In market economy countries, in order to promote the sustainable development of mining and meet the demand for resources for national construction, special industrial policies are usually implemented for mineral exploration work. Government support policies for commercial mineral exploration generally include: legal support, fiscal and taxation support, financial support, information support, technical support, etc. The policy support system mainly considers the following aspects, as shown in Figure 6-2.
Figure 6-2 Commercial mineral exploration policy support system framework
1. Mineral exploration industry promotion policy
Mineral exploration is at the forefront of the mining industry. The basis of basic industries. my country's mineral exploration industry has long had vague industrial attributes and unclear industrial status. Therefore, it is necessary to implement national industry promotion policies for mineral exploration. In this regard, we can learn from domestic and foreign mineral exploration industry promotion policies, as well as industrial promotion policies in other industries, such as similar oil and gas industry policies, water conservancy industry policies, etc., to study and formulate industry promotion policies that conform to the laws of my country's mineral exploration.
(1) Promote the industrialization of mineral exploration
In accordance with the goals and requirements of the geological exploration system reform, effectively change the long-term dependence of mineral exploration on the operation of the business system, and promote mineral exploration of industrialization. Clarify the basic industry status of mineral exploration, separate it from general public welfare geological work, and integrate it into the large mining system for management. At the same time, it is necessary to clarify that the country implements a policy of giving priority to the development of the mineral exploration industry (moderately ahead of the development of the national economy, 1 to 2 five-year plans in advance.) and gradually integrate mineral exploration into the mining industry to form a virtuous cycle mechanism for mineral exploration and production.
(2) Form a reasonable entry and exit mechanism for the mineral exploration industry
Formulate policies that encourage exploration and are conducive to the entry and exit of exploration rights holders, and at the same time restrict "horse racing" The phenomenon of "enclosing land" and "occupying without exploring" promotes the transfer of exploration rights, and continuously optimizes the allocation of various exploration element resources during the transfer.
1. It is necessary to implement the principles of "low threshold, strict supervision" and "early applicants first" for commercial exploration access
Commercial mineral exploration is the starting point and the starting point for large-scale mining. lifeline. Subjectively, the exploration rights holder explores for profit and mining; objectively, the commercial mineral exploration process improves the research level of a country's land resources. For the country, commercial mineral exploration work is conducive to realizing the country’s ownership rights and strategic interests in resources.
Almost all countries in the world encourage commercial mineral exploration with special preferential policies, and the entry barriers and costs are relatively low. The mining laws and relevant laws and regulations of many important mineral-producing countries stipulate that natural persons, legal persons, and unincorporated persons can obtain exploration rights and carry out commercial mineral exploration activities. The main way to obtain exploration rights in market economy countries is to apply for grant according to the principle of priority for early applicants (first come, first served, simultaneous applications will be determined by drawing lots). This acquisition method accounts for more than 95% of the total number of exploration rights in market economy countries. As for technical conditions, financial conditions, and the ability to protect the environment, they are not prerequisites for commercial mineral explorers to obtain exploration rights. Therefore, it should be clarified that "low threshold, strict supervision" and "early applicants first" are the basic principles for obtaining exploration rights. In some special cases, bidding for exploration rights and other forms may be adopted.
While implementing low entry thresholds for mineral exploration, it is necessary to limit the phenomena of "racing for land" and "occupying without exploring". If the actual capital investment in geological exploration work fails to meet the legal requirements, certain restrictions must be imposed.
2. It is necessary to clarify the scope and conditions of "tendering, auctioning and listing"
Learning from common foreign practices, the transfer of exploration and mining rights through bidding must have a clear scope of application : First, a bidding system can be implemented for commercial mineral exploration of petroleum. Second, for the development of mineral resources such as sand, gravel, soil, and other mineral resources, bidding and auction systems are often used. Because the value of sand and gravel soil resources is easy to determine, under normal circumstances, no exploration rights are set up, and the mining rights of sand and gravel soil resources are directly tendered.
