Hainan issues the first real estate registration certificate for mining rights mortgage rights

Ask AI · How will the revision of the new mineral resources law facilitate breakthroughs in mining rights mortgage in Hainan?

China News Service Haikou, April 2 — (Yin Jianjun Li Siyu) from the Hainan Provincial Department of Natural Resources and Planning announced on the 2nd that recently Hainan issued its first real estate registration certificate for mining rights mortgage, marking the official implementation of mining rights mortgage registration in Hainan Province and a key step toward solving financing bottlenecks for mining companies and activating the value of mineral resources.

This real estate registration certificate for mining rights mortgage was issued by the Natural Resources and Planning Bureau of Ding’an County for the mortgage registration of mining rights under Ding’an Fudong Industrial Co., Ltd., and issued to the mortgagee, Hainan Rural Commercial Bank Ding’an Branch. This represents a practical breakthrough in implementing the newly revised “Mineral Resources Law of the People’s Republic of China.”

Hainan issues the province’s first real estate registration certificate for mining rights mortgage. Photo provided by the Natural Resources and Planning Bureau of Ding’an County, Hainan Province.

Mining rights mortgage registration is a brand-new service, with no prior practical precedent in the province. Facing urgent issues such as approaching loan approval deadlines for enterprises and lack of collateral security for financial institutions, the Natural Resources and Planning Bureau of Ding’an County established a cross-departmental cooperation mechanism between the mineral resources department and the real estate registration center, quickly clarifying the full process requirements, review standards, and certificate formats for mortgage registration. Simultaneously, they organized existing mineral rights archives to ensure standardized, efficient registration work, filling a gap in operational experience.

“Real estate registration provides a legal safeguard for financial institutions, establishing priority repayment rights from the property rights perspective, enabling dynamic risk management of assets, and thoroughly preventing the risk of unsecured guarantees,” said a relevant person in charge of Ding’an Branch of Hainan Rural Commercial Bank Co., Ltd.

The person in charge of Ding’an Fudong Industrial Co., Ltd. stated frankly that this measure opens up a new financing path, effectively alleviating the financing difficulties caused by insufficient fixed assets, and strengthens confidence in sustainable development.

A relevant person from the Hainan Provincial Department of Natural Resources and Planning said that the implementation of this registration service marks the shift of mining rights mortgage from “administrative management adjunct” to “statutory property registration,” which has dual significance: unifying rights and publicizing property rights. It includes incorporating exploration and mining rights into the unified real estate registration ledger to address market information asymmetry; establishing the mortgage effect through statutory registration certificates, clarifying mortgage periods and debt amounts, and effectively safeguarding the legitimate rights and interests of market entities. (End)