Decision No. 47/2008/QD-BCT Approving the Planning for Exploration, Exploitation, Processing and Utilization of Groups of Raw Material Limestone (Marble), Feldspar, Kaolin and Magnesite Minerals until 2015, with a view to 2025

Pursuant to …;

Approving the planning for zoning exploration, exploitation, processing, and utilization of groups of raw material minerals including white limestone (marble), feldspar, kaolin, and magnesite up to 2015, with consideration to 2025

THE MINISTER OF INDUSTRY AND TRADE

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;

Pursuant to the Minerals Law on March 20, 1996 and the Law Amending and Supplementing Certain Provisions of the Minerals Law on June 14, 2005;

Pursuant to Resolution No. 59/2007/NQ-CP dated November 30, 2007 of the Government on certain solutions 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 Minerals Law and the Law Amending and Supplementing Certain Provisions of the Minerals Law;

Implementing the Prime Minister's opinion at Official Letter No. 3174/VPCP-CN dated June 11, 2007 of the Government Office regarding the assignment to the Ministry of Industry (now the Ministry of Industry and Trade) to approve the Planning for Zoning Exploration, Exploitation, Processing, and Utilization of Groups of Raw Material Minerals Including White Limestone, Feldspar, Kaolin, and Magnesite up to 2015, with Consideration to 2025;

Considering the Report No. 488/TTr-NCPT dated October 1, 2008 of the Director of the Institute for Strategy and Industrial Policy Research;

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

Pursuant to …;

Article 1. Approving the Planning for Zoning Exploration, Exploitation, Processing, and Utilization of Groups of Raw Material Minerals Including White Limestone (Marble), Feldspar, Kaolin, and Magnesite up to 2015, with Consideration to 2025, with the main contents as follows:

I. DEVELOPMENT VIEWS

1. Developing exploration, exploitation, processing, and utilization of mineral groups including white limestone (marble), feldspar, kaolin, and magnesite in accordance with the planning for Vietnam's industrial development, economic and social development planning of localities, ensuring harmony between national and local interests, creating conditions for infrastructure development, contributing to stabilizing and improving the living standards of people in localities where minerals are exploited and processed.

2. Developing exploration, exploitation, processing, and utilization of mineral groups including white limestone, feldspar, kaolin, and magnesite in accordance with requirements for consolidating national defense and security, protecting valuable cultural works, and protecting the ecological environment in areas with minerals.

3. Developing exploration, exploitation, processing, and utilization of mineral groups including white limestone, feldspar, kaolin, and magnesite sustainably, ensuring safety and economic efficiency based on reasonable and economical exploitation of national resources, meeting domestic demand and having a portion for export.

4. The work of exploring mineral groups including white limestone, feldspar, kaolin, and magnesite must be carried out one step ahead, in line with the schedule of the plan, to create a reliable resource basis for effective exploitation, processing, and utilization of mineral products in different industrial sectors.

5. Developing exploitation and processing of mineral groups including white limestone, feldspar, kaolin, and magnesite with appropriate scale and types of products based on applying advanced processing technology suitable for Vietnam's conditions and environmentally friendly. Encouraging industrial-scale exploitation and processing to produce high-quality products for export.

II. DEVELOPMENT OBJECTIVES

1. Concentrating on exploring mineral deposits of mineral groups including white limestone, feldspar, kaolin, and magnesite that have been surveyed and evaluated to ensure sufficient reserves for exploitation and processing needs during the planning period.

2. Maximizing resource recovery in exploitation and processing through the application of advanced technology. Ensuring economic efficiency in exploitation and protecting the ecological environment in mining activity areas.

3. Promoting comprehensive investment in deep processing facilities for various types of mineral groups including white limestone, feldspar, kaolin, and magnesite using advanced technology and environmentally friendly methods.

+ White limestone

- From 2008 to 2015, completing detailed planning, rectifying white limestone mineral activities in Yen Bai and Nghe An provinces. Completing exploration of 48 mines/white limestone areas already licensed and 36 mines agreed upon in principle (Annex 2); Ensuring sufficient supply of white limestone for the economy, promoting the export of processed and manufactured products from white limestone. Production may increase depending on domestic market consumption and export capacity.

