Decision No. 152/2008/QD-TTg Approving the Plan for Exploration, Exploitation, Processing, and Utilization of Construction Materials Minerals in Vietnam until 2020

Pursuant to …;

Approves the Exploration, Exploitation, Processing and Utilization Plan for Construction Materials Minerals in Vietnam until 2020

___________________

PRIME MINISTER

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

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

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

Considering the proposal of the Minister of Construction,

DECISION:

Article 1. Approves the Exploration, Exploitation, Processing and Utilization Plan for Construction Materials Minerals in Vietnam until 2020 with the main contents as follows:

1. Objectives

a) The Exploration, Exploitation, Processing and Utilization Plan for Construction Materials Minerals serves as a legal basis for relevant state agencies to manage the issuance of exploration permits and exploitation permits for mineral deposits in order to use them effectively, for their intended purposes, and to sustainably develop the construction materials industry; it creates favorable conditions for investors and businesses to apply for exploration permits, exploitation permits, and processing of mineral deposits during each period from now until 2020 and serves as a foundation for guiding the development of the construction materials industry after 2020;

b) Evaluates the current status of mineral resources used as raw materials for construction materials production; determines the required reserves of minerals to be explored, exploited, and processed from now until 2020 and the capacity to meet these needs from existing mineral resources; identifies the list and schedule for exploring, exploiting, and processing mines during each period from now until 2020 as well as mines and areas designated for national resource reserves to meet the development requirements of the construction materials industry in Vietnam until 2020 and beyond.

2. Views

a) Views on Exploration

- The Exploration Plan for Construction Materials Minerals must precede by one step to serve as a legal basis for managing the issuance of exploration permits and exploitation permits for mineral deposits to meet the demand for raw materials for the construction materials industry nationwide during the period from now until 2020 and beyond. Exploration of mines should be carried out 5 to 10 years before the actual exploitation begins;

- The Exploration, Exploitation, and Processing Plan for Construction Materials Minerals must promptly meet the demand for raw materials for existing and planned construction materials factories during the period from now until 2010 and 2020; it must align with the National Economic and Social Development Plan and regional territories; and it must conform to the overall plan for developing the construction materials industry in Vietnam until 2020 which is currently being submitted to the Prime Minister for approval by the Ministry of Construction;

- Prioritize the exploration of mines and areas where mineral resources are distributed in production zones for construction materials or nearby regions; regions with favorable conditions for exploitation that ensure reliability and efficiency without impacting the environment;

- Exploration work for each construction materials mineral deposit should extend to peripheral or adjacent areas of the mine, and explore underground resources to assess the total ore reserves, prolong the life of the mine, and avoid wasting resources.

b) Views on Rational Use of Resources

- High-quality mines should be prioritized for producing high-value construction materials rather than being used for ordinary construction materials to enhance resource utilization efficiency. Rich potential mineral resources suitable for export include: processed white sand, dolomite, and block stone for cladding after applying advanced extraction technologies to improve product quality. Do not export high-quality but small-reserve minerals such as fire clay, white clay, and feldspar, which should be reserved for long-term construction materials production;

- Mines containing two or more types of minerals should have comprehensive exploitation plans to fully utilize resources;

- Develop reasonable and efficient exploitation plans to minimize negative impacts on the environment and natural scenery, and recover all minerals.

c) Views on Mobilizing All Resources for Exploration, Exploitation, and Processing of Construction Materials Minerals

- Mobilize capital and leverage the capabilities of domestic and foreign organizations and individuals to participate in the exploration, exploitation, and processing of construction materials minerals according to the provisions of the Law on Minerals;

- Leverage scientific and technological capabilities, human resources, and the initiative of organizations with relevant functions to accelerate surveys, explorations, exploitations, and processing of construction materials minerals;

- Cooperate with international organizations to advance technology in the field of exploration, exploitation, and processing of construction materials minerals.

d) Views on Environmental Protection and Sustainable Development

- The development of the industry for exploration, exploitation, processing, and utilization of construction materials minerals must comply with regulations 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 impacts on the environment and natural scenery; implement land restoration after mineral exploitation and environmental recovery or transformation of completed exploitation areas, using land reasonably for public purposes;

- The Exploration, Exploitation, and Processing Plan for Construction Materials Minerals is a directional and open plan, therefore timely supplements and adjustments are always necessary during its implementation, and updates, supplements, and improvements should be made at each stage.

3. Content of the Master Plan

a) Mineral Resources for Construction Materials in Vietnam

Types of minerals used as raw materials for construction materials production that are planned for exploration, exploitation, processing, and utilization until 2020 within the scope of the project include kaolin, white clay, feldspar, fire clay, white sand, dolomite, bentonite clay, and decorative stone. The total number of mines and mineral resources of mines used as raw materials for construction materials production nationwide that have been explored and surveyed are as follows:

Summary of the number of mines and mineral resources of mines used as raw materials for construction materials production according to eight economic regions see Appendix I.

b) Demand volume of various types of minerals needed for exploration and exploitation to meet raw material needs for construction materials production from now until 2020 is as follows:

- Demand volume of minerals needed for exploration:

+ Kaolin: phase up to 2010: 9.4 million tons; phase 2011 - 2015: 3.2 million tons; phase 2016 - 2020: 11.2 million tons; total: 23.7 million tons;

+ White clay: phase up to 2010: 10 million tons; phase 2011 - 2015: 6 million tons; phase 2016 - 2020: 16.7 million tons; total: 32.7 million tons;

+ Feldspar: phase up to 2010: 40 million tons; phase 2011 - 2015: 15 million tons; phase 2016 - 2020: 29 million tons; total: 84 million tons;

+ Fire clay: phase up to 2010: 111,000 tons; phase 2011 - 2015: 283,000 tons; phase 2016 - 2020: 221,000 tons; total: 615,000 tons;

+ White sand: phase up to 2010: 8.4 million tons; phase 2011 - 2015: 7.4 million tons; phase 2016 - 2020: 3.7 million tons; total: 19.5 million tons;

+ Dolomite: phase up to 2010: 2.3 million tons; phase 2011 - 2015: 2 million tons; phase 2016 - 2020: 1 million ton; total: 5.3 million tons.

+ Stone blocks: phase up to 2010: 15 million cubic meters;³phase 2011 - 2015: 14 million cubic meters;³phase 2016 - 2020: 22 million cubic meters;³total: 51 million tons.

- Demand volume of minerals needed for expanded exploitation and processing:

+ Kaolin: phase up to 2010: 104 thousand tons; phase 2011 - 2015: 35 thousand tons; phase 2016 - 2020: 124 thousand tons; total: 263 thousand tons;

+ White clay: phase up to 2010: 200 thousand tons; phase 2011 - 2015: 120 thousand tons; phase 2016 - 2020: 330 thousand tons; total: 650 thousand tons;

+ Feldspar: phase up to 2010: 792 thousand tons; phase 2011 - 2015: 297 thousand tons; phase 2016 - 2020: 577 thousand tons; total: 1,666 thousand tons;

+ Fire clay: phase up to 2010: 3,060 tons; phase 2011 - 2015: 7,859 thousand tons; phase 2016 - 2020: 6,138 thousand tons; total: 17,057 thousand tons;

+ White sand: phase up to 2010: 233 thousand tons; phase 2011 - 2015: 205 thousand tons; phase 2016 - 2020: 102 thousand tons; total: 540 thousand tons;

+ Dolomite: phase up to 2010: 64 thousand tons; phase 2011 - 2015: 56 thousand tons; phase 2016 - 2020: 28 thousand tons; total: 148 thousand tons;

+ Stone blocks: phase up to 2010: 100 thousand cubic meters;³phase 2011 - 2015: 90 thousand cubic meters;³phase 2016 - 2020: 145 thousand cubic meters;³total: 335 thousand cubic meters.³.

c) Planning for exploration, exploitation, processing, and utilization of minerals used as construction materials until 2020.

From now until 2020, planning for exploration, exploitation, processing, and utilization of total reserves of minerals used as raw materials for construction materials production will be as follows:

Details on exploration planning of reserves of minerals used as raw materials for the construction materials industry until 2020 see Appendix II; exploitation planning of mineral deposits for mining and processing facilities see Appendix III.

d) Planning for mineral deposits reserved for the construction materials industry

List and reserves of mineral deposits reserved for the construction materials industry see Appendix IV. In cases where mineral deposits have been planned for reserve for the construction materials industry but if they are used for other purposes with higher efficiency, they will be reserved for those purposes.

4. Measures to implement the planning for exploration, exploitation, and utilization of minerals used as construction materials in Vietnam until 2020

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

- The State unifies management of results of exploration and exploitation of minerals used as construction materials; invests in planning, basic geological surveys on mineral resources; creates conditions for organizations and individuals to participate in investment in exploration and exploitation of minerals used as construction materials. With the functions and tasks assigned, the Ministry of Natural Resources and Environment continues to perfect legal documents, administrative procedures, and decentralization management, compensation when using land to accelerate the issuance of permits for exploration and exploitation of minerals; perfect regulations on resource taxes, environmental protection costs, reclamation; the Ministry of Construction directs, inspects, periodically updates the implementation of planning and conducts supplementary adjustments to planning; localities organize management and supervision of exploration and exploitation of mineral deposits, environmental restoration, avoiding overlapping with other plans;

- There shall be no limitation on exploration of mineral deposits. In the future, criteria for obtaining exploration permits and exploitation permits should be established to simplify and publicize procedures, saving time for businesses. When approving exploitation permits for mineral deposits, it must require investors to produce products meeting high-quality standards so that users do not need to process them again;

- Close cooperation between ministries, sectors, and provinces is necessary when issuing exploitation permits for some deposits and there must be sufficient enforcement mechanisms to monitor after granting exploitation permits, enterprises must strictly comply with the exploitation of resources, environmental restoration, and annual reporting to management agencies.

- Promote the dissemination and popularization of laws related to minerals, particularly in areas with mineral resources and mineral activities.

b) Solutions for capital mobilization

The capital for exploration, exploitation, and processing of construction materials mainly comes from self-arranged funds of construction material production enterprises, investors' funds, domestic and foreign commercial bank loans. Encourage enterprises to raise capital through the securities market (issuing bonds, project stocks). Publicize widely the list and resources of mines that have been planned for exploration, exploitation, and processing in various provinces to attract investment in exploration and organize exploitation to serve the construction material industry.

c) Solutions for mechanisms and policies

- Improve relevant legal documents concerning exploration and exploitation of minerals; establish regulations on investigation, exploration, and bidding procedures for areas of exploration and exploitation of construction material minerals;

- Implement policies to encourage investment in equipment and technology for exploitation and processing to fully exploit mineral resources for construction materials;

- Supplement risk insurance for organizations and individuals engaged in mineral exploration based on establishing a mineral exploration risk insurance fund to encourage investors to improve the reliability of reserves and quality of mines, reduce risks that may occur during exploration, exploitation, processing, and utilization of minerals;

- Coordinate between specialized training institutions and organizations responsible for surveying, exploring, exploiting, and processing construction material minerals to plan the training of cadres and technical workers in the field of mineral exploration, exploitation, and processing.

d) Solutions for science and technology, environment

- Research and develop machinery suitable for domestic conditions;

- Organize research and build technological processes for exploration, exploitation, and environmental restoration of mineral mines after exploitation;

- Apply advanced mining and processing technologies to maximize mineral recovery rates and the value of processed products, enhance product efficiency, quality, and competitiveness. Increase deep processing of kaolin and feldspar to avoid imports for construction material production; for white sand and block stone to enable high-value exports;

- Expand international cooperation, especially in mining and processing technology and transfer of construction material mineral processing technology;

- The State implements preferential policies and encourages investment in projects for local exploitation and processing of minerals in economically disadvantaged regions, extremely disadvantaged regions; projects applying advanced techniques and technologies ensuring environmental protection, producing high-value and economically efficient products; mineral processing projects meeting domestic demand and export requirements.

5. Capital Investment Requirements for Exploration, Exploitation, and Processing of Construction Material Minerals

Total investment capital for exploration of construction material mineral mines in each phase from now until 2020 is as follows:

Summary of capital investment requirements for exploitation and processing of construction material mineral mines from now until 2020:

The capital for exploration, exploitation, and processing of construction material mineral mines mainly comes from the self-arrangement of project investors for the exploitation and processing of construction material minerals.

Article 2. Implementation

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

a) Announcing and organizing the implementation of the plan after it has been approved by the Prime Minister; directing and inspecting the implementation of the plan after its approval; periodically updating the implementation situation and adjusting the plan to ensure synchronization and suitability with the country's economic and social development and the integration process. Proposing mechanisms and policies to develop a stable and sustainable mineral exploitation and processing industry for construction materials;

b) Updating, supplementing, and perfecting the Overall Plan for the Development of Construction Materials until 2020 to serve as a basis for organizing basic geological surveys and mineral exploration in a timely manner and over reasonable areas;

c) Issuing regulations on standards, procedures, and technologies for the exploitation and processing of construction material minerals;

d) Reforming mineral resource management regarding the current status of mineral resources, exploration and exploitation situations of construction material mineral mines, quality and reserves of minerals, environmental impacts, updating increases or decreases in tonnage of reserves and resources at different levels, ore quality, and information about national resource strategy, policy, and economic and social development guidelines of the whole country and localities with construction material raw materials. This management method is unified nationwide and managed by the Ministry of Construction.

