Decree No. 160/2005/ND-CP detailing and guiding the implementation of the Law on Minerals and the Law amending and supplementing a number of articles of the Law on Minerals

Article 1 — Regulation scope

Article 1.- Regulation scope legal documents on mineral resources; submit to This Decree details and guides the the Prime Minister for promulgation or promulgate implementation of the Law on Minerals, passed on according to its competence legal documents on March 20, 1996, by the IX1h National Assembly at basic geological surveys of mineral resources, on its 9 th session, and the Law Amending and management and protection of mineral resources Supplementing a Number of Articles of the Law on and activities. Minerals, passed on June 14, 2005, by the Xl th 2. To elaborate, and direct the implementation National Assembly at its 7th session (hereinafter of, plannings and plans on basic geological surveys referred to collectively as the Law on Minerals). of mineral resources nationwide; approve state-

Article 2 — Application subjects funded schemes on, and reports on the results of,

Article 2.-Application subjects funded schemes on, and reports on the results of, Issue nos 03-05/Januai:y 2006 OFFIC!Al GAZETTE 17 (Cong Bao nos 09-10/Jan. 6, 2006) basic geological surveys of mineral resources and samples in accordance with the provisions of conducted under the State-assigned plans by units law. under the Ministry's management. 8. To act as the standing body of the Mineral 3. To determine mineral-deposited areas already Deposit Evaluating Council. surveyed and assessed according to the provisions

Article 4 — Powers and responsibilities of the

Article 4.- Powers and responsibilities of the of Clause 1, Article 9 of the Law on Minerals; supply Ministry of Industry and the Ministry of Construction to the Ministry of Industry and the Ministry of in the state management of mineral exploitation Construction documents on suNeys and evaluation and processing industries of minerals in service of mineral exploration, exploitation, processing and use planning; zone off 1. The Ministry of Industry and the Ministry of areas with hazardous minerals according to the Construction shall perform the function of state provisions of Article 15 of the Law on Minerals and management of mineral exploitation and notify relevant state agencies thereof; organize the processing industries according to the provisions inventory of approved mineral deposits nationwide. of Clauses 3 and 4, Article 55 of the Law on Minerals, having the following powers and 4. To grant, extend, withdraw and allow the responsibilities: return of mineral activity permits, to permit the transfer or further exercise of the rights to mineral al To report to the Government policies, activities in case of inheritance according to its strategies, plannings and plans on mineral competence provided for at Point a, Clause 1, exploration, exploitation, processing and use under

Article 56 — of the Law on Minerals. their respective management; direct and inspect

Article 56 of the Law on Minerals. their respective management; direct and inspect the implementation thereof after they are approved. 5. To propagate, disseminate law on minerals, bl To report to the Prime Minister for approval guide and inspect the observance the law on minerals by branches, localities, organizations and regions where mineral exploration and exploitation may be put up for bidding under the provisions of individuals; inspect and examine basic geological surveys of mineral resources and mineral activities Clause 2, Article 23 of this Decree; as well as the management and protection of c/ To promulgate regulations on mineral mineral resources. exploitation and processing standards, processes 6. To settle disputes, complaints and and technologies. denunciations about basic geological surveys of 2. The Ministry of Industry shall promulgate lists mineral resources and mineral activities according of export minerals and minerals restricted fro~ to its competence provided for in Article 57 of the export, their conditions and standards. Law on Minerals and the law on complaints and

Article 5 — Organization and operation of the

Article 5.- Organization and operation of the denunciations. Mineral Deposit Evaluating Council 7. To organize the registration, gathering and summing up of the results of basic geological 1. The Mineral Deposit Evaluating Council is surveys of mineral resources and the situation of based at the Ministry of Natural Resources and mineral activities nationwide; organize the archive Environment. Its membership shall be decided by and management of mineral resource documents the Prime Minister. 18 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) 2. The Mineral Deposit Evaluating Council shall ofTourism in, zoning off and reporting to the Prime assist the Government in performing the following Minister for decision regions where mineral tasks: activities are banned according to the provisions a/ To evaluate, consider and approve mineral of Artjcle 20 of this Decree; zone off and report to deposits stated in reports on exploration of the Prime Minister for decision regions where minerals, except for minerals to be used as minerar activities are temporarily banned according common building materials and peat. to the provisions of Article 21 of this Decree; b/ To make statistics on mineral deposits, except c/ To organize the elaboration of, and submit to for minerals used as common building materials the People's Councils of the same level for and peat, and supply them to concerned agencies approval, plannings on exploration, exploitation, for elaborating mineral exploration, exploitation, processing and use of minerals of types falling processing and use plannings; under their permit-granting competence provided for at Point b, Clause 1, Article 56 of the Law on cl To appraise regulations on decentralization Minerals; of mineral deposits and regulations on the contents of reports on mineral deposit prospecting and di To direct the organization of popularization evaluation for promulgation by the Minister of and dissemination of, and education about, the law Natural Resources and Environment; on minerals; apply measures to protect mineral resources, environment and other natural di To consider, approve and recognize mineral resources in accordance with the provisions of law; deposit calculation norms. ensure security and social order in regions where

Article 6 — Powers and responsibilities of minerals exist;

People's Committees at all levels in the state management of minerals 1. People's Committees of provinces or centrally-run cities (hereinafter referred to collectively as provincial-level People's Committees) shall have the following powers and responsibilities: a/To promulgate according to their competence legal documents guiding the implementation of state regulations on management and protection of mineral resources as well as management of mineral activities in localities; b/ To assume the prime responsibility for, and coordinate with the ministries of Natural Resources and Environment, Planning and Investment, Industry, Construction, Defense, Cufture and Information, Agriculture and Rural Development, and Transport, and Vietnam National Administration Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) mineral reserves; organize biddings in accordance with regulations after getting approval; h/ To direct inspection and examination of the observance of the law on minerals in localities; settle, or join in the settlement of, disputes, complaints or denunciations about mineral and handle violations of the law on minerals in localities according to their competence for in Article 57 of the Law on Minerals and the law on complaints and denunciations; i/ To handle the assignment or lease of land for mineral activities in localities in accordance with the provisions of land law. 2. Provincial/municipal Services of Natural Resources and Environment, Services of Industry and Services of Construction shall assist level People's Committees in performing management of minerals and mineral exploitation and processing industries. The state management tasks and powers of provincial/municipal of Natural Resources and Environment, Services of Industry and Services of Construction shall be stipulated by the Minister of Natural Resources and Environment, Minister of Industry and Minister of Construction, respectively. 3. People's Committees of urban districts, rural districts, provincial towns or cities, and communes, wards or townships shall have the following powers and responsibilities in the state management of minerals: al To apply measures for management and protection of mineral resources, environment and labor safety in mineral activities; ensure security and social order in regions where minerals exist; b/ To handle according to their competence procedures for assignment or lease of land, use of infrastructure, and other related issues for organizations and individuals permitted to explore, 20 OFF!CIAl GAZETTE by their attached units. 3. The Ministry of Natural Resources and Environment shall specify the contents of projects on basic geological survey of mineral resources, the state geological archives and a geological museum; promulgate norms and unit prices in basic geological surveys of mineral resources. Article 6.- Powers and responsibilities of minerals exist; e/ To approve mineral deposits stated in reports on exploration of minerals used as common building materials and peat; f/ To grant, extend, withdraw and allow the return of mineral activity permits; permit the transfer or further exercise of the rights to mineral activities in case of inheritance according to their competence provided for at Point b, Clause 1, Article 56 of the Law on Minerals; g/ To report to the Prime Minister for approval and publicization regions for bidding for exploration or exploitation of minerals used as common building materials and peat, and minerals in the already surveyed, evaluated or explored regions; approve mineral deposits which are not included in the national pfanning on mineral exploration, exploitation and processing already approved by competent state bodies or not subject to national OFFICIAL GP,ZETTE 19 exploit and/or process minerals in localities in accordance with the provisions of law; c/To propagate, disseminate and educate about the law on minerals; handle violations in accordance with the provisions of law. activities Chapter Ill provided BASIC GEOLOGICAL SURVEY OF MINERAL RESOURCES Article 7.- Activities of basic geological survey of mineral resources Basic geological survey of mineral resources shall include the following activities: 1. Surveying and discovering mineral potentiality provincial- and concurrently elaborating regional geological the state maps, maps-of geological incidents, environmental geology, marine mineral geology, topical maps, and conducting research into geological and mineral Services topics. 2. Assessing mineral resource potentiality of each mineral type or group and prospective geological structures in order to discover new mines. Article 8.- Management of activities of basic geological survey of mineral resources 1. Activities of basic geological survey of mineral resources shall be conducted simultaneously with basic geological survey under the state planning'' and plans. 2. Based on the planning on basic geological survey of mineral resources already approved by the Prime Minister and the assigned state budget plans, ministries and ministerial-level agencies shall organize the evaluation and approval of schemes on, and reports on the results of, basic geological surveys of mineral resources conducted Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) d/ To submit reports on the results of basic geological surveys of mineral resources to the Geological Archives and geological and mineral samples to the Geological Museum of the Ministry of Natural Resources and Environment. Article 10.- Storing of results of basic geological surveys of mineral resources

