What legal risks, compliance issues and dispute resolution difficulties will China's mineral energy enterprises face in participating in the construction and carrying out cross-border business during the opening-up to the west? How can we protect the legitimate rights and interests of enterprises, improve the level of energy security and promote the high-quality development of the industry through professional dispute resolution mechanisms?

On April 25th, in Urumqi, Xinjiang Uygur Autonomous Region, the "Westward Opening: China Mineral Energy Dispute Resolution Seminar", sponsored by the Shenzhen International Arbitration Institute (International Arbitration Center of the Guangdong-Hong Kong-Macao Greater Bay Area), in conjunction with the China Mining Association, the Department of Justice of the Xinjiang Uygur Autonomous Region, and the Department of Natural Resources of the Xinjiang Uygur Autonomous Region, and organized by the Shenzhen International Arbitration Institute Kashgar Branch and the Xinjiang Uygur Autonomous Region Bar Association, focused on the latest developments in domestic and foreign mining development and the cross-border investment of Chinese mineral energy enterprises. Representatives from more than 200 mineral energy enterprises, arbitrators, and legal representatives from across the country conducted in-depth discussions from various perspectives such as legislation, law enforcement, judicature, arbitration, and compliance, and looked forward to the mineral energy investment opportunities and risks in Central Asia, West Asia, and South Asia based in Xinjiang.

01 Domestic and foreign energy resource disputes and contradictions are increasing day by day

In recent years, with the evolution of the global political landscape, geopolitical factors have increasingly influenced the mineral energy industry. In different regions, geopolitical conflicts, trade frictions, policy changes, and other factors have been continuously reshaping the supply and demand relationship, price trends, and investment environment of the mineral energy market. The mineral energy industry is facing many new trends, such as the rise of clean energy, the transformation and low-carbon development of traditional energy, etc. These changes have not only changed the production, transmission, and consumption of mineral energy but also brought new challenges to the strategic layout and operation of mineral energy enterprises, and also caused various disputes and contradictions to constantly appear.

"The types of cases involving mining rights are relatively numerous and complex, mainly including the confirmation of mining rights, the transfer of mining rights, the mortgage of mining rights, the overlying of mineral resources, the storage of mineral resources, and the ecological and environmental restoration, etc. Any omission in any link can easily trigger contradictions and disputes," an expert from the Supreme People's Court said.

In this context, it is crucial to explore cutting-edge trends in the mineral energy industry and to build an efficient and professional dispute resolution mechanism to ensure energy security and promote high-quality development of the industry.

"Amid the evolution of the global energy geopolitical landscape, new energy mineral resources have become the core focus of the great power game. China places great importance on the domestic supply security and international cooperation of energy resources. Many energy resource enterprises have taken the initiative to carry out a large number of economic activities in the exploration and development of energy resources, investment and cooperation in the countries along the "Belt and Road", and the operation and trade of energy resources, which has effectively maintained and guaranteed the security of China's energy resource supply. However, it has also triggered corresponding domestic and foreign energy resource disputes and contradictions." said Che Changbo, Secretary General of China Mining Association. At present, there is an urgent need for national-level judicial protection and efficient and rapid arbitration and mediation, which is also the deep consideration for the Shenzhen International Arbitration Institute to hold the "Westward Opening-up: China's Energy and Mineral Resources Dispute Resolution"论坛 in Urumqi.

Bo said that Xinjiang is the core base of China's oil and gas, coal, coal chemical industry, coal power, new energy mineral resources and new energy and strategic metal mineral resources. It has four advantages: storage, grade, matching and potential. It is of strategic significance to the national energy security, the development of new energy industry and high-end manufacturing industry. At the same time, Xinjiang is also a bridge and bond connecting China with Central Asian countries rich in oil and gas resources, and a bridgehead for opening up to the west. The choice of the Arbitration Institute of Shenzhen International Arbitration Institute to hold the forum in Urumqi is also a conscious action to support the development of the western region and Xinjiang. The holding of the forum will surely provide useful enlightenment for the vast number of energy and resource enterprises to operate in accordance with the law and in an orderly manner, to protect their own rights and interests scientifically, and to achieve healthy development.

It is understood that in recent years, the increase in contradictions and disputes in the mineral energy field is closely related to the current continuous rise in mineral energy prices, in addition to the objective reasons such as the many links, complex procedures and risk points involved in the mineral.

