Decision No. 176/2006/QĐ-TTg On approving the Exploration, Exploitation, Processing and Utilization Plan for Lead and Zinc Ores for the period 2006-2015, with consideration up to 2020

Pursuant to …;

Regarding the approval of the Exploration, Exploitation, Processing and Utilization Plan for Lead and Zinc Ores for the period 2006-2015, with consideration up to 2020

and the exploration, exploitation, processing, and utilization of lead and zinc ores for the period from 2006 to 2015, with consideration up to the year 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.

Considering the proposals of the Ministry of Industry in documents numbered 4683/TTr-BCN dated August 31, 2005; number 1712/BCN-KH dated March 30, 2006 and the opinions of relevant ministries and agencies, Approves the Exploration, Exploitation, Processing and Utilization Plan for Lead and Zinc Ores for the period 2006-2015, with consideration up to 2020, with the following main contents:

DECISION:

Article 1. Approve the Plan for the Exploration, Exploitation, Processing, and Utilization of Lead and Zinc Ores for the period from 2006 to 2015, with consideration up to the year 2020, including the following main contents:

1. Views, orientations, and development goals

a) Development views

- Sustainable development of the industry of exploitation, processing of ores and smelting of lead and zinc based on reasonable, effective, and economical exploitation and utilization of national lead and zinc resources.

- Development of the industry of exploitation, processing of ores and smelting of lead and zinc in accordance with the overall planning for industrial development in Vietnam, economic and social development planning, ensuring harmony between national interests and those of localities with lead and zinc mineral resources.

- Development of the industry of exploitation, processing of ores and smelting of lead and zinc on the spirit of self-reliance, self-strengthening, and proactive international integration.

- Rational and harmonious development of exploration, exploitation, processing of ores and smelting of lead and zinc activities. Exploration work must precede by one step, creating strategic reserves of lead and zinc ores for exploitation and processing. Processing facilities must be linked to sufficient and reliable resource reserves in terms of quantity and quality, utilizing comprehensively and thoroughly all domestic ore sources and types.

- Development of the industry of exploitation, processing of ores and smelting of lead and zinc must be consistent with requirements for consolidating national defense and security, protecting natural heritage, historical sites, and valuable cultural works, and protecting the ecological environment in areas with lead and zinc resources.

b) Development orientations

- Building the industry of exploitation, processing of ores and smelting of lead and zinc into a stable and sustainable industrial sector. Economic and social efficiency should be the primary goal for development, creating many jobs in underdeveloped regions and areas.

- Maximizing domestic resources in terms of capital, science and technology, and infrastructure, effectively utilizing foreign resources.

- Prioritizing exploration work for promising industrial-scale ore deposits and aligning with the schedule for mine exploitation.

- Developing the industry of exploitation, processing of ores and smelting of lead and zinc towards meeting both immediate needs and long-term strategy: combining medium and small scales, mechanization with semi-mechanization, gradually modernizing mining and ore processing technologies, importing advanced smelting technologies to maximize recovery rates of lead, zinc, accompanying metals, and by-products.

- Establishing a competitive domestic market for lead and zinc ores and metals, closely linking with the global market for lead and zinc ores and metals.

c) Goals

- Strengthening exploration efforts to ensure reserves for sustainable exploitation and processing development: by 2010, confirming reserves and resources of 5-6 mines suitable for mine design and construction, and in the period 2011-2020, 3-5 mines.

- Mining and processing activities must meet the maximum and timely demand for raw materials with appropriate quality for lead and zinc smelters.

- By 2010, partially meet the demand for lead and zinc metals of the economy; in the period 2011-2020, rapidly increase production to fully meet domestic demand.

- Enhancing the competitiveness of refined sulfide concentrates, zinc oxide powder, and lead and zinc metals in the international market.

2. Contents of the Plan

2. Content of the Plan

a) Demand for lead and zinc

Zinc (1,000 tons)

b) Exploration plan for lead and zinc ores

- Up to 2010

Conduct exploration of 12 projects, including:

+ Exploration project for the Thành Cóc deposit (Tuyên Quang).

+ Four exploration projects for mines currently being exploited but whose ore reserves have not been explored: Lũng Váng, Nà Bốp, and Pù Xáp (Bắc Kạn), Tà Pan and Ao Xanh (Hà Giang).

+ Two exploration projects for the Nam Chợ Điền area and Ba Bồ region to prepare ore supply for processing and metallurgical facilities in the Chợ Điền - Chợ Đồn area (Bắc Kạn).

+ One exploration project for the Cúc Đường ore point to supply ore for the Lang Hích ore processing plant (Thái Nguyên).

+ Three exploration projects for potential ore points in the Tràng Đà and Thượng Ấm areas (Tuyên Quang), and one of two areas under investigation and evaluation: Sỹ Bình - Đèo Giàng and Ba Xứ (Bắc Kạn).

+ One exploration project for potential ore points in the Na Hang area (Tuyên Quang) to pilot bidding for mining rights after exploration results are available.

- From 2011 to 2015

Implement the exploration project for the Bản Bó - Pắc Nậm area (Cao Bằng) and four exploration projects identified from the results of investigations and evaluations carried out during the 2005-2010 period or some unfinished exploration projects from previous periods, to prepare reserves for future exploitation.

- From 2016 to 2020

Conduct five exploration projects identified from the results of investigations and evaluations carried out during the 2006-2015 period to prepare reserves for future exploitation.

Investment for exploration activities is estimated at approximately 88 billion VND, with 64 billion VND allocated for the 2006-2015 period. Specific details of exploration projects are listed in Appendix I.

c) Exploitation and processing plan for lead and zinc ores

- Exploitation and processing of sulfide ores

From now until 2020, invest in upgrading the existing Lang Hích ore processing plant; build eight new mines and processing plants. The total planned capacity for ore extraction and processing is expected to reach about 385,000 tons of raw ore per year.

Investment for exploitation and processing of sulfide ores from 2006 to 2020 is estimated at approximately 292 billion VND.

- Exploitation and processing of oxide ores

By 2015, invest in building a new modern zinc oxide rotary kiln plant with an annual capacity of 7,000 tons of 60% zinc powder.

The investment capital for projects to extract zinc oxide ore and process zinc powder: approximately 60 billion VND.

Projects related to the exploitation and processing of sulfide ores and the extraction and processing of zinc oxide ores are detailed in Appendix II.

d) Planning for lead and zinc smelting from ores

- Zinc Smelting

During the period 2006 - 2015, invest in building a modern zinc smelter with an annual capacity of 15,000 to 20,000 tons of zinc within the Long Binh An Industrial Park (Tuyen Quang).

- Lead Smelting

In addition to the Thai Nguyen lead smelting project currently under preparation, during the period 2006 - 2015, invest in building a lead smelter using hydrometallurgical technology with an annual capacity of 10,000 tons of lead at the Nam Bang Lung Industrial Cluster (Bac Kan) and a lead smelter with silver separation technology with an annual capacity of 5,000 to 10,000 tons at Ha Giang (within the Bình Vàng or Tòng Bá Industrial Clusters).

The expected production volume of lead and zinc metals during the period 2006 - 2020 is as follows:

The investment capital for projects to smelt lead and zinc is approximately 460 billion VND. The list of investment projects in the field of lead and zinc metal smelting is detailed in Appendix III.

đ) Areas Prohibited from Mineral Activities

The forest protection areas upstream of Lake Ba Be (Bac Kan), Lake Nuoc Coc (Thai Nguyen), and the hydroelectric reservoir at Na Hang (Tuyen Quang).

e) Areas for Resource Reserves and Tendering for Exploration and Exploitation

- The Boa Lam - Pac Nam ore deposit area is a national resource reserve area for lead and zinc ores.

- The Na Hang ore deposit area (Tuyen Quang) is a tendering area for exploitation rights.

3. Main Solutions and Policies

a) General Solutions and Policies

- Develop a national mineral resources policy, including lead and zinc ores, to ensure sustainable development of the mining and metallurgy industry with key contents being: protecting, exploiting, and using domestic resources reasonably; enhancing ore processing into metals; not exporting raw ores and limiting the export of concentrate; having guidelines on the use of imported mineral raw materials and products and implementing policies to exploit lead and zinc resources in neighboring countries.

