Decision No. 89/2008/QD-TTg approving the strategy on development of Viet Nam’s coal industry up to 2015 and orientations towards 2025

6 OFFICIAL GAZETTE Issue nosO5-06iJuly 2008 (Gong Bao nos 411-4121Ju!y 19, 2(08) THE PRIME MINISTER DECISION No.89I2OO81QD-TTg OFJULY 7, 2008, APPROVING THE STRATEGY ON DEVELOPMENT OF VIETNAM'S COAL INDUSTRY UP TO 2015 AND ORIENTATIONS TOWARDS 2025 THE PRIME MINISTER Pursuant to the December 25, 2001 Law on Organization afthe Government; At the proposala/the Ministeroflndustry and Trade, DECIDES: Article 1.- To approve the Strategy on development of Vietnam's coal industry up to 2015 and orientations towards 2025 with the following principal contents: 1. Development viewpoints aJTo develop the coal industry on the basis of mining, processing and using in an efficient and economical manner domestic coal resources; 10 makesubstantial contributions to assuringnational energy security and best satisfying coal demands of national socio-economic development; to ensure rational coal import and export in the direction of gradually reducing coal export through plan-based management measures and other regulating measures suitable to the State- controlled market mechanism and Vietnam's international commitments. blTo develop thecoal induslry in a sustainable, © VIETNAM LAW & LEGAL FORUM Issue nos O5-06IJuly 2008 OFFICIAL GAZETTE 7 (COny Baonos 4114121Juiy 19, 2008) effective and comprehensive manner to keep pace domestic demand and ensuring national energy with the development ofother industries. To bring security. into full play internal resources (capital, domestic 3. Development objectives capacity to design and manufacture equipment, etc.) in combination with expanding international aJ Coal exploration: To strive to completely cooperation, ftrstly in the research, implemen- explore and assess the northeastern coal basin's tation and application of advanced technologies natural resources below the ~ 300m level and in coal exploration, mining, processing and use; thoroughly explore part of natural resources of to properly invest in environmental protection, the Red River delta's coal basin by 2010; to labor safety, naturalresource management and risk completely explore and assess natural resources control in coal mining. of the Red River delta's coal basin by 2015. To step up exploration for increasing verified coal cl To step up the survey, exploration and reserves and upgrading existing reserves in order assessment of coal reserves in order to prepare a to ensure sufficient reliable coal reserves to be ftnn natural resource basis for the coal industry's mined during 2008-2025. stable and sustainable development, in combination with increasing offshore investment bl Coal mining: To strive for the-target that in coal exploration and mining in order to the output of clean coal of the northeastemcoal additionally supply coal for domestic basin and other coal mines (other than the Red consumption. River delta's coal basin) will reach 48-50 million tons by 2010; 60-65 million tons by dI To form as soon as possible a competitive 2015; 70-75 million tons by 2020; and over 80 coal market which is integrated into the region million tons by 2025. From now to 2010, to and the world and diversify modes ofinvestment invest on a pilot basis in some projects in the and trading in the coal industry. Red River delta's coal basin with traditional eJ To develop the coal industry in association mining technologies such as pit mining, coal with protecting and improving the environment gasification and liquefaction, serving as a basis and landscape ofcoal regions; making substantial for post-2010 development investment. contributions to socio-economic development and cI Coal sieving, sorting and processing: From security and defense consolidation in localities, now t02015, to strive to develop coal processing especially Quang Ninh coal region; to ensure in the direction of diversifying products (instant production safety. fuel, coal used for metallurgy, gasifiedceal, liquid 2. Development strategy fuel from coal, raw materials for the chemical To develop Vietnam's coal industry into a industry, etc.). developed and highly competitive industry with dI Environmental protection: To strive to advanced technological level compared to the basically prevent environmental and water source regional level in all stages of coal exploration, pollution by 2010; by 2015, principal mining, sieving, sorting, processing and use, environmental indicators must basically be which will be capable of basically meeting the improved in sensitive areas (urban centers, © VIETNAM LAW & LEGAL FORUM