Article 9 — Rights and obligations of 1. Reports on the results of basic geological

Article 9.- Rights and obligations of 1. Reports on the results of basic geological organizations conducting basic geological surveys surveys of mineral resources as well as geological of mineral resources and mineral samples must be registered and 1. Organizations conducting basic geological preserved at the Geological Archives and surveys of mineral resources shall have the Geological Museum of the Ministry of Natural following rights: Resources and Environment. al To conduct activities of basic geological 2. The Geological Archives and Geological survey of mineral resources according to projects Museum shall have to preserve state secrets about already ratified by competent agencies and data and information on mineral resources, assigned plans; geological samples and minerals; create favorable conditions for organizations and individuals to refer bl To be commended and/or rewarded by the to and use data and information on mineral State when recording achievements in geological resources in accordance with the provisions of law. and mineral researches and discoveries; c/ To send samples abroad for analysis and Chapter JV testing under the schemes already approved by MINERAL PLANNING competent state agencies. 2. Organizations conducting basic geological

Article 11 — · Planning on basic geological

Article 11.· Planning on basic geological surveys of mineral resources shall have the surveys of mineral resources following obligations: 1. The elaboration of basic geological surveys a/ To observe econo-technical processes, regulations and norms in activities of basic of mineral resources must be based on the following: geological survey of mineral resources; bl To ensure truthfulness and sufficiency of a/ The national socio-economic development, collected and synthesized data and information on defense and security strategies, plannings and geology and minerals; to keep state secrets about plans; information on geology and minerals in accordance bl The results of mineral survey and evaluation with the provisions of law; already conducted; the characteristics of geological c/To protect the environment, mineral resources structures with mineral potentials and prospects. and other resources in the process of conducting 2. Contents of a planning on basic geological basic geological surveys of mineral resources; survey of mineral resources shall cover: Issue nos 03-05/January 2006 OFFICIAL GAZETTE 21 (Cong Bao nos 09-10/Jan. 6, 2006) a/ Making a geological and mineral survey map 2. The elaboration of mineral exploration, of 1/50,000 or 1/25,000 scale; establishing a exploitation, processing and use plannings must geological and mineral database and information be based on the following: system; a/ Socio-economic development, defense and b/ Evaluating potential ground and underground security strategies, plannings and plans; mineral resources with regard to each type and b/ Results of nationwide geological basic survey group of minerals; determining areas with mineral of mineral resources; resource prospects; c/ Natural, socio-economic conditions of the c/ Determining the investment scale and regions where minerals exist and the market demands for equipment, techniques, analytical demand; methods and testing in service of basic geological d/ Scientific and technological advances in surveys of mineral resources; mineral exploration, exploitation, processing and d/ Mapping out solutions and a schedule for use; implementation of the planning. e/ Results of implementation of previous 3. The Ministry of Natural Resources and plannings on exploration, exploitation, processing Environment shall direct the implementation of the and use of minerals of the same type. plannings on basic geological survey of mineral 3. A mineral exploration, exploitation, processing resources after they are approved by the Prime and use planning shall have the following contents: Minister. a/ Surveying, studying, summing up and

Article 12 — Mineral exploration, exploitation and assessing natural, socio-economic conditions and

Article 12.- Mineral exploration, exploitation and assessing natural, socio-economic conditions and use plannings the current state of mineral exploration, exploitation, processing and use; Mineral exploration, exploitation and use plannings must ensure the following principles: b/ Assessing the situation of implementation of previous plannings on mineral exploration, a/ Exploiting and using rationally, thriftily and exploitation, processing and use; identifying the efficiently mineral resources to meet immediate objectives of mineral exploration, exploitation, demands while taking into account scientific and processing and use and mineral-use demands in technological development and future demands for each period; minerals; c/ Identifying regions, mines and types of. b/ Ensuring the requirements of protection of mineral which need investment in exploration, the environment, natural landscapes historical and exploitation and processing; cultural relics, places of scenic beauty and other natural resources; d/ Identifying regions where mineral activities are restricted and regions for mineral activity c/ Local plannings on mineral exploration, bidding; exploitation, processing and use must be compatible with the national mineral exploration, e/ Identifying the national mineral resource exploitation, processing and use planning already reserve area; approved by the Prime Minister. f/ Orientating investment in, sciences and 22 OFFICIAL GAZETTE Issue nos 03-05/Januai:y 2006 (Cong Bao nos 09-10/Jan. 6, 2006) technologies for, mineral exploration, exploitation, of diamonds or gemstones of special economic processing and use. value, which are used in high techniques and h/ Mapping out solutions and a schedule for technologies or for making jewelry, including gold, implementation of the planning. silver, platinum, diamond, ruby, sapphire (corundum) and emerald. 4. Responsibilities for directing, inspecting and monitoring the implementation of mineral Article 14.- Special and hazardous minerals prospecting, exploitation, processing and use 1. Special and hazardous minerals mean plannings are provided as follows: radioactive metals, rare earth and minerals a/ The Ministry of Industry shall direct, inspect containing radioactive or hazardous elements, and monitor the implementation of plannings on which, though being of high value in industries, exploration, exploitation, processing and use of exert adverse impacts on the environment, such minerals, except for minerals used as building as uranium (U), thorium (Th), lanthanum (La), materials and materials for cement production, after selenium (Se), praseodymium (Pr), neodymium they are approved by the Prime Minister; (Nd), samarium (Sm), europium (Eu), gadolinium b/ The Ministry of Construction shall direct, (Gd), terbium {Tb), dysprosium (Dy), holmium (Ho), inspect and monitor the implementation of erbium (Er), thulium (Tm), ytterbium (Yb), lutetium plannings on exploration, exploitation, processing (Lu), yttrium (Y), and such minerals as mercury, and use of minerals used as building materials and arsenic, lead, zinc and asbestos. materials for cement production, after they are 2. The exploration, exploitation and processing approved by the Prime Minister; of special and hazardous minerals must comply c/ Provincial-level People's Committees shall with the provisions of law on minerals and other organize the direction and inspection of the provisions of law on radiation safety and control. implementation of plannings on exploration, exploitation, processing and use of minerals of the Chapter VI types falling under their permit-granting competence provided for at Point b, Clause 1, MINERALS USED AS COMMON BUILDING

Article 56 — of the Law on Minerals, after they are MATERIALS

Article 56 of the Law on Minerals, after they are MATERIALS approved by the People's Councils of the same level. Article 15.- Minerals used as common building materials Chapter V Minerals used as common building materials PRECIOUS, RARE, SPECIAL AND HAZARDOUS include those with components, physical MINERALS characteristics, composition, colors or other characteristics failing to meet the requirements for

Article 13 — Precious and rare minerals use as raw materials for processing or production

Article 13.- Precious and rare minerals use as raw materials for processing or production Precious and rare minerals mean metals of products of higher value, compared to those used commonly seen in auto-generating forms or natural as common materials according to Vietnamese mixtures with other metals, minerals in the group standards. Issue nos 03-05/January 2006 OFFiCiAL GAZETTE 23 {Cong Bao nos 09-10/Jan. 6, 2006)

Article 16 — List of minerals used as common marble) which are not up to the requirements for

Article 16.- List of minerals used as common marble) which are not up to the requirements for building materials use as raw materials for production of portland cement, paving stones or decorative stones under 1. Sand of all kinds (except for silica) wlth SiO 2 Vietnamese standards. content of less than 85%, not containing such mineral substances as casiterite, volframite, 8. Dolomite stones with the MgO content of less monazite, ziricon, ilmenite or gold. than 15% and those not up to the requirements for use as materials for production of construction 2. Brick and tile clay under Vietnamese glass, paving stones or decorative stones under standards, clay of all types (except bentonite and Vietnamese standards. kaolin), which fail to meet the requirements for production of construction ceramic products Chapter VII according to Vietnamese standards, for production of chamotte or cement of Vietnamese standards. ORGANIZATIONS AND INDIVIDUALS ENGAGED IN MINERAL ACTIVITIES 3. Sandstone, quartzite with SiO 2 content of Jess than 85%, not containing metal minerals, self-

