JOINT CIRCULAR No. 96-TT/LB Circular stipulates the capital recovery regime for mineral resource exploration and prospecting after the mine has been put into operation.

CIRCULAR

Cof the joint ministry of finance - heavy industry number 96-TT/LB dated November 25, 1993, concerning the capital recovery system for mineral resource exploration when mines enter production;

umber 1040KTTH dated March 18, 1993 of theứProceeds toArticle 21 of the Mineral Resources Ordinance on July 25, 1989;

- Implementing article7 of Resolutionand22/HĐBT dated January 24, 1991 of the Council of Ministers;195 of the Council of Ministers dated March 25, 1992 concerning (now the Government) the implementation of the Mineral Resources Ordinance;Decision No. 351/HĐBT;i đCircular No. 45/TC/TCT dated October 4, 1990 of the Council of Ministers;ứcJoint Ministry of Finance - Heavy Industry hereby promulgates the capital recovery regulations for mineral resource exploration when mines enter production as follows:

I. PROVISIONSng quy địnhistry of revenue and fund usageandArticle 1:The capital recovery system for mineral resource exploration aims to reimburse part of the state budget funds invested through public expenditure for mineral exploration work (hereinafter referred to as mine evaluation work) when the mine enters production. Article 2:All entities using mine evaluation materials for mining purposes (or further exploration for mining) must pay the capital recovery amount for mineral exploration as stipulated in this Circular when the mine enters production.ỏ Article 3:

Mine evaluation materials for all solid, liquid, and gas minerals (including oil and gas) encompass all collected and compiled materials during the research, survey, exploration process, presented in comprehensive reports on exploration work and accompanying documents approved by the competent authority (National Mineral Reserve Review Board, Vietnam Geological Survey, Ministry of Heavy Industry).Mine evaluation materials funded by state budget public expenditure are national materials. Their use for different purposes must be authorized by the competent authority.Asset losses of federations are losses or damage reducing the value of federation assets caused by subjective or objective reasons.

ArticleArticle 4: Cases where mine evaluation materials are used for scientific research, training, planning, zoning, strategy... according to assigned state tasks or permitted by the state are exempt from paying the capital recovery fee.

ArticleII. AMOUNT COLLECTED, RATE OF COLLECTION, METHOD OF COLLECTION AND PAYERS Article 5:

ArticleThe objects subject to payment are mine evaluation materials used for mining purposes (or further exploration for mining) as specified in Article 3 of Part I of this Circular. Article 6:

The collection rate is the total investment cost in mine evaluation work at current market prices at the time the mine enters production.

ArticleThe basis for determining the collection rate is as follows: - Investment value in mineral exploration work.

- Economic efficiency of the mineral.VIETNAM TOBACCO ASSOCIATION- World and regional market prices for minerals.- Levels of encouragement for investment.For mines entering foreign joint ventures, in addition to the investment value in mineral exploration work, the geological project costs of countries in the region will also be referenced, along with reasonable additional amounts covered by the Vietnamese state.ứArticle 7:
The method for determining the collection rate is calculated based on the following formula:- The volume of geological projects invested in mine evaluation work is based on comprehensive reports on mine evaluation work at various stages from research, survey, exploration, and geological investigation, reviewed and approved by the competent authority. 

Article- Geological project costs and other expense ratios are based on current prices issued by the Ministry of Finance, Ministry of Heavy Industry, and relevant ministries involved in mineral resource exploration. - In cases where only part of the geological data is granted for use, the amount payable = investment value in exploration work x reserve factor of the granted portion.

ArticleArticle 8: For state-owned enterprises investing in mines, the entire capital recovery amount for mineral exploration work is recorded as income and expenditure by the Ministry of Finance, and a notice is issued to allocate the funds for the enterprise's use. The enterprise records it as intangible fixed assets and state budget fixed capital, while implementing policies to preserve capital, pay capital usage fees, and deduct depreciation expenses according to prescribed regulations. Annual depreciation rates are determined based on the mine's operational life or annual production volume.

Article 9:

For state-owned enterprises with foreign investment or foreign business cooperation contracts under the Foreign Investment Law in Vietnam (excluding wholly foreign-owned enterprises), the entire capital recovery amount for mineral exploration work is converted into state capital contribution or loans for the Vietnamese side to contribute to joint ventures (if needed). The Vietnamese side in joint ventures with foreign parties must accept capital contributions or sign loan agreements with the Ministry of Finance according to Circular No. 19TC/TCĐN dated June 9, 1992 of the Ministry of Finance regarding guidance on fulfilling debt obligations and repaying state budget capital of Vietnamese parties in joint ventures and foreign business cooperation.

After the joint venture confirms that the capital recovery amount has been included in the capital contribution and the Ministry of Finance issues a notice of capital contribution or loan to the Vietnamese joint venture party, the mining permit can be issued.

