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Chapter Law Content

Title: Mining Act CH
Category: Ministry of Economic Affairs(經濟部)
Chapter 2 Mineral Right
Section 1 Nature and Validity of Mineral Right
Article 10
Mineral right is deemed as a real right, to which, unless otherwise specified herein, provisions of real estate of Civil Code mutatis mutandis.
Article 11
Mineral right shall not be severed; however, conforming to mine interest, the right may be split as approved by the competent authority, but the area of its mineral area shall still be subject to the restriction under Article 9.
Article 12
The mineral right holder shall operate the mineral right on its own. Except for inheritance, assignment, mortgage, entrustment and compulsory enforcement, a mineral right shall not be subject to other rights or legal action.
The mortgage of a mineral right shall be limited to the mining right.
Article 13
Contract in breach of the provision under the preceding Article shall be invalid. The same applies for the assignment and entrustment of a mineral right without approval of the competent authority.
Article 14
The duration of an exploration right may not exceed four years. An extension is eligible for within one year to six months prior to the expiration of the right. The extension period may not exceed two years and may only eligible one time.
If the exploration right holder applies for extension of exploration right in accordance with the preceding Paragraph, the exploration right shall be deemed to be in effect during the period between the expiry date of the exploration right and the competent authority approval or dismiss date of the said application.
Article 15
The duration of a mining right may not exceed twenty years. An extension is eligible for within two years to one year prior to the expiration of the right. The extension period may not exceed twenty years..
If the mining right holder applies for extension of mining right in accordance by the Act, the mining right shall be deemed to be in effect during the period between the expiry date of the mining right and the competent authority approval or dismiss date of the said application.
Article 16
The establishment, extension, alteration, voluntarily aborted, or transfer by assignment or entrustment of a mining right shall not take effect without the approval and registration of the competent authority.
The following items shall not be valid unless registered with the competent authority:
1. Nullification of and the disposal imposed on a mineral right.
2. Transfer of the mineral right by inheritance or compulsory execution.
3. Establishment, alteration, transfer, nullification of and the disposal imposed on a mortgage.
The competent authority shall issue or remark on a mining license upon approval of the application for paragraph 1 and the registration of transfer by inheritance or compulsory execution.
The registration regulations of the qualification of applicants, application process, registration period, registration items, plans, drawings, and documents to be submitted, and other provisions to be followed for paragraphs 1 and 2 shall be established by the competent authority.
Section 2 Establishment and Renewal of Mineral Right
Article 17
When applying for establishment of an exploration right, an applicant shall submit an application form, application fee, mineral concession map, conceptualized exploration plans and drawings, and mine environment maintenance plan; while applying for establishment of a mining right, an applicant shall submit an application form, application fee, mineral concession map, ore deposit description plans and drawings, conceptualized mining plans and drawings, and mine environment maintenance plan.
In the conceptualized exploration plans and drawings under the preceding Paragraph, soil and water conservation, mine safety measures, mining hazard prevention, and other matters required by the competent authority shall be described in details. In the conceptualized mining plans and drawings, except aforesaid matters to be described, applied mining production amount and evaluation of economic values shall be additionally described in details.
Article 18
The boundary and area of a mineral concession shall be measured in the manner as promulgated by the competent authority.
Article 19
In one of the following situations, the competent authority shall not accept the application for establishing a mineral right if:
1. A mineral right applicant fails to submit complete application plans, drawings and documents as required pursuant to Paragraph 1 of Article 17.
2. The attached mineral concession map gives no name of place or border of the mineral concession.
3.The mineral claimed area is not within jurisdiction.
4. An applicant fails to conform to Article 7.
5. The minerals specified in the application form are not those listed under Article 3.
6. The mineral claimed area is located totally within the area where an application has been stopped under Paragraph 1 of Article 30, or the area where exploration and mining is prohibited under Paragraph 2 of Article 30.
7. The minerals specified in the application form have been designated as minerals prohibited to exploration and mining in mineral reservation areas.
