Joint Circular No. 61/2014/TTLT-BTNMT-BKHĐT-BTC guiding procedures for capital contribution and management of contributed capital by organizations and individuals participating in investment in basic geological surveys on minerals.

 JOINT CIRCULAR

Guidelines on procedures for capital contribution and management of contributed capital by organizations and individuals participating in basic geological surveys for mineral resources

pursuant to Resolution No. 60/2010/QH12 dated November 17, 2010;

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Pursuant to the Law KPursuant to Decree No. 15/2012/NĐ-CP dated March 9, 2012 of the Government detailing implementation of certain provisions of the Law on Mineral Resources;

Pursuant to Decree No. 116/2008/NĐ-CP dated November 14, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment; KThe Minister of Natural Resources and Environment, the Minister of Planning and Investment, and the Minister of Finance issue this Circular guiding procedures for capital contribution and management of contributed capital by organizations and individuals participating in basic geological surveys for mineral resources.

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Article 1. This Circular guides procedures for capital contribution and management of contributed capital by organizations and individuals (hereinafter referred to as investors) participating in basic geological surveys for mineral resources as prescribed in Point c Clause 4 Article 10 of Decree No. 15/2012/NĐ-CP dated March 9, 2012 of the Government detailing implementation of certain provisions of the Law on Mineral Resources (hereinafter referred to as Decree No. 15/2012/NĐ-CP).

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Article 2. This Circular applies to state agencies, organizations, and individuals participating in or related to activities of investing in basic geological surveys for mineral resources.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 2. Conditions for investors participating in capital contribution for basic geological surveys for mineral resources

Investors participating in capital contribution for basic geological surveys for mineral resources must meet the following conditions:

1. Meeting the requirements stipulated in Clause 1 Article 34 and Clause 1 Article 51 of the Law on Mineral Resources, including: enterprises established under the Enterprise Law; cooperatives and cooperative unions established under the Law on Cooperatives; foreign enterprises with representative offices or branches in Vietnam.

2. Having sufficient funds to implement the entire project of basic geological surveys for mineral resources as prescribed in Point b Clause 3 Article 10 of Decree No. 15/2012/NĐ-CP.

Article 3. Rights of investors participating in capital contribution for basic geological surveys for mineral resources

1. Being entitled to participate in inspection, supervision, and acceptance of the project of basic geological surveys for mineral resources they have invested in.

2. Being given priority in using information about minerals in the area surveyed when participating in mineral resource activities.

3. Being selected to be granted a Prospecting License for Minerals according to the provisions of Point b Clause 2 Article 13 of Decree No. 15/2012/NĐ-CP.

4. Being entitled to reimbursement of costs for basic geological surveys for mineral resources when not granted a Prospecting License for Minerals according to the provisions of Article 7 of this Circular.

PROCEDURES FOR CAPITAL CONTRIBUTION AND MANAGEMENT OF CONTRIBUTED CAPITAL FOR BASIC GEOLOGICAL SURVEYS FOR MINERAL RESOURCES

Article 4. Procedures for registration and selection of investors participating in capital contribution for basic geological surveys for mineral resources

Chapter II

1. The Ministry of Natural Resources and Environment shall be responsible for publishing the list of projects of basic geological surveys for mineral resources encouraged for investment on its official website after approval by the Prime Minister. 2. Based on the list of projects of basic geological surveys for mineral resources encouraged for investment approved by the Prime Minister, investors shall prepare and submit applications for capital contribution to the Vietnam General Department of Geology and Mineral Resources.

The application period starts 10 (ten) working days after the publication of the list as stipulated in Clause 1 of this Article and ends 90 (ninety) working days thereafter.

3. The application for capital contribution shall include:

a) A copy of the business registration for exploration and exploitation of mineral resources of organizations and individuals as prescribed in Clause 1 Article 34 and Clause 1 Article 51 of the Law on Mineral Resources;

b) Financial capability documentation (financial statements at the time of requesting capital contribution or of the previous year, audited independently).

4. Upon receipt of the application, the Vietnam General Department of Geology and Mineral Resources shall issue a confirmation of receipt and send it to the investor (the form of confirmation is specified in Appendix 01 attached to this Circular).

5. Within 20 (twenty) working days from the end date of the application period as stipulated in Clause 2 of this Article, the Vietnam General Department of Geology and Mineral Resources shall organize the selection of investors and publicly announce the results of the selection of investors (including selected investors and non-selected investors) on the official website of the Ministry of Natural Resources and Environment.

6. The selection of investors for capital contribution for basic geological surveys for mineral resources shall be carried out as follows:

a) In case only one investor submits an application within the application period as stipulated in Clause 2 of this Article, that investor will be selected if they meet the conditions prescribed in Article 2 of this Circular;

b) In case two or more investors meet the conditions prescribed in Article 2 of this Circular at the end of the application period as stipulated in Clause 2 of this Article, the investor with the largest proportion of equity capital (at the time of selection) compared to the total investment required to implement the project of basic geological surveys for mineral resources will be selected.

6. The selection of investors to contribute capital for basic geological surveys of minerals shall be carried out as follows:

a) In cases where only one investor submits an application within the time limit specified in Clause 2 of this Article, such investor shall be selected if they meet the conditions stipulated in Article 2 of this Circular;

b) In cases where two or more investors meet the conditions stipulated in Article 2 of this Circular upon expiration of the application submission period specified in Clause 2 of this Article, the investor with the largest proportion of their own capital (at the time of selection) relative to the total investment required to implement the basic geological survey project on minerals shall be selected.

Article 5. Procedures for Capital Contribution to Participate in Basic Geological and Mineral Investigation Investment

1. Within no more than thirty (30) days from the date of receiving the notification from the Vietnam General Department of Geology and Minerals regarding the results of the selection for capital contribution investment, the investor must sign a commitment to participate in basic geological investigation on minerals with the Vietnam General Department of Geology and Minerals (as specified in Appendix 2 attached hereto) and submit a guarantee letter at a domestic credit institution or a foreign bank branch in Vietnam with a value of one (1) billion VND for the preparation of the basic geological investigation project on minerals.

If the selected investor does not sign the commitment within thirty (30) days, the next eligible investor will be selected to replace the capital contribution investment.

2. Within no more than forty-five (45) days from signing the commitment with the investor, the Vietnam General Department of Geology and Minerals shall prepare and submit the basic geological investigation project on minerals for approval by the Ministry of Natural Resources and Environment.

3. Within no more than five (5) working days from the date of approval of the basic geological investigation project on minerals, the Vietnam General Department of Geology and Minerals shall notify the investor to sign the capital contribution investment participation contract for basic geological investigation on minerals with the entity assigned to implement the project.

Participation in capital contribution for basic geological investigation on minerals shall be carried out through the Capital Contribution Contract and the Settlement of the Capital Contribution Contract for Basic Geological Investigation on Minerals (as specified in Appendices 03 and 04 attached hereto).

4. Within no more than thirty (30) days from the date of issuance of the notification as stipulated in Clause 3 of this Article, if the investor does not come to sign the contract, it shall be deemed that the investor has not fulfilled the commitment. The guarantee amount as stipulated in Clause 1 of this Article shall be settled for the work of preparing the basic geological investigation project on minerals according to regulations; any excess amount shall be returned to the investor.

5. The progress of capital contribution in the Capital Contribution Contract for Basic Geological Investigation on Minerals must be guaranteed by a domestic credit institution or a foreign bank branch in Vietnam.

Article 6. Management of Capital Contributions for Basic Geological and Mineral Investigation Investment

1. The capital contribution of the investor to implement the basic geological investigation project on minerals is Vietnamese Dong or convertible foreign currency at the time of payment.

2. The basis for the investor's capital contribution to implement the basic geological investigation project on minerals shall be carried out according to economic and technical norms issued by the Ministry of Natural Resources and Environment, unit prices approved by the competent authority, and current expenditure regulations.

3. The Vietnam General Department of Geology and Minerals is responsible for opening a deposit account at the State Treasury to receive the investor's capital contributions and must manage and use them in accordance with the laws on state budget management.

4. The management and use of the investor's capital contribution to implement the basic geological investigation project on minerals shall be carried out according to the signed contract and the regulations on managing and using the state budget funds for economic public services in the field of geology and minerals.

