Nghị định 76/2000/NĐ-CP hướng dẫn thi hành Luật Khoáng sản (sửa đổi) - The first knowledge sharing application in Vietnam

THE
GOVERNMENT
——-

SOCIALIST
REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
———-

No:
76/2000/ND-CP

Hanoi,
December 15, 2000

DECREE

DETAILING THE IMPLEMENTATION OF THE MINERAL LAW (AMENDED)

THE GOVERNMENT

Pursuant to the September 30, 1992 Law on
Organization of the Government;
Pursuant to the March 20, 1996 Law on Minerals;
At the proposal of the Minister of Industry,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- This Decree
details the implementation of the Mineral Law of the Socialist Republic of
Vietnam, passed on March 20, 1996.

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Chapter II

COMPETENCE FOR STATE
MANAGEMENT OF MINERALS

Article 3.-

1. The Ministry of
Industry shall perform the function of State management of minerals nationwide,
having the following tasks and powers:

a) To elaborate and submit to competent bodies
for promulgation or to promulgate according to its competence legal documents
on the management, protection, basic geological survey of mineral resources and
mineral activities;

b) To organize the elaboration of planning,
plans on development of basic geological survey of mineral resources throughout
the country;

To assume the prime responsibility and
coordinate with the concerned ministries, central branches, as well as People’s
Committees of provinces and centrally-run cities (hereinafter referred
collectively to as the provincial-level People’s Committees) in elaborating and
submitting to the Government for decision the strategies, planning and policies
for mineral resources and the development of mineral mining and processing
industry;

c) To organize the evaluation, consideration and
approval of plans on mineral exploration, report on results of mineral
exploration for use as common building materials, report on the feasibility
study on mineral exploitation and processing, mine designing according to the
provisions of this Decree and other provisions of law;

d) To grant, extend, recover and permit the
return of, permits for mineral activities, to permit the transfer of rights to
mineral activities according to the provisions of this Decree and other
provisions of law;

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f) To settle disputes, complaints and
denunciations about mineral activities according the competence prescribed in
Article 57 and 62 of the Mineral Law and the legislation on complaints and
denunciations;

g) To manage the international cooperation
activities in the fields of basic geological survey of mineral resources and
mineral activities;

h) To register, monitor, evaluate and sum up the
results of basic geological survey of mineral resources, the mineral activity
situation throughout the country and periodically report them to the
Government;

i) To coordinate with the provincial-level
People’s Committees and concerned ministries as well as branches in protecting
untapped mineral resources.

2. The organizational system, tasks and powers
of the Industry Ministry’s bodies for geological and mineral management shall
be governed by separate regulations of the Government.

Article 4.-

1. The ministries,
ministerial-level agencies and agencies attached to the Government (hereinafter
called collectively the ministries) shall, according to their functions, tasks
and powers, have to coordinate with the Industry Ministry in managing and
protecting the mineral resources and mineral activities.

2. The ministries functioning to exercise the
State management of branches engaged in mineral raw material production, use
and trading shall have the responsibility to:

a) Take initiative in coordinating with the
Industry Ministry, concerned ministries, central branches and provincial-level
People’s Committees in elaborating and submitting to the Government for
decision the policies on mineral resources, the strategy, planning and plans on
development of mineral mining and processing industries, use and trading,
including export and import of minerals, relating to the Ministries’
branch-managing function;

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c) To direct and inspect the implementation of
mineral strategies, policies, planning and legislation by units under the
Ministries’ direct management;

d) To coordinate with the Industry Ministry in performing
other tasks regarding the State management over the basic geological survey of
mineral resources and mineral activities, relating to the Ministry’s
branch-managing function.

Article 5.- The Ministry
of Planning and Investment, the Ministry of Science, Technology and Environment
and the Industry Ministry shall, according to their functions, coordinate with
one another and reach unanimity in directing the international cooperation in
the field of mineral activities. The Industry Ministry shall assume the prime
responsibility for coordination with ministries, central branches and
provincial-level People’s Committees and act as the designated body for the
State management of the mineral activities of foreign organizations and/or
individuals investing in Vietnam.

