Decision No. 25/2008/QD-BCT Approves the Planning Scheme for Exploration, Exploitation, Processing, and Utilization of Precious Stone Ores, Rare Earths, and Uranium up to 2015, with Consideration to 2025.

 Pursuant to …;

Approving the Planning for Exploration, Exploitation, Processing, and Utilization of Precious Stone Ore, Rare Earth, and Uranium Reserves from 2008 to 2015, with Consideration up to 2025

THE MINISTER OF INDUSTRY AND TRADE

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 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 businesses;

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

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 Announcement No. 5487/VPCP-CN dated November 28, 2007 of the Government Office regarding the Prime Minister's opinion on delegating authority to the Minister of Industry (now the Ministry of Industry and Trade) to approve the planning for exploration, exploitation, processing, and utilization of precious stone ore, rare earth, and uranium reserves from 2008 to 2015, with consideration up to 2025;exploitation, processing, and utilization of precious stone ore, rare earth, and uranium reserves from 2008 to 2015, with consideration up to 2025;

Considering the Report No. 221/TTr-NCPT dated June 9, 2008 of the Director of the Institute for Strategy and Policy Studies on Industry;

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

DECISION:

Article 1. Approving the Planning for Exploration, Exploitation, Processing, and Utilization of Precious Stone Ore, Rare Earth, and Uranium Reserves from 2008 to 2015, with Consideration up to 2025, with the following main contents:

I. DEVELOPMENT VIEWS

- Developing the industry of exploitation and processing of precious stone ore, rare earth, and uranium in accordance with the planning for industrial development of Vietnam, economic and social development planning of localities, ensuring harmony between national and local interests, being consistent with requirements for strengthening national defense security, protecting cultural sites of value, and protecting the ecological environment in areas with mineral resources;

- Developing the industry of exploitation and processing of precious stone ore, rare earth, and uranium steadily and sustainably, with advanced technology, ensuring safety and economic efficiency based on reasonable and economical exploitation of national resources;

- Carrying out exploration activities ahead of schedule to create a reliable resource base for the exploitation and processing of precious stone ore, rare earth, and uranium during the planning period;

- Developing the industry of exploitation and processing of precious stone ore, rare earth, and uranium based on resource advantages, capturing the domestic market, and economic and social conditions, infrastructure of each region with mineral resources;

- Developing the industry of exploitation and processing of rare earth ore in conjunction with cooperation and linkage with foreign groups and companies to take advantage of technology and especially the product consumption market;

- Exploiting, processing, and utilizing uranium ore for peaceful purposes. The State has a monopoly over the exploitation, processing, and utilization of uranium ore as well as radioactive products. In the period up to 2025, researching the exploitation and processing of uranium ore mainly to serve the needs of nuclear power development domestically;

II. DEVELOPMENT OBJECTIVES

- Concentrating on exploring mines and prospects of precious stone ore, rare earth, and uranium that have been surveyed and evaluated to meet the reliable reserve requirements for exploitation and processing during the planning period;

- Fully exploiting and economizing on resources while deep processing various types of precious stone, rare earth, and uranium ores with advanced technology. Ensuring economic efficiency in exploitation, processing, and protecting the ecological environment in mining areas;

- Striving to achieve the following production volumes for exploitation and deep processing of various products:

+ Precious stones: By 2015, exploit six mines at an industrial scale in Nghe An and Yen Bai. Total exploitation capacity 200-300 thousand cubic meters of ore per year. Production volume of cabochon polishing ~ 500,000 carats/year, faceted goods ~ 150,000-200,000 carats/year. After 2015, call for investment in exploration and exploitation of three more mines in Yen Bai and four more in Nghe An; continue investing in developing processing and polishing of precious stones to meet domestic demand and process for foreign partners;

+ Rare earth: By 2015, exploit and process separate rare earth oxides with a total production of 10 thousand tons REO, producing some small-scale rare earth metals. By 2025, increase production to double, reaching 20 thousand tons/year REO, striving to produce some rare earth application products;

+ Uranium: By 2025, gradually implement some stages of the nuclear fuel cycle, aiming to produce nuclear fuel from domestic uranium resources. Initially, produce yellowcake from sandstone deposits in Nong Son area, then proceed step-by-step to manufacture ceramic pellets and natural and enriched uranium fuel rods (through outsourcing or importing enriched material) to serve domestic nuclear power plants;

III. FORECAST OF DEMAND FOR PRECIOUS STONES, RARE EARTHS, AND URANIUM

The forecasted demand for precious stones, rare earths, and uranium is as follows:

IV. PLANNING FOR EXPLORATION

1. Exploration of precious stone ore

- By 2015, mainly focus on exploring promising areas of class A. Among them, concentrate on areas such as Dau Ty, Bai Trieu, Ban Ge, and Ban Khum-Ban Ken, Pom Lau (Nghe An); mines Truc Lau, Nuoc Lanh, Vinh Dong and surrounding areas in Yen Bai;

- Carry out investigations to discover and search for promising areas of classes B and C. If positive results are obtained, they will be transferred to exploration in the post-2015 phase.