5. The State Treasury where transactions are conducted shall implement control over expenditures from the capital contribution for basic geological investigation on minerals similar to the current regulations on the management, allocation, and settlement of state budget expenditures through the State Treasury.

6. The acceptance of the basic geological investigation project on minerals shall be carried out according to the inspection and acceptance regulations issued by the Ministry of Natural Resources and Environment.

7. Any remaining unspent capital contribution balance at the end of the year may be transferred to the following year for implementation.

8. The annual settlement of capital contribution for basic geological investigation on minerals (settlement of other sources of funding) shall be carried out according to the regulations of the Ministry of Finance on examination, review, and notification of annual settlement for administrative agencies, public service units, organizations supported by the state budget, and budgets at various levels.

9. Upon completion of the project, the Vietnam General Department of Geology and Minerals shall be responsible for approving the final settlement of the project implementation costs for basic geological investigation on minerals according to current regulations.

In case the final settlement cost is less than the investor's capital contribution, the Vietnam General Department of Geology and Minerals shall be responsible for refunding the unused portion to the investor. In case the final settlement cost exceeds the investor's capital contribution, the Vietnam General Department of Geology and Minerals shall be responsible for notifying the investor to supplement additional capital contribution.

10. The acceptance result of the basic geological investigation project on minerals serves as the basis for settling the contract.

Article 7. Repayment of Costs for Basic Geological Survey on Minerals

1. When an investor who contributes capital to conduct a basic geological survey on minerals does not meet the conditions to be granted a permit for mineral exploration in the surveyed area, the organization or individual granted the mineral exploration permit must repay the costs of the basic geological survey on minerals to the investor in accordance with the law.

2. In cases where the surveyed area does not meet the conditions for granting a mineral exploration permit, the investor shall not be entitled to repayment of the contributed capital.

Chapter III

RESPONSIBILITY AND EFFECTIVENESS OF IMPLEMENTATION

Article 8. Responsibilities of Investors Contributing Capital for Basic Geological Survey on Minerals

1. Bear responsibility for contributing capital to implement the basic geological survey project on minerals in accordance with the Contract.

2. Shall not be entitled to repayment of invested costs when the implementation does not comply with the Contract.

Article 9. Responsibilities of the Ministry of Natural Resources and Environment

1. Approve or authorize the Vietnam General Department of Geology and Mineral Resources to approve the basic geological survey project on minerals implemented by the investor.

2. Take the lead and coordinate with relevant Ministries, the investor to periodically and randomly inspect the implementation of the basic geological survey project on minerals to ensure proper management and effective use of the investor's contributed capital.

Article 10. Responsibilities of the Vietnam General Department of Geology and Mineral Resources

1. Receive and manage, use the investment capital contributed for the basic geological survey on minerals of the investor in accordance with the law.

2. Regularly report survey results; provide all survey results upon completion of the basic geological survey project on minerals to investors who have participated in the basic geological survey on minerals.

3. Guide and collect payment to repay costs from organizations and individuals granted mineral exploration permits to pay to the investor in cases where the investor does not meet the conditions to be granted an exploration permit in the surveyed area according to Circular Joint No. 186/2009/TTLT-BTC-BTNMT dated September 29, 2009 of the Ministry of Finance - Ministry of Natural Resources and Environment guiding methods for determining, payment methods, procedures for paying fees for using data, information on the results of mineral surveys conducted by the State and Circular Joint No. 64/2012/TTLT-BTC-BTNMT dated April 25, 2012 of the Ministry of Finance - Ministry of Natural Resources and Environment amending and supplementing some articles of Circular Joint No. 186/2009/TTLT-BTC-BTNMT.

4. Organize the implementation and inspection, acceptance, supervision of the execution of the basic geological survey project on minerals approved by the Ministry of Natural Resources and Environment.

Article 11. Effective Date

1. This Circular takes effect from December 29, 2014.

2. In case the legal normative documents cited in this Circular are amended or supplemented, they shall be implemented in accordance with the amended or supplemented legal normative documents.

3. During the implementation process, if there are difficulties, it is recommended that agencies, organizations, and individuals reflect them to the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment, and the Ministry of Finance for study and appropriate amendment and supplementation./.