Article 6.- The mineral
deposit evaluation council located at the Ministry of Science, Technology and
Environment shall assist the Government in evaluating, considering and
approving the deposits in reports on mineral exploration for exploitation
feasibility study, except for minerals used as common building materials. The
organization and operation of the mineral deposit evaluating council shall be
stipulated separately by the Prime Minister.

Article 7.-

1. The provincial-level
People’s Committees shall, according to their functions, tasks and powers, have
the responsibility to:

a) Promulgate according to their competence
legal documents guiding the implementation of the regulations of the
Government, the Prime Minister and the Industry Ministry on the management and
protection of mineral resources and the management of mineral activities in
their respective localities;

b) Assume the prime responsibility and
coordinate with the ministries of Planning and Investment; Construction;
Defense; Public Security; Culture and Information; Agriculture and Rural
Development; and Communications and Transport in marking off areas banned
definitely or temporarily from mineral activities as prescribed in Clause 1,
Article 14 of the Mineral Law;

c) Work out or participate in working out
plannings for development of mineral mining and processing industries in their
territories;

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e) Organize the evaluation and approval of
feasibility study report on mineral exploitation and processing as well as mine
designing according to the provisions of this Decree and other provisions of
law;

f) Grant, extend and recover permits for
exploitation or processing minerals for used as common building materials,
peat, and permits for full extraction according the competence prescribed in
this Decree; settle, within the scope of their responsibility and powers,
conditions related to land rental, use of infrastructure as well as other
relevant conditions for organizations and individuals licensed to conduct
mineral activities and/or basic geological survey of mineral resources in the
localities;

g) Propagate, educate in and supervise and
inspect the observance of the mineral legislation by all organizations and
individuals in the localities;

h) Settle or participate in settling disputes
over mineral activities and handle violations of the legislation on minerals in
the localities according to their competence prescribed in Article 57 of the
Mineral Law and other law provisions.

2. The provincial/municipal Services of Industry
shall assist the provincial People’s Committees in performing the function of
State management of minerals under the provisions of the Mineral Law and this
Decree. The tasks and powers of the provincial/municipal Services of Industry
regarding minerals shall be defined by the Industry Minister.

Article 8.- The People’s
Committees of urban districts, rural districts, provincial cities and towns,
district towns, communes and wards (hereinafter referred collectively to as
districts, communes) shall, according to their functions, tasks and powers,
have the responsibility to:

1. Apply measures to protect untapped mineral
resources in the localities in combination with the protection of environment
and other natural resources, assurance of social order and security, the
protection of people’s lives and health as well as the property of the State
and citizens;

2. Settle, within the scope of their
responsibility and powers, conditions related to land rental, use of infrastructure
and other relevant conditions for organizations and individuals licensed to
conduct mineral activities and/or basic geological survey of mineral resources
in localities according to the provisions of law and guidance of the provincial
People’s Committee;

3. Propagate, educate in and supervise the
observance of legislation on minerals; participate in settling disputes over
mineral activities and handle according to competence the violations of
legislation on minerals in the localities.

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1. The Industry Ministry shall grant the
following permits:

a) Mineral prospection permit;

b) Mineral exploration permit;

c) Permit for exploitation, permit for
processing of assorted minerals, except for the mineral exploitation or
processing permits which fall under the granting competence of the provincial
People’s Committees prescribed in Clause 2 of this Article;

d) Permit for exploitation or processing of
minerals used as common building materials in case of granting to foreign
organizations or individuals or joint-ventures involving foreign parties.

2. The provincial- level People’s Committees
shall grant the following permits for regions falling under the administrative
management responsibility of the localities:

a) Permit for full extraction of assorted
minerals regarding the full extraction areas already approved by the Industry
Ministry according to the provisions in Articles 66 and 67 of this Decree;

b) Permit for exploitation or processing of
minerals used for common building materials (including areas bordering on
provinces after the Industry Ministry has granted the exploration permits and
approved the exploration result report) and peat for domestic organizations
and/or individuals, except for the mineral exploitation or processing permits
under the granting competence of the Industry Ministry prescribed in Clause 1
of this Article. The Industry Ministry shall guide the granting of permits for
exploitation or processing of minerals used as common building materials for
areas bordering on provinces.