Concentrate high-quality resources in the mineral exploration industry, implement equity diversification reform, and form a limited liability company. Support qualified companies to transform into joint-stock companies and then achieve listing: First, the investors of the main geological exploration business must be in place, perform the function of protecting the rights and interests of shareholders, treat mineral exploration investment as risk investment, and pursue value preservation and appreciation. Second, it is clear that the final output of mineral exploration is exploration rights and mining rights, and its value form is the price of mining rights. This is the goal and the pursuit of economic benefits. Thirdly, we must vigorously support private-scale mining enterprises and joint-stock mining companies to enter the commercial mineral exploration market. Private mining enterprises are an important force that has suddenly emerged in my country's mining industry in recent years. Private mining enterprises are becoming a force that cannot be ignored in the mineral exploration and development market. Many private mining enterprises operate in accordance with the standardized corporate governance structure and attach great importance to enterprises. Exploration and reserve of reserve resources. Therefore, the participation of private mining companies will help stimulate the vitality of the mineral exploration market and play a positive role in promoting the formation of a truly commercial mineral exploration market.
(4) Establish and improve the financial management system of geological exploration units and mining enterprises, and account for and manage exploration rights and mining rights as assets
Investments in exploration rights and mining rights are all It is an important part of the cost of mineral products in the mining production process. The investment of geological exploration units in mineral exploration activities must be capitalized and fully cost accounted in accordance with the requirements of the enterprise's financial system. As for the reserves currently held by state-owned mining enterprises that can be mined, any reserves obtained free of charge must be evaluated and recorded as assets for management; the national and local finances will no longer provide geological results for free to mining enterprises in the future. These companies must, like other market entities, capitalize on exploration investments to resolve their reserve mineral resources.
(5) Promote the development of small and medium-sized exploration companies
Judging from foreign development experience, small and medium-sized primary mineral exploration companies and prospectors are more adaptable to the needs of the development of the exploration market. It is more in line with the requirements for optimal allocation of resources, thereby occupying a dominant position in the mineral exploration market. To adapt to the requirements of productivity development, we must vigorously promote the prosperity and development of small and medium-sized primary exploration companies. Lower the entry threshold for mineral exploration and stipulate that natural persons, legal persons, and illegal persons can register exploration rights and carry out commercial mineral exploration activities. In market economy countries, unincorporated enterprises apply to obtain exploration rights, making commercial mineral exploration work more active in market economy countries. In addition, with the separation of mineral exploration investment entities and operating entities, the demand for exploration professional technical services will increase. Some geological exploration units can adapt to the needs and transform into enterprises that provide technical services. All types of geological exploration units, including intermediary services, must be encouraged and promoted. The development of professional technical service companies.
2. Implement investment and financing policies to promote mineral exploration
Based on the characteristics of mineral exploration, we propose investment and financing policies that need to be formulated to encourage exploration. This is an important supporting condition for achieving new breakthroughs in geological prospecting.
(1) Implement the legal entity investment system
This is the core of building a new investment mechanism for commercial geological work. The forms of investment that can be implemented by legal entities include: state investment, corporate investment, directional government bonds, funds raised from stock listings, etc. The general principle is to overcome the mechanism of enterprise prospecting and change the mechanism in which mineral exploration relies on national financial funds for prospecting. The investor of geological exploration must be implemented as a legal entity and bear the responsibility of maintaining and increasing value, so that it can truly care about the results of mineral exploration. In recent years, the world's non-oil and gas exploration investment in normal years has been around US$3.5 billion to US$4 billion. my country's current consumption of major mineral products accounts for more than 20% of the world's total consumption. According to this ratio, my country’s total non-oil and gas annual exploration capital should not be less than 6 billion yuan/year in the next five years.
(2) Establishing an exploration capital market
Through the capital market, the main purpose is to solve the problem of diversification and socialization of mineral exploration risks. Commercial mineral exploration will not be able to achieve rapid growth without the support of relatively complete capital markets and financial derivatives. Commercial mineral exploration is an industry with large capital flows and is a long-term venture investment, so it is naturally dependent on the capital market.
