CHAPTER I GENERAL PROVISIONS

Article 1 This Law is enacted with a view to rationally developing, utilizing and protecting the coal resources, standardizing the production and marketing of coal, and promoting and ensuring the development of the coal industry.

Article 2 This Law shall be applied to the production and marketing of coal within the territory of the People's Republic of China and in the sea areas under its jurisdiction.

Article 3 The coal resources are owned by the State. The State ownership of the coal resources, either on the surface or underground, shall not change with the ownership or right to use of the land which the coal resources are attached to.

Article 4 With regard to the development of the coal resources, the State shall apply the principle of unified planning, rational geographical distribution and comprehensive utilization.

Article 5 The State shall protect the coal resources according to law and forbid any indiscriminate mining which is destructive to the coal resources.

Article 6 The State shall protect the lawful rights and interests of the persons who invest in the exploitation of the coal resources according to law.

The State shall protect the sound development of State-owned coal mines.
With regard to township coal mines, the State shall adopt the policies of support, transformation, rectification, merging and upgrading, so that they shall exploit the resources in a regular and rational manner and in good order.

Article 7 Coal mining enterprises must abide by the principle of safety in production, putting safety and prevention first, and establish and improve the responsibility system for safety in production and the system of prevention and control by the masses.

Article 8 The people's governments at all levels and the relevant departments thereof and the coal mining enterprises must take measures to strengthen occupational protection so as to guarantee the safety and health of coal mine workers and staff members.

The State shall take special protective measures for miners working in underground coal mines.

Article 9 The State shall encourage and support the adoption of advanced science and technology and managerial methods in the exploitation and utilization of coal resources.

Coal mining enterprises shall strengthen and improve their operation and management and increase their productivity and economic results.

Article 10 The State shall maintain order in production and other work in coal mine areas and protect the facilities of coal mining enterprises.

Article 11 Anyone who exploits or utilizes coal resources shall abide by the laws and regulations governing environmental protection, prevent and control pollution and other public hazards, and protect the ecological environment.

Article 12 The department in charge of the coal industry under the State Council shall be responsible for supervision and administration of the coal industry throughout the country according to law. The relevant departments under the State Council shall be responsible for supervision and administration of the coal industry within the limits of their respective functions and responsibilities.

The departments in charge of the coal industry and other relevant departments under the local people's governments at or above the county level shall be responsible for supervision and administration of the coal industry in their own administrative regions according to law.

Article 13 The coal mining administrations are State-owned coal mining enterprises each with the status of an independent legal entity.

The coal mining administrations and other coal mining and trading enterprises with the status of independent legal entities shall, according to law, make their own decisions regarding their operations, be responsible for their own losses and profits and be capable of expanding or contracting themselves.





CHAPTER II PLANS FOR COAL PRODUCTION AND DEVELOPMENT AND CONSTRUCTION OF COAL MINES

Article 14 The department in charge of the coal industry under the State Council shall, according to the national plan for exploring the mineral resources, work out the national plan for exploring the coal resources.

Article 15 The department in charge of the coal industry under the State Council shall, according to the coal resources designated in the national plan of the mineral resources arrange for the drawing up and execution of a plan for coal production and development.

The departments in charge of the coal industry under the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall, according to the coal resources designated in the national plan of the mineral resources arrange for the drawing up and execution of plans for local coal production and development and submit the plans to the department in charge of the coal industry under the State Council for the record.

Article 16 Plans for coal production and development shall be worked out in light of the needs of the national economic and social development and shall be incorporated into the plan for national economic and social development.

Article 17 The State shall formulate preferential policies to support the development of the coal industry and promote the construction of coal mines.

Coal mine construction projects shall conform with the plans for coal production and development and the policies for the coal industry.

Article 18 To establish a coal mining enterprise, the following requirements shall be met:

(1) having a feasibility study report on or mining plan for coal mine construction project;

(2) having a planned mining area, the limits of mining and a plan for comprehensive utilization of the resources;

(3) having geological, survey and hydrogeological data and other information needed for mining;

(4) having a mining design which meets the requirements of safety in coal mine production and of environmental protection;

(5) having a ratinal scale of coal mine production and the funds, equipment and technicians commensurate with such scale; and

(6) other requirements prescribed by laws and administrative rules and regulations.

Article 19 For establishing a coal mining enterprise, an application must be submitted to the department in charge of the coal industry according to law; the application shall be examined for approval in light of the requirements provided for in this Law and by the administrative department at the corresponding level with the authorization of the State Council.

Before examining and approving the application for establishing a coal mining enterprise, it is necessary for the department in charge of geology and mineral resources to verify the proposed limits of mining and the plan for comprehensive utilization of the resources and write down its comments with signature.

The coal mining enterprise that has obtained approval for establishment shall, by virtue of the document of approval, be issued the mining license by the department in charge of geology and mineral resources.

Article 20 To use land for construction of a coal mine, the coal mining enterprise shall go through the formalities in accordance with the relevant laws and administrative rules and regulations. Where it is necessary to requisition land, the enterprise shall, according to law, pay compensation for the land and for the evacuees and help the evacuees to settle down.

In construction of coal mines the principle of protecting the cultivated land and utilizing the land rationally shall be adhered to.

Local people's governments shall give support and assistance to the enterprise that uses land and has to have the residents move to another place in accordance with law for the construction of coal mine.

Article 21 In coal mines, coal exploitation and environmental control shall be sychronized. The facilities for environmental protection of a coal mine construction project must be designed, constructed, checked and accepted, and put into use simultaneously with the main project.