The foreign investors with interests in the CBM/CMM projects in China have to face the challenges from the new Notice on the Further Pushing the Integration of the Mineral Resources Development issued by the twelve authorities[1] on September 28, 2009 (the Notice 2009). Though the integration was initiated since 2005, the goals set by the government has not been achieved, which bring the birth of the Notice 2009.

The Notice 2009 was drafted in order to realize the sustainable and healthy development of the resource industry. CBM/CMM plays an important role in the administration of the operating coal mines. There is no doubt that enhancing the safe production of the mines and ameliorating the ecological environment are the most concern for the administrators. In addition, the other basic purposes, such as optimizing the layout of the prospecting and development of the mineral resources (PDMR), scaling and concentration of PDMR and establishing the long lasting regime in PDMR, are also listed herein. Around 150 mine workers died in the accidents caused directly or indirectly by CMM by August 1 this year in accordance with the released information on SAWS website.

The integration scope covers 15 minerals (including coal) and the other minerals which are significant to the economic and social development. As an associated mineral, CBM/CMM will definitely fall into the scope of the integration or at least be affected heavily. In addition, the Notice 2009 also clarifies the integration scope from the perspective of exploration right which is not included in the past alike notices issued by the relevant authorities in this field. It further states that the following exploration areas will be integrated: