Decision No. 1121/QD-QLMT Issuing Regulations on Principles and Procedures for Granting Exploration, Prospecting, and Mining Licenses for Group 1 Precious Stones

Pursuant to …;

REGULATIONS ON PRINCIPLES AND PROCEDURES FOR GRANTING LICENSES FOR SURVEYING, EXPLORATION, AND MINING OF GROUP 1 PRECIOUS STONES

THE MINISTER OF INDUSTRY

Pursuant to Decree No. 74/CP dated November 1, 1995 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to Decree No. 65/CP dated October 13, 1995 of the Government promulgating the "Regulations on Management of Activities in the Precious Stones Sector";

At the proposal of the Director of the Mineral Resources Management Department,

Pursuant to …;

Article 1. Enacts the "Regulations on Principles and Procedures for Granting Licenses for Surveying, Exploration, and Mining of Group 1 Precious Stones" to be uniformly applied to Group 1 precious stone mines that have been assigned by the Government to Vietnam Precious Stones and Gold Corporation for surveying, exploration, and bidding for mining.

Article 2. These regulations shall not apply to the activities of surveying, exploration, and mining of precious stones by other organizations and individuals outside the areas assigned to Vietnam Precious Stones and Gold Corporation.

Article 3.The Director of the Mineral Resources Management Department, Chairmen of Provincial People's Committees under the Central Government, General Directors of Vietnam Precious Stones and Gold Corporation, Heads of central and local agencies concerned shall be responsible for implementing this Decision.

REGULATIONS

PRINCIPLES AND PROCEDURES FOR GRANTING LICENSES FOR SURVEYING, EXPLORATION, AND MINING OF GROUP 1 PRECIOUS STONES
(Enacted together with Decision No. 1121 QD/QLTT dated April 23, 1996 of the Minister of Industry)

II- SUPPORT MEASURES FOR STATE-OWNED AGRICULTURAL FARMS AND FORESTRY COMPANIES IN THE FIELD OF SCIENCE AND TECHNOLOGY

Article 1. This "Regulation on Principles and Procedures for Granting Licenses for Surveying, Exploration, and Mining of Group 1 Precious Stones" shall only apply to surveying, exploration, and bidding for mining of Group 1 precious stones (diamonds, rubies, sapphires, and emeralds) in areas assigned by the Government to Vietnam Precious Stones and Gold Corporation (hereinafter referred to as the Corporation).

Article 2. Surveying activities carried out by the Corporation within the area of potential Group 1 precious stones already assigned by the Government to the Corporation shall not require a surveying license. The Corporation shall be responsible for reporting to the Ministry of Industry its surveying plans and results, and registering its surveying activities with the Mineral Resources Management Department.

Article 3. Exploration and mining activities of Group 1 precious stones mentioned in Article 1 shall only be conducted after obtaining a permit from the Minister of Industry according to these regulations.

II- PRINCIPLES AND PROCEDURES FOR GRANTING EXPLORATION LICENSES FOR PRECIOUS STONES

Article 4. The Corporation or its member companies with legal personality status, proposed by the Corporation, may be the applicant for an exploration license for Group 1 precious stones (hereinafter referred to as exploration).

Article 5. The term of an exploration license shall not exceed twenty-four (24) months and may be extended multiple times, but the total extension period shall not exceed twenty-four (24) months.

Article 6. An organization granted an exploration license shall not be required to pay a deposit and shall not be subject to the legal provisions regarding minimum exploration costs.

Article 7. In cases where an exploration license has been returned in accordance with the law, the Minister of Industry may grant a mineral resources operation license to other organizations or individuals or assign it to the Provincial People's Committee to issue a mining license for residual extraction.

Article 8. The application dossier for an exploration license includes:

- Application for an exploration license for precious stones;

- Proposal letter from the Corporation (if the applicant is a member company of the Corporation);

- Exploration plan accompanied by the approval document of the specialized council chaired by the Corporation;

- Copy of the foreign investment license (if joint venture with foreign organizations or individuals).

Article 9. The application dossier for an exploration license for precious stones shall be prepared in three (03) copies and submitted to the Mineral Resources Management Department; the Mineral Resources Management Department shall accept the application dossier for an exploration license, review the dossier, and submit it to the Minister of Industry for consideration and decision to grant the exploration license.

Article 10. The period for reviewing and examining the application file and deciding to issue the permit shall not exceed thirty (30) days from the date of receipt of a complete and valid application file.

III- PRINCIPLES AND PROCEDURES FOR GRANTING EXPLOITATION LICENSES FOR PRECIOUS STONE DEPOSITS

Article 11. Joint Stock Companies or member companies with legal personality status, proposed by the Joint Stock Company, may be the main applicants for the exploitation license for Group 1 precious stone deposits (hereinafter referred to as the exploitation license). The exploitation license will not be granted to organizations or individuals who have won bids for exploiting precious stones under the "Bidding Regulations for Exploitation and Product Sharing of Precious Stones" issued together with Decision No. 789/QĐ-VP dated March 19, 1996 of the Minister of the Ministry of Industry.

Article 12. The exploitation area of precious stone mines is the underground area containing precious stone resources within the scope assigned by the Government for the Joint Stock Company to conduct exploration, parcel bidding for exploitation, or organization of exploitation.

Article 13. The duration of the exploitation license is determined based on the feasibility study report on exploitation or the approved exploitation plan, but shall not exceed thirty (30) years; it can be extended multiple times, with the total extension period not exceeding twenty (20) years.

Article 14. The application file for the exploitation license includes:

- Application for exploitation of precious stones;

- Feasibility study report on exploitation or exploitation plan, Environmental Impact Assessment Report that has been reviewed and approved by the competent authority;

- Map of the exploitation area with parcel division for bidding with a scale of at least 1/5000 according to the prescribed model;

- Copy of foreign investment permit (if joint venture with foreign organizations or individuals);

- Other relevant documents and certificates (if any).

Article 15. The application file for the exploitation license shall be prepared in three (03) copies and submitted to the Mineral Resources Management Department.

The Mineral Resources Management Department receives the application file for the exploitation license, examines the file, and submits it to the Minister of Industry for review and decision to grant the exploitation license.

Article 16. The period for reviewing and examining the application file and deciding to issue the license shall not exceed thirty (30) days from the date of receipt of a complete and valid application file.

IV- REGISTRATION OF ACTIVITIES FOR SURVEYING, EXPLORATION, AND EXPLOITATION OF PRECIOUS STONES.

Article 17. The Mineral Resources Management Department registers the exploration areas and exploitation areas simultaneously when the exploration license and exploitation license are issued.

Article 18. Organizations permitted to explore and exploit precious stones are responsible for registering their activities according to the license at the provincial or centrally-administered city mineral resources management agency.

Article 19. In cases where the exploitation area of a license is divided into parcels for bidding, after the exploitation product sharing contract has been signed in accordance with the regulations of the Ministry of Industry, the organization permitted to exploit must register specific exploitation activities for each parcel with the Mineral Resources Management Department and at the provincial or centrally-administered city mineral resources management agency.

V- IMPLEMENTATION PROVISIONS

Article 20. This provision shall take effect nationwide from the date of signature. The effectiveness of the "Procedures for Granting Licenses for Exploitation of Precious Stone Mines" No. 72 QĐ/QLTN dated February 24, 1994 of the Heavy Industry Ministry (old) is hereby revoked.