Abstract: This paper elaborates the characteristics,operation mechanism,advantages and disadvantages of private ordering by briefly reviewing the relevant literature,and then by using the theory and method of new institutional economics,analyzes the role of high transaction costs caused by the nature of mining rights and its trading to hinder the improving of mining rights market,and the limitations of establishing mining rights trade intermediaries with single function.Simultaneously,since some critical information relating transaction disputes cannot be confirmed by the court and the cost of adjudicating disputes by the court is huge,the court plays a limited role in adjudicating disputes of mining rights trading,and the court and other public ordering cannot significantly reduce the transaction costs of mining rights.By contrast,private ordering accomplishes a great deal in reducing the costs.So,we can draw the conclusion that private ordering plays an irreplaceable role in the improving of the mining rights market.Finally,the paper briefly analyzes the reasons for the low level of private ordering in mining rights market of China.