8. An applicant fails to pay application fee for establishing the mineral right.
Article 20
In one of the following situations, the competent authority shall dismiss the application for establishing a mineral right if:
1.A mineral right applicant, who submit plans, drawings, and documents under Paragraph 1 of Article 17 or Paragraph 2 of Article 31, fails to supplement or amend or fails to resubmit complete supplemented and amended plans, drawings, and documents within a given period of time required by the competent authority after the document has been reviewed.
2. A mineral right applicant keeps failing to guide to survey the area claimed by the applicant on the designated date after the second notice, or fails to denote the claimed area on survey, or the denoted area on survey is totally different from the claimed area on the mineral concession map.
3. A mineral right applicant fails to correct within a given period time the difference of the location and the shape of the claimed area from the mineral deposits, which can damage mining interest.
4. A mineral right applicant fails to pay review fee survey fee, current mineral right fee, license fee and registration fee within a given period of time after the application has been reviewed and the payment notice has been issued by the competent authority.
5. The competent authority reviews economic benefits and evaluates and determines that the development shall not be approved.
6. The establishment of the mineral right would be detrimental to the public interest.
7. Any matters under this Act or other laws and regulations which shall be dismissed or not be approved.
The competent authority accepting application of a mineral right shall survey the claimed area of mine and shall decide to approve or dismiss such application within 6 months after accepting the application.
Article 21
The applicant of a mineral right may for the cause of mining interest apply for increase or decrease the acreage of the claimed area; however, the acreage of the claimed area shall remain subject to the provision of Article 9.
Article 22
When the exploration right claimed area is deem suitable for mining, the competent authority may notify the exploration right applicant to submit an application for mining right within a given period of time. If the applicant fails to do so, the competent authority may dismiss the original application for the exploration right.
Article 23
If a mineral claimed area is found to be overlapping in two or more application for the same kind of mineral, the competent authority shall give the priority review for the overlapping part to the one who first submitted the application.
If the applications referred in the preceding Paragraph are received on same day, the competent authority shall notify the applicants to negotiate new applications within a given period of time. If the applicants fail to do so, the competent authority shall determine the priority by lots drawing. However, when an exploration claimed area overlaps with a mining claimed area, the competent authority shall give the priority review to the case of mining application.
If the applicant mentioned in the preceding Paragraph owns more than 50% of the mineral claimed area, the competent authority shall give the priority review to such an application.
Article 24
If an exploration right applicant submits an application form for a mining right for the same type of mineral over the same claimed area which overlaps with another mining claimed area applied by other applicant, the arrival date of the application form for the exploration right shall be deemed as the arrival date of the application form for the mining right.
Article 25
If a mineral claimed area is found to overlap with another applicant’s mining concession for the same kind of mineral, the overlapped part of the mineral claimed area shall not be approved.
Article 26
During the review period for the application for exploration claimed area, if the competent authority find the said area overlap with another application for mining for the same kind of mineral, the overlapped part area shall be in accordance with Article 22, mutatis mutandis.
Article 27
If a mineral claimed area is found to overlap with another applicant’s mineral claimed area or mining concession for the different kinds of mineral, the competent authority shall notify the one who first applies for the mineral claimed area or the holder of mineral right to apply for such different kind of mineral and give the priority review to the application filed within 90 days after notification.
Article 28
If the exploration right holder applies for the mining right within 30 days following the expiration of exploration right, the competent authority shall give the application priority review to the said holder.
Article 29
Application for a mineral right in the following areas shall not be approved:
1. Within the forbidden areas of fortress, military port, garrison area, and military facility and premises, where permissions of the related competent authorities have not secured.
2. Within the environmentally sensitive areas where permission, according to relevant laws and regulations about establishment, of the related competent authorities shall secure, but related competent authorities reject after consultation.
3.Within designated scenic area, where permissions of the related competent authorities have not secured.
4. Within 150 meters from public buildings, railroads, national highways, provincial highways, power plants and famous relics, where permissions of the related competent authorities have not secured.
5. Within the areas where exploration or mining is prohibited without permission of the competent authority that is stipulated by other Acts, where permissions of the related competent authorities have not secured.
