Abstract: China's geological prospecting industry has been directly subsidized by the national finance allocates funds for dozens of years,which has formed the management pattern pursuing no direct output.With the establishment of china's market economy and the reform and restructuring of the geological prospecting industry in particular, it becomes increasingly necessary to establish new investment & financing and management system.In response, central geological prospecting fund has been introduced,which will inevitably bring new challenges to the industry.The paper starts from the geological prospecting input-output mechanism and probes into issues concerning the management of central geological prospecting fund.