DECREE NO. 76/2000/ND-CP DETAILING THE IMPLEMENTATION OF THE MINERAL RESOURCES LAW (AMENDED)

DECREE

Regarding the detailed implementation of the Minerals Law (amended)

 ____________________________

 

THE GOVERNMENT

WHEREAS EDUCATION The Government issued on September 30, 1992; Based on the Minerals Law dated March 20, 1996

At the proposal of the Minister of Industry,

This Decree specifies the detailed implementation of the Minerals Law adopted by the National Assembly of the Socialist Republic of Vietnam on August 20, 1996.

 DECREE:

PART I

GENERAL PROVISIONS

Article 1The provisions of this Decree apply to the management, protection, basic geological investigation of mineral resources, and mineral activities including: surveying, exploration, mining, processing of minerals in Vietnam by domestic and foreign organizations and individuals.

Article 2.AUTHORITY FOR MINERAL MANAGEMENT

 Chapter II

1.The Ministry of Industry performs state management functions for minerals throughout the country, with the following tasks and powers:

Article 3.

a)Developing and submitting to competent authorities for issuance, or issuing within its authority, normative legal documents on the management, protection, basic geological investigation of mineral resources, and mineral activities;

b)Organizing the development of planning and plans for the basic geological investigation of mineral resources throughout the country; Chairing and coordinating with relevant ministries and central agencies at the central level, provincial People's Committees (hereinafter referred to as provincial People's Committees) in developing and submitting to the Government for decision-making strategies, plans, policies on mineral resources, and the development of mining and mineral processing industries;

c)Organizing the review and approval of exploration project proposals, reports on the results of ordinary construction material exploration, feasibility studies on mining and mineral processing, mine designs according to this Decree and other laws;

d)Issuing, extending, revoking, and allowing the return of mineral activity permits, and allowing the transfer of mineral activity rights according to this Decree and other laws;

đ)Promoting, disseminating, guiding, inspecting sectors, localities, organizations, and individuals in the implementation of laws on minerals; organizing specialized inspections on minerals according to Articles 58, 59, and 60 of the Minerals Law; inspecting and supervising basic geological investigations of mineral resources;

e)Resolving disputes, complaints, and denunciations regarding mineral activities according to the jurisdiction stipulated in Articles 57 and 62 of the Minerals Law and laws on complaints and denunciations; g)Managing international cooperation activities in the fields of basic geological investigation of mineral resources and mineral activities;

h)Registering, monitoring, evaluating, and summarizing the results of basic geological investigations of mineral resources and the situation of mineral activities throughout the country and regularly reporting to the Government;

i)Coordinating with provincial People's Committees and relevant ministries and central agencies in protecting unexploited mineral resources.

2.The organizational structure, tasks, and powers of the state management agency for geology and minerals under the Ministry of Industry are separately regulated by the Government.

1.Ministries, ministerial-level agencies, and government agencies (hereinafter collectively referred to as Ministries) have the responsibility to coordinate with the Ministry of Industry in managing and protecting mineral resources and mineral activities according to their functions, tasks, and powers. 2.Ministries with state management functions over production, use, and trade of mineral raw materials have the responsibility to:

a)Proactively coordinate with the Ministry of Industry, relevant ministries and central agencies at the central level, and provincial People's Committees in developing and submitting to the Government for decision-making mineral resource policies, strategies, plans, and development plans for the mining, processing, use, and trade of minerals, including import and export, related to the Ministry's management functions;

b)Coordinating with the Ministry of Industry in developing and submitting to the Government for issuance, or issuing within their authority, guidelines for the exploitation, protection, and use of mineral resources related to the Ministry's management functions;

Article 4.

c)Directing and inspecting the implementation of strategies, policies, plans, and laws on minerals by units directly managed by the Ministry;

d)Coordinating with the Ministry of Industry in performing other state management tasks related to the basic geological investigation of mineral resources and mineral activities related to the Ministry's management functions.

The Ministry of Planning and Investment, the Ministry of Science, Technology, and Environment, and the Ministry of Industry, according to their functions, cooperate and uniformly direct international cooperation in the field of mineral activities. The Ministry of Industry leads coordination with relevant ministries and central agencies at the central level and provincial People's Committees and serves as the main agency for state management of mineral activities by foreign-invested organizations and individuals in Vietnam.

The Mineral Reserve Evaluation Council located at the Ministry of Science, Technology, and Environment assists the Government in reviewing and approving reserves in exploration reports for feasibility studies on mining, except for ordinary construction materials. The organization and operation of the Mineral Reserve Evaluation Council are separately regulated by the Prime Minister.

1.Provincial People's Committees, according to their functions, tasks, and powers, have the responsibility to:

a)Issue within their authority guiding documents to implement the Government's, Prime Minister's, and Ministry of Industry's regulations on the management and protection of mineral resources and the management of mineral activities in their locality;

Article 5.b)Chairing and coordinating with the Ministries of Planning and Investment, Construction, Defense, Public Security, Culture, Sports and Tourism, Agriculture and Rural Development, and Transport in delineating areas prohibited or temporarily prohibited from mineral activities as specified in Clause 1, Article 14 of the Minerals Law;

Article 6.c)Developing and participating in the development of plans for the growth of the mining and mineral processing industry within their territorial area;

Article 7.

d)Organizing and directing the implementation of measures to protect unexploited mineral resources in their locality, combining with environmental protection, other natural resources, ensuring social security, protecting the lives and health of citizens, and state and citizen property.

a) Issue guiding documents within their authority to implement the provisions of the Government, the Prime Minister, and the Ministry of Industry regarding the management and protection of mineral resources and the management of mining activities in their locality;

b) Take the lead and coordinate with the Ministries of Planning and Investment, Construction, National Defense, Public Security, Culture, Sports and Tourism, Agriculture and Rural Development, and Transport to delineate areas prohibited or temporarily prohibited from mining activities as defined in Clause 1, Article 14 of the Minerals Law;

c) Develop and participate in planning the development of mineral extraction and processing industries within their territorial jurisdiction;

d) Organize and direct the implementation of measures to protect unexploited mineral resources in their locality, in conjunction with environmental protection, other natural resources, ensuring social security, protecting human lives and health, state and citizen property;

d)Organize the appraisal and approval of feasibility study reports on the exploitationand processing of minerals, mine design in accordance with the provisions of thisDecree and other relevant laws;

e)Issue, extend, revoke permits for mineral exploitation, permits for processingminerals into common construction materials, mud coal, and permits for residualmineral exploitation within the scope of authority prescribed in this Decree; withinthe scope of their responsibilities and powers, resolve conditions related to landleasing, infrastructure usage, and other related conditions for organizations andindividuals permitted to engage in mineral activities, basic geological surveys onmineral resources at the local level;

g)Promote education, supervise, and inspect the enforcement of laws on mineralsagainst all organizations and individuals in the locality;

h)Resolve or participate in resolving disputes regarding mineral activities and handleviolations of mineral laws arising in the locality within the authority stipulated inArticle 57 of the Minerals Law and other relevant laws;

2.The Department of Industry has the responsibility to assist the Provincial People'sCommittee in performing state management functions over minerals in accordancewith the Minerals Law and this Decree. The tasks and authorities of the Departmentof Industry in state management over minerals shall be defined by the Ministerof Industry;

Article 8.Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).y the People's Committee of districts, counties, cities under provinces, towns, townships,villages, wards (hereinafter collectively referred to as districts, villages) shall have thefollowing responsibilities within their functions, tasks, and authorities:

1.Implement measures to protect unexploited mineral resources in the locality,incorporating environmental protection of other natural resources, ensuring socialsecurity, protecting the lives and health of citizens, state assets, and citizens'property;

2.Within the scope of their responsibilities and authorities, resolve conditionsrelated to land leasing, infrastructure usage, and other related conditions fororganizations and individuals permitted to engage in mineral activities, basicgeological surveys on mineral resources in the locality in accordance with the lawand guidance from the Provincial People's Committee;

3.Promote education, supervise the enforcement of laws on minerals; participatein resolving disputes regarding mineral activities and handle violations of minerallaws arising in the locality within their authority;

Article 9. The authority to issue, extend, revoke, permit the return of mineral activitypermits, and permit the transfer of mineral activity rights is as follows:

1.The Ministry of Industry issues the following types of permits:

a)Mineral exploration permit;

b)Mineral prospecting permit;

c)Exploitation permit, processing permit for various types of minerals, except forpermits for exploitation and processing of minerals within the authority of theProvincial People's Committee as stipulated in Clause 2 of this Article;

d)Exploitation permit, processing permit for minerals into common constructionmaterials for foreign organizations or joint ventures with foreign parties;

2.The Provincial People's Committee issues the following types of permits for areasunder local administrative management:

a)Residual mineral exploitation permit for various types of minerals for areas ofresidual mineral exploitation that have been approved by the Ministry of Industryas stipulated in Articles 66 and 67 of this Decree;

b)Exploitation permit, processing permit for minerals into common constructionmaterials (including areas adjacent between provinces after the Ministry ofIndustry has issued prospecting permits and approved prospecting results) andmud coal for domestic organizations and individuals, except for permits forexploitation and processing of various types of minerals within the authority of theMinistry of Industry as stipulated in Clause 1 of this Article. The Ministry ofIndustry guides the issuance of exploitation permits, processing permits forminerals into common construction materials for areas adjacent betweenprovinces;

3.The competent authority issuing a type of mineral activity permit shall have theauthority to extend, revoke, permit the return of that type of permit and have theauthority to permit the transfer of mineral activity rights according to that type ofpermit.

Chapter III

BASIC GEOLOGICAL SURVEY OF MINERAL RESOURCES

Article 10Article 1 ||| Basic geological survey of mineral resources includes the following activities:

1\. Surveying and discovering potential mineral resources while preparing various typesof regional geological maps, thematic maps, and researching geological and mineralthemes;

2\. Evaluating potential mineral resources by type or group of minerals and withrespect to geological structures with prospects for discovering new mines.

Article 11Basic geological survey activities on mineral resources shall be carried outsimultaneously and combined with basic geological surveys according to nationalplanning and plans.

The Ministry of Industry submits to the Prime Minister the planning and plan forbasic geological surveys of mineral resources; the Ministry of Planning andInvestment reviews and submits to the Prime Minister for approval.

Article 12.Organizations conducting basic geological surveys of mineral resources have therights and obligations as follows:

1\. Register tasks and plans for basic geological surveys of mineral resources inaccordance with regulations of the Ministry of Industry;

2\. Carry out basic geological survey activities on mineral resources according toapproved projects and assigned plans;

3\. Implement procedures, norms, and economic-technical standards in geologicalsurveys issued by the Ministry of Industry;

4\. Ensure honesty and completeness in collecting and compiling geological andmineral information; maintain state secrets regarding geological and mineralinformation in accordance with the law;

5\. Protect the environment, mineral resources, and other resources during theconduct of basic geological surveys and mineral resource surveys;

6\. Submit reports on the results of basic geological surveys of mineral resourcesinto the state geological archives and geological and mineral specimens into themuseum in accordance with the regulations of the Ministry of Industry;

7\. Be entitled to state rewards when achieving accomplishments in research andnew discoveries about geology and mineral resources;

8\. Be permitted to send samples abroad for analysis and testing in accordancewith the law.

Article 13All reports on the results of basic geological surveys of mineral resources must beevaluated, registered, and submitted to the state geological archives in accordancewith the regulations of the Ministry of Industry.

