(Adopted at the 21st Meeting of the Standing Committee of the Eighth National People's Congress on August 29, 1996, promulgated by Order No. 75 of the President of the People's Republic of China on August 29, 1996, and effective as of December 1, 1996)

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.

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.

Article 22 Before a coal mine is put into production, the coal mining enterprise shall, in accordance with the provisions of this Law, submit an application to the department in charge of the coal industry for coal production license. The said department shall examine its actual production and safety conditions before issuing to it the coal production license if the requirements prescribed in this Law are met.

Anyone who has not obtained the coal production license shall be forbidden to engage in coal production.

Article 23 The following requirements must be met for obtaining the coal production license:

(1) having the legally obtained mining license;

(2) having a mine production system that conforms to the mine safety rules formulated by the State;

(3) having mine managers who have received training according to law and obtained the mine manager qualification certificates;

(4) having specially skilled workers who have received training according to law and obtained the operation qualification certificates;

(5) having a good communications system for dispatch on the surface, underground, within and out of the coal mine;

(6) having an actually measured surface and underground engineering comparison drawing, a mining and excavation plan and a ventilation system drawing;

(7) having the facilities to guarantee coal mine safety in production and environmental protection facilities, which have been proved up to the standard through the acceptance test conducted upon completion of the project; and

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

Article 24 The department in charge of the coal industry under the State Council shall be responsible for the administration of the issue of coal production licenses to the following coal mining enterprises:

(1) coal mining enterprises that are examined and approved for establishment by the State Council and those that are, in accordance with law, subject to examination and approval for establishment by the department in charge of the coal industry under the State Council; and

(2) coal mining enterprises that are established in trans-administrative regions of provinces, autonomous regions and municipalities directly under the Central Government.

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 be responsible for the administration of the issue of coal production licenses to the coal mining enterprises other than those mentioned in the preceding paragraph.

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 may authorize the departments in charge of the coal industry of the cities divided into districts and autonomous prefectures to be responsible for the administration of the issue of coal production licenses.

Article 25 The government departments in charge of the administration of the issue of coal production licenses shall be responsible for supervision over and administration of coal production licenses.

Coal mining enterprises may not transfer or lease to another person the coal production licenses they have legally obtained.

Article 26 No duplicate coal production license shall be issued for mining in the same area.

Where the validity period of a coal production license expires or the coal resources within the limits of an approved mining area are exhausted, the license-issuing authority shall revoke the license and make it known to the public.

Where the production and safety conditions of a coal mining enterprise have changed and through examination have been proved not meeting the requirements prescribed by this Law, the license-issuing authority shall revoke its coal production license and make it known to the public.

Article 27 The measures for administration of coal production license shall be formulated by the State Council according to this Law.

The standing committees of the people's congresses of the provinces, autonomous regions and municipalities directly under the Central Government may according to this Law and the regulations of the State Council, formulate local measures for administration of coal production licenses.

Article 28 The State shall ensure protective mining for the special or rare types of coal which are of important value to the national economy.

Article 29 In the exploitation of coal resources, coal mining regulations must be complied with, the rational mining sequence followed and the rate of extraction set for exploiting coal resources achieved.

The rate of extraction for coal resources shall be determined by the department in charge of the coal industry under the State Council in light of the different resources and mining conditions.

The State shall encourage coal mining enterprises to carry out second mining or extract residual coal at the margins of mining areas and very thin coal seams.

Article 30 Coal mining enterprises shall exercise strict supervision, inspection and control of coal product quality. Such quality shall be graded according to the national or trade standards.

Article 31 Coal production shall be carried out within the approved limits of mining areas according to law. Mining beyond the approved limits of mining areas or seams shall be forbidden.

No safety pillars shall be mined without authorization and no dangerous methods, such as water bursting, blasting and breaking through roadways, which may threaten the production safety of adjacent coal mines shall be adopted.

Article 32 Coal mining enterprises shall be responsible for reclaiming the land, which is covered by coal or which subsides or is destroyed due to mining, to the state that it can be utilized; any losses caused to another person shall be compensated according to law.

Article 33 Coal mines shall be closed or abandoned in accordance with the relevant laws and regulations as well as the rules of the department in charge of the coal industry under the State Council.

Article 34 The State shall establish the system of accumulating funds by coal mining enterprises for changing the line of production during the declining period of coal mines.

The State shall encourage and support coal mining enterprises to develop a diversified economy.

Article 35 The State shall encourage and support coal mining enterprises and other enterprises to produce both coal and electricity, coking coal, coal chemicals and building materials made of coal and engage in deep and fine processing of coal.

The State shall encourage coal mining enterprises to develop coal washing and processing as well as comprehensive exploitation and utilization of coalbed methane, gangue, coal slime, stone coal and peat.

Article 36 The State shall develop and disseminate clean coal technology.

The State shall adopt measures to ban coke making by indigenous methods. The construction of kilns for making coke with indigenous methods shall be forbidden, and the existing kilns for making coke with indigenous methods shall be renovated within a time limit.

Article 37 The people's governments at or above the county level and the departments in charge of the coal industry under such governments and other departments concerned shall exercise strict supervision and control over coal mine safety in production.

Article 38 To ensure safety in production, the system under which the directors of coal mine administrations and the managers of coal mines assume full responsibility shall be instituted in coal mining enterprises.

Article 39 Directors of coal mine administrations, managers of coal mines and other chief leading members of coal mining enterprises must abide by the laws and regulations governing safety of mines and the safety rules and regulations for the coal industry, tighten their control over coal mines safety in production, implement the responsibility system for safety in production and adopt effective measures to prevent the occurrence of injury, death and other accidents in production.

Article 40 Coal mining enterprises shall conduct education and training in safety in production among their employees. No one who has not received education and training in safety shall be permitted to work in a coal mine.

Employees of coal mining enterprises must abide by the laws and regulations governing safety in production, rules and regulations for the coal industry and rules of coal mining enterprises.

Article 41 When an irresistible emergency occurs which may endanger the

lives and safety of the miners who are working underground in coal mines, the person in charge on the spot or other persons in charge of safety shall immediately help the miners to leave the dangerous site and report the matter to the leading members concerned without delay.

Article 42 When members of the trade unions of coal mining enterprises find that administrators of the enterprises give directions against

regulations and order miners to work at risks or when they scent hidden danger of obviously serious accident which may threaten the lives and safety of workers, they shall have the right to make proposals for tackling the problem, and the administrative body of the coal mining enterprise must make prompt decision to deal with it. If the said body refuses to deal with it, the trade union shall have the right to criticism, accusation and complaint.

Article 43 Coal mining enterprises must provide the workers with the necessary articles to guarantee safety in production.

Article 44 Coal mining enterprises must provide accidental injury insurance for miners working underground and pay premiums.

Article 45 All equipment, facilities, explosives and safety instruments used by coal mining enterprises must meet the national or trade standards.