Decision No. 28/2008/QD-BCT approving the planning on exploration, exploitation and sorting of apatite ores in the 2008-2020 period, with post-2020 orientations taken into consideration

2. Specific objectives: ~ To developthe exploitation and processing of apatite ores with modern technologies, aJ Apatite exploration: thoroughly and economically exploit this natural To step up the apatite exploration, thus resource, ensure economic efficiency, and ensuring reliable reserves for exploitation. To facilitate farmers to benefit from products attach importance to the assessment and extensive processed from apatite ores; exploration of the mineral in areas on which ~ To conduct one step ahead exploration geological documents remain limited, search and activities in ordertocreate reliable apatite reserves discover new ore bodies so as to increase the for the exploitation and processing of the mineral reserve size for the development ofmining areas. in the planning period. bI Ore exploitation and sorting: n. Development objectives To exploit and sort apatite ores in sufficient quantity and of satisfactory quality for the

1. Genetal objectives domesticprocessing of phosphorous fertilizers and - To explore, exploit and sort apatite ores in a base chemicals as well as for export with a rational comprehensive and rational manner in order to volume at the initial stage. The estimated are achieve the targets of ore output and quality for exploitation and sorting output in the 2008-2020 the national economy; period is specified in Appendix 1. - To build and develop the industry of exploitation of apatite ores in a stable and d Environmental protection: sustainable manner, meeting needs for raw To ensure minimum eco-environmental materials for the processing of fertilizers for impacts of ore exploitation and sorting on agricultural development to assure national food localities where mining activities are conducted. security, and for the production of base chemicals, livestock feed, and other industries. To contribute III. Forecast needs for apatite ores © VIETNAM LAW & LEGAL FORUM ISSue nos05-116lAugust 2008 OFFICIAL GAZETTE 59 (GOng B80 nos 477-478/August 29, 2008) Needs for apatite ores for the production of to the level of elaborate exploration in order to single superphosphates, fused phosphorous reach 6.5 million tons and 24.8 million tons of fertilizer, DAPfertiJizer, yellow phosphorus, etc., explored class-I and class-III ores, respectively, are forecast as follows: combined with the exploration of class-Il and Unit of No Category 2010 2015 2020 2025 calculation I Class-I ores 1,000 tons 500 550 600 650 2 Class-Il ores 1,000 tons 860 1,120 1,650 1,650 3 Sorted ores 1,000 tons 1,120 1,620 2,020 2,020 Total 1,000 tons 2,480 3,290 4,270 4,320 IV. Exploration planning class-Iv ores; The explored and determined apatite ore - Lxploration in Phu Nhuan area: 'The volume reserve is 778 million tons, including 31 million ofclass-Iores will be around 1 million tons, class- tons of class-lares, 234 million tons of class-II III ores around 10 millions tons, combined with ores, 222 miIlion tons of class-III ores and 291 the exploration ofclass-II and class-IV ores; million tons of class-IV ores. The explored and - Exploration ofclass-Il ores in the central area, forecast reserve is around 2.45 billion tons. with a reserve of 100 million tons, combined with the exploration of class-Iv ores in the surrounding

1. Exploration areas areas; Areas projected for intensive geological exploration in the planning period include: - Exploration in BatXat - Lung Po area on the basis of outcomes of preliminary searches on a - Tam Dinh - Phung village area; map scale of 1/25,000; - Phu Nhuan area; - Survey and exploration in Bao Ha - Trai Hut - Class-II ores in the central area; area; - Bat Xat - Lung Po are area; - Extensive exploration in the Northern Nhac - Baa Ha - Trai Hut area; Son area from mining site 25 to mining site 29. - Northern Nhac Son area from mining site 25 The explored volumes ofc1ass-I and class-III ores to mining site 29. will be around 10 million and 20 million tons,