3. A body with competence to grant any kind of
permit for mineral activities may extend, recover and allow the return of, such
kind of permit and may allow the transfer of right to mineral activities under
such kind of permit.

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BASIC GEOLOGICAL SURVEYS
OF MINERAL RESOURCES

Article 10.- The basic
geological survey of mineral resources shall cover the following activities:

1. Surveying and discovering mineral resource
potentials and at the same time elaborating regional geological maps, topical
maps and conducting geological and mineral research;

2. Assessing mineral resource potentials
according to mineral types or groups and the potential geological structure in
order to discover new mines.

Article 11.- The
mineral resource basic geological survey activities shall be carried out
simultaneously and in combination with basic geological survey and according to
the State planning and plans.

The Industry Ministry shall submit to the Prime
Minister the planning and plans for basic geological survey of mineral
resources, the Ministry of Planning and Investment shall evaluate and submit
them to the Prime Minister for approval.

Article 12.- The
organizations conducting mineral resource basic geological survey activities
shall have the following rights and duties:

1. To register the tasks and plans for basic
geological survey of mineral resources according to the regulations of the
Industry Ministry;

2. To conduct the mineral resource geological
basic survey activities according to the approved projects and the assigned
plans;

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4. To ensure the truthfulness and adequacy in
gathering and summing up geological and mineral documents and information; to
preserve the State secrets on geological and mineral information according to
the provisions of law;

5. To protect environment, mineral and other
resources while conducting basic geological surveys as well as mineral resource
basic geological survey activities;

6. To submit reports on results of mineral
resource basic geological surveys and store the State geological archives as
well as geological and mineral samples in the geological museum according to
the regulations of the Industry Ministry;

7. To be commended and rewarded by the State
when recording achievements in researching and discovering new geological and
mineral findings;

8. To be entitled to send samples abroad for
analysis and tests according to the provisions of law.

Article 13.- All
reports on the results of mineral resource basic geological surveys must be
assessed, registered and put into the State geological archives according to
the regulations of the Industry Ministry.

The State geological archive body shall have to
preserve the State secrets on mineral resources, create favorable conditions
for organizations and individuals to access to the results of mineral resource
basic geological surveys as well as materials and information on minerals
according to the regulations of the Industry Ministry.

Article 14.- The
Industry Ministry shall specify the contents of the mineral resource geological
basic survey projects, the keeping of the State geological archives and the
geological museum; promulgate and guide the implementation of the legal
documents, norms and unit prices in mineral resource basic geological survey.

Chapter IV

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Article 15.-
Organizations and individuals entitled to conduct mineral activities under the
Mineral Law shall include:

1. Vietnamese economic organizations established
and operating under the State Enterprise Law, the Enterprise Law, the
Cooperative Law and other economic organizations established, permitted to be
established, registered or recognized by competent State bodies with the
content of mineral activities included in the purpose of establishment;
Vietnamese individuals who meet all conditions prescribed by law;

2. Foreign organizations and individuals or
joint venture organizations involving foreign parties operating in Vietnam
under the legislation on foreign investment in Vietnam.

Article 16.-
Organizations and individuals prescribed in Article 15 of this Decree that wish
to be granted the permits for mineral activities must fully meet the conditions
prescribed by the Industry Ministry.

Article 17.-
Organizations and individuals practicing mineral exploration must acquire the
technical equipment and professional qualifications prescribed by the Industry
Ministry.

Article 18.-
Organizations and individuals permitted to exploit minerals may only conduct
exploitation activities according to the permits when they have the mine
executive directors who satisfy the criteria prescribed by the Industry
Ministry.

The Industry Minister shall prescribe the
criteria of the mine executive directors according to the provisions in Article
36 of the Mineral Law.

Chapter V

REGIONS, AREAS AND TIME
LIMITS FOR MINERAL ACTIVITIES

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a) Regions with classified, registered historical
or cultural relics;

b) National gardens, protection forests;
geological preserve regions;

c) Regions marked off exclusively for defense or
security purposes or affecting defense or security tasks;

d) Regions lying within the scope of protection of
dykes, embankments, river banks, key traffic works;

e) Regions marked off exclusively for religions;

f) Urban regions or those with important
infrastructure works.

