Law Amending and Supplementing Certain Articles of the Minerals Law No. 46/2005/QH11

LAW

Law Amending and Supplementing Certain Articles of the Minerals Law

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Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992, amended and supplemented by Resolution No. 51/2001/QH10 dated December 25, 2001 of the National Assembly, tenth session;

This Law amends and supplements certain articles of the Minerals Law adopted by the National Assembly of the Socialist Republic of Vietnam on March 20, 1996.

Article 1: Amending and supplementing certain articles of the Minerals Law as follows:

1. Clause 2 shall be amended and supplemented as follows:

"Article 2. Scope of Regulation and Applicability

1. This Law regulates the management and protection of mineral resources, geological survey activities concerning mineral resources, and mineral activities (including exploration, mining, and processing of minerals) in solid, gas, mineral water, and natural hot water forms; petroleum and other types of natural water are regulated by other legal documents.

2. This Law applies to state agencies responsible for managing mineral resources; organizations conducting basic geological surveys on mineral resources; domestic organizations and individuals, foreign organizations and individuals, and overseas Vietnamese engaged in mineral activities in Vietnam; and other organizations and individuals related to the management and protection of mineral resources.

In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions from those of this Law, the provisions of such international treaties shall apply."

means projects, works, designs for developing, applying, implementing technology or other tasks within the scope of technical fields managed by technical staff, classified according to types and levels (groups) as stipulated by specialized laws."

"Article 3a. Principles of Mineral Activities

Exploration, mining, and processing of minerals must comply with the following principles:

1. Mineral resources must be protected, mined, and used reasonably, economically, and effectively to meet the requirements of sustainable economic and social development in both the short and long term;

2. Exploration, mining, processing, and utilization of minerals must follow approved planning; ensure safety and hygiene at work; closely combine with environmental protection, other natural resources, natural scenery, and historical and cultural relics; create conditions for infrastructure development, stabilize and improve the living standards of local residents where minerals are mined and processed, and ensure national defense, security, public order, and social safety;

3. The scale and technology of mining and processing minerals must be appropriate to the characteristics of each type of mineral, with economic and social benefits serving as the primary criteria for investment decisions; advanced technologies suitable for application should be used to maximize the recovery rate of main minerals, accompanying minerals, and the value of processed products; enhance the efficiency, quality, and competitiveness of mineral products."

3. Supplementing Article 3b as follows:

"Article 3b. Mineral Planning

1. Mineral planning is established according to territorial areas and types of minerals, including:

a) Basic geological survey planning on mineral resources;

b) Exploration, mining, processing, and utilization planning of minerals.

2. Approval authority for mineral planning is defined as follows:

a) The Ministry of Natural Resources and Environment drafts and submits to the Prime Minister for approval the basic geological survey planning on mineral resources and directs its implementation;

b) The Ministry of Industry drafts and submits to the Prime Minister for approval the exploration, mining, processing, and utilization planning of minerals, except construction materials and cement raw material minerals;

c) The Ministry of Construction drafts and submits to the Prime Minister for approval the exploration, mining, processing, and utilization planning of construction materials and cement raw material minerals;

d) Provincial People's Committees organize the drafting and submit to the respective People's Councils for approval the exploration, mining, processing, and utilization planning for mineral types within their licensing authority as stipulated in Clause 1, Article 56 of this Law.

3. The Government shall specify the procedures for drafting and implementing mineral planning."

4. Article 5 is amended and supplemented as follows:

"Article 5. State Policy on Minerals

1. The State invests in planning, basic geological surveys on mineral resources in accordance with the country's strategic plans, planning, and socio-economic development programs during each period; training and developing human resources, scientific research, and applying and developing technology in basic geological surveys on mineral resources.

2. The State creates favorable conditions for organizations and individuals to participate in investing in exploration, mining, and processing of minerals.

3. The State has preferential policies and encourages investment in projects that integrate mining with on-site processing of minerals in regions with difficult socio-economic conditions, extremely difficult socio-economic conditions; projects that apply advanced techniques and technologies, ensuring the environment, maximizing the recovery of valuable components, producing metal, alloy, or high-value and high-economic benefit products; projects processing imported minerals to meet domestic demand and for export.

4. Limiting the export of minerals in raw form and concentrate. The issuance of lists, conditions, and standards for mineral exports and restricted mineral exports shall be specified by the Government.