6. Within national park area and the areas where the exploration or mining is prohibited by other Acts.
Article 30
To explore for minerals and adjust the mineral concession, the competent authority may designate an area to stop acceptance of new applications.
With the need for public interest, the competent authority may designate all or part of the mineral concessions affecting public interest as a mining-prohibited area under the application of other competent authorities; or the other competent authorities involved in public interest restrict the exploration or mining on a mining land approved for mining operation under their Acts, leading to an operational loss, the mineral right holder may claim compensation for the loss suffered within the valid period of the mineral right against the obligating agencies who have imposed such prohibition or restriction.
The competent authority shall prescribe the scope and recognition standard of the loss under the preceding Paragraph.
The disputes once arisen among the mineral right holders and the entity applying for designating an area to be prohibited or restricted for exploration or mining, or other entities obliged to such compensation under Paragraph 2, may be settled by the competent authority through forming a settlement committee by inviting experts and scholars.
After designating a mining-prohibited area, the competent authority shall abort all or part of the mineral right.
Article 31
As the application for establishing a mineral right has no conditions provided in Article 19 and Article 29, the competent authority shall inform the mineral right applicant to post its plans, drawings, and documents on the designated website and publicly exhibit such plans, drawings, and documents on the announcement boards of the township (town, city, district) public offices, village (tsun/li) offices, and tribes in the mineral claimed area for 30 days. After citizens, groups and authorities express their opinions on the designated website or inwriting during the period of posting or public exhibition, the mineral right applicant shall hold explanatory meetings, hear the opinions, and inform owners of land and buildings and those obtaining right to use such land and buildings to attend such meetings. However, the mineral right applicant for petroleum and natural gas may be exempted to inform owners of land and buildings and those obtaining right to use such land and buildings to attend such meetings.
A mineral right applicant shall integrate and deliver the written opinions and records of explanatory meetings to the competent authority.
The competent authority may invite experts and scholars to involve the review of conceptualized exploration plans and drawings and conceptualized mining plans and drawings.
After approving or dismissing a mineral right, the competent authority shall actively announce the decision of approval or dismissal on the designated website in accordance with relevant provisions of the Freedom of Government Information Law.
As informing owners of land and buildings and those obtaining right to use such land and buildings under the provision of Paragraph 1, a mineral right applicant may apply with the competent authority for assisting to inquire personal data. For assisting to inquire personal data, the competent authority may contact relevant authorities to provide. The processing and use of personal data obtained by a mineral right applicant shall be handled in accordance with the Personal Data Protection Act.
The regulations governing holding procedures of explanatory meetings, and plans, drawings and documents which shall be post and publicly exhibited, and other matters for compliance under Paragraph 1 shall be prescribed by the competent authority. If the mineral claimed area is located in the area of indigenous peoples, the competent authority shall consult with the central competent authority of indigenous peoples to prescribe the regulations.
Article 32
As approving a mining right, the competent authority shall describe the area of mineral concession, approved mining production amount on that occasion, and validity period of the mineral right in details.
The competent authority may elastically adjust approved mining production amount at such approval to respond the domestic demand. The range of adjustment is 10% of approved mining production amount on that occasion in principle.
The provision of Paragraph 1 regarding mining license shall describe approved mining production amount on that occasion shall not apply to petroleum & oil shale, natural gas or other minerals designated by the Executive Yuan.
Article 33
The competent authority, when necessary, may announce designated minerals and areas as mineral reservation areas and forbid to explore or mine minerals.
As holding it is not necessary to reserve the mineral reservation areas designated under the preceding Paragraph, the competent authority may announce to change or cancel such designation.
Before designating, changing or canceling the mineral reservation areas, the competent authority shall publicly exhibit relevant plans on the designated website and municipality and county (city) governments and township (town, city, district) public offices where the mineral reservation areas are located for 30 days, and then hold explanatory meetings, hear the opinions, and inform owners of land and buildings and those obtaining right to use such land and buildings to attend such meetings.
The decisions made by the competent authority to designate, change or cancel the mineral reservation areas shall be post on the designated website.