Article 17 — Scope of mineral activities of

Article 17.- Scope of mineral activities of generating metals, radioactive and rare elements, organizations and individuals or failing to meet the requirements for use as paving stones or decorative stones under Vietnamese The scope of mineral activities of organizations standards. and individuals defined in Article 6 of the Law on Minerals is provided as follows: 4. Sedimentary rocks (except those containing keramzite or diatomite), magma (except basalt a/ Domestic enterprises, including foreign- columns or pumice), degenerated rocks not invested enterprises, of all economic sectors, which containing metal minerals, self-generating have business registration certificates or licenses minerals, gemstones, semi-precious stones, for investment in mineral activities, may prospect, radioactive and rare elements, which fail to meet explore, exploit and process minerals; the requirements for use as paving stones or b/ Foreign enterprises having Vietnam-based decorative stones under Vietnamese standards or representative offices or branches may prospect for use as felspar for production of construction and explore minerals; ceramic products under Vietnamese standards. c/ Individuals having mineral activity business 5. Slates of all kinds, except for roofing and firing registration certificates may prospect, explore, slates and slates containing sericites, disten or exploit and process minerals for use as common' silimanite with a content of over 30%. building materials and fully extract minerals. 6. Pebbles, gravels, grits not containing gold, 2. Organizations and individuals defined in platinum, gemstones or semi-precious stones Clause 1 of this Article that meet the following (decorative quartz, topaz, beryl, ruby, sapphire, conditions shall be considered for the grant of ziricon), laterite, not containing self-generating mineral activity permits: metals or metal minerals. a/ Having mineral exploration, exploitation and 7. Limestone, lime clay and marble of all kinds processing schemes compatible with mineral (except for stalactite, white limestone and white exploration, exploitation, processing and use 24 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) plannings already approved by competent state a/ Executive managers of mines exploited by agencies; pit-mining methods must be pit-mining engineers b/ For mineral exploration, exploitation and or pit-building engineers who have been directly processing activities, having specialized personnel, involved in the mining of pits for at least five (05) advanced equipment, technologies and methods years; for mineral exploration, exploitation and processing. b/ Executive managers of mines exploited by c/ Having reports on assessment of opencast-mining method must be opencast-mining environmental impacts or written registrations of or pit-mining engineers who have been directly satisfaction of environmental standards, which have involved in opencast mining for at least three (03) been approved or certified by competent state years; if they are exploration geological engineers, agencies in accordance with the provisions of they must be trained in mining techniques and have environment protection law. been directly involved in opencast mining for at least five (5) years;

Article 18 — ~ Conditions for mineral exploration

Article 18.~ Conditions for mineral exploration c/ Executive managers of non-metal mines 1. Specialized geological organizations set up exploited by opencast-mining method without or permitted for setting up by gcompetent state industrial explosives or mines of minerals used as agencies or other economic organizations set up common building materials, which are exploited by under the provisions of enterprise law and simple manual methods, must have an investment law may conduct mineral exploration intermediate or higher degree in mining or when meeting all the following conditions: geological exploration; if they only have an a/ Their technical managers are geological intermediate mining degree, they must have been engineers who have worked in the field of mineral directly involved in opencast mining of minerals for exploration for at least five (5) years; are at least three (3) years; if they only have an knowledgeable about and firmly grasp normative intermediate geological exploration degree, they documents on mineral exploration; must have been trained in mining techniques and directly involved in mineral exploitation at opencast b/ Their personnel and technical workers are mines for at least three (3) years. specialized in geological survey, hydrogeology, construction geology, geophysics, drilling, 2. On managerial and administration capacity: exploitation, digging and relevant domains; a/ Firmly grasping the provisions of legal cl They have necessary specialized equipment documents on minerals and other relevant " and tools for construction of mineral exploration provisions of law related to mineral exploration, exploitation and processing; works. b/ Firmly grasping technical processes,

Article 19 — ~ Criteria for executive managers of

Article 19.~ Criteria for executive managers of regulations, criteria and principles on mining mines designs, technical mining norms, use of industrial Executive managers of mines appointed explosives, internal regulations and labor safety according to Article 36 of the Law on Minerals must rules in mining which have been promulgated by fully meet the following criteria: competent state agencies; 1. On professional qualifications: c/ Having organizational and managerial skills Issue nos 03-05/January 2006 OFFICIAL GAZETTE 25 (Cong Bao nos 09-10/Jan. 6, 2006) and practical experience in handling the mineral activities exploitation techniques, labor safety techniques 1. Regions temporarily banned from mineral and environmental protection. activities shall be determined in the following cases: Chapter VI/I a/ Due to unexpected requirements on defense or security; MINERAL ACTIVITY REGIONS AND AREAS bl Due to the requirements for nature conservation and preservation of historical and

Article 20 — Regions banned from mineral

Article 20.- Regions banned from mineral cultural relics or places of scenic beauty which are activities being considered for recognition or have been 1. Regions banned from mineral activities shall recognized by the State or which have been include: detected in the mineral exploration and exploitation a/ Regions with historical-cultural relics or places process; of scenic beauty which have been classified or c/ Due to the requirements of preventing or zoned off for protection under decisions of overcoming aftermaths of natural disasters. provincial-level People's Committees; 2. Ministers, heads of ministerial-level agencies, b/ Special-use forests, protective forests, new heads of Government-attached agencies and alluvial grounds with naturally generating presidents of provincial-level People's Committees submerged saline forests, nature conservation shall report to the Prime Minister for approval zones, submerged land conservation zones and regions temporarily banned from mineral activities geological conservation zones; and notify in writing the Ministry of Natural c/ Regions under land use plannings exclusively Resources and Environment, the Ministry of for defense or security or which may adversely Industry and the Ministry of Construction of such affect defense or security tasks; regions after they are approved. d/ Regions within safety protection corridors of

Article 22 — Regions restricted from mineral

Article 22.- Regions restricted from mineral communication, irrigation, dyke or communication activities infrastructure works; el Regions marked off exclusively for religions; 1. Regions restricted from mineral activities mean regions restricted in one of the following f/ Urban centers, industrial parks, trade areas, tourist resorts or important infrastructure works. forms: 2. Presidents of provincial-level People's a/ Being reserved exclusively for one or several Committees shall decide to approve regions monopoly organizations in mineral activities; banned from mineral activities and notify in writing b/ Being restricted in terms of exploitation output; the Ministry of Natural Resources and Environment, c/ Being restricted in terms of the export of the Ministry of Industry and the Ministry of exploited products. Construction of such regions after they are 2. Ministers, heads of ministerial-level agencies, approved. heads of Government-attached agencies and

Article 21 — Regions temporarily banned from presidents of provincial-level People's Committees

Article 21.- Regions temporarily banned from presidents of provincial-level People's Committees 26 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) shall report to the Prime Minister for approval 1. The area of a region subject to mineral regions restricted from mineral activities and notify prospecting granted under a mineral prospecting in writing the Ministry of Natural Resources and permit shall not exceed five hundred square Environment, the Ministry of Industry and the kilometers (500 km2), except for special cases Ministry of Construction of such regions after they where the Prime Minister's permission is required. are approved. 2. Mineral-prospecting permits shall be granted to many organizations or individuals conducting

Article 23 — Regions opened to bidding for

Article 23.- Regions opened to bidding for mineral activities in the same region. mineral exploration and exploitation 1. Regions opened to bidding for mineral Article 25.- Area of a region for mineral exploration and exploitation shall include the exploration following: 1. The area of a region to be explored under a a/ Regions which have been prospected and permit for exploration of metals or gemstones evaluated in terms of minerals with the state budget (diamond, ruby, sapphire, emerald) shall not capital and already approved by the Prime Minister exceed fifty square kilometers (SO km2). to be opened to bidding for exploration; 2. The area of a region to be explored under a b/ Mineral mines which have been explored with permit for exploration of coal or non-metal minerals state budget capital sources and have been (except for minerals to be used as common building approved by the Prime Minister to be opened to materials) in the mainland, with or without water bidding or selection of exploitation contractors. surface, shall not exceed one hundred square 2. The Minister of Industry and the Minister of kilometers (100 km2). Construction shall report to the Prime Minister for 3. The area of a region to be explored under a approval and announcement regions opened to permit for exploration of assorted minerals (except bidding for mineral exploration and exploitation, for minerals to be used as common building regions or mineral mines which have been explored materials) in the mainland shall not exceed two and are opened to bidding for exploitation or hundred square kilometers (200 km2). selection of exploitation contractors, and shall 4. The area of a region to be explored under a organize bidding under regulations after getting permit for exploration of minerals for use as approval, except for regions opened to bidding but common building materials in the mainland shalt falling under the reporting competence of not exceed two square kilometers (02 km2) q,r one provincial-level People's Committees as provided square kilometer (01 km2) for a region with water for at Point g, Clause 1, Article 6 of this Decree. surface. 3. The Ministry of Planning and Investment shall 5. The area of a region to be explored under a submit to the Prime Minister for promulgation a permit for exploration of mineral water or natural regulation on mineral exploration and exploitation thermal water shall not exceed two square bidding. kilometers (02 km2).

