Research On Government Regulation Of Mining Industry

Mineral resources are an important material for national economic development. The mining industry is an important basis for national economic development. Into the21st century, in order to complete a comprehensive well-off society and to achieve the total economy in2020, the demand for mineral resources in China was rigid growth. But there is incompatible with which that the overall level of China’s inadequate protection of mineral resources is lack, shortage of resources will show a "rigid" state, highlight the contradiction between supply and demand of mineral resources, especially oil, iron ore, copper, potassium and other resources to face external dependence high degree of pressure. Resource conditions and the current stage of economic and social development in which the determinants of consumption of mineral resources in the short term is difficult to significantly change, supply and demand have become increasingly prominent, while the domestic mining industry in the inefficient use of mineral resources, mining, extensive business, mining, market-oriented low-fat mine safety accidents, environmental pollution and high incidence of accidents under a range of issues, sustainable development of the mining industry is facing great challenges.A new planning of national mineral resources has a proposal which is to promote the mining economy zones. Purpose is to focus on building co-ordination of resources through the guidance and constraints of space, optimizing resources development and utilization of the layout and structure, improve concentration of and mining industry and operability on exploitation of mineral resources, promote regional resource advantages into development advantages. This means that scientific and effective management mechanism is indispensable especially the government regulation. Therefore, the research on mining regulation is very necessary and urgent. This is not only the sustainable use of mineral resources, improve mining competitiveness, sustainable development of economy and society, building a resource-saving and environment-friendly society, to take a new road to industrialization has important practical significance, and also in the socialist economic system reform further, an inevitable requirement for the transformation of government functions in government reform. In this paper, it used the method of normative analysis, system analysis to analysis the current mining regulation and with the research on the problems of the mining regulation, seek improved countermeasures. The paper has seven chapters.Chapter one, introduction. It analyzes the socio-economic background and topics of researc h significance concerned about the mining industry and government regulation issues; analy sis and definite of the main concepts involved-mining, mining economic zone and gover nment regulation connotation; introduces the main research contents, methods, innovation a nd in adequate. Chapter two, the theoretical basis and research summary. In the chapter, it do a commentary on the research of theory of governmental regulations abroad, as well a s the domestic mining regulation research. With the deregulation wave of regulation in the West, academic now pay more attention on delegate-agency relationship, while the focu s of the study began to be transferred to the social regulation. Based on learning of the st udy of regulation economics of western world, the researchers of China try to research on regulation of mining. Chapter three, mining government regulation changes. It summarized our regulation legal system of mining, government regulation agencies, and analyzes the p roblems existing in the system:main legal system is not perfect, the regulatory agencies ar e more dispersed, lack of regulatory mechanisms and regulatory agencies.Chapter four and five study in economic and social mining regulation, they are the main parts of this paper, it analysis present situation of government regulation and open problem s comprehensively and systematically. In economic mining regulation, the main part is abo ut the regulation of entry and exit, and the mining right market. In terms of the entry regulation, it is the qualification of mining rights applicants. The reasonwhich its administrative licensing restrictions is mainly due to mineral rights, it is a "quasi-usufruct right". It acquirement unlike other real right intention, doesn’t need to be completed by setting the contract, mining companies need administrative licensing then has the mining operating rights. This administrative license actually means when the applicant meets the statutory conditions, the government granted the prospecting, mining and other qualifications. Due to major real estate development and utilization of national economic relations related to the rational use of resources and configuration issues, including mineral resources and the mining area and mining rights object, therefore, the regulation on the development and utilization of natural resources is necessary. Now the main problems are:there has discrimination between different system of ownership, so the main trading bodies in the mining right market are not very rich. The specific capacity and substantial elements become too principle, and lack of specific operating standards. Qualifications of environment and production security constraints are not strong, these increased social and government administrative costs. The administrative license has unclear nature. A mining right actually responsible for the two attributes of property rights and market access qualifications, which is contrary to the market allocation of resources.In term of exit regulation, China is still not established mining exit regulation."Mineral Resources Law" is also not covered by