2. Exploration volumes and tasks respectively, combined with the exploration of class-Il and class-Iv ores. - Exploration in Tam Dinh - Phung village: To switch from the level of preliminary exploration 3. Exploration schedule and capital © VIETNAM LAW & LEGAL FORUM 60 OFFICIAL GAZETTE ~.ue nos 05=OO/Auguol 2008 (GOng Baanos 477-4781August 29, 2008) The investment capital for exploration in the to be put into exploitation in the 2008~2020 period planning period is estimated at around VND 213 are specified in Appendix 3. billion. The detailed schedule and capital for exploration are specified in Appendix 2. VI. Planning on apatite ore sorting v. Planning on exploitation of apatite ores 1.Ore sorting capacity inLaoCai To meet the needs for raw materials for the productionof superphosphates and DAP fertilizer To further and thoroughly use mining in the planning periods, the pure are sorting equipment in theexistingproductionchains, such capacity is determined at 2 million tons/year. as blasting drills,excavator-elevators and transport Total capacity of existing sorting plants and vehicles, in order to raise the capacity to serve those under construction is 1,420,000 tons of productionandbusiness. Tostepby stepinvestin pure ores/year. Investment will be made to modern and appropriate technologies and achieve an additional capacity of around complete equipment, suchashydraulic excavators 600,000 tons/year. witha bucket capacity of8-lOm3, hydraulic drills with a bit diameter of up to 150 mm and self- 2. Ore sorting solutions dumping automobiles of a tonnage of up to 80 - Sorting class-III ores with presently applied tons,and considerthe possibility to applythemode technologies. of combinedautomobile-conveyor transportation - Researching and transferring technologies for to suit the geologicalstructure of mines (for mine sorting class-II and class-IV ores in order to layers spreading on vast areas); salvage natural resources, as these two ore In the planning period, to open new mining categories account for 70% of the total mineral areas in the Northern Nhac Son, central, TamDinh reserve. - Phung village and Phu Nhuan areas in order to In the platmingperiods, torenovate theexisting maintain the ore output for processing. sorting plants and build new ones as follows: The average output of class-I, class-Il and - Renovation and expansion of Tang Loong sorted crude ores for the planning periods is sorting plant with a capacity of900,OOOtons/year; estimated as follows: - Maintenance of Cam Duong sorting plant - In the 2008-2010 period: 2-2.5 million tons! with a capacity of 120,000 tons/year; year; - Building of Northem Nhac Son sorting plant - In the 2011-2015 period: 3-3.5 million tons! with a capacity of 350,000 tons!year; year, - Building of Northern Phung village sorting - In the 2016-2020 period: 4-4.5 million tons! plant with a capacity of 250,000 tons/year; year. - Building of a class-Iland ctass-Iv ore sorting Reserves of mining sites in the mining areas plant with a capacity of 500,000 tons/year. © VIETNAM LAW & LEGAL FORUM Issue nos05-06JAugust 2Q08 OFFICIAL GAZETTE 61 (GOng BaD nos 477-47B1August 29, 2(08)

