Circular No. 08/2008/TT-BCT guiding the export of minerals

11.INTERPRETATION OF TERMS In this Circular. the terms below are construed @ VIETNAM I..AW & L GAL rORUM Issue nos 1O-121June 2008 OFFICIAL GAZETTE 57 (COng Bao nos 367-368/June 27, 2(08) as follows: II. PROVISIONS ON THE EXPORT OF MINERALS

1. VILAS standards are standards set by the Vietnam Laboratory Accreditation Scheme.

1. Domestically mined minerals may be Laboratoriesmeeting VILAS standardsare those exported only if they simultaneously satisfy the having the quality management system under ISOI following requirements: IEC 17025, equivalent to TCVN ISO/IEC 17025:2001. VILAS certificates shall be granted aJ Being extracted from mines or mine spots by the Bureau of Accreditation under the not planned for domestic deep processing as Directoratefor Standardsand Quality. specified in Appendix 1 10 this Circular. b/ Having been processed up to quality

2. State agencies competent to grant mineral standardsand meeting the conditions specified in mining orprocessing licenses include the Ministry Appendix 2 to this Circular. The quality standards of Industry (before November 11, 2002), the of mineralsfor which a certainpercentage of metal Ministry of Natural Resources and Environment is required must becertified by laboratories meeting (from November 11, 2002), or People's VILAS standards. Committees of provinces or centrally run cities Mineralslistedin column 2 of Appendix 1 and (below referred to as provincial-level People's

Appendix 2 which are extracted from mines or Committees). mine spots not listed in column 3 of Appendix 1 3. Processing means a process of removing and meetthe standardsand conditionsspecifiedin impurities and increasing the content of useful Appendix 2 may befreely exported. mineral element(s) in crude minerals in order to 2. Only enterprises may export minerals. acquire mineral products with specifications, Mineralexportersare enterprises set up Wider law, standards and content meeting the requirements fully meeting the conditions specified in the of the subsequentdeep processing (refined ores); ConunercialLaw regardinggoodsimport,export, or a pmcP..<;.<;. nfpmc.t"-".<;.ing crude minerals orrefined processing and tradiug ag~lll:Y with furuigll parties, ores(not yetintometal products, alloysorchemical and satisfyingone of the followingconditions: compounds) to meet specifications and use at Having valid mineral mining licenses or requirements through the application of one or mineral salvage extraction licenses, 8ianted by more of the followingmethods: competentstateagencies. - Handsorting. hi Havingvalidmineral processing Ii4;enses and - Washing;grinding-sieving for classification contracts on the purchase of minerals for based on granule size. processing, signed with organizations or - Gravity sorting;magnetic sorting; electrical individualspossessing licensesspecifiedat Point sorting;chemicalsorting. a of this Clause. - Other mechanical or thennological methods d Havingcontractson the purchase of minerals (such as removing rim rock, sawing- cutting, for export, enclosed with copies of value-added breaking-grinding, drying,agglomerating, caking, invoices, or contracts on the entrusted export of etc.) minerals,signed with organizations or individuals © VIETNAM LAW & EGAL FORUM 58 OFFICIAL GAZETTE Issue nos10·121June 200a lCOna Baonos 367~681June27. 