The state geological archive authority has the responsibility to maintain statesecrets regarding mineral resources, facilitate conditions for all organizations andindividuals authorized to use the results of basic geological surveys of mineralresources and mineral-related documents and information in accordance with theregulations of the Ministry of Industry. The Ministry of Industry specifies detailed contents of survey project proposals forbasic geological surveys of mineral resources, state geological archives, andgeological museums; promulgates and guides the implementation of regulatorylegal documents, standards, and rates in basic geological surveys of mineralresources.

Article 14.Article 15 ||| Organizations and individuals engaged in mineral activities in accordance with theMineral Law include: 

Chapter IV

ORGANIZATIONS AND INDIVIDUALS ENGAGED IN MINERAL ACTIVITIES

1\. Economic organizations of Vietnam established and operating under the StateEnterprise Law, Enterprise Law, Cooperative Law, and other economicorganizations whose purpose of establishment involves mineral activities, whichare established, permitted, registered, or recognized by competent stateauthorities; Vietnamese individuals meeting the conditions stipulated by the law; 2\. Foreign organizations or joint ventures with foreign participation operating inVietnam in accordance with the law on foreign investment in Vietnam.

Organizations and individuals specified in Article 15 of this Decree wishing to beissued a permit for mineral activities must meet the conditions stipulated by theMinistry of Industry.

Organizations and individuals practicing mineral exploration must have technicalequipment and professional qualifications as prescribed by the Ministry ofIndustry.

Article 16. Organizations and individuals permitted to extract minerals may only conductextraction activities according to the permit when the Mine Manager meets thestandards prescribed by the Ministry of Industry.

Article 17. The Minister of Industry prescribes the standards for Mine Managers in accordancewith Article 36 of the Mineral Law.

Article 18. ZONES, AREA, AND DURATION OF MINERAL ACTIVITIES

1\. Prohibited zones for mineral activities include the following areas:

 Chapter V

a\. Areas with historical and cultural relics that have been classified and registered;

Article 19.

b\. National forest parks, protective forests; geological conservation areas;

c\. Areas reserved for national defense, security purposes, or affecting nationaldefense and security missions;

d\. Within the scope of dike, embankment, riverbank protection, and importanttransportation works;

đ\. Reserved for religious purposes;

e\. Urban areas or areas with important infrastructure works.

2\. Ministries of Defense, Public Security, Culture and Information, Agricultureand Rural Development, and Transport, within their respective functions, duties,and powers, have the responsibility to coordinate with provincial People'sCommittees to determine the boundaries of prohibited zones for mineral activitieswithin the administrative jurisdiction of each province. The Chairman of theProvincial People's Committee submits to the Prime Minister for decision and notesthe Ministry of Industry in writing about the prohibited zones for mineralactivities.

3\. For areas temporarily prohibited from mineral activities as provided by law,competent state authorities managing those areas have the responsibility to notifyin writing the provincial People's Committees and the Ministry of Industry.

4\. Mining activities within the underground area of prohibited zones for mineralactivities without using surface land must also be agreed upon in writing bycompetent state authorities managing those areas.

1\. Restricted zones for mineral activities are areas where the State has policies tolimit activities through one or more of the following methods:

a\. Reserved exclusively for certain state organizations to have a monopoly onmineral activities;

Article 20.

b\. Limiting production volume;

c\. Limiting export of extracted products.

2\. Restricted zones for mineral activities are determined by the Prime Minister.

Tender zones for mineral activities include the following areas:

1\. Areas where the Prime Minister requires tendering for exploration and mining;

Article 21.2\. Areas or mines that have been explored with state funds and are now subject totendering or selection for mining.

1. Areas where the Prime Minister stipulates that bidding must be conducted for exploration and exploitation;

2. Areas or mines that have been explored using state funds, now subject to bidding or tendering for exploitation;

Article 22.

1. The area granted for a mineral exploration permit shall not exceed two thousand square kilometers (2,000 km²) delineated by grid coordinates, without limitation on the types of minerals to be explored within the area. In special cases requiring an area larger than two thousand square kilometers (2,000 km²), the Ministry of Industry must submit for consideration and decision by the Prime Minister before issuing the permit.²2. A mineral exploration permit may be issued to multiple organizations or individuals operating in the same area. Organizations or individuals that submit an application for exploration first and in accordance with the prescribed procedures under the law shall be considered first.²The term of a mineral exploration permit shall not exceed twelve months.

2. For areas with an area of one hundred square kilometers (100 km²) or more, a mineral exploration permit may be extended once for no more than twelve months, provided that at the time of requesting the extension:

Article 23.

1.a) No organization or individual has submitted an application for prospecting there;

b) The organization or individual permitted to explore has fulfilled all obligations stipulated in the previous permit;

c) The mineral exploration permit remains valid for at least thirty days;

d) The organization or individual permitted to explore must submit a report on the results of the exploration to the Ministry of Industry, detailing the reasons for requesting the extension, along with the subsequent exploration program attached to the request for extension of the permit.

1. The area granted for a mineral exploration permit for precious metals (gold, silver, platinum), gemstones (diamonds, rubies, sapphires, emeralds) shall not exceed one hundred square kilometers (100 km²).

2. The area granted for a mineral exploration permit for coal, metallic minerals (excluding precious metals), non-metallic minerals (excluding common construction materials) in land areas, with or without surface water, shall not exceed two hundred square kilometers (200 km²).

Article 24.

3. The area granted for a mineral exploration permit for various types of minerals in continental shelf areas shall not exceed five hundred square kilometers (500 km²).²).

4. The area granted for a mineral exploration permit for common construction materials in land areas, with or without surface water, shall not exceed ten square kilometers (10 km²).²).

5. The area granted for a mineral exploration permit for mineral water, natural hot water shall not exceed twenty square kilometers (20 km²).²).

6. Organizations or individuals meeting the conditions specified in Article 15 and Article 16 of this Decree may be granted multiple exploration permits, but not exceeding five permits.²).

