Decision No. 28/2008/QD-BCT Approves the Exploration, Exploitation, and Processing Plan for Apatite Ore Phase 2008-2020 with Consideration Beyond 2020

Pursuant to …;

Approving the Exploration, Exploitation, and Processing Plan for Apatite Ore

Period 2008-2020 with Consideration Beyond 2020

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/NĐ-CP dated December 27, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Implementing Circular No. 5487/VPCP-CN dated November 28, 2007 of the Office of the Government regarding the Prime Minister's opinion on delegating authority to the Minister of Industry (now the Ministry of Industry and Trade) to approve the Exploration, Exploitation, and Processing Plan for Apatite Ore Period 2006-2020 with Consideration Beyond 2020.

Considering the proposal of the Director of the Planning Department and the Director of the Heavy Industry Department,

DECISION:

Article 1. Approves the Exploration, Exploitation, and Processing Plan for Apatite Ore Period 2008-2020 with Consideration Beyond 2020 with the following main contents:

I. DEVELOPMENT VIEWS

- Developing the apatite ore mining industry in accordance with the Chemical Industry Development Plan and the Socio-Economic Development Plan of Lao Cai Province, meeting the demand for raw materials for phosphate-containing fertilizer production serving agriculture and export fertilizers, satisfying basic needs for phosphorus oxide raw materials for the basic chemical industry and other industries, ensuring harmony between national and local interests, aligning with national defense security requirements, protecting valuable cultural works, and preserving the ecological environment in Lao Cai Province.

- Developing apatite ore exploitation and processing with modern technology, thoroughly and economically utilizing resources, ensuring economic efficiency, and creating conditions for farmers to benefit from processed products derived from apatite ore;

- Conducting exploration activities ahead of schedule to provide reliable resource bases for mining and mineral processing operations during the planning period;

II. DEVELOPMENT OBJECTIVES

1. General objectives

- Synchronously and rationally conducting exploration, exploitation, and processing of apatite ore to meet the target quantities and quality of ore required for the national economy;

- Establishing and developing a stable and sustainable apatite ore mining industry to meet the demand for raw materials for fertilizer production serving agricultural development, ensuring national food security goals, supplying raw materials for basic chemical production, animal feed, and serving other industries. Contributing to redistributing productive forces within the chemical industry and achieving balanced and rational development within the sector;

- Ensuring efficient and environmentally friendly exploration, exploitation, and processing of apatite ore. Enhancing processing and thorough utilization of types II, III, and IV ores, combining research on ore beneficiation to increase phosphorus oxide (P) content in ores.₂O₅in the ore.

2. Specific Objectives:

a. Regarding apatite exploration work:

Strengthening apatite exploration work to ensure reliable reserves before mining begins. Emphasizing mineral assessment and upgrading exploration in areas where geological data is limited, discovering new ore bodies to expand reserve scale for mine development.

b. Regarding ore exploitation and processing:

Ensuring the quality and quantity of apatite ore exploitation and processing to serve domestic phosphate fertilizer and basic chemical production, while reasonably exporting part of the ore at the initial stage. The expected ore exploitation and processing volume for the 2008-2020 period is detailed in Appendix 1.

c. Regarding environmental protection:

Ensuring minimal harm to the ecological environment in mining activity areas.

III. FORECAST OF APATITE ORE DEMAND

The forecasted demand for apatite ore for the production of superphosphate, molten phosphate fertilizer, DAP fertilizer, yellow phosphorus, etc., is as follows:

IV. EXPLORATION PLAN

The explored and confirmed apatite ore reserves amount to 778 million tons, including 31 million tons of type I ore, 234 million tons of type II ore, 222 million tons of type III ore, and 291 million tons of type IV ore. The explored and forecasted reserves are approximately 2.45 billion tons.

1. Exploration Areas

The areas planned for concentrated geological exploration during the planning period include:

- Tam Ding - Lang Phung area;

- Phu Nhuan area;

- Central Area Type II ore;

- Bat Xat - Lung Po ore region;

- Bao Ha - Trai Hut region;

- Bac Nhac Son area from mine site 25 to mine site 29.