- Comprehensively reform the management of mineral resources; establish and apply a unified system of mineral resource management nationwide.

b) Specific Solutions and Policies

- Group of solutions and policies regarding lead and zinc resources

+ Focus on evaluating and classifying the prospects of lead and zinc ore deposits; widely publicize promising lead and zinc ore deposits to attract investment in exploration and exploitation.

+ Strengthen the work of protecting lead and zinc ore resources, including those that have not been explored or exploited.

+ During operation, mining facilities must adequately invest in pre-mining exploration and expansion exploration of peripheral and adjacent areas to increase ore reserves and extend mine life.

- Group of solutions to establish and develop markets

+ Establish domestic markets for lead and zinc ores and processed products, and gradually participate in international markets.

+ Develop and disseminate methods for determining prices of lead and zinc concentrates and zinc oxide powder in line with market mechanisms and encourage mining and metallurgy enterprises to fully exploit and utilize domestic ores, including low-grade ores, to conserve resources.

- Group of technological solutions

+ Research and develop machinery and equipment suitable for underground mining of metallic ores.

+ Implement research and construction of efficient ore processing (enrichment) technologies for lead oxide ores, barite lead-zinc ores, advanced lead and zinc smelting technologies, and effectively adopt transferred technologies.

+ Expand international cooperation, particularly in transferring ore processing and lead and zinc smelting technologies.

- Other solutions and policies

+ Rectify the work of compiling and submitting periodic reports on mineral activities (exploration, exploitation, processing, trade, and export); take strong measures to address organizations and individuals who fail to comply with current regulations on reporting obligations.

+ Reform administrative procedures for granting mineral activity permits towards transparency and clarity.

+ Amend regulations on ore deposit classification and mine scale; establish and promulgate exploration standards for lead and zinc ores (especially for ore deposits with total reserves classified as C2 and forecasted resources classified as P1 below 10,000 tons of lead and zinc metals).

+ Establish and promulgate standards for underground mining of lead and zinc ores.

Article 2. Implementation

1. Ministry of Industry

- Responsible for organizing the implementation of this Plan, coordinating with the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment, and provincial people's committees to guide the implementation of the Plan's contents according to their assigned functions and tasks.

- Establish and promulgate standards for underground mining of metallic ores.

- Direct the Vietnam Coal-Mineral Industries Group to study and construct ore processing (enrichment) technologies for lead oxide ores, barite lead-zinc ores (R&D topics); expand international cooperation in training, scientific research, and technology transfer for lead and zinc ore processing and smelting.

2. The Ministry of Natural Resources and Environment

- Take the lead in coordinating with relevant agencies to develop a national mineral resources policy.

- Improve specialized inspection work in the mineral sector.

- Promote the reform of mineral resource management, directing the Vietnam Geological Survey and Mineral Resources Administration to establish and implement a lead and zinc mineral management system for the 2006 - 2010 period. Study the optimal exploration procedures for ore bodies and ore zones with reserves classified as C2 and forecasted resources classified as P1 below 10,000 tons of lead and zinc metals. Amend and supplement some provisions on ore deposit classification and mine scale. Review and standardize the functions and responsibilities of geological associations and units.

- Reform administrative procedures for granting mineral activity permits towards equality, openness, and convenience.

- Pilot tendering for exploitation rights of mines and ore deposits in the Na Hang ore deposit area, Tuyen Quang province, after completing the exploration of this ore deposit area.

3. Ministry of Finance

To主持，与自然资源和环境部合作制定并发布保障各地方在保护未开发矿产资源中的权益的政策；制定制度并成立矿业活动风险保险基金；发布指导确定矿产资源销售价格以计算资源税的细则。

4. The Ministry of Planning and Investment

主持，与工业部和自然资源与环境部共同制定矿业勘探和开采权招标制度。

5. 各省人民政府

- 制定符合全国矿产规划的地方矿产规划；组织并监督实施本地区铅锌矿产资源规划。

- 加强对铅锌矿产资源的保护工作；检查、监察矿产活动场所；整顿本地区矿产资源开采、加工和买卖秩序。

Article 3. 本决定自公布于公报之日起十五日后生效。

Article 4. 各部部长、相当于部长的机关首长、政府所属机关首长以及拥有铅锌矿产资源的各省人民政府主席负责执行本决定。/。