the normal exit mechanism for mining companies. Mining production has a big investment, precipitated high cost exit barriers than the general industry, the enterprise itself is difficult to get out. On the one hand, they must complete the recovery and management of mining on the environment, on the other hand need to solve the resettlement of employees problems, some of these issues are beyond the scope of control. So the lack of exit mechanism to cause greater difficulty for those large mining companies to exit, and advantage of survival of the fittest cannot be achieved.Concerning mining rights market, as an important part of the mining capital market, government layouts the latest rules to regulate mining rights trading, institutions, and trading behavior. But there have a few issues:land and resources departments are the agents and the same time they are the regulators. Government interferes too much in mining rights trading. There are many laws and regulations and mixed; restrictions and supervision of trade subject offside and the absence of other issues, the mining rights market is not good to play the role of configuration mining rights, market failure is more obvious.Concern to social mining regulation, the special nature of mining activities can’t avoid negative externality and internality, and the failure of the market for the maintenance of the public interest, the Government through regulatory means to internalize the negative externalities, reduce internal risk makes the process of development of mineral resources in the negative external and internal important. However, the goal of the government regulation is not completely eliminate pollution or destruction, but limited within the optimal range. The social mining regulation is mine environmental regulation and production safety regulation. In our country, the main methods in regulation of the mining environment are administrative and economic methods. The mining environmental standards are a quick way as an administrative means in the case of market economic development is not perfect. But this kind of means is the functions of the government departments in accordance with the requirements of the order supervision and inspection hand, constraint enterprise have illegal situation exists, there is a higher cost, need to institution, personnel, capital input. And due to the information asymmetry between the regulator and the be regulators, the cost of environment standard of the pollution control system cost on the high side. We use mining sewage charge and mining geological environment treatment deposit to intervene enterprise behavior indirectly. Pollution charges as Pigovian tax will encourage enterprises to do technological innovation under the cost pressure. For the government, it don’t need huge investments to approved enterprises pollutant emissions, just make sure that enterprises need to pollution charges as well as the appropriate scale of production, the volume of pollution collection of sewage charges. But in practice operation is a difficult problem. The government can’t be accurately calculated the optimal amount of pollution discharged to the environment due to severe asymmetry of information. In addition to the tax, mine geological environment recovering deposit and land reclamation fee and soil erosion prevention and compensation are also led to some of the problems when they are repeat collected. In mine production safety, mining is a high-risk industry. Its production is directly related to the vital interests of the workers’lives and health, safety. Good safe production can achieve maximum economic efficiency of enterprises. But in specific practical process, mine safety as a standard, the technical standards update slow, serious aging. Also because of lack of invest, human resource, equipment investment and other issues, the regulator may led to inaction or even collusion. Other problems are there’s no significantly encouragement in the safe production of technological innovation, ignored occupational health and vocational education. All these restricted the actual effect of the mine safety regulation and efforts in protecting labor workers.Chapter six, mining regulation proposed arrangement. Combined with the analysis of the previous chapters, I try to give countermeasures and suggestions to improve the institutional arrangements of government regulation, especially with the mining economic zone. In the legal aspects, it is necessary to clarify the existing laws and regulations of the mining industry to improve and perfect the legal system, and reduce the arbitrariness of the regulation; It should establish an independent mining regulatory agencies, people will come from the relevant administrative departments to achieve effective supervision from the point of view of the industrial development; In entry and exit regulation aspects, the administrative licensing clarity and distinction property rights and the right to operate rights, and administrative procedures should be simplified, at the same time strengthen enter the capital, production, technical, environmental barriers to entry; Establish exit the assistance mechanism to dredge the market out of the mechanism; Relaxed entry regulations for mining rights trading system, speed up the construction of mining rights electronic trading platform; Strengthen the social regulation of mining, including the construction of the mine safety and health regulatory system and mine pollution’s discharge right trading pilot; Establish regulatory information public awareness, establish regulatory information disclosure system and the government information service platform construction. Chapter seven, the main conclusions and outlook. Concludes the paper research, and pointed out that further research needs to be done in the future.