Article 34
Except submitting relevant plans, drawings and documents by applying Article 17 mutatis mutandis, those applying the renewal of the mineral right, which if originally approved mining land exists in the mineral concession, shall attach the following documents:
1. The shutdown plan of mine.
2. The consent documents issued by owners of land and buildings and those obtaining right to use such land and buildings if the mining land is located in private land. If it is located in public land, the consent documents issued by the land management authorities and the holders of other rights.
In one of the following situations, the competent authority shall reject to accept the application for the renewal of the mineral right:
1. Failing to submit the application within the period stipulated by Paragraph 1 of Article 14, Paragraph 1 of Article 15, or Article 84.
2. Failing to attach complete application plans, drawings and documents under the preceding Paragraph, or attached mineral concession map giving no name of place or border of the mineral concession, or failing to pay application fees.
3. The minerals specified in the application form is not in the list under Article 3 or have been designated as minerals prohibited to exploration and mining in mineral reservation areas.
Renewal procedures and approval for a mineral right may apply Articles 31 and 32 mutatis mutandis.
Article 35
In one of the following situations, except mutatis mutandis with Article 20, the competent authority shall dismiss all or part of an application for renewal of a mineral right:
1. The applicant different from the mineral right holder.
2. Lack of production record of exploration or mining without a good reason.
3. Having one of the items provided under Article 29 after establishment of a mineral right.
4.Failing to attach the shutdown plan of mine provided in the Subparagraph 1, Paragraph 1 of the preceding Article.
5.Failing to attach the consent documents provided in the Subparagraph 2, Paragraph 1 of the preceding Article.
6. Having one of the items provided under Article 42.
7. Having one of the items provided under Article 65 and being un-improvable.
Under the circumstances specified in Subparagraph 5 of the preceding Paragraph, if applicant submit certified documents of apply settlement or litigation on the land use right dispute, the competent authority may stop reviewing the application and notify the applicant to conduct the examination after the settlement or court decision is finalized, and the suspension period shall not be included in the period in accordance with the preceding paragraph applies mutatis mutandis with paragraph 2 of Article 20 .
Article 36
As to the area prospected by the competent authority as worth to mine but without establishing a mineral right, or the area registered by the competent authority as its mineral right was revoked in accordance with the provision of the Act, aborted in accordance with Subparagraph 1 or 3 of Article 42, or aborted in accordance with Paragraph 2 of Article 78 due to one of Subparagraphs 1 to 3 of Article 65, the competent authority may establish the qualification of applicant, capital amount, nature of the business operated, scale of development and other necessary conditions and make public for application within a certain period of time for establishing a mineral right. However, the original mineral right holder shall not be eligible for re-application. The original right holder shall not be allowed to apply for the mineral right to the area of any adjustment made if this is the case.
If there are more than two persons submitting applications for the same area within the announced period under the preceding Paragraph and such applications comply with the provisions of the preceding Paragraph, the award of the mineral right shall be determined by lots drawing.
Article 37
In order to avoid overlapping in application of a mineral right, people may apply by submitting plans, drawings and documents with the competent authority for referring to mineral right registry.
Section 3 Change, Transfer and Extinction of Mineral Right
Article 38
When applying for decreasing, combining or severing of the approved mineral concession, the mineral right holder shall submit application form, new and old mineral concession plan and reason statement to the competent authority. The area of the mineral concessions shall be still subject to the restriction of Article 9.
The processing of the application in the preceding Paragraph shall be in accordance with Article 20, mutatis mutandis.
Article 39
When requiring excavation into adjacent mineral concession due to the location or shape of a mineral deposit, the mineral right holder may negotiate with the adjacent mineral right holder to obtain a consent letter and jointly apply with the adjacent mineral right holder to the competent authority for mineral concession adjustment with the consent letter and mineral deposit explanation plans and drawings and relevant plans and drawings. The area of mineral concession shall be still subject to the restriction of Article 9.
When requiring drilling a well or excavating a shaft or tunnel through adjacent mineral concession due to the location or shape of a mineral deposit, the mineral right holder may negotiate with the adjacent mineral right holder to obtain a consent letter and apply to the competent authority for approval of construction with the consent letter and construction drawings and its explanation.