Article 24 — Area of a region subject to mineral 6. Organizations and individuals meeting all the

Article 24.-Area of a region subject to mineral 6. Organizations and individuals meeting all the prospecting conditions specified in Article 6 of the Law on Issue nos 03-05/January 2006 . OFFICIAL GAZETTE 27 {Cong Bao nos 09-10/Jan. 6, 2006) Minerals and Clause 2, Article 17 of this Decree ten hectares (10 ha) for an organization and one shall be granted not more than five permits, hectare (01 ha) for an individual. excluding granted exploration permits which have become invalid, provided that the total explored Chapter IX area under such exploration permits in relation to FINANCE AND PROPERTY RIGHTS IN a mineral shall not double the area to be explored MINERAL ACTIVITIES under a permit specified in Clause 1, 2, 3, 4 or 5 of this Article, except for special cases permitted by Article 28.- Fees for the grant of mineral activity the Prime Minister. permits

Article 26 — Area of a region subject to mineral 1. Fees for the grant of mineral activity permits

Article 26.-Area of a region subject to mineral 1. Fees for the grant of mineral activity permits exploitation include permit-granting fee and permit extension fee. 1. The area of a region to be exploited under a mineral exploitation permit shall be considered on 2. The Finance Ministry shall specify fee rates, the basis of the compatibility of the investment procedures for collection, payment, management project on mineral exploitation with the mineral and use of fees of all types related to the grant of deposit permitted for inclusion in the -exploitation mineral activity permits. design, which has been ratified by a competent

Article 29 — Fee for the exclusive right to mineral

Article 29.- Fee for the exclusive right to mineral state agency. exploration 2. The area of a mineral region shown on a map 1. A fee for the exclusive right to mineral of a scale of 1: 50,000 or larger, for which mineral exploration shall be calculated based on the survey and evaluation results ar~ already available exploration area unit and the valid term of a mineral and approved by competent state agencies and exploration permit. which is not included in the national exploration, 2. The rates of fee for the exclusive right to exploitation and processing plannings or belongs mineral exploration are provided as follows: to the national mineral resource depositsha!I come under the mineral exploration and exploitation The 1st year: VND 300,000/km 2/year; permit-granting competence of provincial-level The 2nd year: VND 400,000/km 2/year; People's Committees as provided for at Point b, The 3rd year: VND 550,000/km 2/year; Clause 1, Article 56 of the Law on Minerals. The 4 th year: VND 700,000/km 2/year.

Article 27 — Area of a region under exploitation 3. The fee for the exclusive right to mineral

Article 27.-Area of a region under exploitation 3. The fee for the exclusive right to mineral of minerals used as common building materials in exploration shall not be collected in the following cases where mineral exploration is not required cases: The area of a region under exploitation of a/ The valid term of an exploration permit, minerals used as common building materials under including the term of extension, is less than 12 a permit in cases where mineral exploration is not months; required shall, according to the provisions of Clause b/ The exploration is conducted in a region 2, Article 41 of the Law on Minerals, not exceed permitted for exploitation by organizations or 28 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) individuals. 1. Organizations and individuals using 4. The Finance Ministry shall specify procedures information on the results of state budget-funded for collection, payment, management and use of mineral prospecting or exploration shall have the the fee for the exclusive right to mineral exploration. following responsibilities and rights to such information:

Article 30 — Payment of deposit for mineral

Article 30.- Payment of deposit for mineral a/ To pay charges for the use of such information exploration by either of the following modes: lump-sum 1. Organizations and individuals granted mineral payment or installment payment based on exploration permits shall have to pay a deposit at exploitation output; the state treasury, except where the permitted b/To transfer or bequeath such information after exploration is funded with the state budget. fully paying charges for the use thereof; 2. A deposit shall be paid in lump sum at the cl In case of installment payment based on time of granting an exploration permit. The deposit exploitation output, they must not transfer, bequeath level shall be equal to twenty five per cent (25%) of or disclose such information to other organizations the estimated cost of exploration in the first or individuals, except for the supply of such exploration year. information to competent state agencies under 3. Organizations and individuals permitted to regulations of the Ministry of Natural Resources explore minerals may, instead of paying a deposit, and Environment. make collateral at a credit institution licensed to 2. Organizations and individuals permitted to operate in Vietnam. prospect, explore and/or exploit minerals with state- 4. Six (06) months after a mineral exploration budget capital sources must neither supply nor permit takes effect, if the exploration is not carried transfer information on mineral prospecting or out and the permit becomes invalid, the deposit or exploration results to other organizations or collateral money shall be remitted into the state individuals, except for the supply of such budget. information to competent state agencies under regulations of the Ministry of Natural Resources 5. Six (06) months after a mineral exploration and Environment. Where organizations or permit takes effect, if the exploration is carried out individuals refund state budget amounts invested in compliance with the set plan, the organizations in mineral prospecting or exploration, the use of or individuals permitted to conduct exploration shall information on prospecting and/or exploration be refunded the deposit or collateral money. resufts shafl comply with the provisions of Clause 6. The Finance Ministry shall assume the prime 1 of this Article. responsibility for, and coordinate with the State 3. The Finance Ministry shall assume the prime Bank in, stipulating procedures for payment and responsibility for, and coordinate with the Ministry management of mineral exploration deposits or of Natural Resources and Environment in, collateral. stipulating the method of valuation, mode and

Article 31 — Use of information on the results of procedures for payment of charges for the use of

Article 31.- Use of information on the results of procedures for payment of charges for the use of state budget-funded mineral prospecting and data and information on results of state budget- exploration funded mineral prospecting and exploration. Issue nos 03-05/January 2006 OFFICIAL GAZETTE 29 (Cong Bao nos 09-10/Jan. 6, 2006)

Article 32 — Use of information on the results of for transfer to the State of assets of organizations

Article 32.- Use of information on the results of for transfer to the State of assets of organizations mineral prospecting, exploration and/or exploitation or individuals permitted to explore, exploit and/or funded by organizations or individuals process minerals in case of expiration of their permits. 1. Organizations and individuals permitted to prospect, explore and/or exploit minerals shall have Article 35.- Collateral for environment the right to transfer or bequeath information on the restoration in mineral exploitation results of mineral prospecting, exploration and/or 1. Organizations and individuals permitted to exploitation funded with their own capital sources. exploit minerals must pay collateral for environment 2. Six (06) months after the expiration of their and land restoration at the Vietnam Environment mineral exploration permits, if organizations or Protection Fund. individuals fail to report to competent state agencies 2. The levels of collateral for environment and for approval mineral deposits or fail to submit land rehabilitation shall be based on the exploitation applications for exploitation permits when the and rehabilitation process and progress as well as mineral deposits have been approved, competent environment and land rehabilitation cost estimates state agencies shall be entitled to supply determined in feasibility study reports, mine designs information on minerals related to such permits to and reports on assessment of environmental other organizations or individuals. impacts or the written registrations of satisfaction

Article 33 — Use of land in case of transfer or of environmental standards, which have been

Article 33.- Use of land in case of transfer or of environmental standards, which have been inheritance of the rights to mineral exploitation and/ approved or certified by competent state agencies or processing under the provisions of law on environment protection. The use of land in case of transfer or inheritance of the rights to mineral exploitation and/or 3. Collateral shall incur interests as demand processing shall comply with the provisions of land deposit of the Vietnam Environment Protection law. Fund. 4. The Finance Ministry shall assume the prime

Article 34 — Ownership of assets upon the

Article 34.- Ownership of assets upon the responsibility for, and coordinate with the Ministry expiration of mineral exploration, exploitation and/ of Natural Resources and Environment in, guiding or processing permits the procedures for registration, management and 1. Upon the expiration of mineral exploration, use of collateral for environment restoration in exploitation and/or processing permits, the " mineral exploitation. ownership of assets related to mineral exploration, exploitation and/or processing activities shall be Article 36.- Deduction of budget revenues from handled in accordance with the provisions of Point mineral exploitation and processing activities for b, Clause 2, Article 30, Points b and c, Clause 2, localities

Article 40 — of the Law on Minerals, and Points b 1. Deductions of budget revenues from mineral

Article 40 of the Law on Minerals, and Points b 1. Deductions of budget revenues from mineral and c, Clause 2, Article 57 of this Decree. exploitation and processing activities for local 2. The Finance Ministry shall specify methods budgets must be reflected in annual state budget of valuation of transferred assets and procedures estimates and may be used only for investment in 30 OFFIC!.iO.l GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) public infrastructure in the regions where minerals Committees shall, according to their mineral activity are exploited and processed. permit-granting competence provided for in Clause 2. The management and use of budget 1, Article 56 of the Law on Minerals, organize the revenues from mineral activities in the regions appraisal of mineral prospecting and exploration where minerals are exploited and processed shall schemes before deciding to grant mineral comply with decisions of the Prime Minister. prospecting and exploration permits. 2. The Ministry of Natural Resources and

Article 37 — State investment in mineral

Article 37.- State investment in mineral Environment shall decide on the elaboration and exploration appraisal of mineral prospecting and exploration 1. The State may invest in the exploration of schemes. some kinds of mineral in which investment from

