China: Coal Production Licenses and Coal Trading Licenses No Longer Required

Last Updated: 5 August 2013
Article by Dina Yin

A State Council Decision 1, made public on July 26, 2013, repealed the administrative measures regarding coal production licenses. The decision came following changes to China's Coal Industry Law 2 which abolished the need for the license. As a result of the changes to the Coal Industry Law, companies (both domestic and foreign-invested enterprises) will no longer need to obtain a coal production license to produce coal or a coal trading license to sell coal.

Abolishment of the Coal Production License and Coal Trading License

On June 29, 2013, the Standing Committee of the National People's Congress amended the Coal Industry Law by abolishing the need for: (i) a mining company to obtain a coal production license (煤炭生产许可证) to produce coal, and (ii) a company to obtain a coal trading license (煤炭经营许可证) to sell coal. 3 In order to finalize these amendments to the law, the State Council Decision was issued to repeal the Coal Production Measures 4 on July 18, 2013. The Coal Production Measures set out the requirements and procedures for mining companies to obtain the coal production license previously required by the Coal Industry Law. The State Council Decision, which was published on the State Council website on July 26, 2013, also made corresponding changes to four other regulations related to the coal industry, namely, amending references to coal production licenses. We anticipate that the Coal Business Measures 5will be revised to repeal the requirements to obtain a coal trading license.

Reasons for the Changes?

The changes to the Coal Industry Law and the abolishment of the Coal Production Measures (referred to above) are aimed at improving the efficiency of the approval process for companies wanting to produce or trade in coal. The changes are part of a larger reform movement, started in 2001, aimed at increasing the efficiency of the government's administrative processes.

What Does This Mean for the Coal Industry in China?

  1. Coal Production

Previously, in order to produce coal, a mining company had to obtain both a coal production license and a production safety license (安全生产许可证). The coal production license was intended to strengthen the administration of the coal industry and improve the safety of coal production. 6 To obtain the license, mining companies had to meet a number of requirements such as having an approved mining design, having a production system in compliance with mine safety standards, and having qualified personnel. 7 The purpose of the coal production license, however, was similar to the purpose of the production safety license, which aimed to strengthen production safety supervision and administration. 8 Some of the requirements for obtaining each license were also similar, such as the safety requirements and personnel qualifications. In order to eliminate this "overlap" of requirements and increase the efficiency of the approval process, the need for a coal production license was abolished (however, a production safety license, amongst others, is still required).

  1. Coal Trading

Similarly, in order to trade in coal, a company previously had to obtain a coal trading license. This license was intended to regulate and control coal trade activities such as the wholesale and retail of raw coal, coal washing, the selection and processing of coal products, and the processing and sale of coal for residential use. 9 Apart from other corporate licenses and certificates, the coal trading license often took the longest time to obtain (up to 40 business days from the acceptance (rather than the receipt) of an application by the relevant authorities). Now, a company wishing to trade in coal will be able to do so without applying for a coal trading license. Other than the generally required corporate licenses and certificates, the company does not need to obtain any licenses specifically related to coal trading.


1"Decision to Cancel and Amend Certain Administrative Regulations (State Council Decree No. 638)" (国务院关于废止和修改部分行政法规的决定 (国务院令第638号)).

2"Law of the People's Republic of China on the Coal Industry" (中华人民共和国煤炭法).

3"Decision to Revise 12 Laws including the Cultural Relics Protection Law of the People's Republic of China (Presidential Decree No. 5)" (全国人民代表大会常务委员会关于修改《中华人民共和国文物保护法》等十二部法律的决定(主席令第5号)).

4"Administrative Measures for Coal Production Licenses" (煤炭生产许可证管理办法).

5"Measures for the Supervision and Administration of Coal Businesses" (煤炭经营监管办法).

6Supra note 4, Art. 1.

7Id., Art. 4-5.

8"Regulation on Production Safety Licenses" (安全生产许可证条列), Art. 1.

9Supra note 5, Art. 1, 3.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions