Decision No. 06/2003/QD-BTNMT Issuing Regulations on Procedures for Granting Mineral Exploration Licenses

DECISION OF THE MINISTER

MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

Issuing the Regulations

on the procedures for issuing mineral exploitation permits.

MINISTER OF NATURAL RESOURCES AND ENVIRONMENT

Pursuant to the Minerals Law dated March 20, 1996.

Pursuant to the Government Decree No. 76/2000/NĐ-CP dated December 15, 2000 detailing the implementation of the Minerals Law (amended).

Pursuant to the Government Decree No. 91/2002/NĐ-CP dated November 11, 2002 on the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment.

At the proposal of the Director of the Vietnam Geological and Mineral Resources Department Male and the Head of the Legal Affairs Department.

DECISION:

Article 1. The attached Decision issues the Regulations on the procedures for issuing mineral exploitation permits and sample forms of application documents and mineral exploitation permits.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

This Decision replaces Decision No. 17/2001/QĐ-BCN dated March 23, 2001 of the Minister of Industry regarding the issuance of "Regulations on Procedures for Mineral Exploitation Permits (Amended)."

Article 3. The Minister, Heads of Ministries equivalent to Ministries, Heads of agencies under the Government, Chairpersons of Provincial People's Committees directly under the Central Government, and related organizations and individuals are responsible for implementing this Decision./.

REGULATIONS

On the procedures for issuing mineral exploitation permits

(Issued together with Decision No. 06/2003/QĐ-BTNMT dated September 19, 2003

of the Minister of Natural Resources and Environment)

PART I

GENERAL PROVISIONS

Article 1. Scope of application

These regulations stipulate the procedures for issuing, extending, returning mineral exploration permits, mineral prospecting permits, mineral exploitation permits, and mineral processing permits; permitting the transfer of mineral exploitation rights or continuing to exercise mineral exploitation rights in cases of lawful inheritance (hereinafter referred to as issuing mineral exploitation permits) and registering mineral activities.

Article 2. Applicability

These regulations apply to state management agencies for minerals and other relevant agencies; Vietnamese economic organizations established and operating in accordance with the State Enterprise Law, the Enterprise Law, the Cooperative Law, and foreign organizations or joint ventures with foreign parties operating in Vietnam in accordance with foreign investment laws when applying for mineral exploitation permits.

Article 3. Authority to issue mineral exploitation permits

1. The Ministry of Natural Resources and Environment shall issue the following types of permits:

a) Mineral exploration permits;

b) Mineral prospecting permits;

c) Mineral exploitation permits and mineral processing permits for all types, except those for mineral exploitation and mineral processing permits within the authority of provincial-level People's Committees as provided for in Clause 2 of this Article.

d) Mineral exploitation permits and mineral processing permits for ordinary construction materials for foreign organizations or joint ventures with foreign parties.

2. Provincial-level People's Committees shall issue the following types of permits:

a) Mineral exploitation permits for tailings areas that have been approved by the Ministry of Natural Resources and Environment;

b) Mineral exploitation permits and mineral processing permits for ordinary construction materials and mud coal for domestic organizations (including areas adjacent to provinces and centrally-administered municipalities) after the Ministry of Natural Resources and Environment has issued a prospecting permit and approved the report on the results of the prospecting.

Chapter II

MINERAL EXPLORATION PERMIT

Article 4. Documents for applying for a mineral exploration permit

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application form for a mineral exploration permit (Form No. 1), accompanied by four (4) sets of maps of the exploration area. The boundaries of the mineral exploration area are delineated in square grids, each grid being 1km x 1km on a cadastral map with a scale not less than 1:100,000 based on the VN 2000 orthogonal coordinate system (Form No. 2);

2. Exploration plan, specifying geological basis and types of minerals to be explored, methods and volume of exploration; time frame, progress, budget for exploration costs, and sources of funding;

3. Certified copy of the document confirming the legal status of the organization applying for the mineral exploration permit from the Notary Public.

Article 5. Documents for applying for an extension of a mineral exploration permit

Extension applications must be submitted to the receiving agency thirty (30) days before the permit expires, including:

1. Extension application form (Form No. 3);

2. Report on the results of mineral exploration and the volume of work and expenses incurred up to the date of the extension request.

In the case where a mineral exploration permit has expired but the extension application is still under review, the permit remains valid until the decision on extension or the notification of non-extension is made.

Article 6. Documents for returning a mineral exploration permit

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Return application form (Form No. 4);

2. Report on the results of mineral exploration and the volume of work and expenses incurred up to the date of return of the permit.