2. The ministries of Defense; Public Security;
Culture and Information; Agriculture and Rural Development; and Communications
and Transport shall, according to their functions, tasks and powers, have to
coordinate with the provincial People’s Committees in determining the
boundaries of regions banned from mineral activities within the scope of each
province’s administrative management. The presidents of the provincial People’s
Committees shall submit to the Prime Minister for decision and notify in
writing the Industry Ministry of the regions banned from mineral activities.

3. For regions determined as being temporarily
banned from mineral activities under the provisions of law, the competent State
bodies managing such regions shall have to notify in writing the concerned
provincial People’s Committees and the Industry Ministry thereof.

4. The underground exploitation of minerals in
regions banned from mineral activities without using the surface land must also
be approved in writing by the competent State bodies managing such regions.

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1. Regions with
restricted mineral activities are regions in which the State restricts the
mineral activities in one or all of the following forms:

a) Marking off exclusively for one or several
certain State organizations to monopolize the mineral activities;

b) Restriction in exploitation output;

c) Restriction in the export of exploited
products.

2. The regions with restricted mineral
activities shall be stipulated by the Prime Minister.

Article 21.- Regions
opened to mineral activity bidding shall include the following:

1. Regions which, as stipulated by the Prime
Minister, must be opened to bidding for exploration and exploitation;

2. Mineral regions or mines which have been
explored with the State capital, now opened to bidding or selection of bidders
for exploitation.

Article 22.-

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2. The mineral prospection permits may be
granted to a number of organizations or individuals operating in the same
region. Those who submit the application for prospection first and strictly
according to the procedures prescribed by law shall be considered first.

Article 23.-

1. The valid duration of
a mineral prospection permit shall not exceed twelve months.

2. The permits for mineral prospection in
regions with the acreage of one hundred square kilometers (100 km2) or more may
be extended once for not more than 12 months, provided that by the time of
applying for extension:

a) No organizations or individuals have
submitted applications for prospection there;

b) Organizations and individuals permitted to
conduct prospection activities have fulfilled all obligations prescribed in
such permits;

c) Mineral prospection permits remain valid for
not less than thirty days;

d) Organizations and individuals permitted to
conduct mineral prospection have to submit the reports on prospection results
to the Industry Ministry, clearly stating the reasons for extension, the
program for continued prospection, attached with the applications for
extension.

Article 24.-

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2. The granted exploration area of a permit to
explore coal, metallic minerals (except precious metals), non-metallic minerals
(except common building materials) in inland regions, with or without water
surface, shall not exceed two hundred square kilometers (200km2).

3. The granted exploration area of a permit to
explore assorted minerals in the continental shelf region shall not exceed five
hundred square kilometers (500km2).

4. The granted exploration area of a permit to
explore minerals to be used as common building materials in the inland regions,
with or without water surface, shall not exceed ten square kilometers (10km2).

5. The granted area of a permit to explore
mineral waters, natural thermal water shall not exceed twenty square kilometers
(20km2).

6. Organizations and individuals meeting all
conditions prescribed in Articles 15 and 16 of this Decree may be granted more
than one exploration permits, but not more than five permits.

Article 25.- The time
limit of a mineral exploration permit, excluding the time for making reports on
exploration results, the exploitation feasibility study reports, shall be six
months at least and twenty four months at most, and may be extended under the
following conditions:

1. By the time of applying for extension, the
organization and/or individual has fulfilled all obligations prescribed in such
permit; and the permit has remained valid for not less than thirty days;

2. For each time of extension, at least thirty
percent (30%) of the exploration area granted to the previous permit must be
returned;

3. Attached to the extension application filed
to the Industry Ministry must be the reports on exploration results and actual
costs, explaining the reasons for the extension, the work program and plan as
well as cost of continued exploration;

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Article 26.- The area
granted to a mineral exploitation permit shall be determined on the basis of
the mineral exploitation feasibility study report already evaluated and
approved under the provisions of Article 44 of this Decree.