- Ensuring sufficient supply of white limestone for the economy, promoting the export of processed and manufactured products from white limestone. Production may increase depending on domestic market consumption and export capacity.

+ Feldspar

- Striving to complete exploration of 5 new mines (areas, ore zones) by 2010 and 4-5 new mines in each five-year plan thereafter.

- Ensuring sufficient supply of feldspar for industries and part of the construction materials sector, striving to reduce imports and balance imports and exports after 2015. Commercial feldspar production is expected to reach about 0.9 million tons in 2010, 1.1-1.2 million tons in 2015, 1.4-1.5 million tons in 2020, and 1.6-1.7 million tons in 2025.

+ Kaolin

- Striving to complete exploration of 6-7 new mines by 2010 and 9-10 new mines in each subsequent five-year plan.

- Ensuring sufficient supply of kaolin products for industries; balancing imports and exports after 2010 and striving to increase exports. Specifically, refined kaolin production is expected to reach over 0.7 million tons in 2010, 1.2-1.3 million tons in 2015, 1.8-1.9 million tons in 2020, and 2.3-2.4 million tons in 2025.

+ Magnesite

- By 2015, completing exploration of the Kon Queng magnesite ore area. Completing construction and putting into operation the Kon Queng magnesite ore processing plant, aiming to achieve a production volume of 150-200 thousand tons of raw ore per year.

- By 2025, expanding production at the magnesite ore processing plant, aiming to achieve a production volume of 350-400 thousand tons of raw ore per year.

III. FORECAST OF DEMAND FOR RAW MATERIAL MINERALS INCLUDING WHITE LIMESTONE, FELDSPAR, KAOLIN, AND MAGNESITE (INCLUDING EXPORT DEMAND)

The forecasted demand for limestone, feldspar, kaolin, and magnesite minerals from now until 2025 is as follows:

IV. PLANNING FOR EXPLORATION

1. Exploration of white limestone

The explored reserves of white limestone are approximately 171 million tons, with predicted resources estimated at about 3.5 billion tons, including about 2.7 billion tons suitable for grinding into powder.

a. Period 2008-2015

- Invest in surveying and evaluating to determine the potential of white limestone (marble) according to Decision No. 116/2007/QĐ-TTg dated July 23, 2007 of the Prime Minister: One project for the Thanh Thuy area in Ha Giang province and one project for the Tan Linh-An Phu sub-region in the Luc Yen-Yen Binh area, Yen Bai province;

- Implement exploration projects for 83 mines/areas that have been granted permits and agreed upon (Annex 2) in the provinces of Nghe An, Yen Bai, Bac Kan, Tuyen Quang, Ha Giang, and Ha Nam.

b. Period 2016-2025

- Invest in exploration, upgrading, or deep exploration in the mining areas of Nghe An and Yen Bai to serve raw material needs for ongoing projects;

- Conduct exploration in Ha Giang, Yen Bai, Nghe An, and other regions following survey results; it is expected that 2-3 promising white limestone mines will be explored during the period 2016-2020.

2. Exploration of feldspar ore

The explored reserves of feldspar ore and predicted resources are approximately 90 million tons, of which Class C₂ and above exploration is about 46 million tons.

Feldspar ore deposits with resources ≥ 200,000 tons and relatively good quality are planned to be explored according to the following schedule:

a. Period 2008-2015: Conduct exploration of 12 feldspar ore deposits and peripheral areas of 6 currently operating mines in the provinces of Lai Chau, Yen Bai, Phu Tho, Tuyen Quang, Thua Thien Hue, Quang Nam, Dak Lak, with a total target of 32-35 million tons of various grades and an investment capital of 100-106 billion VND.

b. Period 2016-2020: Conduct exploration of 8-11 new feldspar ore areas and peripheral areas of the Ngot mine (currently operating), with a total target of 18-24 million tons of various grades and an investment capital of 58-63 billion VND.

List of feldspar ore exploration projects for the period 2008-2025 (Section B1, Annex 1).

3. Exploration of kaolin

The explored reserves of kaolin ore and predicted resources are approximately 400 million tons, of which Class C₂ and above exploration is about 250 million tons.

