Circular No. 39/2007/TT-BTC guiding the implementation of policies to ensure the rights of localities in protecting unexploited lead and zinc ore resources.

CIRCULAR

Guidelines for Implementing Policies to Ensure Local Benefits

in Protecting Unexploited Lead and Zinc Ore Resources

____________________

THE MINISTER OF FINANCE

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 the Land Law dated November 26, 2003 and the guiding documents for implementing the Land Law;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 176/2006/QĐ-TTg dated August 1, 2006 of the Prime Minister approving the Plan for Exploration, Exploitation, Processing and Utilization of Lead and Zinc Ores for the period 2006-2015 with consideration up to 2020;

After receiving comments from the Ministry of Natural Resources and Environment, the Ministry of Industry, and the Ministry of Finance, the following guidelines are hereby issued:

I.GENERAL PROVISIONS

1.The scope of protecting unexploited lead and zinc ore resources includes:

a) Areas of mineral reserves and bidding for exploration and exploitation of lead and zinc ores in Cao Bang Province and Tuyen Quang Province as announced by the Ministry of Natural Resources and Environment.

b) Areas, points, and mines of unexploited lead and zinc ores in Bac Can Province, Tuyen Quang Province, Yen Bai Province, Ha Giang Province, Thai Nguyen Province, Thanh Hoa Province, Lang Son Province, Nghe An Province, and Quang Binh Province as announced by the Ministry of Natural Resources and Environment.

c) Areas prohibited from mining activities; areas, points, and mines where local authorities have discovered lead and zinc ores but have not been investigated, assessed, and announced by the Ministry of Natural Resources and Environment.

2. The subjects entitled to benefit from policies ensuring local rights include: agencies, organizations, households, and individuals residing, operating, producing, trading, and providing services legally in areas, points, and mines of unexploited lead and zinc ores that suffer losses and changes in residence, operation, production, trade, and service provision according to decisions of competent state authorities for conducting surveys, explorations, and implementing protection work for unexploited lead and zinc ore resources.

3. Organizations and individuals permitted to conduct surveys and explorations in areas, points, and mines of lead and zinc ores shall be responsible for compensating losses and ensuring the rights of agencies, organizations, households, and individuals affected by survey and exploration activities.

4.The State ensures the rights of agencies, organizations, households, and individuals in areas requiring protection of unexploited lead and zinc ore resources through investment policies for developing economic and social infrastructure, stabilizing living conditions and production. At the same time, the State stipulates policies to ensure funding for the implementation of protection work for unexploited lead and zinc ore resources according to approved plans by competent authorities in accordance with the law.

5. The time for organizing the protection of areas, points, and mines of unexploited lead and zinc ores starts from when the Ministry of Natural Resources and Environment identifies and announces areas, points, and mines containing lead and zinc ores that have been investigated, assessed, and notified to provincial People's Committees or when localities discover such areas, points, and mines without investigation, assessment, or notification by the Ministry of Natural Resources and Environment until the competent state authority decides to issue exploitation permits.

II. SPECIFIC PROVISIONS ON POLICIES TO ENSURE LOCAL RIGHTS

1. Organizations and individuals permitted to conduct surveys and explorations in areas, points, and mines of lead and zinc ores without leasing land shall negotiate with agencies, organizations, households, and individuals residing, operating, producing, trading, and providing services legally in areas, points, and mines of unexploited lead and zinc ores affected by losses caused by survey and exploration activities regarding compensation and support measures according to regulations of provincial People's Committees and current state regulations.

2. Organizations and individuals permitted to conduct surveys and explorations using land regularly in areas, points, and mines of lead and zinc ores that must lease land shall implement compensation and support according to the Land Law; the Law on Minerals; Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on Compensation, Support, and Resettlement when the State Recovers Land; Decree No. 17/2006/NĐ-CP dated January 27, 2006 of the Government amending and supplementing certain provisions of guiding decrees for the Land Law; Circular No. 116/2004/TT-BTC dated December 7, 2004 of the Ministry of Finance guiding the implementation of Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on Compensation, Support, and Resettlement when the State Recovers Land; Circular No. 69/2006/TT-BTC dated August 2, 2006 of the Ministry of Finance amending and supplementing Circular No. 116/2004/TT-BTC dated December 7, 2004 of the Ministry of Finance and related guiding documents as follows:

