Decision No. 105/2008/QĐ-TTg Approves the Exploration, Exploitation, and Utilization Plan for Cement Raw Materials in Vietnam until 2020

Pursuant to …;

Approve the Exploration, Exploitation, and Utilization Plan for Cement Raw Materials in Vietnam until 2020

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Minerals Law dated March 20, 1996, and the Law Amending and Supplementing Certain Provisions of the Minerals Law No. 46/2005/QH11 dated June 14, 2005;

Based on Decree No. 160/2005/NĐ-CP of the Government dated December 27 , 2005, detailing and guiding the implementation of the Minerals Law and the Law Amending and Supplementing Certain Provisions of the Minerals Law;

Considering the proposal of the Minister of Construction at Report No. 03/TTr-BXD dated February 4, 2008, and the opinions of relevant ministries and sectors.

DECISION:

Article 1. Approve the Exploration, Exploitation, and Utilization Plan for Cement Raw Materials in Vietnam until 2020 with the main contents as follows:

1. Objectives

a) The Exploration, Exploitation, and Utilization Plan for Cement Raw Materials serves as a legal basis for state functional agencies to manage cement raw material resources effectively, in accordance with their intended purposes, to promote sustainable development of the cement industry; facilitate enterprises in obtaining permits for exploration and exploitation of cement raw material mines during each phase from now until 2020, and serve as a foundation for guiding the development of the cement industry after 2020.

b) Assess the current status of cement raw material mineral resources; determine the required reserves of minerals to be explored and exploited for the cement industry from now until 2020 and the capacity to meet these needs from cement raw material resources; identify the list, progress of exploration and exploitation of mines in each phase from now until 2020, as well as mines and national resource areas designated for cement production to meet the demand for cement production in Vietnam until 2020 and beyond.

2. Views

a) Views on Exploration

- The exploration plan for cement raw materials must precede by one step to serve as a legal basis for managing permit issuance for exploration and mining operations, timely meeting the raw material extraction requirements of the cement industry nationwide from now until 2020 and subsequent years. Exploration of mines should be carried out 5 to 10 years before the implementation of cement investment projects..

- The exploration and exploitation plan for cement raw materials must align with the national socio-economic development planning and regional territories; consistent with the development planning of the Vietnamese cement industry approved by the Prime Minister's Decision No. 108/2005/QĐ-TTg dated May 16, 2005, and cement investment projects permitted by the Prime Minister to be included in the cement planning. - Prioritize exploration of limestone deposits and areas within cement development zones or adjacent to cement plants, regions with favorable conditions for raw material extraction that do not impact the environment.

- Exploration work for each cement raw material mine should extend to peripheral or adjacent areas of the mine, explore underground resources to assess the total ore body reserves, prolong the life of the mine, and prevent wastage of resources.

b) Views on Rational Resource Utilization

- Limestone quarries meeting cement standards should be prioritized for the cement industry or reserved as raw material for cement production, especially in regions with limited cement raw material resources.

Priority should be given to exploring and exploiting limestone and clay deposits meeting standards for cement factories. minerals for cement production shall prioritize exploration and exploitation of limestone and clay deposits that meet the standards for cement factories. The capital for exploring mineral deposits used as raw materials for cement mainly shall be arranged by the investors of cement projects.

- For limestone deposits with inconsistent quality, comprehensive exploitation and utilization plans should be developed to provide both construction stone and cement raw materials, thereby utilizing resources efficiently.

- Develop reasonable and effective exploitation plans to minimize negative impacts on the environment, natural scenery, and recover all mineral resources.

c) Views on Mobilizing Resources for Exploration and Exploitation

- Mobilize capital and leverage the capabilities of domestic and foreign organizations and individuals to participate in the exploration and exploitation of cement raw materials.

- Leverage scientific and technological capabilities, human resources, and the initiative of organizations responsible for surveying, exploring, and processing cement raw materials.

- Cooperate with international organizations to advance technology in the field of extracting raw material mines for cement production.

d) Views on Environmental Protection and Sustainable Development

- Development of the industry for exploration, exploitation, and utilization of cement raw materials must comply with regulations for protecting natural heritage, historical sites, archaeological sites, cultural works of value, and tourist areas, as well as ecological environments.

- Apply advanced exploration and exploitation technologies to minimize negative environmental impacts and landscape changes, implement land reclamation or restoration and rational land use at currently and previously mined sites.

- For limestone and clay deposits along national highways and coastlines, appropriate exploitation measures such as rear mountain excavation and internal mine exploitation should be implemented to preserve landscapes and prevent coastal weather erosion inland.

- The exploration and exploitation plan for cement raw materials is a directional and open plan, thus it will continuously be supplemented and adjusted promptly, improving through each phase.