8 OFFICIAL GAZETTE Issue nosO5-06IJuly 2008 (COng Baonos 4114121JuJy 19, 2008) residential areas, tourist sites, etc.),and mines must exploit, and import coal into Vietnam, or build satisfy environmental standards; by 2020, overseas coal-power or coal-cement complexes environmental standards must be fully satisfied in the form of self-investment or investment in the entire mine region. cooperation with local companies and other eI Coal market:The coal industry will switch foreign companies in accordance with host to operate under the State-controlled market countries' regulations. mechanism integrated into regional and cI Coal mining technologies: international markets. ~ Pit mining: 4. Development orientations + To plan, design and build new mines or a/Domestic coal exploration and mining: renovate and expand existing mines towards consolidation, large capacity and complete and - 10 further step up technological renewal modem technological chains; to optimize the in exploration and mining activities in a output to ensure stable and sustainable mining; cersraltzed and coordinated-manner, To promote explorationfor increasingverifiedcoalreserves + To use pit-props of new materials and and upgrading existing coal reserves. For coal hydraulic supports in replacement of wood and in the continental shelf, to make full use of metal ones; anchors, anchors in combination with geological documents in the course of petrol concrete spraying, etc., to prop and protect pit and oil prospecting and exploration in order to tunnels under possible mining geological synthesize and preliminarily assess coal conditions; potential and plan for subsequent stages. The + To further improve mechanized mining explmation licensing and mining must comply technological processes for slightly sloping seams. With1he Law on Minerals; To study and select suitable technologies for - To Invest in coal exploration, mining, raising the effectiveness of mining at steeply processins and tradingunderpJanning. To put an sloping and vertical thick seams; to study and end to the illegal coal mining, processing and apply appropriate mining technologies for coal trading; reserves below -300m of the Quang Ninh coal basin and the Red River delta's coal basin. ..'Ieencourage localities having coal spots with small reserves to invest in coal exploration and - Opencast mining: mining 10 meet local demands; to attach + To expand existing opencast mines by importance to the exploration and mining ofpeat increasing limited baring coefficients; to for use as fuel and fertilizer. maximize the mining capacity in line with the hi Overseas coal exploration and mining: planning on discharging, transportation, water To increase investment in overseas coal drainage and environmental protection; exploration and mining; to select areas with + To renew and modernize mining chain reserve potential and favorable mining conditions equipment by using mobile high-capacity inl.aos, Cambodia,Africa, etc., in order to explore, equipment, suitable to the conditions and size of © VIETNAM LAW & LEGAL FORUM Issue nos 05-06IJuly 2008 OFFICIAL GAZETTE 9 (GOng Bilonos 411-4121July 19, 2008) each mine; adverse impacts on the surrounding + To optimize technical parameters of the environment; currently applicable mining system; to study and - To renovate or build large port clusters of apply vertical layering mining technologies, modem coaling equipment in order to step by step selective and thin-seam mining technologies, and eliminate small coaling stations using backward technologies to discharge wastes into temporary technologies; to expand harbors and dredge and internal landfills. channels for increasing the coaling capacity of For any technology, it is necessary to apply major ports. the most advanced technical and managerial fI Safety and environmental protection: solutions for minimizing wastage in mining and ~ To enhance propagation, education and reducing energy consumption. dissemination of knowledge about labor safetyand dI Coal sieving, sorting and processing: environmental protection among all officials, Toinvest in technological renewal for-raising workers and employees; the efficiency ofexisting coal sorting factories; - To attract capital sources at home, abroad to build new coal sorting factories applying and from international organizations and other modem technologies to best meet the domestic financing sources for environmental protection; market demand in a stable manner, raise the to coordinate with local administrations in utility of coal resources and enhance rapidly tackling environmental pollution caused environmental protection. Topromotetheresearch by coal mining over dIe past years, with special and application of coal processing technologies attention paid to Ha Long bay's enviromnent such as processing coal for metallurgy, coal and landscape; gasification, coal liquefaction, etc., in order to - To formulate long-term plans androadmaps diversify coal products. as well as coordinated solutions in order to eI Infrastructure development for the coal overcome environmental pollution and step by industry: step properly address environmental issues in coal - To divide coal transportation routes based mining activities to ensure Vietnam, regional and on areas by associating coal mines and regions world environmental standards; with