Chapter III

MINERAL PROSPECTING PERMIT

Article 7. Documents for applying for a mineral prospecting permit

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application form for a mineral prospecting permit (Form No. 5);

2. Prospecting plan prepared in accordance with regulations, accompanied by four (4) sets of maps of the prospecting area drawn on a topographic map based on the VN 2000 orthogonal coordinate system according to the principle:

a) The boundaries of the prospecting area with an area of 1 square kilometer (1 km²) or more are delineated in closed square grids on a map with a scale of 1:50,000 (Form No. 6);²b) Areas smaller than 1 square kilometer (1 km²) are delineated on a map with a scale not less than 1:50,000 (Form No. 6a).

3. Certified copy of the document confirming the legal status of the organization applying for the mineral prospecting permit if it is a domestic organization, or a certified copy of the investment permit (if available) from the Notary Public for foreign organizations or joint ventures with foreign parties.²Documents for applying for an extension of a mineral prospecting permit

Extension applications must be submitted to the receiving agency thirty (30) days before the permit expires, including:

Article 8. 1. Extension application form for a mineral prospecting permit (Form No. 7);

2. Report on the results of prospecting, volume and cost of prospecting already carried out; program, volume of work and budget for continued prospecting;

3. Map of the prospecting area, which excludes at least thirty percent (30%) of the area according to the previous permit.

2. Report on the results of exploration, the volume and cost of exploration work already carried out; program, volume of work and estimated cost of continued exploration.

3. Map of the exploration area, from which at least thirty percent (30%) of the area has been excluded according to the previous permit issued.

In the case where the mineral exploration permit has expired but the application for extension is under consideration, such permit shall continue to be valid until the date of extension or until a decision is made regarding non-extension of the permit.

Article 9. Application for returning the mineral exploration permit or returning part of the exploration area.

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application for returning the mineral exploration permit (Form No. 8) or returning part of the exploration area (Form No. 9);

2. Report on the results of mineral exploration, volume of works, and exploration costs incurred up to the date of returning the permit or returning part of the exploration area as stated in the permit;

3. Map of the area to continue exploration; volume of works, budget, and program for continued exploration (for the case of returning part of the exploration area).

Article 10. Application for transferring the right to explore minerals

The application includes:

1. Application for transferring the right to explore minerals (Form No. 10) accompanied by the transfer agreement of the right to explore minerals and a list of the value of assets to be transferred;

2. Report on the results of exploration, volume of works, costs incurred, and related obligations as stipulated up to the date of applying for the transfer of the right to explore minerals;

3. Certified copy of the legal document confirming the legal entity status issued by Notary Public for the organization receiving the transfer of the right to explore minerals if it is a domestic organization, or certified copy of the investment license (if available) issued by Notary Public for the organization receiving the transfer of the right to explore minerals if it is a foreign organization or a joint venture with foreign participation.

The transfer of prospecting rights shall be approved by issuing a new mineral prospecting permit replacing the previous one.

Article 11. Application for continuing to exercise the right to explore minerals

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application for continuing to exercise the right to explore minerals (Form No. 11); report on the results of exploration, volume of works, costs incurred, and program for continued exploration;

2. Certified copy of the legal document issued by Notary Public proving the lawful inheritance of the right to explore minerals by the organization or individual;

3. Certified copy of the document confirming the legal entity status issued by Notary Public of the organization inheriting the right to explore minerals lawfully.

Permission to continue exercising the right to explore minerals is granted by issuing an exploration permit to the lawful heir, replacing the previously issued permit.

Chapter IV

MINERAL EXPLORATION PERMIT

Article 12. Application for issuance of a mineral exploitation permit

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application for issuance of a mineral exploitation permit (Form No. 12 or Form No. 12a), accompanied by four (4) sets of maps of the mining area prepared on a topographic map with a scale not less than 1:5000, using the VN 2000 orthogonal coordinate system (Form No. 13 or Form No. 13a);  2. Decision approving the report on exploration results and mineral reserves by the competent state agency as prescribed;

3. Feasibility study report on mineral exploitation accompanied by the approval decision as prescribed;

4. Environmental impact assessment report or environmental standard compliance registration approved or confirmed by the competent state agency according to environmental protection laws;

5. Certified copy of the document confirming the legal entity status issued by Notary Public for the organization applying for the mineral exploitation permit if it is a domestic organization that has not been issued an exploration permit, or certified copy of the investment license issued by Notary Public for the organization applying for the mineral exploitation permit if it is a foreign organization.

