Abstract: Since China’s reform and opening up,the state owned geological exploration department has gone through three reform stages:from "contractual operation,devolution and profit concession,expanding autonomous operation right",to the reform of putting the geological department under the provincial government,and further to the current classified reform.At present,the establishment and improvement of the modern enterprise institution for the state-owned geological exploration department is still in an early stage.The so called "hundreds of bureaus and thousands of brigades" distribution pattern,"large and complete,small and complete" structure,and the "small,weak and scattered" system of the state-owned geological exploration department are all not changed.The reformation of the state-owned geological exploration department is proceeding slowly,and the basic reason for such a situation is that the geological exploration system and mechanism are not sound,and the internal impetus for the reformation is not strong.In line with the ideas of "property rights diversification,enterprises consolidation,and assets securitization",we should be oriented by the market development,realize the interaction of resources,assets and capitals through the geological exploration,mineral development and capital operation,and make the state-owned geological department changed entirely and transformed completely.We should also strengthen the top level design for the reform of the state-owned geological exploration department,push forward the property right reform,and establish diversified market entities.