The term of a mineral exploration permit, including the time for preparing reports on exploration results and feasibility studies for exploitation, shall be at least six months and no more than twenty-four months, subject to the following conditions:²).

1. At the time of requesting an extension, the organization or individual permitted to explore has fulfilled all obligations stipulated in the previous permit; the exploration permit remains valid for at least thirty days;

Article 25. 2. Each extension must return at least thirty percent (30%) of the area granted for exploration according to the previous permit;

3. Accompanying the request for extension sent to the Ministry of Industry must include a report on exploration results and actual costs, explaining the reasons for requesting the extension of the permit, the subsequent exploration plan and costs;

4. Exploration permits specified in Clauses 1, 2, and 3 of Article 24 of this Decree may be extended up to twice, but the total extension period shall not exceed twenty-four months; in cases where the exploration permit has been extended, and the total exploration period has reached forty-eight months, the organization or individual permitted to explore has completed or exceeded the volume of work and costs as per the proposal, yet still lacks sufficient basis to prepare a feasibility study for exploitation or requires additional time for such a study, then the exploration permit may be reissued if the organization or individual permitted to explore submits a valid application.

The area for exploitation granted in a mining exploitation permit shall be determined based on the feasibility study report on mining exploitation that has been reviewed and approved in accordance with Article 44 of this Decree.

The term of a mining exploitation permit shall be determined based on the feasibility study report on mining exploitation that has been reviewed and approved in accordance with Article 44 of this Decree, but shall not exceed thirty years, and may be extended subject to the following conditions:

Article 26.1. At the time of requesting an extension, the organization or individual permitted to exploit has fulfilled all obligations stipulated by the Mining Law and other relevant laws;

Article 27.2. The mining exploitation permit remains valid for at least three months;

3. Accompanying the request for extension sent to the competent authority issuing the permit must include a summary report on exploitation results up to the time of requesting the extension, along with a current mine map; the area and reserves of unexploited minerals in the mine, the subsequent exploitation program and plan;

4. If the permit was issued before the Mining Law took effect, supplementary mine design and environmental impact assessment reports approved by the competent authority must be submitted;

5. Mining exploitation permits may be extended multiple times based on subsequent exploitation plans approved by the competent authority issuing the permit, but the total extension period shall not exceed twenty years.

CERTAIN PROVISIONS ON FINANCE AND PROPERTY RIGHTS

Permit fees are fees for issuing and extending various types of mineral activity permits. 

Chapter VI

The levels, procedures for collection, payment, management, and use of permit fees are regulated by the Ministry of Finance.

Article 28.1. Exclusive exploration fees are calculated based on the unit area of the exploration zone and the validity period of the mineral exploration permit as follows:

Year 1: 300,000 VND/km²

Article 29.

Year 2: 400,000 VND/km²

Year 3: 550,000 VND/km²²Year 2: Four hundred thousand VND/km²/year;

Year 4 onwards: 700,000 VND/km²²Year 2: Four hundred thousand VND/km²/year;

2. Exclusive exploration fees do not apply to exploration permits with a validity period, including extensions, of less than twelve months, nor to exploration activities within the exploitation area of organizations or individuals permitted to exploit.²Year 2: Four hundred thousand VND/km²/year;

Procedures for collecting, paying, managing, and using exclusive exploration fees are regulated by the Ministry of Finance.²2. In the event that the Approval Letter is revoked, the project developers shall only be considered for issuance of a new Approval Letter after one (01) year from the date of revocation, if they have fully fulfilled all obligations related to the reasons for the previous revocation of the Approval Letter.

2. The exclusive exploration fee does not apply to exploration permits whose validity period, including extended periods, is less than twelve months, nor does it apply to exploration activities within the exploitation area of organizations and individuals permitted to exploit;

Procedures for collecting, submitting, managing, and utilizing the exclusive exploration fee shall be prescribed by the Ministry of Finance;

Article 30.The deposit payment for the exploration permit shall be made once when issuingthe mineral exploration permit and shall not apply to permits conducted withstate capital.

The deposit amount equals twenty-five percent (25%) of the estimated budgetexploration cost for the first year of exploration, as determined in the projector exploration plan approved by the issuing authority.

Within six months from the date the mineral exploration permit becomeseffective, if exploration work has not commenced and the permit is terminated, thedeposit paid shall be transferred to the state budget.

Within six months from the date the mineral exploration permit becomes effective,if exploration work has been carried out according to the plan, the organizationor individual granted the exploration permit may reclaim the deposit.

Organizations and individuals granted the mineral exploration permit have theright to use a bank guarantee at a Vietnamese Bank or a foreign bank permitted tooperate in Vietnam instead of making the deposit payment.

The Ministry of Finance shall guide procedures for submission, registration, andmanagement of deposits or bank guarantees for mineral exploration permits.

Article 31. The minimum exploration cost expressed in Vietnamese Dong per square kilometerper year is the minimum cost required to carry out technical tasks related tomineral exploration on a one-square-kilometer area within one year from the dateof the permit becoming effective.²/year is the minimum cost to carry out technical construction tasks related to mineral exploration on one square kilometer (1 km²) of exploration area in one year from the date the permit becomes effective;²) or more, if the actual exploration costs to implement the project over a two-year period are lower than the approved budget estimate, the difference in value must be paid into the state budget when the exploration permit expires or is renewed.

The Ministry of Industry shall approve the minimum exploration cost for projectsusing state capital or consent to projects not using state capital when issuing orextending mineral exploration permits.

Article 32.For mineral exploration permits not using state capital, with an explorationarea of one hundred square kilometers (100 km²) or more, if the actual explorationcost to implement the project over a two-year period is lower than the estimatedbudget approved by the Ministry of Industry, the difference in value must be paidinto the state budget upon expiration or extension of the exploration permit.²In cases where the actual exploration costs for implementing the project over a two-year period are lower than the budgeted costs approved by the Ministry of Industry, the difference in value must be paid into the state budget when the exploration permit expires or is renewed.