Application for extension of the mineral exploitation permit

Article 13. 1. Application for extension of the mineral exploitation permit (Form No. 14);

The extension application must be submitted to the receiving authority ninety (90) days before the permit expires, including:

2. Current mine exploitation map at the time of application for extension, accompanied by a report on exploitation activities up to the date of application for extension; remaining mineral reserves and area to continue exploitation.

In the case where the mineral exploitation permit has expired but the application for extension is under consideration, such permit shall continue to be valid until the date of extension or until a decision is made regarding non-extension of the permit.

Application for returning the mineral exploitation permit or returning part of the exploitation area

Article 14. 1. Application for returning the mineral exploitation permit (Form No. 15) or returning part of the exploitation area (Form No. 16);

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

2. Current situation map accompanied by a report on mineral exploitation results up to the date of returning the permit or returning part of the exploitation area;

3. Mine closure plan already reviewed and approved according to the law for the case of returning the mineral exploitation permit.

Application for transferring the right to exploit minerals

Article 15. 1. Application for transferring the right to exploit minerals (Form No. 17) and the transfer agreement of the right to exploit minerals, accompanied by a list of the value of assets to be transferred;

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

2. Report on exploitation results and obligations fulfilled up to the date of applying for the transfer of the right to exploit minerals, accompanied by the current exploitation map at the time of application for transfer;

3. Certified copy of the document confirming the legal entity status issued by Notary Public for the organization receiving the transfer of the right to exploit minerals if it is a domestic organization, or certified copy of the investment license issued by Notary Public for the organization receiving the transfer of the right to exploit minerals if it is a foreign organization or a joint venture with foreign participation.

Application for continuing to exercise the right to exploit minerals

The transfer of mining rights shall be approved by issuing a mining permit to the organization taking over the rights, replacing the previously issued permit;

Article 16. 1. Application for continuing to exercise the right to exploit minerals (Form No. 18);

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

2. Certified copy of the legal document issued by Notary Public proving the lawful inheritance of the right to exploit minerals by the organization or individual;

3. Certified copy of the document confirming the legal entity status issued by Notary Public of the organization inheriting the right to exploit minerals lawfully;

4. Current exploitation map accompanied by a report on mineral exploitation results up to the date of applying for continued exercise of the right to exploit minerals.

Permission to continue exercising the right to exploit minerals is granted by issuing a mineral exploitation permit to the lawful heir, replacing the previously issued permit.

MINERAL PROCESSING PERMIT

Chapter V

Application for issuance of a mineral processing permit

Article 17. 1. Application for issuance of a mineral processing permit (Form No. 19);

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application for a mineral processing permit (Form No. 19);

2. Feasibility study report on mineral processing accompanied by the decision approving it as prescribed;

3. A certified copy of the document confirming the legal entity status issued by the Notary Public for domestic organizations applying for a mineral processing permit, or a certified copy of the mineral processing investment license issued by the Notary Public for foreign organizations or joint ventures with foreign participation applying for a mineral processing permit;

4. An environmental impact assessment report or an Environmental Standard Compliance Registration that has been approved or confirmed by the competent state agency in accordance with the laws on environmental protection;

Article 18. Application dossier for extending a mineral processing permit

The application dossier for extension must be submitted to the receiving authority ninety (90) days before the expiration date of the permit, including:

1. Application for extension of the mineral processing permit (Form No. 20);

2. Report on the results of mineral processing activities up to the date of application for extension, and the volume of minerals to be processed further;

In cases where the mineral processing permit has expired but the extension application is still under review, the permit remains valid until the extension is granted or until a written response is given to the organization applying for extension regarding the reasons why the extension was not granted;

Article 19. Application dossier for returning a mineral processing permit

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application for returning the mineral processing permit (Form No. 21);

2. Report on the results of mineral processing from the effective date of the permit to the date of returning the permit;

Article 20. Application dossier for transferring the right to process minerals

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1. Application for transferring the right to process minerals (Form No. 22);

2. Mineral processing rights transfer contract, attached with a statement of the value of transferred assets; report on the results of mineral processing and completed obligations up to the date of application for transferring the right to process minerals;

3. A certified copy of the document confirming the legal entity status issued by the Notary Public for domestic organizations applying to take over the transfer of mineral processing rights, or a certified copy of the investment license issued by the Notary Public for foreign organizations or joint ventures with foreign participation applying to take over the transfer of mineral processing rights;

The transfer of the right to process minerals is approved by issuing a mineral processing permit to the entity receiving the transfer, replacing the previously issued permit.

