12-20  

Measures for Administration of Coal Production License



Chapter I  General Provisions
Chapter II  Requirements for Obtaining a Coal Production License
Chapter III  Procedures for Obtaining Coal Production License
Chapter IV  Supervision and Administration of Coal Production Licenses
Chapter V  Penalties
Chapter VI  Supplementary Provisions

(Promulgated by Decree No.168 of the State Council of the

People's Republic of China on December 20, 1994, and effective as of the
date of promulgation)
Chapter I  General Provisions

    Article 1  The Measures are formulated for purpose of strengthening the
administration of coal industry and ensuring safety in coal production.

    Article 2  Coal production enterprises mining coal within the territory of
the People's Republic of China must obtain a coal production license in
accordance with provisions of the Measures.

    Coal production enterprises having no coal production license shall not be
permitted to engage in coal production.

    Article 3  Departments in charge of coal industry of the State Council
and of the people's governments of provinces, autonomous regions and
municipalities directly under the Central Government shall be responsible
for the issue and administration of coal production license.
Chapter II  Requirements for Obtaining a Coal Production License

    Article 4  State-owned coal enterprises and foreign investment coal
enterprises applying for coal production licenses shall meet the following
requirements:

    (1) Have a coal mining license obtained in accordance with law;

    (2) Have an approved mining design or mining scheme;

    (3) The production system including mine elevator, transport, ventilation,
drainage and power supply, etc., is perfect and reliable, accords with
rules of coal mine safety prescribed by the state, and has been checked and
accepted in accordance with law;

    (4) The director of the coal enterprise has received proper training and
obtained a credential for directors of coal enterprises;

    (5) The gas inspector, coal miner driver and other special technical
workers have operation credentials issued in accordance with relevant
stipulations of the state by administrative department in charge of coal
industry of the local people's government at or above the county level;

    (6) The communication of production management up or down the pit,
inside or outside the mine is unblocked;

    (7) Have environmental protection measures required by relevant laws and
regulations;

    (8) Have a certification for the completion of safety equipment
for mine engineering; and

    (9) Other requirements prescribed by laws and regulations.

    Article 5  The coal enterprises other than state-owned and foreign
investment ones applying for a coal production license shall meet the
following requirements:

    (1) Have a coal mining license obtained in accordance with law;

    (2) Have an approved mining design;

    (3) The mine production system accords with rules of coal mine safety
prescribed by the state;

    (4) The director of the coal enterprise has received proper training and
obtained a credential for directors of coal enterprises;

    (5) The gas inspector, coal miner driver and other special technical
workers have operation credentials issued in accordance with relevant
stipulations of the state by administrative department in charge of coal
industry of the local people's government at or above the county level;

    (6) The communication of production management up or down the pit,
inside or outside the mine is unblocked;

    (7) Have up- against down-pit engineering drawings, plane figure for
excavation and ventilation figure;

    (8) Have necessary environmental protection measures;

    (9) Have a certification for the completion of safety equipment
for mine engineering; and

    (10) Other requirements prescribed by laws and regulations.
Chapter III  Procedures for Obtaining Coal Production License

    Article 6  The department in charge of coal industry of the State Council
shall be responsible for the issue and management of coal production licenses
with respect to coal enterprises coming under the following categories:

    (1) Coal enterprises approved to establish by the State Council and
competent departments concerned of the State Council;

    (2) Coal enterprises involving more than one province, autonomous region,
or municipality directly under the Central Government; and

    (3) Foreign investment coal enterprises.

    The department in charge of coal industry of the people's governments of
provinces, autonomous regions and municipalities directly under the Central
Government shall be responsible for the issue and management of coal
production licenses with respect to other coal enterprises than those listed
in the preceding paragraph.

    Article 7  Coal enterprises shall apply for a coal production license
for every mine(pit).