3. Solutions to use apatite ores - By 2015, studying the sorting of ores with a - Class-I and sorted ores and part of the class- low content of P20S (class-II and class-IV ores) II are output will be used for the production of to be added to the ore resource to meet domestic phosphorous fertilizers and DAP fertilizer; use needs. - Class-III ores exploited from chemically - Stepping up the equitization of state weathered KS layers 4, 6 and 7 with a content of enterprises and establishment of joint-stock P 20 S :'?: 12% will be used as input raw materials companies with the participation of scientific and for sorting plants after having their content ofP20S technological research institutions and neutralized; enterprises and capital contributions of other enterprises engaged in geology, are exploitation - Class-IV ores and the superfluous volume of and sorting, and deep processing of apatite ores. class-II ores will be stored and preserved for future use. - Raising the sense of social responsibility of are exploitation and sorting enterprises for making VII. Capital needs and investment projects contributions to building infrastructure, attracting, on development of the apatite ore exploitation training and employing locallaborers; devising and sorting industry in the 2008-2020 period measures to protect the ecological environment and actively participating in improving the social - Investment capital needed for the environment. development of the apatite ore exploitation and sorting industry in the 2008-2020 period is 2. Group of specific solutions and policies estimated at around VND 2,500 billion (see aJ Market solution: Appendix 4). Building and developing the domestic market - Investment projects on apatite ore under the mechanism of fair market competition exploitation and sorting in the 2008-2020 period, and close cooperation in order to ensurethe supply with post after-2020 orientations taken into of raw materials for establishments processing consideration, are listed in Appendix 5. phosphorous fertilizers and producing base chemicals, livestock feed, and gi"adually VIII. Major solutions and policies penetrating into the world market. I. Group of general solutions and policies bl Researching, transferring and receiving To assure the sustainable development of the sciences and technologies: apatite ore exploitation and sorting industry Perfecting the technology for exploiting and with the following principal solutions and the technology for floating class-III ores. policies: Attaching importance to the research into - Protecting, exploiting and using in an technologies for sorting class-II and class-IV economical and rational manner domestic natural ores as well as technologies for producing drugs resources; for sorting class-II and class-IV ores through © VIETNAM LAW & LEGAL FORUM 62 OFFICIAL GAZETTE Issue nos 05-06IAugust 2008 (Gong Sao nos 477-47PJAugust 29, 2(08) joint efforts between the State, scientific and - Self-acquired capital of enterprises; technological enterprises and mineral exploiting - Budget capital for investment in and processing enterprises. infrastructure outside mine fences, the elaboration and adjustment of the planning, scientific and cl Developing and training human resources: technological training and research activities of Entering into cooperation with training institutes and schools in the industry; establishmentsGob-training schools,collegesand - The State's investment credit loans for universities} in training and retraining the labor investment projects on apatite ore exploitation and force and conducting scientific research for the sorting in localities with difficult and exceptionally stages of mining and mineral sorting suitable to difficult socio-economic conditions under current Vietnam's apatite mineral deposit and regulations; cherecterrstics. Attaching importance to the training of mining business leaders and - Domestic and forei.gn commercial loans; administrators to satisfy the requirements of - Capital of financial institutions provided in business Jevelopment in the context of global the form of financial assistance for hire, hire- competition. purchase or purchase of equipment; credit for sellers of technologies and equipment; dI Protecting the environment - Foreign investment capital to be mobilized Mineral exploitation and processing from foreign parties in the form of large joint- enterprises shall fully apply environmental venture projects on deep processing of apatite protection measures at the stages of mineral ores, exploration, exploitation and sorting in the direction of application of modern and fJ Slate management solutions: environmentally friendly technologies; and - Periodically reviewing, updating and seriously any out the restoration of the grounds adjusting the planning on development of the and environment after finishing mining industry of apatite exploration, exploitation and activities, They shall ensure industrial sanitation sorting to suit the national and international socio- and labor safety in production. They are economic development; encouraged to research and apply modern - Building and perfecting a mechanism for environmental treatment technologies in all concentrating the management of mineral production processes. exploration, exploitation and processing into a sale eI Investment capital solution: agency in order to ensure tile uniformity, strictness, non-overlap, mobility and efficiency of the In order to attract around VND 2,500 billion management, protection, exploitation and sorting for investment in the development of Vietnam's of apatite ores; industry of apatite are exploration, exploitation and sorting up to 2020, the following sources will ~ Reorganizing the management of natural be mobilized: resources and making of periodical statistics and © VIETNAM LAW & LEGAL FORUM Issue nO$ 05-06lAugust 2008 OFFICIAL GAZETTE 63 (GOng BaD nos 477-4781AugusI29, 20(8) reports on apatite mineral from grassroots to province shall: provincial and ministerial levels. Applying - Assume the prime responsibility for, and measures against and imposing sanctions on coordinate with Vietnam Chemical Corporation organizations and individuals that fail to fully in, managing and protecting apatite mineral comply with regulations on this work. Enhancing resources in its locality; preventing the illegal inspection and examination of mineral activities apatite exploitation and export; in order to prevent illegal mineral exploitation and - Assume the prime responsibility for, and export. coordinate with concerned ministries and - Reforming the gran! of mineral activity branches in, zoning off and approving areas in permits in the direction of introducing more which apatite mining is banned, temporarily convenient and transparent procedures while still banned or restricted; ensuring strict management of mineral activities. ~ Coordinate with state management agencies IX. Organization ()f implementation and enterprises in executing projects specified in this Decision.