2. The Ministry of Natural Resources and Environment shall be responsible for state management functions concerning basic geological surveys, exploration, and granting permits for the exploration and exploitation of mineral mines and shall be responsible for:

a) Announcing the list of construction material mineral mines that have been surveyed and explored;

b) Accelerating basic geological surveys for construction material raw minerals according to the Overall Plan for Basic Geological Surveys of Mineral Resources until 2015, with a vision to 2025, which has been approved by the Prime Minister;

c) Coordinate with local authorities to delineate and widely publicize areas where mineral resources can be exploited in order to protect natural resources and facilitate exploration and exploitation when needed;

d) Study and propose to the Prime Minister amendments and supplements to some articles of Decree No. 160/2005/NĐ-CP dated December 27, 2005, towards further decentralization to localities, enhancing the responsibility of state agencies, continuing administrative reform in licensing procedures to provide optimal solutions and shorten procedures for businesses. Implementing mechanisms should be established for licensing agencies, enterprises, and resource protection measures as powerful tools for managing licensing situations for exploration and exploitation;

đ) Coordinate with the Ministry of Finance to perfect regulations on resource taxes, environmental protection costs, and land restoration after mineral extraction;

e) Regularly update the quantity and reserves of construction material mineral deposits under exploration and exploitation; organize inventory checks for deposits that have been explored and put into exploitation nationwide;

g) Strengthen mineral inspection work at all levels; intensify post-inspection activities, promptly detect and firmly handle according to the law any violations in management and operations of exploration, exploitation, and utilization of minerals to ensure effective exploitation and utilization of mineral resources, maintain scenic beauty and the environment, and ensure social order and safety;

3. The Ministry of Planning and Investment:

Take the lead and coordinate with the Ministry of Construction and the Ministry of Natural Resources and Environment to develop bidding rules for the right to explore, exploit, and process construction material mineral deposits and policies to attract investment, preferential policies in management, exploration, exploitation, and processing of construction material mineral deposits;

4. The Ministry of Finance:

a) Allocate state budget funds to conduct basic geological surveys in areas of construction material mineral deposits that have been planned;

b) Take the lead and coordinate with the Ministry of Natural Resources and Environment and the Ministry of Construction to develop policies ensuring the benefits of localities in exploiting construction material mineral deposits; establish rules and form a risk insurance fund for mineral activities;

5. The Ministry of Industry and Trade:

Study and propose policies to encourage investment in advanced equipment and technology for thorough exploitation of construction material mineral resources and to obtain the best quality products after processing;

6. The Ministry of Science and Technology:

Study the application of advanced mining and processing technologies and develop the manufacture of equipment suitable for domestic conditions;

7. People's Committees of provinces and centrally governed cities:

a) Proactively coordinate with the Ministries of Natural Resources and Environment, Defense, Construction, Culture, Sports and Tourism, Agriculture and Rural Development to identify and delineate areas prohibited, temporarily prohibited, or restricted from mineral activities to facilitate prompt approval or submission for approval by competent authorities, thereby facilitating national management of minerals, particularly licensing activities;

b) Organize management and supervision of exploration, exploitation, and processing of mineral deposits, environmental recovery, and prevent overlapping planning with other plans in the area;

c) Manage and protect construction material mineral resources in the area before they have owners; prevent illegal exploitation;

d) Organize and submit to the People's Councils at the same level for approval the planning for exploration, exploitation, processing, and use of construction material mineral deposits within their licensing authority;

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

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

g) Intensify propaganda and dissemination of laws related to minerals, especially in areas with mineral resources and mineral activities;

8. Organizations and individuals participating in exploration, exploitation, processing, and use of construction material mineral deposits:

Organizations and individuals participating in exploration, exploitation, and processing of construction material mineral deposits must comply strictly with the procedures and regulations for applying for exploration and exploitation licenses for construction material mineral resources as stipulated in the Law on Minerals, the Law Amending and Supplementing Certain Articles of the Law on Minerals, Decree No. 160/2005/NĐ-CP dated December 27, 2005 of the Government, and Decision No. 06/2006/QĐ-BTNMT on the issuance of regulations on the classification of solid mineral resources and reserves by the Ministry of Natural Resources and Environment;

Investors of projects exploiting construction material mineral deposits are responsible for preparing environmental impact assessment reports concurrently with feasibility studies of the project to submit to competent state authorities for approval in accordance with Decree No. 140/2006/NĐ-CP dated November 22, 2006 of the Government on environmental protection in the stages of planning, reviewing, approving, and implementing development strategies, plans, programs, and projects. They must continuously invest in science and technology to improve efficiency in exploration, exploitation, and use of construction material mineral deposits, and avoid wastage of mineral resources;

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

Article 4. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the direct jurisdiction of the central government shall be responsible for implementing this Decision./.