Article 39 — Appraisal and approval of mineral

Article 39.- Appraisal and approval of mineral other capital sources cannot be attracted or it is so exploration reports required by socio-economic tasks. 2. The Ministry of Planning and Investment shall 1. Mineral exploration reports shalf be appraised assume the prime responsibility for, and coordinate according to the following requirements: with the Ministry of Finance, the Ministry of Natural a/ Their reliability in terms of mineral deposit, Resources and Environment, the Ministry of content and quality, including accompanied useful Industry and the Ministry of Construction in, minerals; appraising mineral exploration projects requested b/ Their reliability in terms of hydrogeological to be funded by the state before submitting them and geological conditions of works related to the to the Prime Minister for consideration and feasibility study of mineral exploitation. approval. 2. Reports on exploration of minerals, except Enterprises allocated with capital for mineral for minerals used as common building materials exploration shall have to refund such capital to the and peat, must be deposited in the state geological State by mode of installment payment based on archives. Reports on exploration of minerals used mineral output when mines are put into exploitation. as common building materials and peat must be 3. The use of information on exploration results submitted to the provincial/municipal Natural stipulated in Clause 1 of this Article shall comply Resources and Environment Services of localities with the provisions of Article 31 of this Decree. where minerals are explored. ChapterX Article 40.- Appraisal and approval of mineral exploitation investment projects APPRAISAL, APPROVAL OF SCHEMES AND REPORTS IN MINERAL ACTIVITIES 1. The appraisal and approval of mineral exploitation investment projects being domestic

Article 38 — Appraisal of mineral prospecting investment projects shall comply with the provisions

Article 38.- Appraisal of mineral prospecting investment projects shall comply with the provisions and exploration schemes of investment and construction law. 1. The Ministry of Natural Resources and 2. The appraisal of mineral exploitation Environment and provincial-level People's investment projects being foreign direct investment Issue nos 03-05/January 2006 OFFICIAL GAZETTE 31 (Cong Bao nos 09-10/Jan. 6, 2006) projects shall comply with the provisions of law on from January 1 to December 31 of the reporting foreign investment in Vietnam. year. bl Apart from implementing the reporting regime

Article 41 — Appraisal and approval of mine

Article 41.- Appraisal and approval of mine designs mentioned at Point a of this Clause, when requested by competent state management 1. Mine designs under mineral exploitation agencies in charge of minerals, organizations and investment projects shall be appraised and individuals permitted to carry out mineral activities approved according to the provisions of must make extraordinary reports on the situation construction law. of mineral activities. 2. Organizations or individuals appraising mine 4. Responsibilities for submission of reports on designs must be economically independent from mineral activities are strpulated as follows: designing organizations or individuals and shall take responsibility before law for their appraisal a/ Organizations and individuals permitted to results. carry out mineral activities shall have to make the reports defined at Point a, Clause 2 of this Article 3. The Ministry of Industry shall guide in detail and shall, within five (5} days after the end of the the contents of designs, procedures for appraisal reporting period defined in Clause 3 of this Article, and approval of mine designs. have to submit those reports to provincial/municipal

Article 42 — Reports on mineral activities Natural Resources and Environment Services of

Article 42.- Reports on mineral activities Natural Resources and Environment Services of localities where mineral activities are carried out. 1. Organizations and individuals permitted to For organizations and individuals conducting carry out mineral activities shall have to report their mineral activities under permits granted by the activity results to state management agencies in Ministry of Natural Resources and Environment, charge of minerals and take responsibility for the they shall also have to submit to the reports to the accuracy and truthfulness of reported data and Vietnam Geological and Mineral Department under information. this Ministry; 2. Reports on mineral activities include: b/ Provincial/municipal Services of Natural a/ Report on mineral prospecting activities, Resources and Environment shall have to assist report on mineral exploration activities, report on provincial-level People's Committees in making mineral exploitation activities and report on mineral reports defined at Point b, Clause 2 of this Article processing activities; and shall, within fifteen (15) days after the end df b/ Report on mineral activities within a province the reporting period defined in Clause 3 of this or centrally-run city. Article, send those reports to the Ministry of Natural 3. The regime of reporting on mineral activities Resources and Environment (Vietnam Geological is stipulated as follows: and Mineral Department), the Ministry of Industry a/ Reports on mineral activities shall be made and the Ministry of Construction. biannually and annually. The first six-month period 5. The Ministry of Natural Resources and shall be counted from January 1 to June 30 of the Environment shall guide forms of reports defined reporting year. The yearly period shall be counted in Clause 2 of this Article. 32 OFFICIAL G1,.'\ZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006)

Article 43 — Mine-closing schemes Article 6 of the Law on Minerals, and Clause 2,

Article 43.- Mine-closing schemes Article 6 of the Law on Minerals, and Clause 2,

Article 17 — of this Decree

Article 17 of this Decree. 1. Mine-closing schemes must be appraised and approved in terms of contents and requirements 5. Prospecting or exploration schemes in the on safety, environment and land rehabilitation and areas other than those already permitted or being other requirements according to the provisions of surveyed and evaluated in terms of minerals by Points b and d, Clause 2, Article 40 of the Law on competent state agencies. Minerals. 6. Mineral deposits, feasibility study reports, 2. State agencies competent to grant permits reports on assessment of environmental impacts for exploitation of minerals of certain kinds shall or written registrations of satisfaction of also be competent to appraise and approve environmental standards which have been schemes on the closure of mines of minerals of approved or certified in accordance with the such kinds. provisions of law, for cases of application for mineral exploitation and processing permits. 3. The Ministry of Natural Resources and Environment shall specify contents of mine-closing 7. Documents of provincial-level People's schemes and procedures for the closure of mines. Committees on the area to be explored for exploitation or construction of mineral processing Chapter XI plants according to the provisions of Article 45 of this Decree. MINERAL ACTIVITY PERMITS 8. With regard to special and hazardous

Article 44 — Bases for the grant of mineral minerals stipulated in Clause 1, Article 14 of this

Article 44.- Bases for the grant of mineral minerals stipulated in Clause 1, Article 14 of this activity permits Decree, the Prime Minister's permission for mineral exploration and/or exploitation and processing is Bases for the grant of mineral activity permits required. include:

Article 45 — Responsibilities of provincial-level

Article 45.- Responsibilities of provincial-level 1. State socio-economic development People's Committees for coordination in conducting strategies; strategies on development of mineral- appraisal for the grant of mineral exploration and related industries. exploitation permits 2. State policies on mineral resources; mineral exploration, exploitation, processing and use 1. Before granting mineral exploration permits plannings already approved by competent state or mineral exploitation and processing permits agencies. according to its competence, the Ministry of Natural 3. Socio-economic efficiency of every specific Resources and Environment shall consult in writing project in mineral activities, associated with the provincial-level People's Committees of localities requirements on the protection of ecology, natural where minerals exist on the exploration area, landscapes, historical-cultural relics, defense and exploitation area or the area for construction of security. mineral processing plants. 4. The legal status of permit applicants under 2. Provincial-level People's Committees shall the provisions of law and conditions stipulated in assume the prime responsibility for, and coordinate Issue nos 03-05/January 2006 OFFICIAL GAZETTE 33 (Cong Bao nos 09-10/Jan. 6, 2006) with relevant ministries and branches in, inspecting under the provisions of Article 51 of this Decree. and determining whether the areas to be explored

Article 48 — Extension of mineral prospecting

Article 48.- Extension of mineral prospecting under mineral exploration permits for mineral permits exploitation, or mineral exploitation areas or areas for construction of mineral processing plants are 1. A mineral prospecting permit shall be related to regions banned or temporarily banned extended when all the following conditions are met: from mineral activities as defined in Articles 20 and a/ The to-be prospected region has an area of 21 of this Decree or not. one hundred kilometers (100 km 2 ) or more; 3. In special cases where mineral exploration bl No organization or individual has applied for or exploitation should be conducted in regions exploration in the region subject to permit banned or temporarily banned from mineral extension; activities as defined in Articles 20 and 21 of this c/ The mineral-prospecting organization or Decree, state agencies competent to grant permits individual has fulfilled all obligations specified in specified in Clause 1, Article 56 of the Law on the granted permit at the time of application for the Minerals must report such to the Prime Minister for extension thereof. consideration and decision. 2. A mineral prospecting permit may be

Article 46 — Grant of mineral activity-investment extended only once for not more than 12 months

Article 46.- Grant of mineral activity-investment extended only once for not more than 12 months. licenses for foreign organizations and individuals

Article 49 — Extension of mineral exploration

Article 49.- Extension of mineral exploration or joint ventures with foreign parties permits 1. Before granting investment licenses for 1.Amineral exploration permit shall be extended mineral activities, investment-licensing bodies must when all the following conditions are met: gather written opinions of mineral activity permit- a/ The organization or individual permitted to granting agencies defined in Clause 1, Article· 56 explore minerals has fulfilled all obligations of the Law on Minerals. Within thirty (30) days after specified in the granted permit at the time of receiving complete and valid dossiers, mineral application for the extension thereof; activity permit-granting agencies must reply investment-licensing bodies. b/ The exploration permit is still valid for at least thirty (30) days; 2. !n case of divergent opinions, investment- c/ Upon each extension, at least thirty percent licensing bodies shall submit them to the Prime (30%) of the exploration area under the grante'd Minister for consideration and decision. permit must be returned.

