Decision No. 11/2008/QD-BCT Approves the Plan for the Exploration, Exploitation, Processing, and Utilization of Gold, Copper, Nickel, and Molybdenum Ores in Vietnam until 2015, with Consideration to 2025

Pursuant to …;

Approving the Plan for Regional Exploration, Exploitation, Processing, and Utilization of Gold, Copper, Nickel, and Molybdenum Ores in Vietnam until 2015, with Consideration to 2025

gold, copper, nickel, molybdenum ores in Vietnam up to 2015, with consideration up to 2025

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THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Minerals Law dated March 20, 1996, and the Law Amending and Supplementing Certain Provisions of the Minerals Law dated June 14, 2005;

Pursuant to Resolution No. 59/2007/NQ-CP dated November 30, 2007 of the Government on certain measures to address difficulties in investment construction activities and administrative reform for enterprises;

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

Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Implementing the Prime Minister's opinion in Circular No. 3174/VPCP-CN dated June 11, 2007 of the Government Office regarding the delegation of authority to the Minister of Industry (now the Ministry of Industry and Trade) to approve the Plan for Regional Exploration, Exploitation, Processing, and Utilization of Copper, Gold, Nickel, and Molybdenum Ores until 2015, with Consideration to 2025;

Considering the Report No. 138/VML-C2 dated April 7, 2008 of the Institute of Mining Science and Technology-Metallurgy;

Considering the proposals of the Heads of the Departments: Planning and Heavy Industry;

DECISION:

Article 1. Approving the Plan for Regional Exploration, Exploitation, Processing, and Utilization of Gold, Copper, Nickel, and Molybdenum Ores in Vietnam until 2015, with Consideration to 2025, with the following main contents:

I. DEVELOPMENT PRINCIPLES

- Developing the industry of exploration, exploitation, processing of gold, copper, nickel, and molybdenum ores in accordance with the plan for industrial development of Vietnam, the economic and social development plans of localities, ensuring harmony between national and local interests, being consistent with the requirements of national defense security, protecting valuable cultural works, and preserving ecological environments in areas with mineral resources.

- Developing the industry of exploration, exploitation, and processing of gold, copper, nickel, and molybdenum ores steadily and sustainably, using advanced technology, ensuring safety, and achieving economic efficiency based on reasonable and economical exploitation of national resources.

- Carrying out exploration activities ahead of schedule to create reliable mineral resource bases for gold, copper, nickel, and molybdenum ores for exploitation and processing activities during the planning period.

- Developing the industry of exploration and processing of gold, copper, nickel, and molybdenum ores based on resource advantages, mainly leveraging internal strength, primarily serving the needs of the economy, and only exporting processed products that exceed domestic demand.

II. DEVELOPMENT OBJECTIVES

- Concentrating on exploring mines and ore deposits of gold, copper, nickel, and molybdenum that have been surveyed and evaluated to ensure sufficient reliable reserves for exploitation and processing needs during the planning period.

- Maximizing resource recovery during exploitation and processing through the application of advanced technologies. Ensuring economic efficiency in exploitation and protecting ecological environments in mining areas.

- Vigorously investing in comprehensive deep-processing facilities for gold, copper, nickel, and molybdenum ores with advanced technology. Striving to achieve the following production volumes for deep-processed products:

+ Metallic gold: reaching 4 tons/year in 2010; 6 tons/year in 2015; 8-10 tons/year from 2015 to 2025.

+ Metallic copper: reaching 10,000 tons/year in 2010; 20,000 tons/year in 2015; 30,000-40,000 tons/year from 2015 to 2025.

+ Metallic nickel (equivalent): reaching 0 tons/year in 2010; 7,000-10,000 tons/year from 2015 to 2025.

+ Ferro molybdenum: 20-40 tons/year from 2016 to 2020; 40-80 tons/year from 2021 to 2025.

III. FORECAST OF DEMAND FOR GOLD, COPPER, NICKEL, AND MOLYBDENUM

The forecasted demand for metallic gold, copper, nickel, and molybdenum (or equivalent) is as follows:

Estimated reserves and resources of gold ore are approximately 151.3 tons of metallic gold, of which reserves up to level C2 are about 53.5 tons; estimated resources are about 97.8 tons.

