China further improve management of shale gas exploration
Source: www.chinamining.org.cn Citation: www.chinamining.org.cn Date: Nov.11, 2013
In Canada-China Mining Regulatory Workshop of CHINA MINING 2013, representatives of the two sides had an in-depth communication on their own new minerals management regulations. Che Changbo, Deputy Director General of Exploration Department of Ministry of Land and Resources of China, said that China would further improve the management of shale gas exploration and mining.
“About shale gas exploration in China, first, the government expands infrastructure investment, petroleum companies follow up commercially next,” Che Changbo pointed in his speech, “ at the same time, the government should encourage social capital and entities to involve in. China government also welcomes joint ventures to join in the bid”.
Ministry of Land and Resources of China issued Notice on Strengthening the Exploration and Supervision of Shale Gas (Notice in short in the following) in 2012, in which the operating procedure of shale gas exploration and development was specified. The Notice also stipulated that the management of shale gas would be the same with conventional gas.
At present, the Ministry of Land and Resources of China and the related departments had made some adjustment on the Notice. Preferential policies of shale gas exploration and development had been set. Mineral resources compensation fees and mining right royalties of exploration companies will be charged less. Tax incentive policies like resources tax, VAT and income tax etc. had been issued. According to current tax rules, equipments which could not be produced in China will be free of import duties. What is more worth of attention is that the shale gas mining will encourage more foreign investment to join in.
The Ministry of Land and Resources of China and the related departments focus on carrying out shale gas research and strengthening technical breakthrough. Under the organization of the related departments, China had built shale gas mining demonstration base. Besides, the Ministry of Land and Resources had built linkage mechanism with departments in provinces and cities, taking a set of measures to promote shale gas exploration. The measures include: To guarantee bid-winning enterprises’ shale gas exploration and mining, the authorities will hold activities like experience introduction, project matchmaking and technology training etc; Let bid-winning enterprises learn at the site of shale gas exploration and mining; Build information platform to realize materials sharing on shale gas exploration and mining; Practice “one to one help strategy” to help bid-winning enterprises rapidly enter stable, well-organized and continuous exploration and mining stage.
At the same time, the Ministry of Land and Resources of China are strengthening the collaboration with departments in provinces, completing inspector teams and reinforcing supervision of shale gas mining to let shale gas mining go more smoothly.(Translated by TLRHVC)
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