This Circular stipulates the method for determining the value and payment procedures for using data and information on the results of state mineral exploration surveys for organizations and individuals permitted to mine. The payment value is based on the permitted mineral reserves and specific calculation methods.
Scope of application
Organizations and individuals permitted to use data on the results of state mineral exploration surveys must do so after the mine has commenced operations.
Key points
- Organizations and individuals using the data must pay the state according to the investment value of the exploration, search, and survey work and the permitted reserves.
- The payment value is determined by the formula A x (P1 + 50% P2) / P, where A is the state's investment value, P is the total reserves, P1 is the permitted exploitation reserves, and P2 is the additional reserves.
- Payment method: lump sum within the first two years or gradual payment based on production volume. In cases where the value is less than 500 million VND, it must be paid in a lump sum.
- Organizations and individuals who have completed payment will have their total amount reduced by 10% and have the right to use and transfer the data to other organizations.
- There are situations where payment may be exempted or reduced when there are discrepancies in reserve quantities or when full payment has been made as prescribed.
🌐 Social impact of this document
- Positive impact: Ensures fairness in the use of mineral data, avoiding wastage of state resources.
- Negative impact: Increased financial burden for mining enterprises may occur.
❓ Frequently asked questions
How is the payment value for using data determined?
The payment value is determined by the formula A x (P1 + 50% P2) / P, where A is the state's investment value, P is the total reserves, P1 is the permitted exploitation reserves, and P2 is the additional reserves.
How must organizations and individuals using the data make payments?
Payment method: lump sum within the first two years or gradual payment based on production volume. In cases where the value is less than 500 million VND, it must be paid in a lump sum.
Are there any exemptions from payment?
Yes, organizations and individuals who have fully paid for the use of data or have discrepancies in reserve quantities reported in the exploration results will be considered for exemption.
Which organizations and individuals are responsible for making the payments?
Organizations and individuals holding permits for mineral exploitation are responsible for making payments for the use of data in accordance with this Circular.
What circular does this replace?
This Circular replaces Joint Circular of the Ministry of Finance and Heavy Industry No. 96TT/LB dated November 25, 1993.
Full text
JOINT CIRCULAR
Guidelines for determining the value, method, and procedures for payment of fees for using data and information on the results of state mineral surveys and exploration
______________________
Pursuant to Decree No. 76/2000/NĐ-CP dated December 15, 2000 of the Government detailing the implementation of the Law on Minerals (amended);
Pursuant to Decree No. 87/CP dated December 19, 1996 and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Government detailing the division of management levels, preparation, execution, and settlement of the State budget;
The Ministry of Finance and the Ministry of Industry jointly issue guidelines for determining the value, method, and procedures for payment of fees for using data and information on the results of state mineral surveys and exploration as follows:
II- SUPPORT MEASURES FOR STATE-OWNED AGRICULTURAL FARMS AND FORESTRY COMPANIES IN THE FIELD OF SCIENCE AND TECHNOLOGY
1\. Payment of fees for using data and information on the results of state mineral surveys and exploration (hereinafter referred to as data) aims to reimburse the portion of the state capital invested in mineral surveying, searching, and exploration work.
2\. Organizations and individuals permitted to use the data must pay the state according to the provisions of this Circular after commencing mining operations. The payment date starts from the day the mining permit is issued.
3\. Data includes all data collected and compiled during the process of searching, surveying, and exploring solid minerals, gas, mineral water, and natural hot water (excluding oil and other types of natural water), funded by state capital; it is reflected in comprehensive reports on searching, surveying, and exploration work and accompanying data approved by competent state authorities.
4\. The use of data shall be carried out in accordance with laws on minerals and the provisions of this Circular.
Cases where data is used for scientific research, training, or planning and strategy development based on state tasks assigned shall not be subject to payment under the provisions of this Circular.
5\. Services related to printing and copying data shall be regulated separately and are not within the scope of adjustment of this Circular.
II\. METHODS FOR DETERMINING VALUE AND PAYMENT METHODS FOR ORGANIZATIONS AND INDIVIDUALS USING DATA AFTER COMMENCING MINING OPERATIONS
1\. Determining the value of state investment in mineral surveying, searching, and exploration work based on current market prices
A = S (Ki x Zi) + C x H
Where:
- Ki is the volume of geological works based on statistical data in the comprehensive report on mineral searching, surveying, and exploration work approved by competent state authorities.
- Zi is the current price of geological works.
- C is other costs included in the project value according to current state regulations at original cost.
- H is the difference factor between current market prices and original costs determined by the ratio of current prices to original costs of the total volume of works:
(Ki x Zi current price / Ki x Zi original cost).
