Mineral Resource Reserve and Emergency Response

On 8 November 2024, China adopted a major revision to its Mineral Resources Law, originally promulgated in 1986. The revised law, which enters into force on 1 July 2025, introduces a new Chapter 5: “Mineral Resource Reserves and Emergency Response”, establishing a legal framework for a national critical mineral stockpiling system. This reform aligns with broader policy goals set out in the 14th Five-Year Plan (2021–2025) and the Raw Material Development Plan, both of which advocate for a hybrid reserve model combining government and enterprise participation. It also complements the Rare Earth Management Regulations, which promote a dual system of physical and in-situ reserves.

The law mandates the creation of a strategic mineral resource reserve system that includes:

• Product reserves: physical stockpiles of processed minerals;
• Production capacity reserves: mechanisms to ensure rapid scale-up of output during emergencies;
• Resource site reserves: designated mineral-rich areas reserved for emergency exploitation.

The structure, scale, and layout of these reserves are to be scientifically determined and adjusted in response to national needs. Government departments and provincial authorities are responsible for building and maintaining reserve facilities, managing stockpiles, and establishing systems for collection, storage, rotation, and deployment. Mining rights holders including state-owned enterprises and private firms – must maintain production readiness and are expected to scale up output during emergencies. SOEs are reportedly favoured for strategic minerals.

The law empowers the central government, through the Ministry of Natural Resources, to delineate strategic reserve areas – geographic zones containing critical mineral resources that may be preserved for future use rather than immediate exploitation. It also mandates the development of a national forecasting and early warning system to monitor supply-demand dynamics, price fluctuations, and risks to mineral security.

In the event of a major supply disruption or threat to economic stability, authorities may:

• Release information on mineral supply and demand;
• Mobilise mining and transport operations;
• Initiate emergency mining in reserve areas;
• Deploy stockpiled minerals;
• Implement price interventions;
• Enforce other emergency measures, with compensation for losses incurred.

All individuals and organisations must comply with emergency directives, which must be lifted once the crisis subsides.

Article 59 introduces a digital infrastructure for mineral rights oversight. This includes a national base map and dynamic database of mining rights, as well as a real-time monitoring system to track ownership, production, and compliance. These tools enhance traceability, support responsive governance, and strengthen the state’s ability to manage strategic mineral assets.
China’s stockpiling activities were publicly reported during the 2008 global financial crisis, carried out under an established policy framework. The Mineral Resources Law of 1986 provided the legal basis for state ownership and management of mineral resources, enabling the government to regulate reserves and emergency measures. In 2003, the State Council issued the Mineral Resources Policy White Paper, which emphasised resource security and called for mechanisms to ensure supply stability, including reserve building.

For oil, China launched its Strategic Petroleum Reserve (SPR) program in the early 2000s. Construction of the first SPR facilities began in 2004, and by 2007, China had announced a two-tier reserve system combining government-controlled and commercial reserves. Phase 1 of the SPR was largely completed by the end of 2008, coinciding with the collapse in global oil prices. These developments confirm that by 2008, China had a formal strategy for stockpiling critical resources, both minerals and oil, as part of its broader energy and resource security policies.

Want to know more about this policy ? Learn more (Chinese)