Abstract: The Chinese government has always attached great importance to geological work.In order to adapt to the needs of economic and social development,reforming state-owned geological exploration units has being processed.Comprehensive research results and practical effect,on the one hand,public product theory,supply and demand theory,and industrial economic theory have been applied on economic development relationship of mineral resources and geological work organization management practice;on the other hand,state-owned geological exploration units reform while facing internal and external difficulties,such as many historical legacy problems,and the lack of motivation.Under the background of national vigorously promote the reform of institution classification,For state-owned geological exploration reforming units,scientific classification is the foundation,market in the allocation of resources playing a decisive role is the key.Therefore,most of the geological exploration units will turn to enterprises.