1. The Industry and Trade Ministry shall publicize and direct the organization of 4. Vietnam Chemical Corporation shall: implementation of the planning, periodically - Manage, survey and plan the use and update and adjust the planning and propose exploitation of apatite ore mines in Lao Cai mechanisms and policies for sustainable province; development of the apatite exploitation and - Associate and cooperate with other sorting industry, ensuring their conformity and enterprises that are capable of and interested in suitability with the national socio-economic investing in the exploration, explcitatfon and development and international integration processing of apatite ores for domestic roadmap. consumption and export.

2. The Ministries of Natural Resources and Article 2.- This Decision takes effect 15 days Environment, Science and Technology, after its publication in "CONG BAO. Planning and Investment, Finance, Transport, and Information and Communication shall, Article3.- Ministers, heads ofministerial-level within the ambit of their functions and tasks, agencies, heads of government-attached agencies, assume the prime responsibility for, and the president of the People's Committee of Lao coordinate with the Industry and Trade Ministry Cai province, and Vietnam Chemical Corporation in, coucretizmg and organizing the shall implement this Decision. implementation of solutions and policies set forth in this Decision. Minister ofIndustry and Trade

3. The People's Committee of Lao Cai VU HUY HOANG © VIETNAM LAW & LEGAL fORUM OFFICIAL GAZETTE Issue nos QS.Q6{Auaust 2008 (C6ng BaD nos 47747B!A1Igust 29, 20(8)

Appendix 1 Forecasts about ore exploitation and sorting outputs in the 2008-2020 period (Attached to the Industry and Trade Ministry's Decision No. 2812oo8lQD·BCT ofAugust 18,2008) Unit of calculation' J,000 tons Class-I crude Class-II crude Purely sorted Total of all No Periods ores ores crude ores categories of ores I 200S·201O 2,495 2,S86 3,S05 9,186 2 2011·2015 2,700 5,510 7,150 15,360 3 2016·2020 2,750 7,250 8,050 IS,050 Total 7,945 15,646 19,005 42,596

Appendix 2 Exploration schedule and capital (Attached to the Industry and Trade Ministry's Decision No. 2812oo8lQD·BCT ofAugu,' 18,2008) Unit ofcalculation: VND billion Reserves Survey and Investment Mines and mining 2008· 2016· No (million exploration capital (VND sites 2015 2020 tons) objectives billion) 1 Tam Dinh ~ Phung 2S Elaborate 16 16 village area exploration 2 Phu Nhuan area 11 10 10 3 Class-Il ores in 100 Elaborate SO 75 5 the central area exploration 4 Mining sites from 36 Elaborate 22 21 I 24·29 exploration 5 Class-III in 15 Elaborate 6 6 I srounds exnloration 6 Lung Po - Bat Xat "00 6.1 Phase I 100 Survey - 20 20 exploration 6.2 Phase II 100 Elaborate 50 33 17 exploration 7 Phung village - 60 Survey - 9 . 9 Trai Hut area exnlcration Total 439 . 213 181 32 © VIETNAM LAW & LEGAL FORUM Issue nos 05-06JAugust 2008 OFFICIAL GAZETTE 65 (GOng Baa nos 477-47B1Augusl29, 2008)

