The Chinese government has begun a trial scheme to charge for coal prospecting and mining rights.

The National Development and Reform Commission (NDRC) said new prospecting and mining rights should be acquired by bidding, auction and listing rather than unpaid transfer, which was usual practice.

The pilot reform started in the country's eight major coal-producing regions of Shanxi, Inner Mongolia, Anhui, Shandong, Heilongjiang, Henan, Guizhou and Shaanxi.

The NDRC said enterprises could pay for the rights on installment.

The central government will get 20 percent of the revenue which would be used as prospecting funds while 80 percent would go to local governments and for use in local state owned coal enterprises.

A mine environmental management and ecological restoration accountability system would also be established with a tax levied from the enterprise's sales revenue.

(Xinhua News Agency November 3, 2006)