Kaolin ore deposits with resources ≥ 1 million tons and relatively good quality are planned to be explored according to the following schedule:

a. Period 2008-2015: Conduct exploration of 19 kaolin ore projects in the provinces of Tuyen Quang, Phu Tho, Yen Bai, Lai Chau, Quang Nam, Gia Lai, and Dak Lak, with a total target of about 53 million tons of various grades and an estimated investment capital of 95.5 billion VND.

To replace and/or supplement the existing deposits, it is planned to invest in exploring some promising ore points based on the results of the ore kaolin and feldspar investigation and evaluation projects according to Decision No. 116/2007/QĐ-TTg dated July 23, 2007 of the Prime Minister in the areas of Ding Van and Bao Loc, Lam Dong; the kaolin deposit Dak Nia, Dak Nia commune, Gia Nghia district, Dak Nong province; the kaolin-feldspar area Huong Phong-A Roang, A Luoi district, Thua Thien Hue province; and the highland clay kaolin area Yen Dung-Luc Nam, Bac Giang province.

b. Period 2016-2025: It is planned to explore 18 kaolin ore deposits with a total target of about 57.5 million tons of various grades and 113.5 billion VND.

In addition to the 18 kaolin ore deposits mentioned above, it is planned to explore some additional clay kaolin bodies within the kaolin-feldspar ore deposit area of Yen Thai-Bao Dap, Yen Bai province; 2-3 promising kaolin-feldspar ore areas in the Tan Thinh-Bang Doan, Phu Tho-Yen Bai region, the Van Son-Lam Xuyen-Son Duong-Tuyen Quang region, and the clay kaolin area Ben Cat district, Binh Duong province; the kaolin-feldspar ore area Tham Duong-Lang Giang-Van Ban, Lao Cai province; the southern part of the Chay River basin, Bac Quang-Quang Binh, Ha Giang province; the Lang Chan-Ba Thuoc-Cam Thuy, Thanh Hoa province; and the region of Bình Long, Bình Phước after evaluation (according to Decision No. 116/2007/QĐ-TTg dated July 23, 2007 of the Prime Minister).

List of kaolin ore exploration projects for the period 2008-2025 (Section A1, Annex 1).

4. Exploration of magnesite ore

The explored resources and investigated magnesite ore are approximately 25 million tons, of which Class C₂ and above exploration is about 10 million tons.

By 2010, complete the exploration of the Kon Queng magnesite ore deposit in Gia Lai province with a target of 18 million tons of magnesite ore of Class B+C₁+C₂ to prepare a feasibility study report for exploitation;

From 2011-2015, conduct exploration of the West Kon Queng magnesite ore deposit in Gia Lai province with a target of 6 million tons of magnesite ore of Class B+C.₁+C₂.

List of magnesite ore exploration projects (Section C, Annex 1).

V. PLANNING FOR MINING AND PROCESSING

1. Mining and processing of white limestone (marble)

Mines permitted for mining and processing white limestone in the period 2008-2025 must have a capacity of ≥ 500,000 tons of raw limestone/year, or equivalent to the quantity of products including: 83,000 m³ of white limestone facing tiles and decorative items, 125,000 tons of white limestone blocks and chips, and 100,000 tons of various types of calcium carbonate powder each year.₃ each year.

a. Period 2008-2015

- Consolidate and integrate small-scale limestone mining areas located close to each other in the provinces of Yen Bai and Nghe An to organize industrial-scale mining operations during the period 2011-2015;

- In Yen Bai: Invest in mining and processing white limestone in the mining areas that have been granted exploitation permits (10 areas) and completed exploration in Mong Son-Yen Binh and Lục Yên districts (31 areas). Ensure that the mining boundaries lie outside the environmental protection zone around Lake Thac Ba.

- In Nghe An: Invest in mining and processing white limestone in the mining areas that have been granted exploitation permits (9 areas) and completed exploration in Tan Ky and Quy Hop districts (45 areas).

- In Bac Kan: Invest in mining and processing 6 areas in the Cho Don-Ba Be region. Ensure that the mining boundaries lie outside the environmental protection zone around Lake Ba Be.