Article 47 — Valid term of a mineral processing 2. A mineral exploration permit may be extended

Article 47.- Valid term of a mineral processing 2. A mineral exploration permit may be extended permit no more than twice with a total extension duration The valid term of a mineral processing permit not exceeding twenty four {24) months. defined in Article 44 of the Law on Minerals shall 3. Where the extended duration of an be determined on the basis of mineral processing- exploration permit has expired while the investment projects and lawful mineral resources organization or individual permitted to explore but must not exceed 30 years and may be extended minerals, though having fulfilled the exploration 34 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) volume under the scheme and provisions of the exceed twenty (20) years. exploration permit, has no't yet obtained enough

Article 52 — Return of mineral activity permits

Article 52.- Return of mineral activity permits grounds for formulation of an exploitation or areas under mineral activities part by part investment project, the exploration permit may be re-granted for a term not exceeding twenty four (24) Organizations and individuals permitted to carry months for the area with the permit previously out mineral activities may return the areas under extended but not further extended. such activities part by part or return the mineral activity permits according to the following

Article 50 — Extension of mineral exploitation

Article 50.- Extension of mineral exploitation provisions: permits 1. They have fulfi!led all law-prescribed 1. A mineral exploitation permit may be extended obligations at the time of application for permit if, at the time of application for extension, the extension; have restored the environment and land organization or individual permitted to exploit and assured safety in the to-be returned areas; minerals has fulfilled all obligations specified in the 2. Within ninety (90) days after returning their granted exploitation permit and other obligations exploration permits, organizations or individuals provided for by the law on minerals and relevant permitted to explore minerals must fulfill all laws. obligations stipulated at Point b, Clause 2, Article 2. A mineral exploitation permit may be extended 30 ofthe Law on Minerals. many times to be compatible with mineral deposits Within six (06) months after their exploitation or which have already been approved by competent processing permits are returned, organizations or state agencies but have not yet been exploited; the individuals permitted to exploit minerals must fulfill total extension duration shall not exceed twenty (20) all obligations stipulated at Points b, c and d, Clause years. 2, Article 40 of the Law on Minerals; organizations

Article 51 — Extension of mineral processing or individuals permitted to process minerals must

Article 51.- Extension of mineral processing or individuals permitted to process minerals must permits fulfill all obligations stipulated at Points b, c and d, Clause 2, Article 57 of this Decree. 1. A mineral processing permit may be extended 3. The return of such permits is allowed in writing if at the time of application for extension, the by the permit-granting agencies. permitted processing organization or individual has fulfilled all obligations specified in the granted Article 53.- Transfer of the rights to explore, processing permit as well as other obligations exploit or process minerals provided for by the law on minerals and relevant The transfer of the rights to explore, exploit or laws. process minerals must comply with the following 2. Having lawful mineral sources suitable to the provisions: processing capacity and the allowed duration of 1. Organizations or individuals permitted to extension. explore, exploit or process minerals may transfer 3. A mineral-processing permit may be extended the rights thereto to other organizations or many times to be compatible with the lawful mineral individuals for further exercise of their rights and sources; the total extension duration shall not obligations already provided in the permits and Issue nos 03-05/January 2006 OFFIC!Al GAZETTE 35 (Cong Bao nos 09-10/Jan. 6, 2006) according to the provisions of law. must be permitted by the agencies competent to 2. The transferors may transfer such rights only grant such permits and transfer tax must be paid when, by the time of application for transfer, they in accordance with the provisions of law. have fully observed the relevant regulations and The Finance Ministry shall submit to the fulfilled their obligations under the granted Government tax rates for transfer of the rights to exploration, exploitation or processing permits. explore, exploit or process minerals. 3. The details of transfer must be reflected in

Article 54 — Inheritance of the rights to explore,

Article 54.- Inheritance of the rights to explore, contracts between the transferors and transferees exploit or process minerals under the provisions of law; apart from the contracts and applications for transfer of the exploration, 1. Individuals permitted to explore, exploit or exploitation or processing rights, the organizations process minerals may bequeath the rights thereto or individuals permltted to conduct exploration, by testament or by law. exploitation or processing must also have reports 2. Persons inheriting the rights to explore, exploit on the exploration, exploitation or processing or process minerals shall continue to exercise such results already achieved by the time of application rights when the permits are still valid and must for transfer. satisfy all the conditions stipulated in Article 6 of 4. Organizations or individuals transferred with the Law on Minerals and Clause 2, Article 17 of the rights to explore, exploit or process minerals this Decree. If failing to meet such conditions for must meet all the conditions stipulated in Article 6 further operation, the case shall be settled as of the Law on Minerals and Clause 2, Article 17 of follows: this Decree; with regard to precious, rare, special a/ The heirs may transfer such rights to other and hazardous minerals, they must also comply organizations or individuals in accordance with the with the provisions of Clause 8, Article 44 of this provisions of Article 53 of this Decree; Decree. b/ Where the heirs fail to exercise such rights 5. Where the mineral exploitation or processing within six (06) months as from the time of enjoying right transferees are foreign organizations or the inheritance under legal provisions, the individuals or joint ventures with foreign parties, exploration, exploitation or processing permits shall they must have investment licenses granted by be considered expired. competent state agencies under the provisions of 3. Where the exploration, exploitation or law on foreign investment in Vietnam. Where processing permits expire under the provisions of" foreign joint-venture enterprises are converted into Point b, Clause 2 of this Article, the heirs shall have enterprises with 100% foreign capital, such the rights and obligations provided for at Point b, conversion must also be approved by the state Clause 2 of Article 30, Points b, c and d, Clause 2 agency in charge of investment, which shall serve of Article 40 of the Law on Minerals, Clause 2, as a basis for the grant of new exploitation or Article 57 of this Decree. processing permits.

Article 55 — • Time limit for redressing violations

Article 55.• Time limit for redressing violations 6. The transfer of the rights to explore, exploit in mineral prospecting, exploration and exploitation or process minerals of organizations or individuals permitted to explore, exploit or process minerals 1. When organizations and individuals permitted 36 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan. 6, 2006) to prospect minerals violate one of the obligations 3. The processing region is declared to be speclfied in Article 23 of the Law on Minerals, the banned or temporarily banned from mineral time limit for redressing their violations shall be thirty activities according to the provisions of Clause 2, (30) days after receiving written notices of state Article 14 of the Law on Minerals and Articles 20 agencies competent to grant permits provided for and 21 of this Decree. in Clause 1, Article 56 of the Law on Minerals. 4. The individual permitted to process minerals 2. When organizations and individuals permitted dies without heirs or the organization permitted to to explore minerals violate one of the obligations process minerals dissolves or goes bankrupt specified in Article 27 of the Law on Minerals, the without any organization or individual inheriting its time limit for redressing their violations shall be sixty rights and obligations. (60) days after receiving written notices of state

Article 57 — Invalidation of mineral processing

Article 57.- Invalidation of mineral processing agencies competent to grant permits provided for permits in Clause 1, Article 56 of the Law on Minerals. 3. When organizations and individuals permitted 1. A mineral-processing permit shall cease to to exploit minerals violate one of the obligations be valid in the following cases: specified in Article 33 of the Law on Minerals, the a/ It expires; time limit for redressing their violations shall be b/ It is returned; ninety (90) days, counting from the date the permit- cf It is withdrawn. granting agencies defined in Clause 1, Article 56 of the law on Minerals issue written notices. 2. When a mineral processing permit becomes invalid:

Article 56 — Withdrawal of mineral processing

Article 56.- Withdrawal of mineral processing a/ The rights related to such permit shall no permits longer exist; A mineral processing permit shall be withdrawn b/ All works or facilities for environment in the following cases: protection ln the processing regions shall be placed under state ownership and must be neither 1. The organization or individual permitted to dismantled nor destroyed; process minerals fails to strictly comply with the mineral-processing contents and plan under the cf Apart from assets specified at Point b, Clause processing project and provisions of the granted 2 of this Article, organizations and individuals processing permit. permitted to process minerals must relocate"all their assets from the mineral-processing regions; 2. The organization or individual permitted to df Organizations and individuals permitted to process minerals violates one of the provisions of process minerals must fulfill all obligations related

