Study On Compensation For Transferring Ownership Of Mineral Resources

The current compensation system for use of mineral resources in China played important role in safeguarding the state ownership income. But, there are some problems in the current system such as the incorrect orientation of basic concept, the blurry partition of the function of various taxes and dues, the mismatching of the logic of calculation methods, the unreasonable distribution of income, etc. The current system doesn't distinguish the state between owner, investor and supervisor, which lead to the mismatching of the basis of distributing and utilizing income and the mixing up of the property and function of tax, royalties and fee. On the surface, the one who use mineral resources should pay for it, but actually, mining enterprises pay for that. Exploration fee and mining fee are actually block royalties but not fees for getting exploration rights or mining rights. Reimbursement fee for exploration right and mining right are designed to compensate for prospecting for mineral deposits, which repeated resource tax.The article analyzed mineral resources value, mineral products value and mineral products profit, etc. The essence, effect and source of money paid to get exploration right or mining right were analyzed in depth. Then, correlative income was also analyzed. The article put forward a new system about transferring ownership of mineral resources with compensation to replace the current system. The new system has announced that the ownership of mineral resources was actually changed when the state transferred mining rights. So, mining concessioner should pay the ownership of mineral resources in name of property fee which can also be called as mineral resources royalties. At the same time, mining concessioner should also pay high-quality mineral resources transferring fees which come from the differential profit of high-quality mineral resources. Exploration fee and mining fee should be called as block royalties, and reimbursement fee for exploration right and mining right should be replaced as mining rights investment income. The super profit comes from transferring exploration rights can be named as exploration rights excess earnings, and the super profit comes from the rising of the price of mineral product can be named as mining rights excess earnings. Both exploration rights excess earnings and mining rights excess earnings should be shared as revenue sharing for ownership at a rate by the sate who is the ownership of mineral resources. The article suggested that mineral resources royalties the state get by ownership should be paid in installments based on gross sales. The new system specified that as the owner of mineral resources, the state gets ownership income, including high-quality mineral resources transferring fees, mineral resources royalties and revenue sharing for ownership, as investor, the state gets mining right investment income and minerals investment income which come from the investment in exploring and developing mineral resources, and as supervisor, the state gets fees which come from supervising, administering and serving the mineral resources exploring and developing. The new system laid emphasis on safeguarding the state ownership income from mineral resources by realizing the economic value of mineral resources ownership. The state gets different income based on different identities. High-quality mineral resources transferring fees are based on ownership but not on investment and should be paid at a time in principle. The model of the production and distribution of correlative income was set up, and the quantitative analysis model of exploration right excess earnings share and mining right excess earnings share is founded. The article proposed the reasonable limit of mining right excess earnings share ratio and the reasonable ratio of mineral resources royalties.