Article 33.Organizations and individuals granted the exploration permit must perform thevolume of exploration work and corresponding costs according to the project orplan approved by the Ministry of Industry.

In cases where the actual exploration cost of the previous year exceeds thebudget and the exploration plan for that year, the excess cost value shall beincluded in the actual cost of the following year.

Article 34.

1.Organizations and individuals using state information on survey and explorationresults must pay the state according to either a lump-sum payment method or apayment based on production volume.

2. Organizations and individuals who have completed payment for using stateinformation on survey and exploration results through a lump-sum payment methodhave the right to use and transfer such information to other organizations orindividuals.

3. Organizations and individuals paying for using state information on surveyand exploration results through a payment based on production volume have theright to use such information for their own mineral activities but may nottransfer, sell, or disclose such information to other organizations orindividuals.

The Ministry of Finance and the Ministry of Industry shall guide methods fordetermining the value, payment methods, and procedures for paying for the use ofdata and information on survey and exploration results provided by the state.

Article 35.

1. Organizations and individuals granted permission to conduct mineralactivities have the right to use and transfer information on survey andexploration results they have invested all funds in.

2. Organizations and individuals granted permission to conduct mineralactivities using part or all of state investment funds for surveys andexplorations do not have the right to provide or transfer information on surveyand exploration results to other organizations or individuals, except whensupplying such information to state authorities responsible for management anduse as prescribed by law.

3. Six months after the mineral exploration permit expires, if the organizationor individual granted the exploration permit does not submit an application formining permit, or six months after the mining permit expires, if the organizationor individual granted the mining permit does not submit an application forpermit renewal, the relevant state authority may provide related mineralinformation to other organizations or individuals.

Article 36When transferring or inheriting the right to explore or mine minerals,organizations or individuals granted the right to explore or mine minerals havethe right to transfer or inherit all assets legally owned by them, includinggeological and mineral data and samples, constructed works and equipment attachedto the mine site.

When the right to mine minerals is transferred, the land lease contract shallbe renewed without having to go through the procedure for transferring the rightto use the land.

The transfer of state-owned property assigned to organizations or individualsgranted the right to explore or mine minerals shall comply with the provisionsof the law.

Article 37When the exploration or mining permit ceases to be effective, ownership rightsfor assets related to exploration or mining activities shall be resolvedaccording to point b, Clause 2, Article 30 and points b and c, Clause 2, Article40 of the Mineral Law.

The Ministry of Finance and the Ministry of Industry shall guide methods fordetermining the value of transferred assets and procedures for transferringassets of organizations or individuals granted the right to explore or mine minerto the state in cases where the permit ceases to be effective as prescribed by theMineral Law and other relevant laws.

Article 38.Organizations and individuals granted the right to mine minerals must providea bank guarantee at a Vietnamese Bank or a foreign bank permitted to operate inVietnam to ensure environmental recovery and land restoration upon completion ofpartial operations and mine closure.

The amount of deposit required for environmental restoration and land reclamation shall be based on the exploitation process, progress, and the estimated cost of restoration determined in the feasibility study report, mine design, and environmental impact assessment report which have been reviewed and approved by competent state agencies.

The Ministry of Finance and the Ministry of Industry, the Ministry of Science, Technology, and Environment shall prescribe methods to determine the amount of deposit and provide guidance on procedures for registering, managing, and using the deposit for environmental and land restoration during mineral extraction activities.

Article 39. The Ministry of Finance shall develop and submit to the Prime Minister for promulgation a system for distributing and utilizing state revenues from mineral activities to implement policies protecting the rights and interests of local people where minerals are extracted and processed as stipulated in Article 7 of the Minerals Law, and to protect unexploited mineral resources.

Article 40.For certain important types of minerals serving national socio-economic development plans where attracting investment capital from other sources is difficult, the Prime Minister shall decide to allocate capital to state-owned enterprises for exploration.

The Ministry of Industry shall take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Finance to submit to the Prime Minister projects proposed for state capital allocation for exploration as prescribed herein.

In other cases, state-owned enterprises may borrow preferential credit to invest in mineral exploration. State capital invested in mineral exploration and preferential credit must be gradually recovered when the mine is put into operation.

The Ministry of Finance shall take the lead and coordinate with the Ministry of Industry and the Ministry of Planning and Investment to prescribe and guide procedures for allocating state capital, borrowing preferential credit, and exempting or reducing the recovery of capital for mineral exploration.

 Chapter VII

REVIEW AND APPROVAL OF PROJECTS AND REPORTS IN MINERAL ACTIVITIES

Article 41.Organizations and individuals permitted to engage in mineral activities have the right to conduct themselves or hire organizations or experts in geology and mining to prepare or review project proposals, designs, and mine closure plans in mineral activities.

Article 42.

1.The Ministry of Industry shall prescribe, guide, and organize the review of survey and exploration project proposals before deciding to issue survey and exploration permits.

2.The Minister of Industry shall approve exploration project proposals using part or all of state capital based on the results of the review.

3.For project proposals not using state capital, the approval content of the project proposal shall be specified in the mineral exploration permit.

Article 43.

1.All reports on the results of mineral exploration using part or all of state capital must be reviewed and approved before being submitted to the state geological archives or for feasibility studies on mineral exploitation.

2.Reports on the results of mineral exploration not using state capital, if used for feasibility studies on mineral exploitation, must also be reviewed by the competent state agency as provided for in Clauses 4 and 5 of this Article and must be submitted to the state geological archives.

3.Requirements and contents of reviewing exploration reports include:

a)The reliability of the quantity and quality of minerals including associated minerals; identifying deficiencies in exploration that lead to the omission of mineral resources;

b)The level and quality of determining hydrogeological conditions, engineering geological conditions, technical and technological conditions related to the selection of mining and processing technologies, and the rational use of mineral resources;

c)Exploration results and the effectiveness of exploration investment (if using state capital) compared to the objectives of the reviewed, approved, or approved project proposal.