2. Exploration of rare earth ore

- From 2008 to 2015: explore Dong Pao mine; Yen Phu mine;

- From 2016 to 2020: explore Nam Nam Xe mine.

3. Exploration of uranium ore

From 2008 to 2015: explore Pa Lua mine to reach 4,000 tons U3O8; Pa Rong mine to reach 4,000 tons U3O8; Khe Cao mine and other areas assessed to be about 6,000 tons U3O8.

V. PLANNING FOR EXPLOITATION AND PROCESSING

1. Exploitation and processing of precious stone ore

- Phase up to 2015Develop industrial-scale exploitation at six mines: Dôi Ti, Bai Trieu, Ban Ge (Quy Chau, Nghe An) and in the Truc Lau (Km51), Nuoc Lanh, Vinh Dong areas (Luc Yen, Yen Bai) with a scale of 20,000-50,000 cubic meters of ore per year for each mine. Invest in deepening existing processing and thermal treatment facilities for gemstones. Attract foreign investment in the field of processing, manufacturing gemstones, semi-precious stones, and jewelry based on the advantage of low-cost, skilled labor in two major centers in Hanoi and Ho Chi Minh City, linked to sightseeing and tourism.

- Stage 2016 to 2025: Develop exploitation at mines: Ban Khum-Ban Ken, Pom Lau, Cha Lim-Dong Xuong (Nghe An), jade Co Phuong (Son La) and other areas based on promising discoveries and assessments from previous stages. Continue to invest in upgrading existing processing facilities, combining with attracting investment to produce high-end products using both domestic and imported raw materials.

2. Exploitation and processing of rare earth ores

The potential total reserves of rare earths in Vietnam are forecasted to be over 22 million tons of REO. Among these, reserves classified as B + C1 + C2 amount to 9,783 thousand tons, while the remainder is classified as P1 and P2.

- Stage 2008-2015: Focus on exploiting the Dong Pao mine. The capacity for exploitation and rough processing is approximately 200,000 tons of ore per year. Concentrated rare earth ore after beneficiation contains 45% RE2O3, and accompanying by-products include barite concentrate at 95% BaSO4 and fluorite concentrate at 97% CaF2. Further hydrometallurgical refining produces separate oxides of Ce, La, Pr, Nd, and heavy rare earth oxides. The total production of separate rare earth oxides reaches about 10,000 tons per year. Mainly exported, a small portion is consumed domestically.

Cooperate in investment to exploit the Yen Phu mine due to its rich content of heavy elements, with a capacity of 3-5 thousand tons of REO per year.

Establish a small-scale facility for producing rare earth metals initially importing raw materials from abroad, subsequently utilizing separate rare earth oxides produced from Dong Pao ore.

- Stage 2016-2025: Depending on market conditions, additional exploitation may be mobilized from the Nam Nam Xe mine. Attract investment in high-tech projects producing rare earth metals and rare earth applications such as batteries, permanent magnets, advanced grinding powder, fertilizers, and catalysts.

3. Planning for exploitation and processing of uranium ores

The total estimated resource of uranium in Vietnam is forecasted to be around 218 thousand tons of U3O8, including C1 and C2 categories totaling about 17 thousand tons; P category totaling about 201 thousand tons.

- Stage 2008-2015: Combine exploration work with research on pilot-industrial technology. Based on exploration results and technological research, prepare feasibility reports for mining Pa Lua or Pa Rong.

- Stage after 2015: Exploit with a small scale (capacity of about 50-100 thousand tons of raw ore per year) in the Nong Son area.

Initially produce technical-grade uranium (yellowcake) from ore, followed by gradually implementing stages of ceramic pellet and natural and enriched uranium fuel rod fabrication (through outsourcing or importing enriched material).

VI. INVESTMENT CAPITAL

Estimated investment capital for exploration, exploitation, and processing of gemstone, rare earth, and uranium ores during the planning period is approximately 3.330-4.060 billion VND. Of this, the period 2008-2015 is approximately 1.460-1.660 billion VND, and the period 2016-2025 is approximately 1.870-2.400 billion VND.