- In Ha Nam: Invest in mining white limestone in the Thung Duoc mining area in Thanh Liem district to serve local industrial processing facilities.

- At Tuyên Quang: Investment in exploration, exploitation, and processing of white limestone from Km54 - Km57 mine, Phú Yên commune, Hàm Yên district (based on promising exploration results).

- Investment in new factories and/or expansion to increase production capacity of high-quality CaCO₃ powder currently existing in Đồng Nai province up to 500,000 tons of CaCO₃ powder.₃ by 2015 and 1 (one) million tons by 2025.₃ - Continue exploitation and processing of marble in the Chợ Đồn area, Bắc Kạn province;

b. Period 2016-2025

- Region Lục Yên - Yên Bình, Yên Bái: Investment in exploitation and processing of white limestone at mines that have been granted permits (deeper exploitation, or further exploration and upgrading);

- Region Quỳ Hợp - Tân Kỳ, Nghệ An: Investment in exploitation and processing of white limestone at mines that have been granted permits (deeper exploitation, or further exploration and upgrading).

Estimated production volume of white limestone exploitation and processing: reaching approximately 1 million tons of CaCO₃

various types, exporting about 0.2-0.3 million tons of CaCO₃₃ and 1.8 million tons of CaCO₃₃ granules; reaching 2.0 million tons of CaCO₃₃ various types, exporting about 0.6-0.8 million tons of CaCO₃₃ and 2.4 million tons of CaCO₃₃ granules; reaching 2.6 million tons of CaCO₃₃ various types, exporting about 1-1.2 million tons of CaCO₃₃ and 3.2 million tons of CaCO₃₃ granules; reaching 3.8 million tons of CaCO₃₃ various types, exporting about 1.5 million tons of CaCO₃₃ and 3.8 million tons of CaCO₃₃ granules.₃ List of investment projects for exploitation and processing of white limestone during the period 2008-2025 (Annex 2).

2. Exploitation and processing of felspar ore

Products processed from felspar ore include felspar powder used for ceramic bone and glaze, porcelain, construction materials; additives for glass industry... serving domestic demand and export.

a. Period 2008-2015: Implement investment in exploitation and processing of felspar ore from 12 new mines and improvement-expansion of production in Phú Thọ, Tuyên Quang, Lào Cai, Yên Bái, Gia Lai, Đắk Lắk, Thừa Thiên - Huế, and Quảng Nam regions with total capacity of about 1.07 million tons/year, estimated investment capital of about 570-610 billion VND;

b. Period 2016-2025: Implement investment in exploitation and processing of felspar ore from 12 new mines and improved-expanded production mines in Lào Cai, Yên Bái, Tuyên Quang, Quảng Nam, Đắk Lắk, and Hà Giang regions with additional total capacity of about 660,000 tons.

Products processed from felspar ore include felspar powder used for porcelain glaze, additives for glass industry, and export.

List of projects for exploitation and processing of felspar ore during the period 2008-2025 (Subsection B2, Annex 1).

3. Exploitation and processing of kaolin

Deeply processed products from kaolin ore include refined kaolin powder used for ceramic bone and glaze, porcelain, construction materials; additives for paper, chemical, and glass industries... serving domestic demand and export.

a. Period 2008-2015: Implement investment in exploitation and processing of kaolin ore from 24 new mines and improved-expanded production mines in Lào Cai, Yên Bái, Vĩnh Phúc, Thái Nguyên, Quảng Bình, Thừa Thiên - Huế, Quảng Ngãi, Đắk Lắk, Lâm Đồng, Tây Ninh, Bình Phước, and Bình Dương regions with total estimated investment capital of about 800 billion VND, ensuring total capacity reaches about 1.14 million tons/year, refined kaolin product by 2015.

b. Period 2016-2025: Invest in exploitation and processing of kaolin ore from 17 new mines and improved-expanded production mines in Lào Cai, Quảng Bình, Thừa Thiên - Huế, Quảng Ngãi, Đắk Nông, Bình Phước, and Bình Dương regions with total estimated investment capital of about 950 billion VND, ensuring additional total capacity of about 2 million tons of refined kaolin product by 2025.