a) In cases where organizations and individuals leasing land for survey and exploration activities reach agreements with agencies, organizations, households, and individuals residing, operating, producing, trading, and providing services legally in areas, points, and mines of unexploited lead and zinc ores about compensation and support levels according to Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on Compensation, Support, and Resettlement when the State Recovers Land and Decree No. 17/2006/NĐ-CP dated January 27, 2006 of the Government amending and supplementing certain provisions of guiding decrees for the Land Law, they shall implement according to those agreements; the State will not organize or implement compensation and support.

b) In cases where the State organizes and implements compensation, support, and resettlement for land users when the State recovers land:

Based on the actual situation in the locality, the provincial People's Committee assigns the Task Force for Compensation, Support, and Resettlement or the Land Development Organization to assist the provincial People's Committee in formulating and implementing compensation, support, and resettlement plans; the contents of compensation and support include:

b.1) Compensation for losses concerning land and assets attached to land of agencies, organizations, households, and individuals due to changes in residence, operation, production, trade, and service provision according to current state regulations.

b.2) Support for stabilizing operations, living conditions, and production for agencies, organizations, households, and individuals who must change their place of residence, operation, production, business, services, specifically as follows:

- Subsidize living conditions and production for residents who must move to new locations.

- Subsidize idle time for workers of production and business establishments, service providers during the period of cessation of production and business activities, services to implement relocation.

- Support training costs for laborers transitioning to new occupations and job creation.

- Support each household that moves within the province or to another central city/province.

- Pay rent subsidies for households and individuals who must move but have not yet received new accommodation and must temporarily rent housing while waiting.

- Reimburse relocation expenses for movable structures, assets, and other items for production and business establishments, state agencies, political-social organizations, public institutions, and people's armed forces that must relocate to new sites.

The subjects, conditions, procedures, compensation levels for land and property damages, and support for stabilizing living conditions and production as stipulated in sub-item b.1 and b.2, point 2, Section II of this Circular shall be implemented according to the provisions of Decree No. 197/2004/NĐ-CP dated December 3, 2004 on compensation, support, and resettlement when the State requisitions land, and Circular No. 116/2004/TT-BTC dated December 7, 2004 of the Ministry of Finance.

b.3) Pay the cost of compensating for communal land and public infrastructure construction funds from the recovered land, which are submitted to the state budget and regulated according to the provisions for the budgets at various levels.

b.4) Organizations, households, and individuals legally using land in areas with unexploited lead and zinc resources that need protection and must change their place of residence or production and business activities shall be provided by the State with resettlement conditions through one of the following forms: Compensation with housing; Compensation with allocation of new residential land; Compensation with money to arrange new accommodation according to the provisions of the Land Law.

Agencies, organizations, and individuals (excluding foreign organizations and individuals, overseas Vietnamese investing in Vietnam) granted permission to conduct surveys and exploration within the leased land area have the obligation to pay compensation, support, and resettlement fees. Organizations and individuals renting land from the State that have paid compensation, support, and resettlement fees, and foreign organizations and overseas Vietnamese investing in Vietnam that have prepaid such fees according to Decree No. 197/2004/NĐ-CP shall be allowed to deduct the amount paid for land compensation and support from the land rental fees payable to the State. The deduction amount shall not exceed the prescribed land rental fees.

3.During the survey and exploration process, organizations and individuals must bear all environmental protection and restoration costs. When the survey and exploration permit expires, the organization or individual permitted to conduct surveys and explorations must remove all their own and related parties' assets from the survey and exploration area; level off exploration facilities to return them to a safe condition, protect mineral resources, restore the environment, ecology, and land; submit collected samples, data, and information about mineral resources to the competent state management agency according to the law.

4. Based on the local socio-economic development plan and the approved land use planning and plans, the provincial People's Committee shall consider and decide on the specific implementation of resettlement projects for those whose land has been requisitioned and must move to new locations.