Article 46 — of the Law on Minerals but fails to redress

Article 46 of the Law on Minerals but fails to redress to environment and land rehabilitation under the such violation within ninety (90) days after receiving provisions of the Law on Minerals, this Decree and a written notice from the state agency competent other relevant provisions of law. to grant permits as defined in Clause 1, Article 56 of the Law on Minerals. Article 58.- Use of land in mineral activities Issue nos 03-05/January 2006 OFFICIAL GAZETTE 37 (Cong Bao nos 09-10/Jan. 6, 2006) The assignment and lease of land in mineral under consideration, the organization or individual activities shall comply with the provisions of land permitted to prospect minerals can operate till the law. time a decision on extension or a written reply not permitting such extension is issued. Chapter XII 3. A dossier of application for the return of a ORDER AND PROCEDURES FOR THE GRANT mineral-prospecting permit shall comprise: OF MINERAL ACTIVITY PERMITS, EVALUATION a/ The application for the return of the permit; AND APPROVAL OF MINERAL DEPOSITS b/ The report on results of mineral prospecting and work volume, and the fund already used by

Article 59 — Dossiers for the grant, extension or

Article 59.- Dossiers for the grant, extension or the time of returning the permit. return of mineral-prospecting permits

Article 60 — Dossiers of application for the grant,

Article 60.- Dossiers of application for the grant, 1. Dossiers of application for mineral- re-grant, extension, return or transfer of mineral prospecting permits shall each comprise: exploration permits, or for the further transfer of a/ The application for a mineral prospecting the rights to explore minerals permit, enclosed with a map of the region to be 1. Dossiers of application for mineral exploration prospected; permits shall each comprise: b/ The mineral-prospecting scheme, which clearly states geological bases and kinds of mineral al The application for a mineraf expforation permit; to be prospected, prospecting method and volume; prospecting time limit and schedule, and financial b/ The mineral exploration scheme made sources; according to regulations, enclosed with a map of the to-be explored region; cl A copy of the written certification of the legal status of the organization applying for a mineral c/ A copy of the written certification of the legal prospecting permit, notarized by a state public status, notarized by a state public notary, for the notary. applicant being a domestic organization, or of the investment license, notarized by a state public 2. Dossiers of application for extension of notary, for the applicant being a foreign organlzation mineral-prospecting permits or joint-venture with foreign parties. A dossier of application for permit extension 2. Dossiers of application for the re-grant of must be submitted to the authorized agency 30 " mineral exploration permits days before the expiration of the permit, comprising: In case of application for the re-grant of an a/ The application for permit extension; exploration permit defined in Clause 3, Article 25 bl The report on the results of mineral of the Law on Minerals and Clause 3, Article 49 of prospecting and work volume, and the fund already this Decree, the dossier must be submitted to the used by the time of application for extension. authorized agency at least thirty (30) days before Where a mfneraf-prospecting permit has expired the expiration of the permit, comprising: but the dossier of application for extension is still a/ The application for the re-grant of the mineral 38 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09·10/Jan. 6, 2006) exploration permit; area is returned; b/ The report on exploration results, the cl The map of the region to be further explored; performed exploration volume and the exploration the further exploration work or program (in case of program and volume to be further performed; return of part of the exploration area). cl The map of the region under the exploration 5. Dossiers of application for the transfer of the permit to be re.granted. rights to explore minerals shall each comprise: 3. Dossiers of application for extension of a/ The application for the transfer of the rights mineral exploration permits. to explore minerals, enclosed with the transfer Dossiers of application for extension of mineral contract and the list of assets to be transferred; exploration permits must be submitted to authorized b/ The report on the exploration results, the agencies at least thirty (30) days before the performed work volume and relevant obligations expiration of permits, each comprising: under regulations, which have been fulfilled by the a/ The application for extension of the mineral time of application for the transfer of the rights to exploration permit; exploration; b/ The report on exploration results, the cf A copy of the written certification of the legal performed exploration volume; the exploration status, notarized by a state public notary, for the program and volume to be further performed; transferee being a domestic organization, or of the investment license (if any), notarized by a state c/ The map of the region under exploration, public notary, for the transferee being a foreign which must exclude at least thirty (30%) of the area organization or a joint-venture with foreign parties. under exploration according to the already granted permit. The transfer of the rights to exploration shall be approved with the grant of a new exploration permit Where a mineral exploration permit has expired to replace the old one. but the dossier of application for extension is still under consideration, the organization or individual 6. Dossiers of application for further exercise of permitted to explore minerals can continue their the rights to explore minerals shall each comprise: operation till the time the permit extension is a/ The application for further exercise of the effected or a written reply not permitting the rights to explore minerals; the report on exploration extension is issued. results, the performed work volume and the further 4. Dossiers of application for the return of exploration program; mineral exploration permits or part of the mineral bf A copy of the legal document notarized by a exploration area shall each comprise: state public notary proving that the concerned a/ The application for the return of the mineral organization or individual inherits the rights to exploration permit or part of the mineral exploration explore minerals; area; c/ A copy of the written certification of the legal b/ The report on results of mineral exploration, status of the inheriting organization, which is the exploration volume already performed by the notarized by a state public notary. time the permit or part of the mineral exploration The permission for further exercise of the rights Issue nos 03-05/January 2006 OFFICIAL GAZETTE 39 {Cong Bao nos 09-10/Jan. 6, 2006) to explore minerals shall be approved with the grant a/ The application for extension of the mineral of a new exploration permit to the inheriting exploitation permit; organization or individual to replace the old one. b/ The map of the current mining area, enclosed with the report on exploitation results by the time

Article 61 — Dossiers of application for the grant,

Article 61.- Dossiers of application for the grant, of application for extension; the remaining mineral extension, return or transfer of mineral exploitation deposits and the area applied for further permits, or for further exercise of the rights to exploit exploitation. minerals Where a mineral exploitation permit has expired 1. Dossiers of application for mineral exploitation while the dossier of application for permlt extension permits shall each comprise: is still under consideration, the organization or a/ The application for a mineral exploitation individual permitted to exploit minerals may permit, enclosed with a map of the region under continue to operate till the permit extension is mineral exploitation; effected or a written reply not permitting such b/ The decision approving mineral deposits, extension is issued. issued by the competent state agency under 3. Dossiers of application for return of mineral regulations; exploitation permlts or part of the mineral cl The feasibility study report on mineral exploitation .area shall each comprise: exploitation, enclosed with the approval decision a/ The application for the return of the mineral according to regulations; exploitation permit or part of the mineral exploitation d/ The report on assessment of environmental area; impacts or the written registration of satisfaction of b/ The map of the current exploitation area, environmental standards, which has been enclosed with the results of mineral exploitation by approved or certified by a competent state agency the time of returning the permit or part of the in accordance with the provisions of environment exploitation area; protection law; --~cTThe mine-closing scheme already evaluated el A copy of the written certification of the legal and approved according to the provisions of law, status, notarized by a state public notary, for the for cases where the exploitation permit is returned. applicant being a domestic organization other than the organization already granted the exploration 4. Dossiers of application for transfer of the permit, or of the investment license, notarized by a rights to exploit minerals shall each comprise: state public notary, for the applicant being a foreign a/ The application for transfer of the rights to organization or a joint-venture with foreign parties. exploit minerals and the transfer contract, enclosed 2. Dossiers of application for extension of with the list of assets to be transferred; mineral exploitation permits b/ The report on exploitation results and Dossiers of application for extension of mineral obligations already fulfilled by the time of exploitation permits must be submitted to application for transfer of the rights to exploitation, authorized agencies 90 days before the expiration enclosed with a map of the current exploitation area of the permits, each comprising: at the time of application for the transfer; 40 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09-10/Jan, 6, 2006) cl A copy of the written certification of the legal Minerals, the dossiers of application for exploitation status, notarized by a state public notary, for the permits shall not include decisions approving transferee being a domestic organization, or the mineral deposits. copy of the investment license, notarized by a state