Deng Guoping, the former director of the Mining Rights Management Department of the Ministry of Natural Resources, believes that mining is still the most potential industry in this era. Global demand, price, production, and trade data of mineral products are very good evidence for this view. From the perspective of the underlying logic, industrialization is inseparable from mineral resources, and most countries in the world have not yet completed the process of industrialization. Mining is not a "sunset industry". Today, the competition and control of strategic mineral resources in some countries are more intense, and the global energy and resource supply chain is still very fragile. Looking at new energy, its industrial chain is highly dependent on copper, aluminum, manganese, lithium, cobalt, nickel, rare earths, graphite, high-purity quartz, fluorite and other strategic minerals. The essence of energy transition is the transformation from a large consumption of traditional fossil energy such as oil, natural gas and coal to a large consumption of metal and non-metal strategic minerals. The demand for metal and non-metallic minerals will increase exponentially. We can't get rid of the dependence on mineral resources in the past, present, and perhaps the future.

"The western region, especially Xinjiang, is rich in mineral resources, has a unique location advantage, and the mining industry has broad prospects and occupies an important position in the country. It is essential to have the law take the lead and provide full legal protection," said Deng Guoping.

02 Resolving disputes through international arbitration has become an important means.

"Settling disputes and contradictions in the field of energy resources through international arbitration is an important means and path to support enterprises, serve enterprises, and ensure the healthy development of enterprises. It is a powerful protection for mining enterprises that have been deeply cultivating the western development, for mining enterprises that are going to the mineral resources exploration and development cooperation of the "Belt and Road", and for mining enterprises that provide energy resources and ensure the security of energy resources. It has far-reaching significance for the healthy, sustainable, and high-quality development of mining enterprises." Chelangbo said.

In fact, as the only national mining organization in China that serves the entire field and entire industry chain of mining, the China Mining Association has long recognized the importance and necessity of international arbitration in resolving domestic and foreign energy and resource contradictions and disputes.

Shenzhen International Arbitration Institute (SIAI), located in the window of China's reform and opening-up, and connecting the hub of Hong Kong and the mainland, has all the advantages of the right time, place, and people, and naturally has become the preferred partner of the China Mining Association. It is understood that the Shenzhen International Arbitration Institute has been committed to risk prevention and dispute resolution for enterprises for a long time. In the resolution of a large number of domestic and foreign disputes, it has provided a foreseeable dispute resolution path, reduced the legal risk of enterprises, promoted international cooperation, and thus achieved the goals of efficient finality, neutrality and professionalism, cross-border enforceability, confidentiality and friendliness, and stable business environment. Over the years, the Shenzhen International Arbitration Institute has done a lot of work in this regard, played a positive role, had a profound impact, promoted a good spirit of contract, and has been widely recognized by the industry, including the vast number of mining enterprises.

On April 19, 2019, the China Mining Association and the Shenzhen International Arbitration Institute jointly established the China Mining Association International Mediation and Arbitration Center at the China Prospecting Annual Meeting, with Luan Zhengming, a member of the Environmental and Natural Resources Law Professional Committee of the Chinese Bar Association, serving as the executive director of the special committee, and launched the Mineral Energy Mediation Rules and the Expert罗刹，initiating a new model for resolving mineral energy disputes through "industry mediation + commercial arbitration". The goal of the cooperation between the two parties is to provide efficient, convenient, and professional services for dispute resolution among mineral energy enterprises.

Luan Zhengming said that the healthy development of the mining industry can not be separated from the integration of law and finance, and all three are indispensable. For mining managers and practitioners, there are countless examples of civil, administrative and even criminal risks caused by the lack of legal and financial knowledge. Gathering top experts in mining management, exploration, law, finance and assessment can provide a guarantee for the healthy and orderly development of the mining industry.