There is almost no large-scale mining company in foreign market economy countries that is not a listed company. At present, my country's mining industry is still basically a cash production model, mainly relying on the company's own cash flow for support. If there is no mining capital market to resolve risks and realize mining rights, it will be difficult to form an exit mechanism for commercial mineral exploration. According to relevant analysis, commercial mineral exploration relies on the advantages of capital market support: first, if the risks of commercial mineral exploration are borne by all shareholders, the absolute value of the risk will be minimized; second, once commercial mineral exploration shows results, Due to the linkage between resources and capital, under the model of a listed company, the stock value is calculated in minutes, hours, and days, and the company's financing capabilities are enhanced and responsive; third, when the resources are fully explored and have development value , listed companies can raise project development funds by issuing additional shares, and the financing efficiency is extremely fast; fourth, when the controller or shareholders want to invest in other industries, they can withdraw from the stock market and realize the mining rights at any time.
The key to relying on capital market financing is that the evaluation of exploration projects must be credible. my country currently lacks market intermediaries such as independent geologists. In the early stage, consideration can be given to geological exploration projects approved by relevant geological experts organized by the government, and funds raised through stock listings to engage in geological exploration. Gradually establish and improve relevant policies and intermediary systems during development.
(3) Establish various forms of investment and financing support systems
Explore multi-channel and multi-mode investment and financing support policies for mineral exploration. This includes establishing a national geological exploration fund (working capital); establishing a risk exploration mechanism in which local finance and social funds jointly participate in mineral exploration and share rights and interests; establishing a government risk sharing mechanism to guarantee loans or guarantee loans for approved exploration projects. Provide subsidies. Change the practice of arranging mineral resource compensation fees for geological exploration projects, increase the local retention ratio, and use most of the funds as subsidies for discovering mineral resources and proving reserves. Any legal person enterprise that self-funds the discovery of large and medium-sized mineral resources shall, according to It discovers the size of mineral resource reserves and issues mineral resource compensation fees.
On the basis of scientific evaluation, companies are allowed to use mining rights with commercial value (exploration rights and mining rights that have not yet been put into development) to mortgage loans. In order to eliminate commercial banks' concerns about risk expectations (in fact, the risks are not large), the state can assign tasks to policy banks in the initial stage of implementing this policy.
3. Implement fiscal and taxation support policies to promote mineral exploration
The functions of fiscal and taxation support policies are mainly reflected in two aspects: one is to reduce the risk of exploration investment (risk sharing); the other is to increase Exploration investment (enhancing investment capabilities). Reduce exploration investment risks through financial subsidies and tax policies, and encourage and increase exploration investment.
There are three main ways of financial support for mineral exploration: First, business funding. Provide funds for public welfare mineral resource investigation and evaluation, improve the level of geological research in the country or certain regions, and increase geological prospecting information, thereby reducing or reducing the prospecting risks of mineral exploration investors. The second is exploration subsidies. Implement subsidies for mineral exploration projects. Subsidy projects are determined based on the national macro-control objectives and the mineral resources situation. Including: due to the poor natural abundance of domestic mineral resources and lack of international competitiveness, subsidies are provided to improve the self-sufficiency of domestic resources; some are subsidized to solve the resource crisis in old mines, relieve the pressure of unemployment, and maintain social stability; some are subsidized. Subsidies are provided to support the development of certain areas and minerals to achieve specific political and economic goals. The subsidy mechanism is to match fiscal funds with the funds of the subsidized enterprises in proportion, and simultaneously invest in mineral exploration. If the prospecting is successful, the interests will be shared in proportion to each other; if the prospecting fails, the subsidy will be written off by the government to reduce the company's risk losses. The third is capital investment. By increasing capital to state-owned mining and geological exploration units, enterprises assume the responsibility of maintaining and increasing the value of capital.
(1) Reform the geological survey fee system
Under the planned economic system, geological survey fees are listed as funds for geological work and are subject to a write-off system and do not form an investment. After localization, the state's use of geological exploration fees is divided into four categories: retired personnel funds, recurring expenses, geological exploration work funds, and transferred national capital funds.