Article 40
The transfer of a mineral right shall be made in writing and apply to the competent authority in accordance with the following requirements:
1. Transfer due to inheritance shall be applied by the successor.
2. Transfer due to assignment shall be applied by the assignee and the mineral right holder jointly.
3. Transfer due to compulsory execution shall be applied by the creditor.
4. Transfer due to entrustment shall be applied jointly by the trustee and the mineral right holder.
At transfer of a mineral right, the rights and obligations imposed on the mineral right holder related to the mineral right shall be transferred together.
Article 41
After the mineral right holders, the responsible persons of judicial persons, agents, employees or other relevant persons of the mineral right holders have been convicted of the crimes of Offenses of Forging Instruments or Seals Chapter, Article 339 or Article 339-4 of the Criminal Code in obtaining a mineral right through such illegal methods and have been thus sentenced to fixed-term imprisonment or heavier punishment without pronouncement of probation or commuted-fine by a final and binding judgment of the court, the competent authority shall, ex office or upon application filed by interested parties, revoke the mineral right.
Article 42
As a mineral right holder has one of the following situations, the competent authority shall abort its mineral right:
1.Failing to commence work within 2 years after registration of mineral right or stop work intermediately for more than one year; however, with a good reason and an approval of the competent authority, the punishment shall be exempted.
2. The operation of mining is impeding public interest which is un-reparable.
3.Failng to pay the mineral right fee or mineral royalty for more than 1 year.
If the recognition of the good reason provided by the proviso of Subparagraph 1 in the preceding Paragraph involves the matters of indigenous peoples, the competent authority shall consult with local or central competent authorities of indigenous peoples for their opinions.
Article 43
As a mineral right has one of the following situations, except those situations provided under Paragraph 1 of Article 46, the competent authority shall make extinction registration if:
1. Mineral right is revoked or aborted by the competent authority in accordance with the provision of the Act.
2. Mineral right holder voluntarily applies to abort the mineral right and the competent authority approves such application within the validity period of the mineral right.
3. Mineral right holder fails to apply for renewal of the mineral right in accordance with the provision of this Act and the period of the mineral right also expires.
4. Renewal application made by the mineral right holder in accordance with the provisions of this Act is dismissed by the competent authority or is voluntarily withdrawn and the period of mineral right also expires.
The registration of mortgage extinction shall be made concurrently along with the registration of mining right extinction.
Article 44
After a mineral right is revoked, aborted or voluntarily aborted, the original mineral right holder shall dispose the property and equipment by itself within 1 year from the date of extinction registration; however, additional one-year extension may be granted by the competent authority under special condition of no harm to the mineral interest.
After extinction of a mineral right, the original right holder, for mineral interest protection or hazard prevention, shall not freely dispose the equipment without the approval of the competent authority, and shall still comply with Mine Safety Act and its regulations.
Section 4 Mortgage of Mining Right
Article 45
After creating mortgage, the mining right holder shall submit a letter of consent of mortgagee when applying with the competent authority for abatement, severance, combination, reduction, increase or adjustment of mineral concessions.
Article 46
The competent authority shall notify the mortgagees before processing extinction registration of mining rights that were mortgaged before the amendment of this Act that took effect on Dec. 31, 2003, due to revocation, cancellation, or voluntary application for abortion of the mining right approval. The mining right shall not be exercised after the mining right holder submits an application for abortion of the mining right, or after the revocation or cancellation decision is made by the competent authority, until the mining right is auctioned off.
The mortgagees may still request court for auction of the mining right within 60 days after the receipt of notice according to the preceding Paragraph, even if the debt is not yet due; however, as abortion is made for approval of mining right due to impeding of public interest under Paragraph 2 of Article 42, no auction request shall be made.
The competent authority shall make extinction registration of the mining right under Paragraph 1 at the transfer registration due to final auction.
The mining right acquired from the auction under Paragraph 1 shall be acquired from the date of extinction of the original mining right. The validity shall be expired at the expiration of original mining right.