2. Volume and Tasks of Exploration

- Tam Ding - Lang Phung area exploration: Upgrading preliminary exploration to detailed exploration, with type I ore volume of 6.5 million tons and type III ore volume of 24.8 million tons, combined with type II and type IV ore exploration;

- Phu Nhuan area exploration: Type I ore volume of about 1 million tons and type III ore volume of about 10 million tons, combined with type II and type IV ore exploration;

- Central Area Type II ore exploration, with reserves of 100 million tons, combined with surrounding type IV ore exploration;

- Bat Xat - Lung Po ore region exploration based on preliminary search results at a map scale of 1/25,000;

- Surveying and exploring the Bao Ha - Trai Hut region;

- Upgrading exploration of the Bac Nhac Son area from mine site 25 to 29. Type I ore volume of about 10 million tons and 20 million tons of type III ore, combined with type II and type IV ore exploration.

3. Progress and Exploration Investment

Estimated exploration investment during the planning period is approximately 213 billion VND. Detailed exploration progress and investment are listed in Appendix 2.

V. LAO CAI APATITE ORE EXPLOITATION PLAN

Continue to utilize and fully exploit existing mining equipment currently in use on the production line such as drilling, excavation, and transportation to enhance production and business capacity. Gradually invest in modernizing technology and synchronizing equipment towards modernity and rationality, such as hydraulic excavators with bucket capacities up to 8-10 m³, hydraulic drills with drill bit diameters up to 150 mm, large-capacity dump trucks up to 80 tons, and consider the feasibility of combined road-rail transport to suit the geological structure of the mine (extensive ore beds over a very large area);

During the Planning Period, it is planned to open additional mining areas in the Northern Nhạc Sơn, Central Mine, Tam Đỉnh - Làng Phúng, and Phú Nhuận regions to ensure ore production for processing operations.

The average annual raw ore production volume for types I and II ores and processed ore during the Planning Period is as follows:

- For the period 2008-2010: 2-2.5 million tons/year;

- For the period 2011-2015: 3-3.5 million tons/year;

- For the period 2016-2020: 4-4.5 million tons/year.

The reserves of mines within the mining area to be mobilized for exploitation from 2008 to 2020 are detailed in Appendix 3.

VI. PLANNING FOR APATITE ORE PROCESSING

1. Ore Processing Capacity

To meet the raw material demand for the production of super phosphate and DAP during the Planning Period, the processing capacity for concentrate ore is determined to be 2 million tons/year.

The total current and under-construction processing plant capacities amount to 1.42 million tons/year of concentrate ore, with an expected additional investment of approximately 600,000 tons/year.

2. Ore Processing Solutions

- Process type III ore using the current technology.

- Study the transfer of technology to process type II and type IV ores to maximize resource utilization, these two types of ores account for 70% of the total ore reserve.

During the Planning Period, it is planned to renovate and construct new processing plants as follows:

- Renovate and expand the Tằng Loỏng Processing Plant with a capacity of 900,000 tons/year;

- Maintain the Cam Đường Processing Plant with a capacity of 120,000 tons/year;

- Construct the Bắc Nhạc Sơn Processing Plant with a capacity of 350,000 tons/year;

- Construct the Làng Phúng Processing Plant with a capacity of 250,000 tons/year;

- Construct the Processing Plant for type II and type IV ores with a capacity of 500,000 tons/year.

3. Ore Apatite Utilization Solutions

- Type I ore, processed ore, and part of the production of type II ore will be used for the production of phosphorus-containing fertilizers and DAP;

- Type III ore in layers 4, 6, and 7 that have undergone chemical weathering with a P₂O₅ ≥ 12% content, once extracted, is expected to be used as raw material input for processing plants after neutralizing the P₂O₅.

content;

- Type IV ore and excess type II ore will be stored and preserved for future use.VII. CAPITAL REQUIREMENTS AND INVESTMENT PROJECTS

FOR THE DEVELOPMENT OF THE APATITE ORE MINING AND PROCESSING INDUSTRY FROM 2008 TO 2020

- The capital investment requirement for the development of the apatite ore mining and processing industry from 2008 to 2020 is estimated at approximately 25 trillion VND as detailed in Appendix 4.

- A summary of investment projects for apatite ore mining and processing from 2008 to 2020, including those beyond 2020, is provided in Appendix 5.

VIII. MAJOR SOLUTIONS AND POLICIES

1. General Solutions and Policies

Ensure sustainable development of the apatite ore mining and processing industry with the following key contents:

- Protect, exploit, and use domestic resources efficiently and reasonably;₂O₅ - By 2015, study the processing of low-grade ores (type II and type IV) to supplement high-grade ore reserves for domestic usage needs;

- Promote the shareholding reform and establishment of new joint-stock companies with the participation of scientific research organizations, enterprises, and contributions from other enterprises operating in geological exploration, mining, ore processing, and deep processing from apatite raw materials;

- Enhance corporate social responsibility in mining and ore processing activities, such as contributing to infrastructure construction, attracting, training, and utilizing local labor; implement measures to protect the ecological environment and actively participate in improving the social environment.