From a practical point of view, the main part of the current geological exploration fee no longer carries the function of exploration and mineral exploration. The geological exploration fee subjects that are “not worthy of their name” should be reformed, and regular work funds, public welfare geological survey expenses, mineral exploration investments, etc. should be divided according to the actual expenditure direction. The reformed geological survey fee system should be managed using a double-entry budget method and divided into recurring expenses and constructive expenses.
Recurring expenses mainly protect the capitation fee of retirees a certain year ago and the salaries of current employees. With the deepening of the corporateization of geological exploration units, employees will gradually turn to participate in social pension insurance. Constructive expenses are mainly used for public welfare geological work (that is, the results can be disclosed to the public), risk subsidies for general prospecting, and limited subsidies for commercial mineral exploration. Funds for public welfare geological work are managed and allocated by the geological and mineral resources department of the State Council at the first level. They are open to national geological exploration institutions with appropriate qualifications and are mainly implemented through departmental entrustment. They also need to pilot bidding methods. The risk subsidy for general mineral prospecting mainly determines the mineral types and subsidy bases through the mineral prospecting guidelines formulated by the competent government departments. Failed projects are written off. For minerals with commercial development value, the geological exploration unit is recognized as intangible assets. It has priority exploration rights and mining rights, and can trade mineral rights in the market, and can also reduce taxes and fees according to relevant policies.
(2) Establish risk subsidies for mineral exploration
Fiscal funds should be converted into subsidies for risk exploration and support mineral exploration with higher risks. Establish fiscal funds as subsidies, clarify subsidy conditions, and focus on supporting key projects in certain important mineral types, regions, and mining areas. Change the practice of arranging mineral resource compensation fees for geological exploration projects, increase the local retention ratio, and use most of the funds as subsidies for discovering mineral resources and proving reserves. If a certain proportion of the size of mineral resource reserves is discovered, mineral resource compensation fees will be paid. Drawing lessons from foreign practices, an exploration subsidy program is implemented. For high-risk exploration projects, the explorer applies, and a certain proportion of subsidies will be given to projects that meet the prescribed conditions. A national risk subsidy and capital increase system can also be implemented for the general prospecting work (the national risk fee is 70 to 80% of the full amount). If the exploration fails, the national risk fee will be written off. If the exploration is successful, the registered assets will be handed over to the original geological exploration unit for operation and capital increase. This will The level of exploration of a work can only be basic until anomalies are verified.
(3) Implement the "mineral resource depletion subsidy" policy
Allow mining companies to use a certain proportion of pre-tax income to conduct mineral exploration work, that is, the state provides mining companies with a limited amount of investment in mineral exploration work. That part of the sales income is exempt from various taxes. To encourage mining companies to explore new replacement resources. The purpose of implementing this system is to increase exploration investment. Implementing resource depletion subsidies for mining companies to prospect for minerals deep in the mining area and near the periphery will help enhance the exploration and investment capabilities of mining companies and enable mining companies to gradually transition to completely solving the problem of resource replacement by mining companies themselves. According to relevant research conclusions, on a global scale, the growth of recoverable reserves mainly comes from the deep and near periphery of mining areas. This policy is of great practical significance for solving the resource problem of crisis mines in our country.
(4) Implement a pre-tax deduction system for exploration investment
Include the exploration costs of mineral deposits into the production costs of the mine, and include the exploration costs of other unsuccessful mineral prospecting projects of the enterprise. Also included in the mine’s production costs. For bulk minerals that have prospecting potential and are in short supply in the country, an incentive policy can be implemented to double the cost deduction. Learning from Canada's approach, taxpayers are allowed to immediately deduct all exploration and development costs from "any income", regardless of any industry or individual, as long as he invests in mining development and exploration activities, then the portion used for mineral exploration and development work The income can be exempted from various taxes, and various tax reduction and exemption policies are implemented in different forms and in different forms for mineral exploration and development investment at different times, thus effectively regulating the growth rate of social investment in mineral exploration. The amount of tax payable can even be doubled. For example, in Manitoba, Canada, 150% of exploration expenditures can be used for tax deduction and accelerated depreciation is allowed, attracting exploration investors to the province.