Article 27.- The time
limit of a mineral exploitation permit shall be determined on the basis of the
mineral exploitation feasibility study report already evaluated and approved
under the provisions of Article 44 of this Decree but shall not exceed thirty
years, and may be extended under the following conditions:

1. By the time of applying for extension, the
organization and/or individual has fulfilled all obligations prescribed by the
Mineral Law and the relevant law provisions;

2. The exploitation permit has remained valid
for not less than three months;

3. Attached with the extension application filed
to the body competent to grant the permit must be the sum-up report on
exploitation results by the time of extension application, enclosed with the
map of the mine in actual status; the untapped area and mineral deposit of the
mine, the program and plan for continued exploitation;

Where a permit was granted before the Mineral
Law takes effect, the mine design and the report on the assessment of
environmental impacts, already approved by the competent bodies must be
additionally submitted;

4. A mineral exploitation permit may be extended
more than once on the basis of the continued exploitation plan, already
approved by the body competent to grant the permit, but the total extension
duration shall not exceed twenty years.

Chapter VI

A NUMBER OF PROVISIONS
ON FINANCE AND PROPERTY RIGHTS

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The levels, procedures for collection, payment,
management and use of permit fees of various kinds shall be prescribed by the
Finance Ministry.

Article 29.-

1. The fees for exclusive
exploration right shall be calculated on the exploitation area unit and the
valid term of the mineral exploitation permit according to the following
regulations:

The first year: 300,000 dong/km2/year;

The second year: 400,000 dong/km2/year;

The third year: 550,000 dong/km2/year;

From the fourth year on: 700,000 dong/km2/year.

2. The fees for exclusive exploration right
shall not apply to exploration permits with terms, including the extension
duration, being under twelve months and shall not apply to exploration
activities in the exploitation regions of organizations or individuals licensed
to conduct the exploitation.

The procedures for collection, payment,
management and use of fees for exclusive exploration right shall be prescribed
by the Finance Ministry.

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The deposit level shall be equal to twenty five
percent (25%) of the value of the exploration cost estimate of the first
exploration year, determined in the exploration blueprint or plan already
approved by the permit-granting agency.

Six months after the mineral exploration permit
takes effect, if the exploration has not been commenced while the permit’s
effect has been terminated, the deposit money shall be remitted into the State
budget.

Six months after the mineral exploration permit
takes effect, if the exploration has been carried out as planned, the organization
or individual entitled to carry out the exploration may get back its/his/her
deposit money.

Organizations and individuals allowed to carry
out mineral exploration may use the form of collateral at a Vietnamese bank or
a foreign bank licensed to operate in Vietnam instead of the form of deposit
payment.

The Finance Ministry shall guide the payment,
registration and management of deposit or collateral money for mineral
exploration permits.

Article 31.- The
minimum exploration cost amount calculated in Vietnamese currency unit/km2/year
is the minimum expense for the performance of tasks of technical construction
regarding mineral exploration on an exploration area unit of one square
kilometer (1km2) in a year from the date the permit takes effect.

The Industry Ministry shall approve the minimum
exploration expense level for projects using the State capital or agree to
projects without using the State capital when granting or extending the mineral
exploration permits.

Article 32.- With
regard to a permit for mineral exploration not financed with the State capital,
covering an exploration area of one hundred square kilometers (100km2) or more
and the permit is valid for up to two years from the date the permit takes
effect while the actual exploration expense for execution of the scheme in a
period of two years is lower than the cost estimate already approved by the
Industry Ministry, the difference must be remitted into the State budget when
the exploration permit expires or is extended.

Article 33.- Organizations
and individuals allowed to conduct exploration shall have the perform the
exploration work volume and their corresponding expenses therefor according to
the exploration blueprints or plans already approved by the Industry Ministry.

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Article 34.-

1. Organizations and
individuals that use the State’s information on mineral prospection and
exploration results must pay money to the State by mode of payment in lump-sum
or installments according to the exploitation output.

2. Organizations and individuals that have
completely paid money for the use of the State’s information on mineral
prospection and exploration results by mode of lump-sum payment may use or
transfer such information to other organizations and individuals.