2008) possessing licenses specified at Points a and b of made biannually and annually. Biannual period is thisClause. counted from January Ito June 30 of the yearof d/ Having adequate valid documents on the reporting. Annual period is counted from January purchase (or auction) of minerals confiscated and 1 to the end of December 31 of the year of sold by competent state agencies. reporting. bI Mineral exporters shall, apart rromobservtng 3. Incaseof importing minerals forprocessing the reporting requirements specified at Point a of and export, exporters must have adequate valid this Clause, make extraordinary reports on the documents proving thatexported minerals originate export ofminerals upon request ofconcerned state from the import. management agencies to meet management 4.Theexportofminerals by temporary import requirements. forre-exportor processingforforeign tradersmust 4. The time limit for sending a report on the comply with the Government's Decree No. 121 export ofminerals is stipulated.as follows: 2OO6IND-CP of January 23, 2006, detailing the implemerration of the CommercialLaw regarding af Reports made by mineral exporters under international goode trading and goods trading Clause 2 of thisSection must be sent within 5 (five) agency, processing andtransit withforeign parties. days after the reporting time limitspecified at Point a, Clause 3 of this Section to provincial-level 5.The exportof pit coal rnustcomply with the People's Committees oflocalities where minerals Industry and Trade Ministry's Circular No. 051 are exported. 2007fIT"llcr of October 22, 2007, guiding the blProvincial-level People's Committees shall exportof coal. direct functional agencies to make reports reviewing the expon of minerals under their IV,RFFORTING ON THE EXPORT OF management and to send them to the Ministry of MINERALS Industry andTrade within 15 (fifteen) days after the reporting time limit specified at Point a. Clause 1. Mineral exporters shall report theresults of 3 of this Section. export ofminerals and be held responsible forthe accuracy and truthfulness of reported data and V. HANDLINGOF VIOLATIONS infonnatifJn.. 2. A report on the export of minerals has the 1. All acts of violating the provisions on the following details: export ofminerals specified in this Circular shall, ilp.P"'"iline on thp.ir <;;pvprity. hP <;;llndionPIlllm{p.r aI Kinds, volumes and export turnover of the Government's Decree No. 06/2008IND-CPof minerals. January 16, 2008, on the sanctioning of hi The origin of exported minerals; the administrative violations in commercial activities, ~I Vi:IIlU;: ufregulauous UII the export ofminerals. and relevant legal documents. 3. Reporting on the export of minerals is Exporters of minerals of illegal origin shall specified as follows: be sanctioned under Item 3, Clause 4, Article 1 aI Reports on the export of minerals shall be of the Government's Decree No. 77/20071ND- © VIETNAM LAW & LEGAL FORUM Issue nos 10·121June 2008 OFFICIAL GAZETTE 59 (COny &u 'IUS 36T-J6fl1Jullt1 2T, ZOOB) CP of July 29, 2007, amending and and Trade), guiding the export of minerals. <;'llpp!PTnpnt;ng <l nlnnhpr nf <lrtidp<; nf the 3. l-or processedminerals which, for objective Government's Decree No. 1501ND-CP of July reasons, are not up to the quality standards specified 29, 2004, on the sanctioning of administrative inAppendix 2 to this Circular, orexported minerals violations in the mineral domain. which are not yet specified inAppcndix 2, mineral 2. State cadres and civil servants who abuse exporters shan report them to provincial-level their positions orpowers to violate the provisions People's Committees for inspection and of this Circular shall, depending on the severity certification and request the Ministry ofTndustry and acts of violations, be disciplined, and Trade to provide guidance. administratively handled or examined for penal 4. Based on the actual situation of mineral liability according to law. mining and processing and the domestic demand for mineral use, theMinistry of Industryand Trade VI.ORGANIZATION OF shall consider and adjust and/or supplement IMPLEMENTATION Appendices 1 and 2, when necessary. 