Mining companies should also be allowed to follow the practices of oil and gas companies and withdraw mineral exploration funds before tax based on mineral product output to reduce mining taxes.
(5) Implement a phased approach to reduce exploration risks
Many Western countries adopt “full deductions”, tax exemptions, etc. based on different exploration stages and social development needs. Various measures such as guaranteed loans, depletion subsidies, and exploration subsidies enable the state, individual and organizational investors, and explorers to fully bear risks, effectively activating the capital market and exploration activities.
The risks of mining activities are mainly concentrated in the exploration stage, especially the census (preliminary survey) stage where the risk is greatest. Policy measures are taken to reduce risks or the government shares part of the risks. First, most countries can fully deduct preliminary investigation expenditures (some also include early-stage investment in mining) from any income. This deduction directly increases the income from exploration investment (reduces risks); second, the United States, Japan and other countries In addition to various deductions, loans are guaranteed or funding is provided for approved exploration projects. If the exploration fails, it will be written off. If the exploration is successful, it will be repaid year by year after the mine development is profitable. Third, some countries such as the United States also implement "depletion" on mining. "Subsidy" system, the purpose of implementing this system is to increase exploration investment. It is recommended that my country clearly exempt from the price of exploration rights in the census and below the census level in its policies. The amount of this part of the price is not large and can be used by investors who facilitate census and detailed inspections. In this way, the country can obtain greater resource benefits and social and economic benefits from the development of the entire mining industry.
4. Support policies to encourage exploration technology innovation
Geological prospecting breakthroughs rely on technological innovation and breakthroughs. The innovative research and development, technology introduction and promotion of new mineralization theories and prospecting technologies require strong policy support from the government.
In terms of geological and mineral investigation and evaluation, current methods and technologies cannot meet the needs of the work, such as the lack of fast, low-cost, and efficient three-dimensional geological mapping technology; geophysical and geochemical prospecting technology cannot well solve the problem of deep mineral prospecting ; Analysis and testing technology cannot keep up with the pace of development of investigation and evaluation work; geological observation records have not yet been digitized, etc. Due to institutional and mechanistic obstacles, the separation of scientific research and investigation is very common in my country's geological survey work. Not enough attention is paid to applied basic research, the existing new methods and new technologies have low maturity and low practicality, and the conversion rate of geological scientific and technological achievements is low. Since the geological prospecting team has become localized, the problem of promotion and application of geological prospecting technology has become increasingly prominent. In terms of the application of exploration technology, the actual instruments and methods used in the front line of field production are quite backward. A considerable number of geophysical, geochemical and remote sensing technology users have low levels of work arrangement, application software mastery and comprehensive data interpretation. Drilling The level of technology users is also generally low, and these constraints seriously affect the ability of exploration technology to play its due role.
(1) Increase the government’s investment in the research of new theories, new technologies, and new methods of exploration and mineralization, and guide and promote technological progress in the field of geological exploration
Compilation and implementation of geological prospecting Science and technology planning; carry out a new round of mineralization zoning work; promote the integration of geological science and technology and mineral exploration; explore a revenue distribution system to mobilize the enthusiasm of geological science and technology personnel.
(2) Give full play to the promotion and demonstration role of public welfare geological surveys and scientific research institutions in the promotion and application of technology
Vigorously develop geological science and technology education, promote the integration of earth science and high technology, We should narrow the gap with the world's advanced level as soon as possible, strive to enhance the ability of scientific and technological progress to support geological work, and promote the modernization of geological work. Through professional structure adjustment and team capacity building, we will enrich and strengthen front-line technical forces and continuously enhance field investigation, scientific research, and social service capabilities. Mainly to increase investment in technical equipment maintenance and operation funds. Provide technical support services for mineral exploration to enterprises.