During the 2008-2015 period, efforts will be intensified to explore gold mines and ore deposits that have been basically surveyed and show promising resources and exploitable conditions, including 39 mines and ore deposits, among which six gold ore deposits are currently being explored for industrial-scale exploitation, namely the Sa Phìn, Minh Lương mines (Lào Cai province); Trà Năng mine (Lâm Đồng province); gold deposits in the A Vao - A Pey area (Quảng Trị and Thừa Thiên - Huế provinces); gold deposits in the Bồng Miêu area (Phú Ninh and Bắc Trà My districts, Quảng Nam province), and the Đắc Sa gold deposit (Phước Sơn district, Quảng Nam province).

It is expected that the capital investment required for exploration will be approximately 660 billion VND.

IV. EXPLORATION PLAN

1. Exploration of gold ore

Estimated reserves and resources of copper ore are approximately 2.21 million tons of metallic copper, of which reserves up to level C2 are about 1.24 million tons; estimated resources are about 0.97 million tons.

Efforts will be intensified to explore copper mines and ore deposits that have been basically surveyed and show promising resources during the 2008-2015 period, including 18 mines and ore deposits with a total estimated investment of 189 billion VND, including some major mines such as Tả Phời, Vi Kẽm (Lào Cai); An Lương, Làng Phát (Yên Bái); Nậm He - Huổi Sấy (Điện Biên); Nậm Tia, Nậm Ngã, Nậm Kinh (Lai Châu); Suối On, Đá Đỏ, Phiêng Lương, Nà Lạy (Sơn La); Đức Bố (Quảng Nam).

2. Exploration of copper ore

Reserves of nickel ore up to level C2 are approximately 3.5 million tons, mainly concentrated in Sơn La province.

It is expected that during the 2008-2015 period, efforts will focus on upgrading the second and third ore bodies at the Bản Phúc mine and exploring the Tạ Khoa mine to ensure reliable reserves for exploitation and deep processing in the region. The total estimated investment for exploration in Sơn La province is approximately 50 billion VND.

3. Exploration of nickel ore

It is expected that after completing the evaluation and basic investigation work (in 2012), exploration of two promising mines, Kin Chang Ho and O Quy Ho (Lao Cai), will be carried out during the period from 2016 to 2020 to ensure reliable reserves for exploitation after 2020.

V. EXPLOITATION AND PROCESSING PLAN

1. Exploitation and Processing of Gold Ore

- Strengthen investment in the exploitation and processing of gold ore to metal products; during the period from 2008 to 2015, apart from small-scale exploitation and processing of gold ore at various localities, focus on industrial-scale exploitation and processing of six gold mines, including: Sa Phin, Minh Luong (province of Lao Cai); A Vao - A Pey gold mine (provinces of Quang Tri and Thua Thien Hue); Tra Nang (Lam Dong); Bong Meoi and Dak Sa (Quang Nam) with a capacity of about 3.25 tons/year; during the period from 2016 to 2025, depending on the confirmed reliable reserves, expand the capacity to approximately 4.7-5.0 tons/year.

- The total investment for the exploitation and processing of six industrial-scale gold ore mines during the planning period is estimated at approximately 29.2 trillion VND.

2. Exploitation and Processing of Copper Ore

- Strengthen the exploitation, concentration, and smelting of copper ore from seven industrial-scale mines in the regions of Lao Cai, Yen Bai, Dien Bien, and Quang Nam, along with medium and small-scale mines in Son La, Hoa Binh.

- Expand the existing Tanging Long Copper Smelter (Lao Cai) to a capacity of 20,000-30,000 tons/year based on the results of the exploration of reliable reserves at Ta Phoi, Vi Kem, and Sin Quyen mines.

- Invest in new copper smelters in Son La and Yen Bai with a capacity of 10,000-15,000 tons/year based on the identified copper ore reserves in the above areas and nearby regions. Invest in new small-scale multi-metal smelting facilities (2,000-5,000 tons/year) in Quang Nam based on local raw materials.

The total investment for the exploitation, concentration, and processing of seven industrial-scale copper ore mines during the planning period is estimated at approximately 5.46 trillion VND.