Deeply processed products from kaolin ore include refined kaolin powder used for ceramic and porcelain industries and export.

List of projects for exploitation and processing of kaolin ore during the period 2008-2025 (Subsection A2, Annex 1).

4. Exploitation and processing of magnesite ore

Deeply processed products from magnesite ore include metallic magnesium and calcined magnesite and sintered magnesite for refractory material production.

- Period 2010 and 2011: Conduct feasibility studies and overall planning design for exploitation and processing of magnesite ore in the Kon Queng region, Gia Lai;

a. Period 2008-2015

- Invest in building a mining plant with phase I capacity of 200,000 tons of raw ore/year;

- Invest in building a factory producing calcined magnesite and sintered magnesite with a capacity of 100,000 tons of products/year for refractory material production.

- Expand the capacity of the mining plant (phase II) to 400,000 tons of raw ore/year.

b. Period 2016-2025

- Invest in building a factory for metallic magnesium smelting with a capacity of 45,000 tons of magnesium ingots/year using electrolytic chlorination technology or Pidgeon technology.

Deeply processed products from magnesite ore include metallic magnesium and calcined magnesite and sintered magnesite (for refractory material production). List of projects for exploitation and processing of magnesite ore during the period 2008-2025 (Subsection C, Annex 1).

VI. INVESTMENT CAPITAL

Estimated investment capital for exploration, exploitation, and processing of raw material minerals including white limestone, felspar, kaolin, and magnesite during the planning period is approximately 16,844 billion VND.

Of which: Up to 2015, approximately 5,164 billion VND.

From 2016 to 2025, approximately 11,680 billion VND.

Sources of investment capital: Including self-raised capital by enterprises, state development investment loans, commercial loans, and direct foreign investment...

VII. MAJOR SOLUTIONS AND POLICIES

1. Overall solutions and policies

- Processing mineral resources of raw material minerals including white limestone, felspar, kaolin, and magnesite into high-quality products and their derivatives primarily to meet domestic demand, with a reasonable portion of deeply processed products for export; due to large reserves and forecasted resources of white limestone (35 billion tons), therefore, there will be no restriction on the export of white limestone products (powder and blocks) during the planning period.

- Processing minerals in the group of raw material rocks including high-quality limestone, feldspar, kaolin, and magnesite products serving primarily domestic demand, with a reasonable portion for export of deep-processed products; due to the very large explored reserves and forecasted resources of limestone (35 billion tons), therefore, during the planning period, there is no restriction on the export of processed limestone products (powder and blocks) during the planning period;

- Strengthen hierarchical management of resources, perfect regulatory mechanisms, and enhance bidding for mineral activities; establish joint-stock companies with the participation of organizations and individuals with experience, capacity in mining, and financial strength to invest in exploration, exploitation, and deep processing of minerals. Encourage diversity in ownership forms, attract domestic and foreign resources to develop technologies for the exploitation and processing of white limestone, feldspar, kaolin, and magnesite raw materials according to the priority orientation towards domestic enterprises with capacity; cooperate and associate with foreign entities in the field of processing requiring high technology.

- Enhance the social responsibility of businesses in the activity group of white limestone, feldspar, kaolin, and magnesite raw material minerals such as contributing to the construction of infrastructure; attracting training and utilizing local labor; taking proactive measures to protect the ecological environment and actively participating in improving the social environment.

2. Specific solutions and policies

a. Market solutions: Build and develop the domestic market for products in the group of white limestone, feldspar, kaolin, and magnesite raw material minerals according to a market mechanism under state management and consistent with Vietnam's integration roadmap, closely cooperate and associate to ensure raw material sources for processing facilities that have been planned and are currently being invested in construction; gradually dominate the domestic consumption market, step by step participate in the international market.

b. Research, transfer, and reception of science and technology

- Focus on researching and applying advanced mining technologies. Improve and upgrade existing mining and processing technologies. Study and build high-quality product processing technology procedures through a combination of state-enterprise-scientific and technological enterprise-mineral exploitation and processing enterprise economic components.