Other economic sectors outside state-owned enterprises contributing capital or signing foreign business cooperation contracts under the Foreign Investment Law in Vietnam shall implement the provisions of Article 10.

Article 10:

For wholly foreign-owned enterprises, state-owned enterprises with foreign investment, or those signing foreign business cooperation contracts without needing to use the capital recovery amount for capital contribution (established under the Foreign Investment Law in Vietnam) and private enterprises, joint-stock companies (established under the Private Enterprise Law and Company Law), must compulsorily pay 10% of the total collection amount initially to obtain permission to use mine evaluation materials and mining permits. The remaining amount is paid annually based on production volume according to the following formula:

ArticleBased on the annual production and business plan, the enterprise temporarily pays quarterly and adjusts the payment at the end of the year based on actual production volume. Phương pháp xác định mức thu được xác định theo công thức:

- Trong đó khối lượng công trình địa chất đã đầu tư vào công tác đánh giá mỏ được căn cứ vào các báo cáo tổng kết công tác đánh giá mỏ ở các giai đoạn từ nghiên cứu, khảo sát, tìm kiếm, thăm dò địa chất đã được cơ quan thẩm quyền xét duyệt.

- Giá công trình địa chất và các tỷ lệ chi phí khác lấy theo giá hiện hành do Bộ Tài chính, Bộ Công nghiệp nặng và các Bộ chủ quản có cộng tác tìm kiếm thăm dò tài nguyên khoáng sản thống nhất ban hành, kể cả khoản tính thêm hợp lý.

- Trường hợp mỏ được cấp chỉ sử dụng một phần tài liệu địa chất thì số tiền phải nộp = giá trị vốn TKTD x hệ số trữ lượng mỏ được cấp.

 Articleều 8: Đối với nhà đầu tư khai thác mỏ là doanh nghiệp Nhà nước thì toàn bộ số tiền thu hoàn vốn tìm kiếm thăm dò mỏ khoáng sản được Bộ Tài chính làm thủ tục ghi thu ghi chi và ra thông báo giao vốn cho doanh nghiệp sử dụng. Doanh nghiệp hạch toán vào tài sản cố định vô hình và vốn cố định ngân sách cấp, đồng thời phải thực hiện chính sách bảo toàn vốn, nộp tiền sử dụng vốn, trích và nộp khấu hao tài sản cố định theo chế độ quy định. Mức khấu hao hàng năm được xác định theo thời hạn hoạt động của mỏ hoặc theo sản lượng khai thác.

 Articleều 9: Đối với nhà đầu tư khai thác mỏ là doanh nghiệp Nhà nước có một phần vốn đầu tư nước ngoài hoặc hợp đồng hợp tác kinh doanh với nước ngoài theo luật đầu tư nước ngoài tại Việt Nam (trừ doanh nghiệp 100% vốn nước ngoài) thì toàn bộ tiền thu hoàn vốn tìm kiếm thăm dò mỏ khoáng sản được chuyển thành vốn Nhà nước cấp hoặc cho vay để bên phía Việt Nam góp vào liên doanh (nếu có nhu cầu). Bên Việt Nam liên doanh với bên nước ngoài phải nhận vốn hoặc ký hợp đồng nhận vay với Bộ Tài chính theo Thông tư số 19TC/TCĐN ngày 9 tháng 6 năm 1992 của Bộ Tài chính về hướng dẫn thực hiện nghĩa vụ nhận nợ và hoàn trả vốn ngân sách Nhà nước của các bên Việt Nam trong xí nghiệp liên doanh và hợp tác kinh doanh với nước ngoài.

Sau khi liên doanh xác nhận số nộp hoàn vốn đã tính vào vốn góp và Bộ Tài chính đã ra thông báo cấp hoặc cho vay với bên Việt Nam liên doanh mới được cấp giấy phép khai thác mỏ.

Các thành phần kinh tế khác ngoài doanh nghiệp Nhà nước của phía Việt Nam góp vốn đầu tư hoặc hợp đồng hợp tác kinh doanh với nước ngoài theo luật đầu tư nước ngoài tại Việt Nam thực hiện theo quy định tại Điều 10.

Articleều 10: Đối với doanh nghiệp 100% vốn nước ngoài, các doanh nghiệp Nhà nước có vốn đầu tư nước ngoài hoặc ký hợp đồng hợp tác kinh doanh không cần sử dụng khoản tiền phải nộp hoàn vốn địa chất để góp vốn (được thành lập theo Luật đầu tư nước ngoài tại Việt Nam) và các doanh nghiệp tư nhân, doanh nghiệp cổ phần (được thành lập theo Luật doanh nghiệp tư nhân và Luật công ty) thì phải thực hiện nộp bắt buộc lần đầu bằng 10% toàn bộ mức thu để được cấp giấy phép sử dụng tài liệu đánh giá mỏ và giấy phép khai thác. Số thu còn lại nộp theo mức độ sản lượng khai thác hàng năm theo công thức dưới đây:

Căn cứ vào kế hoạch sản xuất kinh doanh hàng năm doanh nghiệp tiến hành tạm nộp hàng quý và đến hết năm sẽ điều chỉnh số nộp theo sản lượng thực tế.