2. Specific Solutions and Policies

a. Market Solutions:

Build and develop the domestic market according to a competitive mechanism, closely cooperate to ensure raw material supply for phosphate fertilizer processing facilities and basic chemical production, animal feed, and gradually enter international markets;

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

Improve mining technology and flotation technology for type III ores. Focus on researching technologies for processing type II and type IV ores, as well as producing flotation reagents for processing type II and type IV ores through collaboration between the state, scientific and technological enterprises, and mineral extraction and processing enterprises;

c. Development and Training of Human Resources:

Cooperate with educational institutions (vocational schools, colleges, universities) to train and retrain staff and researchers for mining and ore processing stages suitable for the scale and characteristics of Vietnam's apatite minerals. Emphasize training leadership and management personnel with expertise to meet the requirements of enterprise development in a global competitive environment;

d. Environmental Protection:

Enterprises engaged in mineral extraction and processing must fully implement environmental protection measures in exploration, mining, and ore processing stages, adopting modern and environmentally friendly technologies; strictly carry out post-mining land restoration and environmental recovery. Ensure industrial hygiene and workplace safety in production. Encourage the research and application of advanced environmental treatment technologies in all production processes;

đ. Investment Capital Solutions:

To attract approximately 25 trillion VND for the development of the country's apatite ore exploration, mining, and processing industry by 2020, it is expected to mobilize funds from the following sources:

- Enterprise self-raised capital;

- State budget: Infrastructure investment outside the mine perimeter, funding for planning and adjustment work, training and scientific research of institutes and schools in the industry.

- State investment credit capital: Projects for exploiting and processing apatite ores if invested in economically and socially disadvantaged areas as prescribed by current regulations;

- Domestic and foreign commercial loans;

- Capital from financial organizations through leasing, purchasing equipment on lease-purchase terms, purchasing equipment with sponsorship; seller's credit for technology and equipment;

- Foreign direct investment: Joint ventures with foreign countries in large-scale deep-processing projects of apatite ores;

e. State management work:

- Regularly reviewing, updating, and adjusting the development plan for the industry of prospecting, exploiting, and processing apatite ores to be consistent with the country's socio-economic development and international situation;

- Establishing and perfecting the management mechanism for prospecting, exploiting, and processing mineral resources towards centralization at a single focal point to ensure consistency and tight control, avoiding overlap, enhancing mobility and effectiveness in managing, protecting, exploiting, and processing apatite ore resources;

- Rectifying the management and statistical reporting work on apatite mineral activities periodically from grassroots level to provincial and ministerial levels. Measures and sanctions shall be applied to organizations and individuals who fail to comply with relevant laws in this regard. Strengthening inspections to prevent illegal exploitation and export of minerals;

- Reforming the issuance of mining operation permits towards facilitating procedures, transparency, and ensuring strict control over mining activities;

IX. IMPLEMENTATION ORGANIZATION

1. The Ministry of Industry and Trade shall be responsible for announcing, directing, organizing the implementation of the Plan, regularly updating and adjusting the Plan, and proposing mechanisms and policies for sustainable development of the industry of exploiting and processing apatite ores, ensuring synchronization and consistency with socio-economic development and the integration process;

2. Ministries: Ministry of Natural Resources and Environment, Ministry of Science and Technology, Ministry of Planning and Investment, Ministry of Finance, Ministry of Transport, Ministry of 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 Committee of Lao Cai Province:

- Taking the lead and coordinating with Vietnam Chemicals Corporation to manage and protect apatite ore resources within its jurisdiction; preventing illegal exploitation and export of apatite minerals;

- Taking the lead and coordinating with relevant ministries and sectors to delineate and approve areas prohibited, temporarily prohibited, and restricted for apatite mineral activities;

- Coordinating with state management agencies and enterprises to implement projects specified in this Decision;

4. Vietnam Chemicals Corporation:

- Being responsible for managing, surveying, planning the use and exploitation of apatite ore mines in Lao Cai Province;

- Linking and cooperating with other businesses capable and willing to invest in prospecting, exploiting, and processing apatite ores to meet domestic needs and for export;

12/2025/TT-BNNMT dated June 19, 2025 issued by the Minister of Agriculture and EnvironmentThe 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, Heads of government-affiliated agencies, Chairman of the People's Committee of Lao Cai Province, and Vietnam Chemicals Corporation shall be responsible for implementing this Decision./.