3. Exploitation and Processing of Nickel Ore

- Based on the results of supplementary exploration of body II, III of Ban Phuc mine and upgrading exploration of Ta Khoa mine, invest and put into production a nickel metal and accompanying product manufacturing plant in Son La (after 2013) with a capacity of 7,000-10,000 tons/year. Study and invest in a nickel sulfate manufacturing plant in Thanh Hoa based on recovered nickel from chromium ore with a capacity of 500-1,000 tons/year by 2015.

The total investment for the exploitation and processing of three industrial-scale nickel ore mines during the planning period is estimated at approximately 3.51 trillion VND, of which mining and mineral concentration work is estimated at 3.0 trillion VND; processing work is estimated at 510 billion VND.

4. Exploitation and Processing of Molybdenum Ore

Based on the results of the exploration of reliable reserves of Kin Chang Ho and O Quy Ho mines (Lao Cai), invest in one molybdenum ferroalloy processing facility with a production volume of 20-40 tons/year during the period from 2016 to 2020, expanding to 40-80 tons/year during the period from 2021 to 2025.

The total investment for the exploitation and processing of industrial-scale molybdenum ore during the planning period is estimated at approximately 85 billion VND, of which mining and mineral concentration work is estimated at 20 billion VND; processing work is estimated at 65 billion VND.

VI. INVESTMENT CAPITAL

The estimated investment capital for the exploration, exploitation, and processing of gold, copper, nickel, and molybdenum ores during the planning period is approximately 12.719 trillion VND.

Of which, the period from 2008 to 2015 is approximately 10.484 trillion VND, and the period from 2016 to 2025 is approximately 2.235 trillion VND.

Source of Investment Capital: Includes self-raised capital of enterprises, state development investment loans, commercial loans, and direct foreign investment capital of approximately 1.6 trillion VND.

VII. MAJOR SOLUTIONS AND POLICIES

1. Group of Overall Solutions and Policies:

- Process gold, copper, and nickel ores to high-quality metals and their products to meet domestic demand primarily.

- Enhance hierarchical management of natural resources, improve regulations, and strengthen bidding for mineral activities, especially gold and copper ore exploitation and processing; establish joint-stock companies with the participation of organizations and individuals with experience, capabilities, and financial strength in mining to invest comprehensively from exploration to deep processing of minerals. Encourage diverse ownership forms, attract domestic and foreign resources to participate in developing the gold, copper, nickel, and molybdenum ore extraction and processing industry according to the priority given to domestic enterprises with strong capabilities; joint ventures and collaborations with foreign entities in high-tech fields such as nickel and molybdenum processing.

- Increase the social responsibility of enterprises in gold, copper, nickel, and molybdenum mineral activities, such as contributing to infrastructure construction; attracting, training, and utilizing local labor; taking proactive measures to protect the ecological environment and actively participating in improving the social environment.

2. Group of Specific Solutions and Policies

a) Market Solutions: Develop and build domestic markets for gold, copper, nickel, and molybdenum products under a market mechanism with state management and in line with Vietnam's integration process, closely cooperate and link to ensure raw material sources for processing and smelting facilities already planned for investment and construction; gradually capture the domestic consumption market and gradually enter international markets.

b. Research, Transfer, and Reception of Science and Technology:

- Focus on researching and applying advanced mining technologies, processing technologies for lean ores, and copper oxide ores. Improve and upgrade existing mining, concentration, and smelting technologies. Research and develop processing technologies for high-impurity nickel laterite ores accompanying chromium ores in Thanh Hoa; recover valuable minerals accompanying in multi-metal ores (containing copper, nickel, gold, molybdenum, cobalt, silver, etc.) through a combination of state-enterprise-scientific technology-enterprise mining and processing across all economic sectors.

- Continue to innovate and perfect copper smelting technology, drawing lessons for expanding and building new copper smelters in Yen Bai and Son La.