If a business immediately pays the entire total amount of the recovered capital in one lump sum, it will be granted a reduction of 10% on the amount to be paid.

III. PROCEDURES FOR PAYMENT AND COLLECTION

ArticleArticle 11: Businesses wishing to use exploration report materials must register with the Ministry of Heavy Industry to request permission to use such materials.

The Ministry of Heavy Industry will review and issue a notice allowing the entity to proceed with the procedures, while also working with the Ministry of Finance to issue a notice on the collection rate for each case as follows:

- For state-owned enterprises, the notice will specify the collection rate for transferring capital to the enterprise.

- For enterprises with foreign investment capital, the notice will specify the collection rate to be included in the contribution of the Vietnamese side in joint ventures.

- For wholly foreign-owned enterprises, private enterprises, and joint stock companies, the notice will specify the collection rate for the enterprise to proceed with the procedures for payment to the State budget.

ArticleArticle 12: After receiving the notice, businesses must go to the local Tax Bureau (for businesses required to pay in cash) and to the Ministry of Finance (for state-owned enterprises, enterprises with foreign shares, or businesses operating joint ventures with foreign entities) to complete the payment procedures according to the methods specified above.

ArticleArticle 13: Based on the receipt for payment, or records of income and expenditure confirming the transfer of capital or loan contributions from the Ministry of Finance and the local tax authority, the Ministry of Heavy Industry will issue mining permits to the businesses.

ArticleArticle 14: The recovered capital from mineral exploration activities is a revenue item belonging to the central government budget and is collected into the National Treasury.

ArticleArticle 15: Annually, the relevant ministries, the Ministry of Finance must prepare plans and settle the collection of money for the recovery of capital from mineral exploration activities, which should be divided into direct cash payments, recorded income and expenditure for capital transfers, and contributions to joint ventures by enterprises.

ArticleArticle 16: Reductions in the collection of money for the recovery of capital from mineral exploration activities.

Enterprises may be exempted or reduced in the collection of money for the recovery of capital from mineral exploration activities if there is a significant discrepancy in the quality of the exploration report materials, resulting in a decrease in the mine reserves by 30-50% compared to the reserves stated in the report.

Exemption for the volume of resources mined before this Circular takes effect.

Specific cases eligible for exemption or reduction are as follows:

a. A natural reduction of 10% for cases where the full amount of the collection is paid in one lump sum when issuing the mining permit.

b. If there is a significant discrepancy in the quality of the exploration report materials, the reduction rate will be calculated based on the ratio between the actual reserves and those stated in the report. However, the maximum reduction cannot exceed 50% of the total recovered capital.

c. In cases where the exploration report is completely inaccurate and there is no mine in reality, the enterprise will be fully exempted. In this case, the Ministry of Finance will refund the corresponding amounts already paid (excluding the initial mandatory 10% payment).

d. Exemption for the volume of resources mined from the establishment of the mine until the date this Circular becomes effective. The exemption rate corresponds to the ratio of the reserves already mined to the total reserves.

ArticleArticle 17:The assessment of the actual reserve reduction of the mine compared to the reserves stated in the report must be confirmed by the State Mineral Reserve Review Council (Ministry of Science and Technology and Environment) and the Ministry of Heavy Industry (Vietnam Geological Survey).

ArticleArticle 18: Businesses requesting exemptions or reductions must prepare and submit files to the Ministry of Heavy Industry for consideration and resolution.

The file for requesting exemptions or reductions includes:

- A request for exemption or reduction of the collection rate for the recovery of capital from mineral exploration activities.

- An explanation of the discrepancies in the exploration report materials compared to the actual situation and confirmation opinions from the State Mineral Reserve Review Council.

Upon receiving the file for requesting exemptions or reductions, the Ministry of Heavy Industry will review and work with the Ministry of Finance to notify the enterprise and related agencies within 60 days from the date of receipt of the enterprise's file.

IV. IMPLEMENTATION PROVISIONSArticle 19:

ArticleThis Circular takes effect from the date of signature. All mines currently in operation, including those that have transferred exploration report materials and those that have not yet transferred such materials, must uniformly implement this Circular. Enterprises that are investors in mining operations and relevant ministries and localities involved in mineral exploration or mining activities must promptly carry out the procedures stipulated in this Circular.

Failure to comply or evasion of the obligation to pay the recovered capital from mineral exploration activities will be handled according to the law depending on the severity of the violation and may result in the denial of a mining permit.

Article 20:

ArticleDuring implementation, if there are difficulties, businesses and related agencies must reflect these issues to the Ministry of Finance and the Ministry of Heavy Industry for consideration and resolution. Le Van Duy