1. This Circular takes effect 15 days after its 5.When detecting violations cftheprovisions publication in "CONG BAO" and replaces on the export ofminerals, provincial-level People's Circular No. 02l2006fIT·BCN ofApril 14. 2006. Committees of localities where minerals are uf the Ministry ofIndustry (now the Ministry of exported shall directfunctional agencies t> inspect, Industry and Trade), guiding the export of rectify and handle them in time. minerals. Circular No. 09l2006rrT·BCN of Nnve:mhe:r2R 2006. of the Ministry of Tndustry 6. The Ministry of Industry and Trade shall (now the Ministry of Industry and Trade), assume the prime responsibility for, and COOIdinate amending and supplementing the list, quality withconcemed ministries, branches and localities standards of, and conditions for exported in, regularly inspecting the observance of minerals attached to Circular No. 02/2006fIT- pruv isiuns un the export ofminerals in thts Circular BCN of April 14, 2006, of the Ministry of and relevant provisions of law. Industry (now the Ministry of Industry and 7. Valid mineral export contracts signed before Trade), guilliug the ~APUll uf urtuerals. the effective date ot trus Crrcular may continue to 2. The export ofminerals used as construction beperformed through September 30,2008. materials and minerals used as raw materials for 8. In the course of implementing thls Circular, cement production must comply with a guiding exporters or concerned organizations and circular of the Ministry of Construction. Pending individuals shall report in writing arising problems the issuance ofthis circular, the export:ofminerals to the Ministry of Industry and Trade for I1<;pJi :1<; rnn<;trllction materials and minerals used consideration and ccttlcenont. as raw materials for cement production provisionally continues to comply with Circular For the Minister of Industry and Trade No. 02l2006fIT·BCN of April 14, 2006, of the VICe Minister Ministry ofIndustry (now the Ministry ofIndustry LE DUONG QUANG © VIETNAM lAW & EGAl FORUM 60 OFFICIAL GAZETTE Issue nos 10·121June 2008 (edng Baa nQ.~ .167-.'l6RI./1lnP. ')7. ?(){)R)

Appendix 1 LIST OF MINES PLANNED FOR DOMESTIC DEEP PROCESSING (Attached to the Industry and Trade Ministry's Circular No. 0812008/IT-BCT of June 18, 2008) No. Minerals Names of mines or localities with mines 1 1 itanium ore - Refined ilmenite ore (mineral Mines and mine spots in Thai Nguyen, Thanh sand and base) Roo, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, Quang Ngai, Binh - Refined rutile ore Dinh, Phu Yen, KhanhHoa, Biob Thuan, Ninh . Refined monazite are Thuan and Ba Ria-Vung Tau provinces - Refined zirconium powder - Recomhined ilmenite ~ Titanium slag 2 Lead-zinc Mines and mine spots in Cao Bang, Bac Kan, Ha Oiling, Tuycn Quang, Thai Nguyen, Nghc An lind - Refined lead sulfide are lia Tinh provinces - Refined zinc sulfide ore - Zinc oxide powder 3 Copper ore Mines and mine spots in Lao Cai, Cao Bang, Yen Bai, Hoa Binh, Dien Bien, Lai Chau, Son La, Bac . Refined copper are Giang and Quang Nam provinces 4 Iron ore Mines and mine spots in Lao Cai (including also refined magnetite are from copper mines), Yen - Refined iron ore Bai, Phu Tho, Ha Giang, Tuyen Quang, Cao Bang, Bac K.an, Thai Nguyen. Thanh Hoa, Ha 'I'mh, Quang Binh, Quang Ngai and Gia Lai provinces 5 Manganese ore Mines and mine spots in Cao Bang, Bac Kan, Thai Nguyen, Ila Giang, Tuycn Quang and lIa Tinh - Refined are provinces 6 Bauxite ore Mines and mine spots in southern Vietnam, and Cao Bang and Lang Son provinces - Refined ore 7 Chromite ore Mines and mine spots in Thanh Roo province - Refined are --_. -- - . © VIETNAM LAW & LEGAL FORUM Issue nos 1O-121June 2008 OFFICIAL GAZETTE 61 (Coog Bao /lOS 367-368/June 27, 2008) 8 Wolframite are Mines and mine spots in Lao Cai, Cao Bang, Tuycn Quang, Thai Nguyen, Thanh Ilea, Nghc - Refined are An, Kon Tum and Lam Dam" orovinces 9 Mica