5. The State invests in exploration of certain important minerals to serve the country's socio-economic development plans; ensuring state budget funding for mineral resource protection work.

6. The State protects the rights and legitimate interests of organizations and individuals in mineral activities in accordance with the law; encourages organizations and individuals to participate in insurance business for exploration, mining, and processing of minerals."

5. Article 8 is amended and supplemented as follows:

"Article 8. Prohibited Acts

The State strictly prohibits the following acts:

1. Conducting illegal basic geological surveys on mineral resources, exploration, mining, processing, storage, transportation, and buying and selling of minerals;

2. Violating mineral planning, prohibited zones, and temporarily prohibited mineral activity zones;

3. Failing to fulfill obligations in mineral activities as prescribed in Articles 23, 27, 33, 46, and 52 of this Law;

4. Disclosing information about mineral resources classified as state secrets;

5. Misusing positions and powers to violate laws on minerals;

6. Other prohibited acts as prescribed by laws on minerals."

6. Article 9 is amended and supplemented as follows:

Article 9. Responsibilities for Protecting Mineral Resources

1. The Ministry of Natural Resources and Environment shall identify areas with mineral resources that have been surveyed and assessed, and notify the People's Committees of provinces and centrally governed cities to manage and protect such resources.

2. People's Councils and People's Committees at all levels within their respective duties and authorities shall be responsible for implementing measures to protect mineral resources in localities, including areas not yet notified by the Ministry of Natural Resources and Environment but found to contain minerals.

3. Organizations and individuals have the right and obligation to protect mineral resources and maintain state secrets regarding mineral resources.

4. Organizations and individuals permitted to engage in mineral activities shall be responsible for protecting mineral resources in the areas where they operate.

5. Organizations and individuals planning to establish residential areas or fixed structures in areas with mineral resources that have been surveyed and assessed or explored and approved for mineral reserves must submit along with their planning approval application the written opinion of the competent state management agency on mineral resources as stipulated in Clause 1 of Article 56 of this Law.

The Government shall specify the procedures for establishing and approving construction plans for national defense and security projects in areas with mineral resources that have been surveyed and assessed.

7. Article 41 is amended and supplemented as follows:

"Article 41. Exploitation and Processing of Ordinary Construction Materials from Minerals

1. Activities related to the exploitation and processing of ordinary construction materials from minerals must comply with the provisions on mineral exploitation under this Law.

2. Exploitation and processing of ordinary construction materials from minerals, except river sand and gravel, with an annual production capacity not exceeding 100,000 cubic meters and an exploitation period, including extensions, not exceeding five years, are not required to conduct mineral exploration.

3. The following cases of exploitation and processing of ordinary construction materials from minerals do not require mining permits:

a) Exploitation of ordinary construction materials from minerals within the land area of investment projects for construction works approved or permitted by competent state agencies, where the extracted products are only used for constructing those works.

Prior to commencing mineral exploitation, organizations authorized to exploit must register the exploitation area, capacity, volume, methods, equipment, and exploitation plan with the People's Committee of the province or centrally governed city. The management and use of exploited minerals shall be carried out in accordance with the law;

b) Exploitation of ordinary construction materials from minerals within the residential land area of households or individuals used in accordance with the law on land, where the extracted products are solely for the construction needs of those households or individuals.

4. The Government shall promulgate a list of ordinary construction materials from minerals."

8. Add Article 43a as follows:

"Article 43a. Exploitation of Minerals in Areas with Investment Projects for Construction Works

1. The exploitation of minerals in areas with investment projects for construction works, except for projects specified in Clause 2 of this Article, shall be implemented as follows:

a) For areas that have been surveyed and assessed for mineral resources or have not been surveyed and assessed but discovered to contain minerals, the competent state agency as stipulated in Clause 1 of Article 56 of this Law shall decide on the exploration to serve as the basis for issuing mining permits before the project is approved or the investment permit is issued;

b) For areas that have not been surveyed and assessed for mineral resources but discover minerals during the construction process, the competent state agency as stipulated in Clause 1 of Article 56 of this Law shall decide on whether to exploit or not to exploit; and determine the progress schedule in case of exploitation to ensure the construction project's timeline. In this case, it is not mandatory to conduct mineral exploration.