5.Local authorities at all levels shall prioritize the recruitment of suitable labor from communities affected by survey and exploration activities or implementing measures to protect unexploited mineral resources into local agencies and units according to investment development plans to ensure the stability of people's lives.

6.The provincial People's Committee shall be responsible for arranging staff, equipment, working tools, and operational funding for agencies and units to organize the implementation of the approved unexploited mineral resource protection project by the competent authority.

III. ESTABLISHING BUDGET PROJECTIONS, MANAGEMENT, AND USE TO ENSURE LOCAL RIGHTS IN THE PROTECTION OF UNEXPLOITED LEAD AND ZINC RESOURCES.

SECURING LOCAL RIGHTS IN THE PROTECTION OF UNEXPLOITED LEAD AND ZINC RESOURCES THROUGH BUDGET PROJECTIONS, MANAGEMENT, AND USE.

The establishment of budget projections, management, use, and settlement for the implementation of policies ensuring local rights in protecting unexploited lead and zinc resources shall be carried out according to the provisions of the State Budget Law and guiding documents, paying attention to the following matters:

1.Financial agencies shall coordinate with tax agencies where there are survey and exploration activities for unexploited lead and zinc resources requiring protection to establish budget projections from survey and exploration activities within the province, including: Permit issuance fees; fines for administrative violations and other revenues from survey and exploration activities as stipulated by law.

2.Based on the approved unexploited lead and zinc resource protection project, financial agencies shall establish local government budget expenditure projections according to the State Budget Law to implement the tasks specified in point 6, Section II of this Circular. In cases where local government budget funds are insufficient, the provincial People's Committee shall report to the Ministry of Finance and the Ministry of Planning and Investment to coordinate with relevant ministries to request the competent authority to consider and decide on providing support from the central budget to the local budget for implementation.

3.The budget revenue and expenditure estimates are prepared in detail according to the State Budget Outline. After the budget estimate is decided upon by the competent authority, the financial agency shall be responsible for ensuring the funding sources in accordance with the implementation schedule. Organizations allocated funds in the budget estimate must manage and use the funds in compliance with policies and regulations.

IV. IMPLEMENTATION

1. Ministries and central agencies within their functional responsibilities shall be responsible for guiding, directing, inspecting, and supporting localities in implementing policies to ensure local benefits as stipulated in this Circular; at the same time, they shall review mechanisms and policies under their management to promptly amend and supplement them to align with reality, thereby effectively implementing policies to ensure local benefits in the work of protecting unexploited lead and zinc ore resources in accordance with Decision No. 176/2006/QĐ-TTg dated August 1, 2006 of the Prime Minister.

2. Provincial People's Committees directly under the Central Government shall be responsible for:

a) Directing the Department of Natural Resources and Environment to cooperate with relevant agencies in drafting and submitting to the competent authority for issuance of guiding documents on the implementation of state regulations regarding the protection of unexploited lead and zinc ore resources as a basis for implementation at the local level.

b) Directing the Department of Finance, the Department of Planning and Investment to cooperate with the Department of Natural Resources and Environment and relevant agencies to determine the funding requirements for local government budget expenditures as prescribed in this Circular and proactively balance and utilize the local government budget and other lawful financial sources for submission to the competent authority for approval to implement.

c) Directing and regularly inspecting departments, sectoral bodies, and local-level People's Committees in effectively carrying out the work of protecting unexploited lead and zinc ore resources; managing and using funds for the protection of unexploited lead and zinc ore resources in compliance with policies and regulations; directing local-level People's Committees, especially village-level People's Committees, to cooperate with relevant agencies at the local level to publicly announce state support policies through mass media, at villages, and posted at the offices of village-level People's Committees in accordance with regulations.

d) Reporting periodically every six months and annually to the Ministry of Finance, the Ministry of Natural Resources and Environment, the Ministry of Industry, and related ministries on the implementation of the work of protecting unexploited lead and zinc ore resources for compilation and reporting to the Prime Minister.

3. This Circular takes effect fifteen days from the date of publication in the Official Gazette. During its implementation, if there are any difficulties, they should be reported promptly to the Ministry of Finance for consideration and appropriate amendment.