ore -Refiued ure 10 Fluorite ore - Refined ore 11 White limestone - In clods In powder 12 Barite are Mines and mine spots in Lai Chau, Cao Bang, Lang Son, Bac Giang, Tuyen Quang, Than" Hoa - Refined barite ore and Nghe An provinces - Barite powder 13 Graphite ore - Refined eranhite nre. 14 Pyrite ore - Refined nvrite are 15 Rare earth ore Mines and mine spots in Lai Chau, Lao Cai and Yen Bai provinces - Refined rare earth are 16 Nickel are Mines and mine spots in Son La and Th:mn Rrul provinces - Nickel refined ore 17 Talc ore - Talc nowder 18 Quartzite stone 19 Dolomite are Mines and mine ores in Thai Nguyen, Bac Kan, Thanh Rca and Ha Tinh provinces 20 Diatomite ore Mines and mine spots in Phu Yen and Lam Dong I nrovinces 21 Aoatite ore Mines and mine soots in Lao Cai orovince 22 Bentonite © VIETNAM LAW & L GAL FORUM 62 OFFICIAL GAZETTE Issue nos 10·121June 2008 (Gong Baa nos 367.J681June 27, 2008) A ppenrlil: 2 LIST, QUALITY STANDARDS OF AND CONDITIONS FOR EXPORTED MINERALS (Attached to the Industry and Trade Ministry's Circular No. 0812008/TT-BCT ofJune 18, 2(08) Content, No. Ex.ported minerals Time limits and conditions specifications 1 Titanium ore Ti.Oz~52% Ore" of planned mines may be exported - Refilled ilmenite ore till the end of 2008 (mineral sand) ~ Refined ilmenite ore Ti02~48% Ores of planned mines may be exported (base) till the end of 2008 - Refined rutile ore Ti0 1:<::83% Ores of planned mines may be exported - Refined monazite are ReO~57% Ores of planned mines may be exported - Z!r(;(}IllUm powder Zr02~ 6:i% Ores of planned mines may be exported Granule size:95 ttm ~ Recombined ilmenite Ti0 2256% Ores of planned mines may be exported FcO~ 11% - Titanium slag Ti02:<::85% Ores of planned mines may be exported 2 Lead-zinc ore Pb~50% Lead sulfide refined Ores of planned mines - Refined b1d sulfide <XC may be exported till the end of 2008 - Refined zinc sulfide ore 2n250% ~L.inc oxide powder 2n260% 3 Copper ore Cu 2: 18% - Refined copper are 4 Iron ore Fe? 66% • Iron ore in zranules - Refined magnetite Fe:?: 60% Sin Quyen-Lao Cai Copper Sorting Factory ore rnaV extort ores till the end of 2008 - Other refined iron oces Fe~54% 5 Mangane~e ore Mn~30% - Refined ore 6 Bauxite ore Ah03~48% Baa Lac mine, Lam Dong province - Refined ore (Southern Base Chemical One-Member Lmuted LiabiliIy company) may export ores till the end of 200S 7 Chrornite are Cr203 :2:42% - Refined ore 8 Wolframite ore W0 3 ~65% - Refined are © VIETNAM LAW & LEGAL FORUM Issue nos 1O-121June 2008 OFFICIAL GAZETTE 63 (COng Bao nO£) 367-368/JuflC 27, 2008) 9 Mica ore 10 Fluorite ore CdF2 z 65% - Refined are 11 White limestone CaC03 ;::':98% Underthe Construction Ministry's - Tn blocks guidance - In slabs and other sizes Under the Construction Ministrv's euidance - In clods 1-400 nun in size Limestone of planned mines may be .. - - - _. exocsted - In powder Granule sizecj rom; Limestone of planned mines may be whiteness > 90% exported 12 Barite ore - Refined barite ore BaS04 2: 70% - Barite powder BaS04;;:';S9%, granule sizecj mm 0 Craplihe ore C ~80% - Refined graphite ore 14 Pyrite ore S dO% - Refined pyrite ore 15 Rare earthere Tr203 2: 15% - Refined rare earthore 16 Nickel ore N 2c 9.$% Ores of planned mines In.IIy be exparted ~ Refined nickel ore till the end of 2013 17 Talc ore Si0 2 2: 30%, - Talc powder Mp.O >20% 18 Quartzite ore Si02 > 85% 19 Dolomite ore MgO 217%, rao ~34% 20 Diatomite ore Si0 2 2: 50%, Ah03 > 13% 21 Apatite ore P20~ ~ 18.25% Lao Cai Apatite Company may export ores - Grade-II ores of Lao till the end of 2010, with a maximum Cai Aoatite Comnanv quantity of 500,000 tons/year - Refined ores of P10 j 2: 18% uoolarmed mines 22 Bentonite Si02 2: 45%, Ah03 >8% Note: Planned mines are those listed in column 3 of Appendix 1 to this Circular., © VIETNAM LAW & GAL FORUM