    Article 8  Coal enterprises applying for coal production license shall,
in accordance with provisions of Article 6 of the Measures, before
completing the construction of the mine(pit) and putting it into operation,
submit an application and related papers and data prescribed by Articles 4 and
5 of the Measures to the department in charge of coal industry of the State
Council or of the people's government of the province, autonomous region or
municipality directly under the Central Government (hereinafter referred
to as "agency for issue and administration of coal production licenses").

    Agency for issue and administration of coal production licenses shall,
within 60 days from receipt of the application and related papers and data
submitted by a coal enterprise, complete the examination and verification
thereof. Where the application is approved after examination, the agency
shall issue a coal production license to the applicant; Where the application
is not approved after examination, the coal production license shall not be
issued, but the agency shall send a written notice to the applicant, and
explain the reasons for disapproval.

    Article 9  Coal production licenses shall be made unitarily by the
department in charge of coal industry of the State Council. No other
organizations or individuals are allowed to make it without authorization.

    Article 10  The term of validity of the coal production license shall be
the same as the production and service period of the coal enterprise.
For the extension of the license, the coal enterprise shall, 3 months
before the expiration of the term, submit an application to the original
agency for issue and administration of coal production licenses.

    Article 11  Coal enterprises having obtained the coal production
license shall pay the agency for issue and administration of coal production
licenses the cost of making the license. The charging standard shall be
prescribed by the department in charge of the coal industry of the State
Council, in conjunction with the department in charge of finance and the
department in charge of price of the State Council.
Chapter IV  Supervision and Administration of Coal Production Licenses

    Article 12  Agencies for issue and administration of coal production
licenses shall strengthen the supervision and administration of coal
production licenses, and adopt an annual inspection system.

    Coal enterprises shall subject themselves to the supervision and
inspection by agency for issue and administration of coal production licenses.

    Article 13  Agencies for issue and administration of coal production
licenses shall institute and perfect a file management system for coal
production licenses.

    Article 14  The department in charge of coal industry of the people's
governments of provinces, autonomous regions and municipalities directly
under the Central Government shall send the license back-up file to the
department in charge of coal industry of the State Council immediately after
they have issued a coal production license.

    Article 15  In cases where any coal production license is found to be
improperly issued by the department in charge of coal industry of the
people's governments of provinces, autonomous regions or municipalities
directly under the Central Government, the department in charge of coal
industry of the State Council shall immediately put it right or have the
license revoked.
Chapter V  Penalties

    Article 16  Those violating provisions of the Measures and coming under
any of the following categories shall, according to the circumstances,
be imposed on a fine not exceeding 50,000 RMB, confiscated of all illegal
gains, ordered to suspend the production, or revoked of the coal production
license by the agency for issue and administration of coal production licenses
or by the department in charge of coal industry of people's government at the
county level authorized by the former:

    (1) Those engaging in coal production without a coal production
license;

    (2) Those still engaging in coal production without extending the coal
production license after the expiration of the license;

    (3) Those already in operation who are found failing to meet the
requirements for obtaining coal production license, but fail to make
rectification or improvement according to the demand of the department in
charge of coal industry, or fail to meet said requirements even after
rectification or improvement; or

    (4) Those counterfeiting, transferring or using other than their own
coal production license.

    Article 17  In cases where any department in charge of coal industry
commits any of the following acts in violation of the Measures, the directly
responsible person in charge and other directly responsible person shall be
subject to administrative sanctions:

    (1) Refusing to issue a coal production license to a coal enterprise which
is qualified for obtaining the license; or

    (2) Issuing a coal production license to a coal enterprise which is not
qualified for obtaining the license.

    Article 18  All revenue from punishment of fine and confiscation under
Article 16 of the Measures shall be turned over to the state treasury.
Chapter VI  Supplementary Provisions

    Article 19  Coal enterprises already in operation before the promulgation
and implementation of the Measures shall apply for a coal production license
retroactively within 6 months from the date of promulgation and implementation
of the Measures.

    Article 20  The department in charge of coal industry of the State Council
may make implementation rules according to the Measures.

    Article 21  The Measures shall enter into force on the date of
promulgation.



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