4.The Ministry of Industry shall review and approve exploration reports on common construction materials used for feasibility studies on mineral exploitation.

5.The Mineral Reserve Evaluation Council shall review and approve the reserves of exploration reports used for feasibility studies on various types of minerals, except for common construction materials.

Article 44.

1.The review and approval of feasibility study reports on mineral exploitation for domestic investment projects shall be carried out according to the Investment Management Regulations issued by the Government.

2.The review of feasibility study reports on mineral exploitation for foreign direct investment projects shall be conducted according to regulations on the review and implementation of foreign direct investment projects issued by the Government.

Article 45.

1.Organizations and individuals reviewing mine designs must be independent entities with respect to the interests of those preparing the designs and shall be responsible under the law for the results of their reviews.

2.Mine designs for mineral exploitation investment projects shall be reviewed and approved according to the Investment Management Regulations issued by the Government.

3.The Ministry of Industry shall provide detailed guidelines on the content of mine designs, review procedures, and approval of mine designs.

Article 46. The Ministry of Industry shall prescribe the system and content of periodic reports in mineral activities.

Article 47.All mine closure project proposals must be reviewed and approved regarding safety requirements, environmental and land restoration, and other requirements as stipulated in Points b and d Clause 2 Article 40 of the Minerals Law.

The Ministry of Industry shall issue detailed regulations on mine closure.

Chapter VIII

PRINCIPLES AND PROCEDURES FOR ISSUING MINERAL ACTIVITY LICENSES,

TRANSFER FOR INHERITANCE OF EXPLORATION, EXPLOITATION

OR PROCESSING RIGHTS

Article 48.The main basis for issuing mineral activity licenses includes:

1.National strategies for socio-economic development generally, particularly strategies for developing industries related to minerals such as energy, metallurgy, construction materials, fertilizer, chemicals, transportation, and mineral raw material production and business;

2.Policies of the Party and State on mineral resources and development strategies and planning for the mining industry at provincial, regional, and national levels, consistent with socio-economic development strategies and industrial development strategies in each period;

3. The economic and social effectiveness of specific mineral activities, closelylinked to requirements for ensuring national security, defense, environmentalprotection, rational use of natural resources generally, protection ofhistorical and cultural relics, and other public interests as prescribed byrelevant laws.

4. The legal status of the applicant (investor) as prescribed by law and other specificconditions as prescribed by this Decree.

Article 49.In addition to the main grounds prescribed in Article 48 of this Decree, theissuance of a mineral exploration permit must be accompanied by a written opinionof the Provincial People's Committee regarding the proposed area of the explorationpermit, whether it involves restricted or temporarily restricted areas formineral activities, or areas where the Provincial People's Committee has alreadyissued mining permits according to its authority.

The Provincial People's Committee, within its state management authority at thelocal level, is responsible for taking the lead and coordinating with relevantauthorities at central and local levels to determine restricted or temporarilyrestricted areas for mineral activities as prescribed in Clause 1, Article 14 ofthe Mineral Law and Point b, Clause 1, Article 7 of this Decree.

In exceptional cases, when it is necessary to conduct mineral exploration ormining in restricted or temporarily restricted areas as prescribed in Article 19of this Decree, the Ministry of Industry must report to the Prime Minister forconsideration and decision on issuing exploration and mining permits in thoseareas.

Article 50.The issuance of mining or processing permits is based on feasibility studies,reports on environmental impact assessments, and reports on mineral reserves thathave been reviewed or approved by competent authorities as prescribed by law.

Article 51.Prior to issuing a mining permit according to its authority, there must be a writtenopinion from the Provincial People's Committee on matters prescribed in Article49 of this Decree, if such opinions were not obtained during the issuance ofexploration permits.

Within its authority, the Provincial People's Committee is responsible forresponding in writing to the receiving agency within the latest fifteen daysfrom the date of receipt of the request for opinion.

If necessary, the agency receiving applications for mining may publish theapplication for mining on mass media before the issuance of the mining permit,not less than fifteen days prior, to collect opinions.

Article 52.

1. Upon receipt of valid applications and documents for investment permits formining or processing minerals, or related to foreign direct investment in miningor processing minerals, the Ministry of Planning and Investment shall be responsiblefor coordinating with the Ministry of Industry to review, seek opinions fromrelevant agencies, and submit recommendations to the Prime Minister for decisionor make decisions within their authority after obtaining a unified written opinionfrom the Ministry of Industry.

2. Foreign organizations or joint ventures with foreign participation that aregranted exploration permits shall enjoy incentives as prescribed by law toconduct exploration activities according to approved projects.

3. Mining or processing permits granted to foreign organizations or individualsor joint ventures with foreign participation shall be issued together withinvestment permits as prescribed by the Law on Foreign Investment in Vietnam.

4. An investment permit granted to foreign organizations or individuals or jointventures with foreign participation to implement a mineral mining project mayinclude exploration, mining, and processing activities.

Article 53.The maximum period for reviewing applications for mineral activity permits,excluding the time for collecting opinions from relevant agencies as prescribed inArticles 49 and 51 of this Decree, is as follows:

1. Forty-five days from the date of receipt of complete and valid documents fromdomestic organizations or individuals;

2. Sixty days from the date of receipt of complete and valid documents fromforeign organizations or individuals or joint ventures with foreign participation;

3. The above period does not include the time required for organizations orindividuals to supplement documents as requested by the receiving agency.

At the latest seven days after the above period, the competent authority mustissue the permit or respond in writing to the applicant about the refusal to issuea permit.

Article 54.After the issuance of mineral activity permits according to this Decree, relevantstate agencies at central and local levels are responsible for promptly resolvingrelated conditions, including land leasing, infrastructure usage, and otherrelated conditions for organizations or individuals permitted to engage inmineral activities.

