Enterprises with foreign investment prospecting and exploiting mineral resources may enjoy the following preferential policies in addition to the relevant provisions of the state:

(1) Expenses for prospecting in prescribed area may be amortized by installments in five years from the first year in which the deposit goes into commercial exploitation, or be amortized by installments in two years if the term of the exploitation license is less than ten years.

(2) With the approval of the tax authorities, accelerated depreciation of fixed assets as provided by the state may be adopted during the period of commercial exploitation.

(3) With the approval of the authorities concerned, those exploiting mineral resources of low grade that are difficult to smelt, with international advanced technology, may enjoy a reduction as fixed according the specific circumstances in mineral resources compensation fees.

(4) Enterprises with foreign investment encountering annual losses due to force majeure may enjoy a reduction not over 50% as fixed according to the specific circumstances in mineral resources compensation fees for the year of losses or may postpone the payment thereof.

(5) Those exploiting and recovering intergrowth or accompanying minerals in a comprehensive way within the prescribed scope shall pay mineral resources compensation fees with a reduction of not more than 50% of the regular standard; minerals thus exploited or recovered subject to state purchase on a monopoly basis shall be purchased by the relevant departments designated by the state.

(6) If the mineral products are to be smelted or processed within this municipality, the relevant units shall facilitate the smelting, processing and transportation of such mineral products.