Sources of investment capital: Include self-raised funds by enterprises, state development investment loans, commercial loans, and direct foreign investment. State budget funding for exploration and technological research on uranium mines is approximately 245-300 billion VND.

VII. MAJOR SOLUTIONS AND POLICIES

1. Comprehensive solutions and policies

- Encourage deep processing of high-quality gemstone, rare earth, and uranium ores to meet domestic needs and for export;

- Strengthen hierarchical management of resources, improve regulations, and enhance bidding activities in the mineral sector, particularly in the exploitation and processing of gemstone ores; establish joint-stock companies with the participation of investors from organizations and individuals in a comprehensive manner from exploration to processing. Encourage diverse forms of ownership, attract domestic and foreign resources to develop the mining and processing industry of gemstone, rare earth ores, prioritizing domestic enterprises with capabilities; form joint ventures and collaborations with foreign entities in high-tech fields such as rare earth processing;

- Enhance corporate social responsibility in the gemstone, rare earth, and uranium mining 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. Specific and specialized solutions and policies for each type of mineral

2.1. For gemstones

Allow organizations to exploit residual areas of previously mined and washed mines based on annual exploitation measures. Facilitate the importation of gemstone and semi-precious stone raw materials from abroad for processing in Vietnam. Encourage organizations and individuals to participate in the processing and manufacturing of export goods based on imported raw materials through policies adjusting VAT reductions for gemstone processing and import duties on rough gemstones (including diamonds) for export processing.

- Reform procedures for granting permits for gemstone exploration and exploitation to link exploration with exploitation and deep processing of minerals; strengthen bidding activities for gemstone-containing areas.

Strengthen promotional and marketing efforts for Vietnamese gemstone products through active and regular participation in international gemstone trade fairs.

Develop technical standards and classification criteria for gemstones based on international practices.

Strengthen international cooperation, seek support from organizations and individuals abroad in the gemstone sector to train human resources, receive technology transfers, appraisal experience, thermal treatment of gemstones, and update new information on scientific and technological developments in the gemstone industry.

Attract and encourage international institutes such as GAA, GA to establish representative offices in Vietnam to support the production and business of precious stones. Actively participate in international organizations and associations related to precious stones.

Strengthen the activities of the Vietnam Precious Stones Association towards enhancing its role as a true intermediary for precious stone enterprises.

2.2. For rare earths

Focus on resolving market issues to develop the industry through cooperation with major global consumption groups to take advantage of technology and ensure product sales. In the short term, this could be Japanese corporations.

Create conditions for quickly issuing mining permits to businesses implementing projects.

Allow businesses applying rare earths in the production of fertilizers, diesel additives, rare earth ferroalloys, intermediate alloys, and rare earth metals to enjoy preferential policies from the Government similar to those for high-tech enterprises to encourage industrial-scale production development.

2.3. For uranium

Uranium is a special mineral, the State has exclusive management rights, therefore, in the short term, priority should be given to allocating budget capital for exploration and resource investigation programs; researching technology; training high-quality human resources to be able to absorb foreign technology during cooperative research, mining, and processing uranium according to Decision No. 114/2007/QĐ-TTg dated July 23, 2007 of the Prime Minister approving the overall plan to implement the Atomic Energy Application Strategy for peaceful purposes until 2020.

VIII. IMPLEMENTATION ORGANIZATION

1. The Ministry of Industry and Trade shall perform state management functions over the mining and processing industry of minerals, responsible for announcing and leading the implementation of the Master Plan. Regularly update and timely adjust the implementation situation and the Master Plan to ensure synchronization and compatibility with the country's economic and social development and the integration process.

Lead and coordinate with relevant ministries and sectors to propose mechanisms and policies to develop a stable and sustainable mining and processing industry for precious stones, rare earths, and uranium.

2. Ministries: Natural Resources and Environment, Science and Technology, Planning and Investment, Finance, Transport, Agriculture and Rural Development, Construction, Information and Communications shall 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 tasks.

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

- Organize the management and protection of precious stone, rare earth, and uranium mineral resources within their jurisdiction; prevent illegal mining and export of minerals;

- Organize the preparation and submission to the People's Council at the same level for approval of exploration, mining, and processing plans for precious stones, rare earths, and uranium within their licensing authority and consistent with this Master Plan. Define and approve areas prohibited, temporarily prohibited, and restricted for mineral activities of precious stones, rare earths, and uranium;

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

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, and provincial People's Committee Chairmen directly under the Central Government are responsible for enforcing this Decision./.