Article 21. Application dossier for continuing to exercise the right to process minerals

The dossier includes:

1. Application for continuing to exercise the right to process minerals (Form No. 22);

2. A certified copy of the legal document issued by the Notary Public proving the lawful succession of the mineral processing rights by the organization or individual;

3. A certified copy of the document confirming the legal entity status issued by the Notary Public of the organization succeeding lawfully;

4. Report on the results of mineral processing and plan for continued mineral processing activities;

Continuing to exercise the right to process minerals is evidenced by issuing a mineral processing permit to the lawful successor organization, replacing the previously issued permit;

Chapter VI

PROCEDURE FOR IMPLEMENTATION

Article 22. Receiving and examining mineral activity dossiers

1. The Vietnam Geological Survey is the agency assisting the Ministry of Natural Resources and Environment in receiving and examining applications for mineral activity permits, which are then submitted to the Minister of Natural Resources and Environment for consideration and decision-making on the issuance of mineral activity permits in accordance with the provisions of Clause 1, Article 3 of this Regulation;

2. The Department of Natural Resources and Environment assists the People's Committee of provinces and centrally-administered cities in receiving and examining applications for mineral activity permits, which are then submitted to the Chairman of the People's Committee of provinces and centrally-administered cities for consideration and decision-making on the issuance of mineral activity permits in accordance with the provisions of Clause 2, Article 3 of this Regulation;

3. The Vietnam Geological Survey and the Department of Natural Resources and Environment are responsible for guiding organizations and individuals in implementing the procedures for issuing mineral activity permits;

4. In cases where the opinions of relevant agencies differ in their responses, the receiving agency is responsible for organizing discussions to reach consensus and reporting to the Minister of Natural Resources and Environment or the Chairman of the People's Committee of provinces and centrally-administered cities for consideration and decision-making within their respective authorities;

Article 23. Implementation procedure

1. For applications for mineral activity permits, the receiving agency must complete the examination of the dossier within forty-five (45) days from the date of receipt of all valid documents from foreign organizations (this period does not include the time taken to seek opinions from relevant agencies), and submit it to the competent state agency for consideration of the issuance of the permit;

2. For applications for extension, return of permits, reduction of operational area, transfer of operational rights, and continuation of operational rights in cases of lawful succession, the receiving agency must complete the examination of the dossier within thirty (30) days from the date of receipt of all valid documents, and submit it to the competent state agency for consideration and decision on the issuance or non-issuance of the permit;

3. Within seven (7) days from the date of receipt of all valid documents submitted by the receiving agency, the competent state agency must make a decision on the issuance or non-issuance of the mineral activity permit and return the dossier to the receiving agency (the format of the mineral activity permit is specified in Forms No. 24 to No. 43a);

4. The receiving agency is responsible for delivering the permit to the organization applying for the mineral activity permit or providing a written response regarding the reasons for not issuing the permit;

Chapter VII

REGISTRATION AND ANNOUNCEMENT OF MINERAL ACTIVITIES

Article 24. Registration and announcement of mineral activities

The registration and announcement of mineral activities shall be carried out according to the following principles:

1. Mineral activity permits issued by the Ministry of Natural Resources and Environment must be registered with the Vietnam Geological Survey and sent to the Department of Natural Resources and Environment along with a map of the mineral activity area for the purpose of announcing the activity and coordinating management.

2. The mineral exploitation permit issued by the People's Committee of the province or centrally governed city must be registered with the Department of Natural Resources and Environment and submitted to the Vietnam Geological and Mineral Resource Administration one (1) copy along with the map of the mineral exploitation area for monitoring and coordination in management.

3. In cases where ordinary construction materials are mined without applying for a mining permit as prescribed in Article 62 of Decree No. 76/2000/NĐ-CP dated December 15, 2000 of the Government detailing the implementation of the Minerals Law (amended), before commencing mining, organizations and individuals must register their capacity, volume, method, and equipment for mining together with the mining program and plan at the Department of Natural Resources and Environment.

Article 25. Management and monitoring of mineral activity permits issuance

The Vietnam Geological and Mineral Resource Administration is responsible for assisting the Ministry of Natural Resources and Environment in managing, compiling, and preparing six (6)-month and annual reports on the situation of issuing mineral exploitation permits nationwide.

The Department of Natural Resources and Environment is responsible for assisting the People's Committee of the province or centrally governed city in managing, compiling, and preparing quarterly and annual reports on the situation of issuing mineral exploitation permits within the administrative jurisdiction of the locality and submitting quarterly reports to the Vietnam Geological and Mineral Resource Administration.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 26. Implementation

The Director of the Vietnam Geological and Mineral Resource Administration and the Director of the Department of Natural Resources and Environment are responsible for guiding, urging, and inspecting the implementation of this Regulation. Any difficulties encountered during implementation must be promptly reported to the Ministry of Natural Resources and Environment for consideration and decision./.