Article 55.Organizations or individuals permitted to engage in mineral activities have theright to return part of the area or the mineral activity permit under thefollowing conditions:

1. Organizations or individuals permitted to engage in mineral activities havemet all legal obligations up to the date of application for returning the permit;they have restored the environment, land, and ensured safety in the returnedarea.

2. Within three months from the date of returning the exploration permit,organizations or individuals permitted to explore must fully comply with theobligations stipulated in Point b, Clause 2, Article 30 of the Mineral Law.

Within six months from the date of returning the mining permit, organizations orindividuals permitted to mine must fully comply with the obligations stipulatedin Points b, c, and d, Clause 2, Article 40 of the Mineral Law.

3. They must obtain written permission from the competent authority issuing thepermit to return it.

Article 56.The transfer of rights to explore or mine minerals must comply with the followingprovisions:

1. Organizations or individuals permitted to explore or mine minerals maytransfer their exploration or mining rights according to the issued permit toother organizations or individuals to continue performing their rights andobligations as prescribed in the permit and by law.

2. Assets, documents, and financial values that remain unfulfilled by theorganizations or individuals permitted to explore or mine, along with thetransfer of exploration or mining rights, must be thoroughly inventoried,evaluated, and clearly defined in the transfer agreement between the parties. .

3. Along with the contract and the application for transferring the right to explore or the right to exploit, the organization or individual permitted to explore or exploit must provide a report on the results of exploration and exploitation up to the time of applying for transfer;

4. The organization or individual receiving the transfer of the right to explore or the right to exploit mineral resources must meet all conditions as stipulated in Article 15 of this Decree;

5. In cases where the organization or individual receiving the transfer is a foreign organization or individual or a joint venture with foreign participation, they must have an investment permit issued by the competent state agency in accordance with the Law on Foreign Investment in Vietnam;

6. The transfer of the right to explore or the right to exploit mineral resources by organizations or individuals permitted to explore or exploit must be approved by the authority that issued the permit and taxes must be paid in accordance with the law.

Article 57.The right to explore and the right to exploit mineral resources of individuals permitted to explore or exploit may be inherited if the lawful heir meets the conditions stipulated in Articles 15 and 16 of this Decree. If the lawful heir does not meet the conditions specified in the permit to continue operations, it can be resolved as follows:

1. The lawful heir of the property of an individual permitted to explore or exploit may transfer the right to explore and the right to exploit mineral resources according to the permit if the actual conditions comply with the provisions of Article 56 of this Decree;

2. The exploration permit and the mining permit will be revoked; the lawful heir of the property of an individual permitted to explore mineral resources shall have rights and obligations as prescribed in point b, Clause 2, Article 30 of the Minerals Law; the lawful heir of the property of an individual permitted to mine mineral resources shall have rights and obligations as prescribed in points b, c, and d, Clause 2, Article 40 of the Minerals Law.

Article 58.The mineral survey permit will be revoked as provided for in Article 24 of the Minerals Law. In cases where the organization or individual permitted to survey violates any of the provisions of Article 23 of the Minerals Law, the period allowed to rectify the violation shall not exceed thirty days from the date the competent state management agency under the Ministry of Industry issues a notification.

Article 59.The mineral exploration permit will be revoked as provided for in Article 29 of the Minerals Law. In cases where the organization or individual permitted to explore violates any of the provisions of Article 27 of the Minerals Law, the period allowed to rectify the violation shall not exceed sixty days from the date the competent state management agency under the Ministry of Industry issues a notification.

Article 60.The mineral exploitation permit will be revoked as provided for in Article 39 of the Minerals Law. In cases where the organization or individual permitted to exploit violates any of the provisions of Article 33 of the Minerals Law, the period allowed to rectify the violation shall not exceed ninety days from the date the competent state management agency under the Ministry of Industry or the Department of Industry issues a notification within their jurisdiction.

Article 61.

1. The mineral processing permit is granted to organizations or individuals who are not permitted to exploit mineral resources under the following conditions:

a) The organization or individual applying for processing must meet the conditions stipulated in Articles 15 and 16 of this Decree;

b) The feasibility study report on mineral processing must be reviewed, approved, and accepted in accordance with the provisions of Article 44 of this Decree;

c) There must be an environmental impact assessment report which has been reviewed and approved by the competent state agency.

2. The duration of the mineral processing permit is based on the feasibility study report for each project and is consistent with the investment permit or investment decision.

3. The mineral processing permit will be revoked when the organization or individual permitted to process minerals violates any of the provisions of Article 46 of the Minerals Law.

4. The transfer and inheritance of the right to process mineral resources shall be carried out in accordance with the provisions of Articles 56 and 57 of this Decree.

Article 62.Mining of ordinary construction materials does not require a mining permit in the following situations:

1. Mining of ordinary construction materials within the framework of infrastructure projects of the State such as building dams, excavating hydropower channels, irrigation channels, leveling road bases, tunneling, dredging rivers, lakes, ports, national defense works, and other similar State projects, without mining outside the construction area, solely for the purpose of utilizing residual materials, not primarily for commercial purposes, and the project and design have been reviewed and approved by the competent state agency in accordance with the law;

2. Mining of ordinary construction materials for the sole purpose of utilizing residual materials, not primarily for commercial purposes, within the land area assigned by the Government for use by organizations or individuals;

3. Before conducting mining or utilization of ordinary construction materials as stipulated in Clauses 1 and 2 of this Article, the organization or individual authorized to mine must register capacity, volume, equipment along with the mining plan at the Department of Industry of the provincial department.