3. Content of the Master Plan

a) Mineral Resources for Cement Production in Vietnam

Cement raw materials include mainly: limestone; clay; cement additives. The total number of mines and resources of cement raw material mines nationwide that have been explored and surveyed are summarized as follows:

Summary of the number of mines and resources of cement raw material mines across 8 economic regions, see Appendix I.

b) Required reserves of actual mines needed to meet the demands of cement factories nationwide from now until 2020

Required volume various types of minerals to be explored and exploited to meet the needs planning raw materials for cement production from now to the year 2020 as follows:

- The volume of mineral resources required for planning exploration:

+ Limestone: phase up to 2010: 1,205 million tons; phase 2011 - 2020: 274 million tons. Total: 1.479 million tons;

+ Clay: phase up to 2010: 324.5 million tons; phase 2011 - 2020: 45.5 million tons. Total: 370 million tons;

+ Additives: phase up to 2020: 319 million tons;phase 2011 - 2020: 44 million tons. Total: 363 million tons.

- The volume of mineral resources required for planning exploitation for factories:

+ Limestone: phase up to 2010: 1,123.5 million tons; phase 2011 - 2020: 1,048.5 million tons. Total: 2,172 million tons;

+ Clay: phase up to 2010: 320 million tons; phase 2011 - 2020: 266 million tons. Total: 586 million tons;

+ Additives: phase up to 2010: 288 million tons; for the period 2011 - 2020: 128 million tons. Total: 416 million tons.

The actual reserves of mineral deposits needed to meet the needs of cement factories nationwide from now to 2020 are detailed in Appendix II.

c) Planning for exploration, exploitation, and utilization of minerals for cement until 2020

During the period from now to 2020, the planning for exploration and exploitation of total reserves of minerals for cement raw materials will be as follows:

Detailed information on the planning for exploration and exploitation of mineral deposits for each cement factory is detailed in Appendix III.

d) Planning for mineral deposits reserved for the cement industry

The list and reserves of mineral deposits reserved for the cement industry shall be implemented according to Appendix IV. In cases where mineral deposits have been planned for reserve for the cement industry but if they are used for other purposes with higher efficiency, they may be allocated for such purposes.

4. Measures to implement the planning for exploration, exploitation, and utilization of minerals for cement in Vietnam until 2020

a) Measures to strengthen and unify state management of minerals from central to local levels

- After being approved by the Prime Minister, the Ministry of Construction shall announce the Plan so that relevant ministries, sectors, localities, enterprises, and investors can understand and implement it.

- The State shall unify the management of results of exploration and exploitation of minerals for cement; invest in planning and basic geological surveys of mineral resources; create conditions for organizations and individuals to participate in investment in exploration and exploitation of minerals for cement; the Ministry of Natural Resources and Environment continues to improve legal documents, administrative procedures, and decentralization management, compensation when using land to expedite permits for exploration and exploitation of minerals; complete regulations on resource taxes, environmental protection costs, and reclamation; the Ministry of Construction shall direct and inspect the implementation of the plan, regularly update and timely adjust the situation of implementation; localities organize management and supervision of exploration, exploitation of mineral deposits, environmental restoration, avoiding overlapping with other plans. - Strengthen propaganda and dissemination of laws on minerals, especially in areas with mineral resources and activities related to cement minerals.

b) Measures for capital mobilization Capital for exploration and exploitation of minerals for cement raw materials mainly comes from investments by cement enterprises, investors' capital, domestic and foreign commercial bank loans. Encourage enterprises to raise funds through the securities market (issuing bonds, project stocks). Publicize widely the list and reserves of mines that have been planned for exploration and exploitation in various provinces to attract investment in exploration and organization of exploitation to serve the cement industry.

c) Measures regarding mechanisms and policies

- Establish regulations on investigation, exploration, tendering systems for exploration and exploitation zones of mineral deposits for cement raw materials.

- Formulate policies to encourage investment in equipment and technology for exploitation to fully exploit mineral resources for cement.

- Supplement insurance against risks for organizations and individuals engaged in mineral exploration to encourage investors to increase reliability about reserves and quality of deposits to be explored, reduce risks that may occur during exploration, exploitation, and utilization of minerals.

- Coordinate between specialized training institutions and organizations responsible for surveying, exploring, and exploiting cement minerals to develop plans for training technical staff in the field of exploration and exploitation.

- Continue to promote administrative reform in granting permits for mineral exploitation for cement raw materials towards centralized processing, transparency, and convenience. While the Prime Minister has not approved restricted areas, temporary restrictions, or limitations on mineral activities, seeking opinions from relevant ministries and sectors before granting permits will only be carried out in unclear cases decided by local People's Committees.

d) Measures regarding science and technology, environment

- Research and develop machinery suitable for domestic conditions.

- Organize research and establish technological processes for exploration, exploitation, and environmental recovery of mineral deposits after exploitation ends.

- Expand international cooperation, particularly in technology transfer for mineral exploitation for cement.