2. For areas with national-level investment projects for important works under the authority of the National Assembly to decide on investment policies or important projects with investment policies decided by the Government or the Prime Minister, which have been surveyed and assessed for mineral resources or have not been surveyed and assessed but discovered to contain minerals, the Ministry of Natural Resources and Environment shall take the lead in coordinating with relevant ministries, sectors, and the People's Committee of the province or centrally governed city where the project is located to decide on exploitation and issue mining permits according to the authority stipulated in Clause 1 of Article 56 of this Law to ensure the construction project's timeline.

3. If it is determined that the exploitation of minerals as stipulated in Clauses 1 and 2 of this Article is not effective or there are no organizations or individuals applying for exploitation, the competent state agency as stipulated in Clause 1 of Article 56 of this Law shall decide not to exploit and issue a written response to the investment decision-making agency, the investment permit issuing agency, or the project investor.

4. In cases where organizations or individuals permitted to exploit minerals, who are not the investors of the construction projects assigned or leased land by the State, agree on the use of land for mineral exploitation according to the provisions of the law on land."

9. Article 49 is amended and supplemented as follows:

"Article 49. Exploitation of Residual Minerals

1. Exploitation of residual minerals can be conducted in mines that have been officially closed for liquidation or in tailings from the exploitation and processing of mines that have been officially closed.

2. Mining permits for the exploitation of residual minerals issued before the effective date of this Law shall continue to be valid until their expiration date."

10. Article 55 is amended and supplemented as follows:

"Article 55. State Management Responsibilities for Mineral Resources

1. The Government shall uniformly manage state affairs concerning mineral resources.

2. The Ministry of Natural Resources and Environment shall be responsible before the Government for managing state affairs concerning mineral resources nationwide.

3. The Ministry of Industry shall manage state affairs concerning the mining and processing industry of minerals, excluding construction materials and raw materials for cement production."

4. The Ministry of Construction shall implement state management over the mining and processing industries for construction materials and raw materials for cement production.

5. People's Committees at all levels shall implement state management over minerals in their respective localities within their authority.

6. Ministries and ministerial-level agencies within the scope of their tasks and powers shall be responsible for coordinating with the Ministry of Natural Resources and Environment, the Ministry of Industry, the Ministry of Construction, and the People's Committees of provinces and centrally governed cities in the management of mineral resources.

7. The Mineral Reserve Evaluation Council shall have the authority and responsibility to assist the Government in reviewing and approving mineral reserves in exploration reports, except for ordinary construction materials and mud coal.

8. The Government shall specify the authority and responsibilities of the Ministry of Natural Resources and Environment, the Ministry of Industry, the Ministry of Construction, and People's Committees at all levels in managing mineral resources; and the organization and operation of the Mineral Reserve Evaluation Council.

11. Article 56 shall be amended and supplemented as follows:

"Article 56. Authority, procedures for issuing, extending, revoking mineral exploitation permits

1. The authority to issue, extend, revoke, permit the return of mineral exploitation permits, and permit the transfer of mineral exploitation rights shall be defined as follows:

a) The Ministry of Natural Resources and Environment shall issue exploration permits, prospecting permits, mining permits, and mineral processing permits, except as provided in point b of this clause;

b) The People's Committees of provinces and centrally governed cities shall issue residual mineral exploitation permits as stipulated in Articles 49 and 50 of this Law; exploration permits, prospecting permits, mining permits, and mineral processing permits for ordinary construction materials and mud coal; mining permits and mineral processing permits for areas that have been surveyed, evaluated, or prospected, and approved for mineral reserves but are not included in the national mineral extraction and processing plan approved by competent state authorities or are not part of the national mineral resource reserve;

c) The competent state authority issuing a type of mineral exploitation permit shall have the authority to extend, revoke, permit the return of that type of permit, and permit the transfer of mineral exploitation rights in accordance with the law.

2. The Government shall specify the conditions and procedures for issuing, extending, revoking, permitting the return of mineral exploitation permits, permitting the transfer and inheritance of mineral exploitation rights, and registering mineral exploitation activities.

Article 2

1. Article 48 of the Minerals Law is hereby repealed.

2. Replace the phrase "Clause 1 and 2 of Article 5" in Clause 1 of Article 21, Clause 1 of Article 25, and Clause 2 of Article 31 with the phrase "Clause 3 of Article 5".

Article 3

1. This Law shall take effect from October 1, 2005.

2. The Government shall provide detailed regulations and guidance on the implementation of this Law.

This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, the eleventh session, seventh meeting, on June 14, 2005.