(3) Implement policies to encourage technological innovation of enterprises
Encourage technological innovation and theoretical breakthroughs of exploration enterprises, and conduct mineral exploration projects in different mineral types and regions in terms of prospecting technology and If there is theoretical breakthrough and innovative significance, tax exemptions and financial support will be provided.
V. Improve the government management and service system
Improve the management institutions and functions of commercial mineral exploration, strengthen the industry management of exploration; improve the policy and regulatory system with mining rights protection as the core ; Improve the service system focusing on public welfare geological survey information; establish a market supervision system with standardizing the exploration rights market as the core.
(1) Regulations and policies support
Establish and improve the basic framework of regulations and policies for commercial mineral exploration; guide the rational layout of mineral exploration through the implementation of mineral exploration planning; clarify the commercial nature Key areas and mineral types for mineral exploration will guide the direction of commercial exploration investment.
(2) Strengthen industry management
The government should strengthen the planning, management, guidance, coordination, and services of industry development and geological and mineral exploration, and organize industry associations to formulate various industry specifications needed by the exploration market. , technical and economic standards, as well as qualifications and professional standards for intermediary services and technical services. For example, commercial mineral exploration budget price standards that are different from public welfare geological work, through intermediaries or directly affiliated research institutions, study and formulate exploration market price standards in different regions, and publish them regularly for reference in various places. Coordinate with relevant departments to improve the external environment for exploration work. At present, conflicts and contradictions occur from time to time between exploration work and land management departments, mining companies, forestry, agriculture and environmental protection departments. It is necessary to strengthen coordination among government departments and comprehensively improve my country's mining investment environment.
(3) Strengthen market supervision
The government builds an exploration market supervision and service system; makes full use of information technology to establish a mining rights information disclosure system, establish a mining rights supervision information system, and form a An effective restraint mechanism for government and corporate behavior.
(4) Effective macro-control
From the perspective of the optimal allocation of mineral exploration itself and the role of mineral resources in economic and social development, the main goals of the government's macro-control are: First, Improve the effective supply of domestic mineral resources; the second is to promote the rational utilization of mineral resources; the third is to support the economic development of certain places; the fourth is to improve the competitiveness of domestic mining in the world; the fifth is to solve certain social problems. By formulating mineral resource planning and mineral exploration planning, we will rationally arrange and set up exploration rights, guide and standardize the exploration rights market, and form a reasonable market competition mechanism.
(5) Provide effective information service support
Strengthen the evaluation of public welfare geological surveys, give full play to its guiding and regulating role in commercial mineral exploration, and establish public welfare and commercial geological surveys. Work connection and coordination mechanism. Through national mineral resource evaluation and public welfare geological work, it provides a good prospecting information platform for commercial geological work and reduces investment risks in commercial mineral exploration. Commercial discoveries made during public welfare work shall be publicly transferred to the public in accordance with the law. Standardize the standards and procedures of information services, build a convenient service platform, improve service efficiency, and reduce service costs and fees. Identify national and local public welfare information service agencies and improve various information service infrastructure to provide mineral prospecting information. Announce public welfare, regional, basic geological survey and strategic mineral exploration results information.
Establish an evaluation system for public welfare geological work with information service as the main assessment indicator. The follow-up status of commercial exploration investments should be regarded as one of the important indicators to test the success of public welfare geological work. The experience of Canada and Australia shows that for every 1 yuan the government invests in geological surveys, 3 to 4 yuan will be invested in commercial mineral exploration. If valuable mineral deposits are discovered, the government's 1 yuan investment in geological survey fees will bring 250 yuan of wealth.
(6) Establish and improve an independent intermediary service system
Intermediary organizations are an indispensable intermediate link in the commercial mineral exploration market. It usually takes decades for a mineral deposit to go from exploration, feasibility study, construction to production and pit closure. It requires the support of complete relevant intermediary services, including legal services, mining rights evaluation, reserve evaluation, financing consultation, etc. Give full play to the active role of intermediaries in establishing industry norms, promoting industry self-discipline, information consulting services, domestic and foreign exchanges, technical and management support, etc.