5. Capital requirements for planning mineral exploration for cement

Total investment for exploration of mineral deposits for cement in each phase from now to 2020 is as follows:

Exploration volume requirement

(million tons)

1. The Ministry of Construction shall implement state management over the exploitation and use of minerals as raw materials for the cement industry and shall be responsible for:

Article 2. Implementation

exploring, exploiting, and using cement minerals to avoid waste of mineral resources.

a) Announce and organize the implementation of the planning after it has been approved by the Prime Minister; direct and inspect the implementation of the planning after approval; periodically update and keep the situation of implementation current and adjust the planning to ensure consistency and suitability with the country's economic and social development and its international integration process. Propose mechanisms and policies to develop the stable and sustainable mineral extraction industry for cement production.

b) Issue regulations on standards, procedures, and technologies for extracting and processing minerals used as raw materials for cement production.

c) Update, supplement, and perfect the Cement Production Industry Development Plan until 2020 to serve as a basis for organizing geological basic investigation work and mineral exploration in a timely manner and over reasonable areas.

d) Reform management of mineral resources regarding the current status of mineral resources, exploration and exploitation situations of cement mineral deposits, quality and reserves of minerals, environmental impact, updating increases or decreases in tonnage and resource levels, ore quality, and information about national resource strategy, economic and social development policies nationwide and in localities with cement raw material sources. This management method is unified nationwide and managed by the Ministry of Construction.

2. The Ministry of Natural Resources and Environment shall perform state management functions concerning basic geological investigations, exploration, granting permits for exploration and exploitation of mineral deposits, responsible for:

a) Announcing cement mineral deposits that have been investigated and explored.

b) Accelerating basic geological investigations for cement raw material minerals according to the Mineral Resource Geological Basic Investigation Plan until 2015, with a direction towards 2025, which has been approved by the Prime Minister.

c) Cooperating with local authorities to demarcate and widely announce areas where minerals can be exploited to protect resources and facilitate exploration and exploitation when needed.

d) Studying and proposing to the Prime Minister to amend and supplement certain provisions of Decree No. 160/2005/ND-CP in a more liberal direction and thorough decentralization.

đ) Continuing to perfect legal documents, administrative procedures, and management decentralization, compensation when using land to expedite exploration and exploitation permit issuance; coordinating with the Ministry of Finance to perfect regulations on resource taxes, environmental protection costs, and reclamation.

e) Regularly update information on exploration and exploitation of cement raw material mineral deposits; organize inventory implementation for mineral deposits that have been explored and put into exploitation nationwide..

g) Strengthening mineral inspection work at all levels; intensifying post-inspection activities, promptly detecting and firmly handling violations in management and mineral exploration, exploitation, and utilization activities according to the law to ensure effective mineral resource exploitation and utilization, safety of landscapes and the environment, and social order and security.

3. The Ministry of Planning and Investment

Take the lead, coordinate with the Ministry of Construction and the Ministry of Natural Resources and Environment to establish bidding rules for exploration and exploitation rights of cement raw material mines and investment attraction policies, preferential policies in management, exploration of cement raw material mineral deposits.

4. The Ministry of Finance.

a) Allocate state budget funds for basic geological investigations in areas of raw material regions that have been planned.

b) Lead and coordinate with the Ministry of Natural Resources and Environment, the Ministry of Construction to formulate and issue policies ensuring the benefits of localities in exploiting mineral resources for cement production; establish risk insurance rules for operations. mineral a) Proactively coordinate with the Ministries of Natural Resources and Environment; Defense; Construction; Culture, Sports and Tourism; Agriculture and Rural Development to determine and demarcate restricted, temporarily restricted, and limited activity zones for minerals to submit to the Prime Minister for early approval, facilitating state management of minerals in general and permit issuance for mineral activities in particular.

5. Provincial People's Committees under the Central Government

b) Organize management and supervision of mineral deposit exploration, exploitation, environmental restoration, avoiding overlapping planning with other plans in the area.

c) Organize management and protection of cement raw material mineral resources in the area before the mine has an owner; prevent illegal exploitation.

d) Organize the establishment and submission to the People's Council at the same level for approval of the exploration, exploitation, and utilization plan of cement raw material minerals within their licensing authority..

đ) Strengthen inspection and supervision of mineral exploration and exploitation activities, promptly detect and handle violations in these activities in the area.

e) Incorporate planning contents in each phase into annual, five-year plans, and economic development planning of the locality for implementation.

5 year and development planning of the locality to implement. g) Intensify propaganda and dissemination of laws on minerals, especially in areas with mineral resources and mineral activities.

6. Organizations and individuals participating in mineral exploration, exploitation, and utilization for cement production

Organizations and individuals participating in mineral exploration, exploitation, and processing for cement production

must comply strictly with the procedures and regulations stipulated in the Law on Minerals and Decree No. 160/2005/ND-CP dated December 27, 2005 of the Government for applying for exploration and exploitation permits of cement raw material minerals; regularly invest in science and technology to improve efficiency in all stages of exploration, exploitation, and utilization of cement raw material minerals, avoiding wastage of mineral resources. This Decision takes effect fifteen days from the date of publication in the Official Gazette. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 3. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 4. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.