Article 62 — Dossiers of application for grant,

Article 62.- Dossiers of application for grant, public notary, for the transferee being a foreign extension, return or transfer of mineral processing organization or joint-venture with foreign parties. permits or for further exercise of the rights to The transfer of the rights to exploitation shall be process minerals approved with the grant of a new exploitation permit to the transferee, in replacement of the old one. 1. Dossiers of application for mineral-processing permits shall each comprise: 5. Dossiers of application for further exercise of a/ The application for a mineral processing the rights to exploit minerals shall each comprise: permit; a/ The application for further exercise of the bl The feasibility study report on mineral rights to exploit minerals; processing, enclosed with the approval decision bl A copy of the legal document, notarized by a according to regulations; state notary public, proving that the applicant is cl A copy of the written certification of the legal entitled to inherit the rights to exploit minerals; status, notarized by a state notary public, for the cl A copy of the written certification of the legal applicant being a domestic organization, or of the status of the inheriting organization, notarized by a mineral processing-investment license, notarized state notary public; by a state notary public, for the applicant being a di The map of the current exploitation area, foreign organization or joint venture with foreign enclosed with the report on results of mineral parties; exploitation by the time of application for the further di The report on assessment of environmental exercise of the rights to exploit minerals. impacts or the written registration of satisfaction of The further exercise of the rights to -~~plait -environmental standards already approved or minerals shall be approved with the grant of a new certified by a competent state agency according to mineral exploitation permit to the inheriting the provisions of environment protection law; organization or individual, in replacement of the old 2. Dossiers of application for extension of one. mineral processing permits 6. For the grant of mineral exploitation permits Dossiers of application for extension of mineral in the case stipulated in Clause 2, Article 41 of the processing permits shall be submitted to authorized Law on Minerals and in cases where minerals are agencies 90 days before the expiration of the exploited in the already surveyed and evaluated permits, each comprising: areas which fall beyond the national mineral al The application for extension of the mineral exploitation and processing planning, already processing permit; approved by competent state agencies, or do not belong to the national mineral reserves stipulated bl The report on mineral processing results by at Point b, Clause 1, Article 56 of the Law on the time of application for extension, the expected Issue nos 03•05/January 2006 OFFICIAL GAZETTE 41 (Cong Bao nos 09-10/Jan. 6, 2006) mineral-processing output. a/ The application for further exercise of the Where a mineral-processing permit has expired rights to process minerals; but the dossier of application for extension is still b/ A copy notarized by a state public notary of under consideration, the organization or individual the legal document, proving that the applicant is permitted to process minerals can still continue entitled to inherit the mineral processing rights; operation until the extension of the permit or the cl A copy of the written certification of the legal issuance of a written reply to the organization status of the inheriting organization, notarized by a applying for such extension, which states the state public notary; reasons why the permit extension is not allowed. d/ The report on mineral-processing results and 3. Dossiers of application for return of mineral- the plan on future mineral processing activities. processing permits shall each comprise: The further exercise of the rights to process a/ The application for return of the mineral- minerals shall be approved with the grant of a new processing permit; mineral-processing permit to the inheriting b/ The report on results of mineral processing organization or individual, in replacement of the old from the date the permit becomes valid to the date one. of its return.

Article 63 — Order of granting the permits

Article 63.- Order of granting the permits 4. Dossiers of application for transfer of the rights to process minerals shall each comprise: 1. Within sixty (60) working days after receiving complete and valid dossiers from domestic a/ The application for transfer of the rights to organizations applying for mineral activity permits, process minerals; from foreign organizations or joint-ventures with b/ The contract on transfer of the rights to foreign parties applying for mineral-prospecting or process minerals, enclosed with a list of transferred exploration permits, the authorized agencies shall assets and their values; the report on results of have to evaluate the dossiers and submit them to mineral processing and obligations already fulfilled competent state agencies for consideration of the by the time of application for transfer of the rights grant of permits. For complicated cases, which to process minerals; need more time for consideration and evaluation, c/ A copy of the written certification of the legal the evaluation time limit may be longer but must status, notarized by a state public notary, for the not exceed ninety (90) working days as from the applicant being a domestic organization, or a copy date the complete and valid dossiers are received'. of the investment license, notarized by a state 2. Within thirty (30) working days after foreign public notary, for the applicant being a foreign organizations or individuals or joint ventures with organization or a joint venture with foreign parties. foreign parties have been granted investment The transfer of the processing rights shall be licenses and have submitted complete and valid approved with the grant of a new processing permit dossiers of application for mineral exploitation and to the transferee, in replacement of the old one. processing permits under regulations, the dossier- 5. Dossiers of application for further exercise of receiving agencies must complete the evaluation 1he rights to process minerals shall each comprise: of dossiers and submit them to agencies competent 42 OFFICIAL GAZETTE Issue nos 03-05/January 2006 (Cong Bao nos 09"10/Jan. 6, 2006) to grant permits. mineral activity permit and maps of regions subject to mineral activity permits. 3. Within thirty (30) working days after receiving the complete and valid dossiers of application for Article 64.- Dossiers for evaluation, extension or return of permits or return of part of consideration and approval of mineral deposits the mineral activity area, transfer of the rights to A dossier for evaluation, consideration and mineral activities or further exercise of the rights to approval of mineral deposits shall comprise: mineral activities in case of lawful inheritance of 1. An official letter requesting evaluation, such rights, the dossier-receiving agencies must consideration and approval of mineral deposits. complete the evaluation of dossiers, submit them to the competent state agencies for consideration 2. The exploration scheme and a copy of the and decision. mineral exploration permit, notarized by a state public notary. 4. The time limit specified in Clause 1 and Clause 3 of this Article shall not cover the time for 3. The minutes on acceptance of the volume gathering comments of concerned agencies on and quality of the exploration work, which has been matters relating to the grant of mineral activity executed by the organization or individual granted permits. a mineral exploration permit. 5. Within seven (07) working days after receiving 4 .. Four dossier sets, including three print sets the complete and valid dossiers submitted by and one CD set, consisting of an explanation of authorized agencies, competent state agencies the exploration report, appendices, drawings and shall consider and decide to grant or not to grant original documents. mineral activity permits, then hand the dossiers Article 65.- Order of evaluation, consideration back to the dossier-receiving agencies. In case of and approval of mineral deposits not granting permits, they must give written replies 1. The Office of the Mineral Deposit Evaluating and clearly state the reasons therefor. Council shall receive dossiers of request for 6. The dossier-receiving agencies shall take evaluation, consideration and approval of mineral responsibility for handing mineral activity permits deposits, which are submitted to the Council; to the applying organizations. provincial/municipal Services of Natural Resources 7. The Vietnam Geological and Mineral and Environment shall receive dossiers of request Department shall receive dossiers of application for evaluation, consideration and approval of for mineral activity permits falling under the granting mineral deposits, which are submitted to pr~vincial- competence of the Ministry of Natural Resources !evel People's Committees. and Environment; provincial/municipal Services of 2. Within thirty (30) working days after receiving Natural Resources and Environment shall receive the complete and valid dossiers stipulated in Article dossiers of application for mineral activity permits 64 of this Decree, the state agencies competent to falling under the competence of provincial-level consider and approve mineral deposits shall have People's Committees. to complete the evaluation, consideration and 8. The Ministry of Natural Resources and approval of mineral deposits. In case of Environment shall provide forms of application and disapproval, they must give written replies and \ssue nos 03-05/January 2006 OFFICIAL GAZETTE 43 (Cong Bao nos 09-10/Jan. 6, 2006) clearly state the reasons therefor. 1. Mineral inspectorate means inspectorate specialized in minerals. Chapter XIII 2. The organization, tasks and powers of mineral FULL EXTRACTION OF MINERALS inspectorate shall be provided by the Government.

Article 70 — Settlement of complaints and

Article 70.- Settlement of complaints and

Article 66 — Area of a region for full extraction

Article 66.- Area of a region for full extraction denunciations of minerals The settlement of complaints and denunciations The area of a region for full extraction of minerals in the field of minerals shall comply with the under a permit granted to an organization shall not provisions of law on complaints and denunciations. exceed ten (10) hectares, and not exceed (01) hectare for an individual. Chapter XV

Article 67 — Extension of permits for full IMPLEMENTATION PROVISIONS

Article 67.- Extension of permits for full IMPLEMENTATION PROVISIONS extraction of minerafs

Article 71 — Implementation effect

Article 71.- Implementation effect A permit for full extraction of minerals may be extended many times but the total extension This Decree takes effect 15 days after its duration shall not exceed twenty four (24) months, publication. in "CONG BAO" and replaces the under the following conditions at the time of Government's Decree No. 76/2000/ND-CP of application for extension: December 15, 2000, detailing the implementation of the Law on Minerals (amended). 1. The organization or individual permitted to fully extract minerals have fulfilled the obligations Article 72.- Responsibilities of ministries, stipulated in Article 52 of the Law on Minerals; ministerial-level agencies, Government-attached 2. The permit for full extraction of minerals agencies, People's Committees of provinces and remains valid for no less than thirty (30) days. centrally-run cities, and relevant organizations and individuals

Article 68 — Order and procedures for, the grant,

Article 68.- Order and procedures for, the grant, extension or return of permits for full extraction of 1. The Minister of Natural Resources and minerals Environment and concerned ministers shall, within the ambit of their functions, tasks and powers, have The order of, and procedures for, the grant, to guide the implementation of this Decree. extension or return of permits for full extraction of 2. Ministers, heads of ministerial-level agencies, minerals shall comply with the provisions of Articfes heads of the Government-attached agencies, 61 and 63 of this Decree. presidents of provincial/municipal People's Committees and concerned organizations and Chapter XIV individuals shall have to implement this Decree. INSPECTION AND SETTLEMENT OF COMPLAINTS AND DENUNCIATIONS On behalf of the Government Prime Minister

Article 69 — Mineral inspectorate PHAN VAN KHAI

Article 69.- Mineral inspectorate PHAN VAN KHAI

Decree No. 160/2005/ND-CP detailing and guiding the implementation of the Law on Minerals and the Law amending and supplementing a number of articles of the Law on Minerals

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