large consumers in the region in line with - To closely control the implementation of plannings on socio-economic, urban and safety and environment-related technical infrastructure development in areas where coal processes and standards in coal exploration, mining activities are carried out; mining, transportation, processing and use. In - To promote to the utmost the capacity of the course of executing specific projects, existing transportation system; to increase investors shall formulate environmental impact modes of transportation by railways. conveyor assessment reports and submit them to belts or combined automobile-conveyor belts; competent authorities for approval accordingto to minimize car transportation in order to reduce current regulations; © VIETNAM LAW & LEGAL FORUM

10 OFFICIAL GAZETIE Issue nosQ5.(J6/July ms (Gilng Boo no> 411-4121July 19, 2008) - To attach importance to investingin modem - To further step up the equitization of coal and hlgh-automation equipment and technologies production companies, proceeding to forma coal in order to prevent and eliminate mine incidents. market with diversified forms of ownership and To modernize and militarize professional mine modes of coalproduction and trading. emergency centers, furnish adequate personal hi Financial solutions: emergencyequipment for workers,especiallypit -To step up the raising of capital from domestic miners, in order to minimize labor accidents. and foreign economic sectors through W'Coalose: cooperation, joint venture, linking, and - To encourage investment and international equitizationofenterprises, etc. To encourage coal enterprises to raise capital through the securities cooperation in the research and application of market (by issuing bonds, share certificates, advanced coal processing and use technologies international bonds) and get commercial loans to in order to raise the use value of coal, conserve invest in the development of coal projects; natural resources and protect the environment, such as technologies to use clean coal and - To allocate state budget capital and suspensoid wet coal, process coal for metallurgy, preferential capital ofother sources for surveying gasify and liquefy coal, etc.; and seeking coal resources and formulating a planning on the coal industry development; - To prioritize the development of projects "involving technologies to use coal in an - The State provides partial support from the economical and efficient manner; and projects state budget for efficient research programs and using high quality lump coaland breeze andlow- job-trainingschools in thecoal industry to develop qualilY"""!. human resources for the coal industry; facilitates coal enterprises to get access to state creditcapital, hi Coal prices: aDA capital, capital of the Vietnam Cool prices should be set according to the Environmental ProtectionFund and raise capital market mechanism fer the purpose of integration of other sources for executing environmental into regional and world markets. Coal prices shall treatment projects. be regulated by !be State Ihrough tax policies and othermanagement instruments. cI Investment solutions: - To intensify investment in coal mine projects 5. Solutions for implementing the Strategy throughdiversifying formsofinvestment in order aIOrganizational solutions: to promote all resources and raise investment - To promulgate, amend, supplement or efficiency. To further improve policies to attract improve legal documents in order to create a foreign investment in exploring and mining the favotable legal framework for coal management, Red River delta's coal basin and areas below. mining, processing and trading, and develop the 300m of Quang Ninh coal basin; Will industry under the State-controlled market - To increase investment in the development mechanism; of overseas coal exploration and mining projects. © VIETNAM LAW & LEGAL FORUM Issue nos 05-06lJuly 2008 OFFICIAL GAZETTE 11 ,(GOng sao nos 4114121Ju/y 19, 2008) dI Human resource development solutions: safety, and administering production. To apply - To train existing technicians and technkal automation control technologies to some workers for improving their qualifications; to technological chains, and mine safety and train more officials and workers for jobs which envirorunent control; lack capable ones; to build a contingent of the - To study rational technological solutions for cool industry's officials and workers who are efficientlymining coal seams andregions in which qualitatively and quantitatively strong to master geological conditions are complicated; to.4Ldy advanced technologies and equipment; solutions for stabilizing mine edges, merall - To develop coal industry schools and strive solutions on the planning on waste discMrge, to build some of them up to international transportation and water drainage foropet1l:£ standards. To ensure transferability between mines, and solutions for increasing safety at pit educational levels: university, college, secondary mines; to study and apply technologies to lJSf?