Chinese Mining Industry

Chinese mining industry has many issues, because the Government owns the mining property, while the enterprise owns the license for extraction, and because in mining property appraisal the license for extraction is excluded. So even the license for extraction is sold with compensation, it is greatly less than its fair market price. For example the Government owns the land, and in handing over the right to using the land no fair market price is allowed. However the land does have a fair market price, especially big compensation is needed when buildings are torn down and moved. And in accounting no increased value is allowed to add to the land even it was bought by money.