2\. Determining the value of payment for using data (G)
Based on the reserves granted in the Mining Permit, G is determined as follows
P1 + 50%P2
G = A x
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:
Where:
- A is the value of state investment calculated according to the formula in Clause 1 Section II.
- P is the total reserves of grades A, B, and C1 of the entire mine in the exploration report.
- P1 is the total reserves of grades A and B granted permission to exploit in the mine.
- P2 is the grade C1 reserves granted permission to supplement the exploitation reserves in the mine.
3\. Methods for paying fees for using data
a\. Organizations and individuals using data must pay the state fees for using data either in a lump sum within the first two years or gradually based on production volume. If the amount of payment for using data is less than 500,000,000 VND (five hundred million dong), it must be paid in a lump sum within the first two years.
b\. Organizations and individuals who have completed payment of fees for using data in a lump sum within the first two years from the date of issuance of the mining permit will be entitled to a 10% reduction in the total payment amount and have the right to use and transfer the data to other organizations and individuals in accordance with the Law on Minerals and Articles 34, 35, and 36 of Decree No. 76/2000/NĐ-CP of the Government.
III\. PROCEDURES FOR PAYMENT
1\. The Ministry of Industry shall take the lead and coordinate with the Ministry of Finance to determine the value and payment methods for fees for using data for organizations and individuals who have been granted mining permits in accordance with Section II of this Circular.
2\. The Ministry of Finance shall stipulate and guide tax departments and the national treasury system to implement collection and management of this revenue source.
3\. Within thirty days from receiving the decision of the Ministry of Industry regarding the value and payment methods for fees for using data, organizations and individuals who have been granted mining permits shall be responsible for registering and processing payment procedures at the local tax office where the mine is located. Organizations and individuals exploiting the mine shall make gradual payments based on annual production volumes and settle the actual amount payable with the local tax office.
IV\. EXEMPTIONS AND REDUCTIONS IN PAYMENTS FOR USING DATA
1\. Cases eligible for exemption or reduction in payments:
a\. Organizations and individuals who have fully paid the fees for using data as stipulated in point b, Clause 3, Section II of this Circular.
b\. Cases where there is a discrepancy in the reserves explored at the mine (reduction of more than 30% compared to the reserves of grades A and B in the exploration report) leading to a decrease in the mine's exploitable reserves.
2\. Procedures for reviewing the level of exemption or reduction in the value of payments for using data in cases of discrepancies in reserves of grades A and B.
Based on the reports from organizations and individuals who have been granted mineral exploitation permits regarding the actual reduction in reserves compared to the permitted reserves according to the exploration results report, the Ministry of Industry shall take the lead and coordinate with the Ministry of Finance to inspect and review the actual exploitation status of the mine. On this basis, they shall submit a document to the Mineral Reserves Evaluation Council for the Council to organize specific inspections and evaluations of the extent and causes of the actual reduction in mine reserves. Based on the conclusion in writing by the Mineral Reserves Evaluation Council regarding the actual reduction in mine reserves, after obtaining the agreement of the Ministry of Finance, the Ministry of Industry shall decide on the amount of exemption or reduction in the payment for using the data.
In cases where organizations and individuals have completed the payment for using the data to the State through a lump-sum payment method, they will also be considered for exemption or reduction according to the above provisions.
V. IMPLEMENTATION
1- Organizations and individuals granted mineral exploitation permits are responsible for making payments for using the data in accordance with the provisions of this Circular. If organizations and individuals granted mineral exploitation permits fail to strictly comply with the payment obligations for using the data, their mineral exploitation permits may be revoked in accordance with Articles 33 and 39 of the Minerals Law.
2- The inspection, supervision, commendation, and handling of violations in implementing this Circular shall be carried out in accordance with current laws.
3- Organizations and individuals granted mineral exploitation permits before the effective date of this Circular, whose permits are still valid, must continue to pay for using the data in accordance with the provisions of this Circular for the portion of reserves that continue to be exploited. For cases where there are decisions on the recovery of exploration and mining resource search costs according to Circular No. 96 TT/LB dated November 25, 1993, jointly issued by the Ministry of Finance and the Heavy Industry Ministry, which stipulates the recovery of exploration and mining resource search costs when mines are put into operation, such cases will continue to be implemented according to the previous decisions on recovery costs made by the Ministry of Industry.
4- This Circular takes effect fifteen days after its issuance and replaces Circular No. 96 TT/LB dated November 25, 1993, jointly issued by the Ministry of Finance and the Heavy Industry Ministry.
During implementation, if there are any difficulties, organizations and individuals concerned are requested to report them to the Ministry of Finance and the Ministry of Industry for study and resolution.
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