Article 63. Responsibilities of the Ministry of Science and TechnologyMining of various types of soil for the purpose of providing fill material for construction projects and urban development is permitted to operate based on ensuring the following conditions:

1. Geological survey documents of the mining area proving there are no higher-value minerals, confirmed in writing by the Department of Industry;

2. The land to be mined is not agricultural land or protective forest land;

3. The mining activity does not cause adverse effects on the ecological environment, landscape of the area, nor damage public facilities, infrastructure, cultural and historical relics, national defense works, and military terrain;

4. Permission is granted by the People's Committee of the province.

Article 64.The Ministry of Industry shall provide detailed guidance on procedures for issuing, extending, returning permits for mineral activities, allowing transfers and inheritances of the right to explore, exploit, and process mineral resources, and registering mineral activities to ensure uniform implementation nationwide. 

Chapter IX

EXPLOITATION FOR UTILIZATION

Article 65.Exploitation to exhaustion is a form of mineral resource activity suitable for the following conditions:

1. It is not mandatory to conduct exploration of the area permitted for operationbefore starting exploitation;

2. The volume of excavation, including both waste rock and minerals, for a permitfor exploitation to exhaustion issued to an individual does not exceed five thousand (5,000) tons/year, and for an organization does not exceed one hundred thousand (100,000) tons/year;

3. If explosives are used, they must be authorized according to the provisions oflaw, and toxic chemicals must not be used;

4. Each individual may only be granted one permit for exploitation to exhaustion.

Article 66.Areas granted permits for exploitation to exhaustion include:

1. Areas with mineral deposits in the form of small sand ores, rolling ores, andsmall ore bodies distributed non-concentrated that have been investigated and evaluated, but large-scale industrial exploitation is not economically viable;

2. Areas with construction materials located far from transportation routes, waterbodies, rivers, and urban residential areas where economic and social conditions, as well as consumption needs, do not allow for large-scale industrial exploitation;

3. Mining areas that have been closed down for liquidation or protection purposeswhere resuming industrial-scale exploitation is not economically viable and exploiting to exhaustion does not cause safety risks to the closed-down mine.

Article 67.The Ministry of Industry approves areas for exploitation to exhaustion, except forprecious metals and gemstones, based on the proposal of the Provincial People'sCommittee to manage and issue permits for exploitation to exhaustion according toArticle 66 of this Decree and the guidance of the Ministry of Industry. Permits forexploitation to exhaustion will not be issued for mineral points that have not beenapproved by the Ministry of Industry.

Article 68.The area of an exploitation to exhaustion permit granted to an organization shallnot exceed twenty hectares, and for an individual, it shall not exceed one hectare.

Article 69. The duration of an exploitation to exhaustion permit shall not exceed thirty-sixmonths, which can be extended multiple times, but the total extension period shallnot exceed twenty-four months under the following conditions at the time ofextension request:

1. Organizations and individuals permitted for exploitation to exhaustion havefulfilled their obligations as stipulated in Article 52 of the Mineral Law;

2. The area requesting an extension of the permit still meets the requirements forexploitation to exhaustion as prescribed by the Mineral Law and Articles 65 and 66of this Decree;

3. The exploitation to exhaustion permit still has validity for no less than thirtydays.

Article 70.An exploitation to exhaustion permit shall be revoked according to the provisions ofArticle 53 of the Mineral Law. In cases where the area currently permitted forexploitation to exhaustion no longer meets the requirements for exploitation toexhaustion, the permit shall be revoked, and the consequences shall be resolved asfollows:

1. Organizations and individuals permitted for exploitation to exhaustion mustremove all their assets from the exploitation area, restore the environment andland, and be compensated for losses by organizations and individuals permitted formineral activities in the area where the exploitation to exhaustion permit has beenrevoked;

2. In cases where there are no organizations or individuals permitted for mineralactivities in areas no longer suitable for exploitation to exhaustion or where thepermit for exploitation to exhaustion is revoked according to Clause 2, Article 14of the Mineral Law, the losses of organizations and individuals permitted forexploitation to exhaustion shall be considered and resolved by the State accordingto the law;

3. If organizations and individuals permitted for exploitation to exhaustion establisha business to engage in mineral activities, they shall be granted a new permit formineral activities by the competent authority for the area where the exploitationto exhaustion permit has been revoked.

Article 71.Organizations and individuals permitted for exploitation to exhaustion mayrequest technical and technological guidance and assistance from state agencies,scientific research organizations, technology organizations, and mineral activitiesthat operate businesses. These organizations have the responsibility to meetreasonable requests of organizations and individuals permitted for exploitationto exhaustion.

Article 72.The Provincial People's Committee bases its detailed regulations on the managementand issuance of exploitation to exhaustion permits on the provisions of theMineral Law and this Decree, in accordance with local conditions, after negotiatingwith the Ministry of Industry.

Chapter X

SPECIALIZED INSPECTION MINERAL EXTRACTION

Article 73.Mineral inspection must comply with the provisions of the law on labor safety,work hygiene, and environmental protection, actively cooperate with the StateLabor Inspection and specialized environmental protection inspection to implementinspection tasks related to labor safety, work hygiene, and environmentalprotection in mineral activities, especially mining activities; coordinate withState Inspections of various sectors and levels to resolve complaints and reportsfrom organizations and individuals in mineral activities.

Article 74.The organization, tasks, and powers of specialized mineral inspection areimplemented according to the provisions of Article 59 and Article 60 of theMineral Law and are regulated by the Government.

 Chapter XI

IMPLEMENTING PROVISIONS

Article 75.This Decree takes effect fifteen days after the date of signature and replacesGovernment Decree No. 68/CP dated November 1, 1996, detailing the implementationof the Mineral Law.

Article 76.The Minister of Industry, Heads of Ministries and Sectors related shall submit theaccompanying documents to the Government for promulgation and bearresponsibility for detailed guidance, monitoring, and supervision of theimplementation of this Decree.

Article 77.Ministers, Heads of ministerial-level agencies, Heads of agencies under theGovernment, Chairmen of People's Committees of provinces and centrally-administered cities are responsible for implementing this Decree./.