- Cooperate with foreign countries to research, produce metallic nickel, alloys, and high-value products from gold, copper, nickel, and molybdenum.

c. Development and training of human resources: Cooperate with training institutions (vocational schools, colleges, universities) to train and retrain, on-the-job training for labor forces and scientific researchers for mining, mineral processing, and metallurgy stages suitable for the scale and conditions of gold, copper, nickel, and molybdenum mineral exploitation in Vietnam. Emphasize training management teams and business administration staff at appropriate levels to meet the requirements for enterprise development in a competitive and integrated environment.

d. Environmental protection: Enterprises engaged in mineral exploration, extraction, and processing must fully implement all proactive measures to protect the environment during exploration, extraction, and mineral processing; particularly pay attention to cyanide gold ore processing technology, sulfide ore smelting towards applying modern and environmentally friendly technologies (complying with solid waste, wastewater, and exhaust gas regulations; recycling circulating water, recovering SO2 for H2SO4 production); strictly carry out post-extraction land restoration and environmental recovery. Ensure industrial hygiene and workplace safety during production. Encourage research and application of advanced environmental treatment technologies throughout all production stages. State management agencies should strengthen investment in monitoring and controlling equipment.

đ. Investment capital solutions: To attract approximately 12.719 trillion VND for the development of the mining and mineral processing industry for gold, copper, nickel, and molybdenum until 2025, it is expected to mobilize from the following sources:

- Self-raised capital of enterprises.

- Budget capital: support infrastructure construction outside the fence for large-scale gold, copper, and nickel mining and processing areas; invest in scientific research and technological training for institutes and schools in the sector.

- State credit investment capital: projects for mining, processing, and smelting of copper, metallic nickel, and ferromolybdenum if located in economically disadvantaged and extremely disadvantaged areas according to current regulations.

- Domestic and foreign commercial loans.

- Foreign direct investment: cooperate and link with foreign entities in deep mineral processing projects for gold, nickel, and molybdenum.

e. State management work:

- Regularly review, update, and adjust the planning for the development of the industry for exploration, extraction, and processing of gold, copper, nickel, and molybdenum minerals to be consistent with the country's socio-economic development and international situation.

- Establish and perfect the management mechanism for mineral exploration, extraction, and processing towards ensuring consistency and strictness, avoiding overlap, enhancing the flexibility and effectiveness of resource management, protection, and exploitation of gold, copper, nickel, and molybdenum ores.

- Rectify resource management and statistical reporting activities of gold, copper, nickel, and molybdenum minerals regularly from grassroots to provincial and ministerial levels. Implement strong measures and sanctions against organizations and individuals who fail to comply with laws on minerals and the environment. Strengthen inspections of mineral activities to prevent illegal mining and export of minerals.

g. Other solutions:

- Reform the management of mineral activities towards facilitating procedures and transparency in issuing permits, but strictly managing operations after permit issuance to ensure strict control over mineral activities.

- Review and amend criteria for calculating reserves and resources of gold, copper, nickel, and molybdenum ores to be consistent with increasing ore and metal prices, advancements in current mining and processing technologies.

VIII. IMPLEMENTATION ORGANIZATION

1. The Ministry of Industry and Trade is responsible for announcing and directing the implementation of the Planning. Regularly update and adjust the Planning and propose sustainable development mechanisms and policies for the mining and processing industry of gold, copper, nickel, and molybdenum, ensuring consistency and suitability with socio-economic development and international commitments.

2. Ministries: Natural Resources and Environment, Science and Technology, Planning and Investment, Finance, Transport, Information and Communications shall take the lead and coordinate with the Ministry of Industry and Trade to implement specific measures and policies outlined in this Decision according to their respective functions and responsibilities.

3. People's Committees of provinces and centrally-administered cities:

- Organize the management and protection of gold, copper, nickel, and molybdenum ore resources within their jurisdiction; prevent illegal mining and export of minerals.

- Take the lead and coordinate with relevant ministries and sectors to demarcate and approve areas prohibited, temporarily prohibited, and restricted for gold, copper, nickel, and molybdenum mineral activities.

- Coordinate with state management agencies and enterprises to implement projects specified in this Decision.

- Organize the preparation and submission to the People's Councils at the same level for approval of the planning for exploration, extraction, and processing of gold, copper, nickel, and molybdenum ores within their authority and consistent with this Planning.

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. Ministers, Heads of ministerial-level agencies, government-affiliated agencies, Chairmen of Provincial People's Committees, and centrally-administered city People's Committees are responsible for implementing this Decision./.