03 Provide "Chinese Solutions" for dispute resolution of global mineral and energy issues

At the seminar, the experts present, based on the important geographical positioning of Xinjiang as a national strategic base for energy and resource security, closely followed the new situation and changes in the development of the mining and energy industry at home and abroad, focused on the various legal risks, compliance issues and disputes encountered by Chinese mineral energy enterprises in the process of participating in the construction of the western opening-up, and carrying out cross-border business. The pain points and difficulties were discussed in depth by combining keynote speeches and roundtable forums, closely following the policy orientation and practical requirements after the implementation of the newly revised "Mineral Resources Law of the People's Republic of China", and in-depth exchanges and discussions were carried out from various levels, such as industry development trend judgment, the latest legislative and law enforcement dynamics, enterprise compliance management construction, and cross-border commercial dispute resolution practice, sharing advanced experience and practices, and consolidating the development consensus of the industry.

"Faced with the increasingly complex resource competition among major powers, the China Mining Association, as always, deepens cooperation with the Shenzhen International Arbitration Institute, expands its business, and promotes cooperation to a deeper level and a broader field, jointly providing good service for the vast number of energy enterprises," said Che Changbo. We need to focus on "going out" and provide key services for energy resource enterprises. At present, Chinese mining companies are deeply involved in the competition and challenges of the global mining industry. We need to further use the international arbitrators' resources of the Shenzhen International Arbitration Institute, guide mining companies to "go out" for investment, "pull back" for arbitration, and play the role and advantages of domestic arbitration institutions in international mining cooperation. We want Chinese enterprises to be able to resolve disputes on a familiar and fair platform when facing complex cross-border disputes.

The chairman, Bo, stated that it is necessary to strengthen professional empowerment and give full play to the advantages of professional talents in the mining industry. The new "Mineral Resources Law" has introduced new systems such as the separation of mining rights registration and behavioral licensing, and special protection for strategic minerals. We need to understand and be familiar with the rules and characteristics of international arbitration, and we need to deeply study the application of these new systems in the context of dispute resolution. Through the study of typical cases and arbitration guidance, we can provide compliance and dispute resolution models for the industry. Enhance the influence of the new "Mineral Resources Law" on Chinese mining enterprises in international arbitration, and protect and support them.

Deng Guoping believes that the new Law on Mineral Resources has three distinctive features: First, it highlights the security of national mineral resources, especially the security of strategic mineral resources. Second, it shows more respect for the laws of geological work, the laws of mining development, and the laws of the market economy. Third, it focuses on key links such as the management of mining rights, the exploration and exploitation of mineral resources, the ecological restoration of mining areas, reserve and emergency, and timely upgrades the reform results into legal systems.

Since the promulgation and implementation of the new Law on Mineral Resources, related work has been steadily advanced and orderly transitioned. The Supreme People's Court has issued a judicial interpretation on mineral resources disputes, and the Ministry of Justice and the Ministry of Natural Resources are accelerating the approval process for the implementation regulations of the new Law on Mineral Resources. The Ministry of Natural Resources has released guidelines for the management of mining rights registration and licensing during the transition period, while refining measures to ensure the use of land for mining and carrying out pilot projects for the approval of mineral resources covered by construction projects. Local regulations have also been introduced in Xinjiang, Henan, Shanxi, and other places. The entire industry can feel the significant benefits released on the legal and policy levels, said Deng Guoping.

It is better to be prepared than to be in a mess. The best way to resolve the contradictions and disputes in the field of mineral energy at home and abroad is to control them in advance and prevent them from happening.

"To strengthen risk prevention, reduce or avoid disputes and contradictions." Chelangbo particularly reminded that mining enterprises should quickly familiarize themselves with and master the international arbitration rules, principles and applications, so as to better protect themselves, reduce and avoid disputes and contradictions, safeguard their own rights and interests, and protect their core interests.

"Mineral resources are the cornerstone of human survival and development, and the rule of law is the cornerstone of the governance of human civilization," said Chelangbo. The next step, the China Mining Association will continue to play the role of a bridge and a bond for the industry platform, and will continue to cooperate closely with the Shenzhen International Arbitration Institute to carry out more work and activities that are beneficial to the protection of the rights and interests of mining enterprises, and will recommend more industry experts with rich experience in geological survey, mine management, and mining rights trading to join the expert pool of the China Mining International Mediation and Arbitration Center, to provide first-class professional support for cross-border mining cooperation, dispute and contradiction resolution, to ensure national energy and resource security, and to promote the high-quality development of the mining industry. Through the joint efforts of all, we are sure to contribute a more intelligent "Chinese plan" to the resolution of disputes in the mineral energy industry in China and around the world.

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