Appendix 3 Ore reserves to be mobilized and ore volumes to be exploited (Attached to the Industry and Trade Ministry's Decision No. 281200BlQD-BCTofAugust 18,2008) s+ "- "+ + j - U ~ 1 Mining sites in 1.220 25.300 4,495 18,550 15.21 0.9 : ooerarion 2 Mining site 17 514 396 837 1,057 2.00 0.93 3 Mining site 10 605 8,200 3,308 7,863 13 0.38 4 Wings 3-4, Koc 769 5,500 2,110 11,350 15,522 2.4 1.53 rrnne 5 Wings 3-4, Mo 1,820 11.900 16,400 23,011 12.64 1.19 village 6 Mining sites 18 1.610 25,200 15,129 29,129 18.09 0.77 and 19 7 Northern Nhac 5.265 27,011 35,702 50,700 9.96 0.97 Son area: mining sires 2fJ, 21, 22 and 23 8 Tam Dinh - 6,200 24,800 31,000 44,440 7.16 1 Phung village area 9 Phu Nhuan area 735,000 8.520 16,458 21,191 28.83 1.78 10 Class-Il ores of 35,500 102,000 114,166 2.8 mining sites 11 Class-ill ores in 34.600 o storages Total 18.738 41,000 168,037 236,679 330,000 5.52 1.03 © VIETNAM LAW & U::GAL FORUM OFFICIAL GAZETTE Issue nos 05-06IAugust 2008 (GOng 880 nos 477-478/!IlJgust 29,2008)

Appendix 4 Total investment capital needed for the 2008-2020 period (Attached to the Industry and Trade Ministry's Decision No. 2812008lQD-BCT ojAugust 18,2008) Unit ofcalculation: VND billion No Investment domains 2008-2010 2011-2015 2016-2020 2008-2020 1 Geological survey 52 119 32 213 2 Capital construction and 208 276 121 605 procurement of mining I ecuicment 3 Building of ore-sorting 313 736 536 1,685 I plants 4 Scientific and technological 5.4 10 4.6 20 research Total 578 1,141 783.6 2,503

Appendix 5 List of investment projects on apatite ore exploitation and sorting in the 2008-2020 period, with post-2020 orientations taken into consideration (Attached to the the Industry and Trade Ministry's Decision No. 2812008lQD-BCT ojAugu" 18.2008) ~ u " "2' 8 -. o~ ." ""Re• 0 "0 "E 6 0 c, -g" ~" u;= E;E "e"~.-~ Z ~ •o "'''' ~~ 0 :o;;:~ ~ .s •u "0 " , '5."' z• ~~ u• - "> > ~ c - E For the 2008-2020 period Ore exploitation and soning projects 1 Completion of sorting chain Tang Loong 900 180 2008 No.3 of Tang Loong sorting township of Baa nlant Thane: district . © VIETNAM LAW & LEGAL FORUM bsuenosO~August2008 OFFICIAL GAZETTE 61 (GOng Baonos 477-478/August 29, 2(08) 2 Opening of mining sites 20-23 Northern Nhac Son 200-250 100 2008-2009 area 3 Opening of mining sites 6, 7, Wings 3-4 of Mo 120-150 63.5 2008-2009 9/37 and 33-34 village 4 Geological survey In each sub-region 213 2008-2020 5 Building of a sorting plant Northern Nhac Son 350 393 2009-2011 area 6 Scientific and technological Key schemes 20 2009-2020 research 7 Buildina of a sorting plant Phung villaae 250 446 20{1-2014 8 Opening of mining sites Tam Dinh - Phung 130-170 101.5 2013-2015 village 9 Building of a class-Il ore DongHo 400 736 2014--2018 sorting plant 10 Opening of mining sites Phu Nhuan area 50 36.2 2015-2016 11 Opening of mining sites to The mine central 1,600 18.8 2015 - 2018 exploit class-Il ores area 12 Procurement of equipment Mining areas 285 Total 2,503 © VIETNAM LAW & LEGAL FORUM