(1aJn training, and technical worker training; to coal, high-quality lump coal and breezeand l<lw- Cannulate the coal industry's standard uniforrn quality coal. training programs on specialized areas. Toselect Article 2.- Organization of implementation and send capable engineers to attend overseas training courses to meet the coal industry's I. The MinistIy of Industry aod Tmdeshall, development requirements; aJ Assume the prime responsibility for, and - To promulgate preferential and incentive coordinate with concerned ministries; brardtes policies to attract highly skilled technical and and localities in, implementing this St:tategy. professional laborers to work in the coal Direct the formulation and organize the industry. implemenration of a planningon the coal indu..by eI Scientific and technological solutions: development up to 2025; - To promote internal resources tn hi Assume the prime responsibility for. arxt combination with expanding international coordinate with concerned ministries and cooperation on scientific research and branches in, studying and improving mecha niSMS application of advanced technologies in coal and policies related to the coal industry 's activities exploration, mining, transportation, processing and taking specific measures to closely manage and use; to study and receive transferred coal resources and accelerate coal miJie advanced technologies from around the world investment projects; in order to increasingly improve safety, reduce cI Assume the prime responsibility for, and coal wastage and minimize environmental coordinate with concerned ministries and pollution; branches in, directing coal production, importand - To step up the application of information export; approve coal production, import and technology to modernizing the management of export plans and guide and inspect their coal resources, the environment and technical implementation. © VIETNAM LAW & LEGAL FORUM OFFICIAL GAZETTE Issue nosO5-Q6IJuly 200B (COng BaD 1IlJIl4114121Ju1y 19, 2008) 2. The Ministry of Natural Resources and requirements. Environment shall assume the prime 6. Provincial/municipal People's Committees responsibility for,and coordinatewithconcerned shalldirectthe performance of the followingtasks: ministries, branches and localities in, directing the aJTo enhance propagation and dissemination survey, exploration and prospecting of coal of and education in the law on minerals; to take resources and reserves nationwide, ensuring the measures to protect coal resources and minerals adequate supply of natural resources for the being and having not yet been mined in achievement of the Strategy's objectives; direct, localities; inspect. supervise, and take specific measures to properly rotect the environment in coal-mining b/ To enhance examination and inspection of >ICre5. organizations and individuals engaged in coal mining activities in localities in the observance 3. 'Ibe Ministry of Science and Technology of the law on minerals. sball assume the prime responsibility for, and _ withtheMinistry of Industry and Trade 7. The Vietnam National Coal and Mineral Industries Group shall take the main and concerned ministries and branches in, directing the implementation of scientific- responsibility for the coal industry development and domestic coal supply and coordinate with technological programs in coal survey, large coal consumers in importing coal to meet exploratiC'll, prospecting, mining, sieving, sorting, national socio-economic development processing and use so as to receive and apply requirements, contributing to assuring national advanced and environmentally friendly energy security. technologies andreduce coal wastage. 8. Concerned ministries, branches, localities, 4. 'The Ministry of Finance shall assume the enterprises, organizations and individuals shall, prime responsibility for, and coordinate with the within the ambit of their functions and tasks, Ministry ofPlanning and Investment and the State organizethe implementation of, orimplement, this Bank of Vietnam in, further studying, improving Strategy. and promulgating mechanisms to mise capital and CO ntrol the,use of capital for efficient investment Article 3.- This Decision takes effect 15 days in lhecoal industry development. after its publication in ''CONG BAO." 5. The Ministry of Education and Training Arli£1e 4.- Ministers, headsofministerial-level shalt assume the prime responsibility for, and agencies, headsofgovernment-attached agencies, coordinate with the Ministry of Industry and presidents of provincial/municipal People's Trade and the Ministry of Labor, War Invalids Committees, and concerned organizations and and Social Affairs in, directing the formulation individuals shall implement this Decision. of training programs and organizing the training of technicians, managers and skilled workers Prime Minister to meet the coal industry's development NGUYEN TAN DUNG © VIETNAM LAW & LEGAL FORUM