- Cooperate with foreign countries to research and produce high-quality products from the group of white limestone, feldspar, kaolin, and magnesite raw material minerals for export.

c. Development and training of human resources: Cooperate with training institutions (vocational schools, colleges, universities) to train and retrain, on-site training teams of workers and scientific researchers for mining, mineral separation, and metallurgy stages suitable for the scale and conditions of exploiting white limestone, feldspar, kaolin, and magnesite in Vietnam. Focus on training management and business administration teams with qualifications to meet the requirements of developing enterprises in a competitive and integrated environment.

d. Environmental protection: Fully and strictly implement proactive environmental protection measures during exploration, mining, and mineral separation in the direction of applying modern, environmentally friendly technology (complying with solid waste, wastewater, exhaust gas regulations; recycling circulating water); strictly implement land restoration and environmental recovery after mining. Ensure industrial hygiene and workplace safety in production. Encourage research and application of advanced environmental treatment technologies in all production stages. State management agencies strengthen investment in monitoring and controlling environmental equipment.

e. Investment capital solutions

To attract approximately 16,844 billion VND for the development of the industry of white limestone, feldspar, kaolin, and magnesite mining and processing until 2025 as mentioned above, it is expected to mobilize from the following sources:

- Self-raised capital of enterprises;

- Budget capital: support investment in technical infrastructure outside the fence for large-scale mining and processing areas; investment in training and scientific research technology of institutes and schools in the industry;

- State credit investment capital: projects investing in mining and processing ores in economically and socially difficult and extremely difficult areas according to current regulations;

- Domestic and foreign commercial loans;

- Foreign direct investment: take advantage of foreign capital for some joint investment projects in exploring, mining, and processing large-scale white limestone, feldspar, kaolin, and magnesite.

g. State management work

- Regularly review, update, and adjust the planning for the development of the industry of white limestone, feldspar, kaolin, and magnesite exploration, mining, and processing to be consistent with the country's and international socio-economic development situation;

- Establish and improve the management mechanism for exploration, mining, and processing of minerals to ensure unity and tightness, without overlap, enhancing the flexibility and effectiveness of resource management, protection, and exploitation of white limestone, feldspar, kaolin, and magnesite;

- Rectify resource management and statistical reporting work on white limestone, feldspar, kaolin, and magnesite mineral activities regularly from the grassroots level to provincial and ministerial levels. Take strong measures and sanctions against organizations and individuals who fail to fully comply with laws on minerals and the environment. Strengthen supervision of mineral activities to prevent illegal mining and export of minerals.

- Review and amend the criteria for calculating reserves and resources of white limestone, feldspar, kaolin, and magnesite to be consistent with the increasing prices of concentrate and processed products from white limestone, feldspar, kaolin, and magnesite, and the progress of current mining and processing technology.

VIII. IMPLEMENTATION ORGANIZATION

1. The Ministry of Industry and Trade is responsible for announcing, directing, and organizing the implementation of the planning; timely updating and adjusting the planning; proposing sustainable development mechanisms and policies for the industry of white limestone, feldspar, kaolin, and magnesite mining and processing, ensuring consistency and suitability with the socio-economic development situation and the international integration roadmap of Vietnam.

2. Ministries: Natural Resources and Environment, Science and Technology, Planning and Investment, Finance, Transport, Agriculture and Rural Development, Information and Communications, according to their functions and responsibilities, take the lead and coordinate with the Ministry of Industry and Trade to implement specific measures and policies outlined in this Decision.

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

- Organize the management and protection of white limestone, feldspar, kaolin, and magnesite resources within the territory; prevent illegal mining and export of minerals;

- Organize the establishment and submit to the People's Council at the same level for approval the planning for exploration, exploitation, and processing of white limestone, feldspar, kaolin, and magnesite under the local authority and consistent with this Planning. Delimit and approve areas prohibited, temporarily prohibited, and restricted mineral activities;

- Coordinate with state management agencies and enterprises to implement projects as stipulated 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. The Ministers, Heads of ministerial-level agencies, agencies under the Government, Chairpersons of Provincial People's Committees directly under the Central Government shall be responsible for implementing this Decision;