3. Organizations and individuals that have paid
money for the use of the State’s information on mineral prospection and
exploration by mode of installment payment according to the exploitation output
may use such information for their own mineral activities, but must not
transfer, sell or disclose such information to other organizations and
individuals.

The Finance Ministry and the Industry Ministry
shall guide the method of determining the value, mode and procedure of payment
for the use of the State’s data and information on mineral prospection and/or
exploration results.

Article 35.-

1. Organizations and
individuals allowed to conduct mineral activities may use or transfer the
information on the results of mineral prospection or exploration, which they
have totally invested in.

2. Organizations and individuals allowed to
conduct mineral activities, that have partly and fully used the State’s capital
for investment in the mineral prospection and exploration shall have no right
to supply or transfer the information on mineral prospection and exploration
results to other organizations and individuals, except the supply of such
information for the State bodies competent or responsible to manage and use
them according to law provisions.

3. Six months after the mineral exploration
permit expires and the organization or individual allowed to conduct the
exploration fails to submit the application for the exploitation permit or six
months after the mineral exploitation permit expires while the organization or
individual allowed to conduct the exploitation fail to submit the application
for the extension of the exploitation permit, the competent State bodies may
supply mineral information related to such permits for other organizations
and/or individuals.

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When the mineral exploitation right is allowed
for transfer, the land lease contract shall be re-signed, without going through
the procedures for the transfer of land use right.

The transfer of the State-owned property already
assigned to organizations and individuals allowed to conduct exploration or
exploitation shall comply with the provisions of law.

Article 37.- When a
mineral exploration or exploitation permit is no longer valid, the ownership
over the property related to mineral exploration or exploitation activities
shall be settled according to the regulations at Point b, Clause 2, Article 30
and Points b and c of Clause 2, Article 40 of the Mineral Law.

The Finance Ministry and the Industry Ministry
shall guide the method of determining the value of transferred property and the
procedures for transfer of property of organizations or individuals allowed to
conduct mineral exploration or exploitation under the provisions of the Mineral
Law and other relevant provisions of law.

Article 38.-
Organizations and individuals allowed to conduct mineral exploitation shall
have to deposit as collateral at a Vietnamese bank or foreign bank licensed to
operate in Vietnam a sum of money to guarantee the restoration of environment
and land when terminating activities on each section of the area and when
closing the mines.

The collateral amount for restoration of
environment and land shall be based on the process, tempo of exploitation and
restoration and the cost estimate for restoration determined in the feasibility
study report, mine design and the report on assessment of environmental
impacts, already evaluated and approved by the competent State bodies.

The Finance Ministry and the Industry Ministry
as well as the Ministry of Science, Technology and Environment shall prescribe
the method of determining the level and guiding the procedures for
registration, management and use of collateral money for the restoration of environment
and land in mineral exploitation.

Article 39.- The
Finance Ministry shall elaborate and submit to the Prime Minister for
promulgation the regime of distribution and use of the State’s revenues in
mineral activities for the implementation of policies to protect the interests
of people in localities where minerals are exploited, processed according to
the provisions in Article 7 of the Mineral Law and to protect the untapped
mineral resources.

Article 40.- For a
number of types of important minerals servicing the socio-economic development
plans of the country but the attraction of investment capital from other
sources is confronted with difficulties, the Prime Minister shall decide to
allocate capital for State enterprises to invest in the exploration.

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For other cases, the State enterprises are
entitled to borrow preferential credit capital for investment in mineral
exploration. The State capital invested in mineral exploration and the
preferential credit loans must be gradually retrieved when the mines are put
into exploitation.

The Finance Ministry shall assume prime
responsibility and coordinate with the Industry Ministry, the Ministry of
Planning and Investment in prescribing and guiding the procedures for State
capital allocation, borrowing of preferential credit capital and the exemption
or reduction of capital retrieval for mineral exploration.

Chapter VII

EVALUATION AND APPROVAL
OF PLANS AND REPORTS ON MINERAL ACTIVITIES

Article 41.-
Organizations and individuals allowed to conduct mineral activities may
themselves or hire geological or mine exploitation consulting organizations or
experts to elaborate or evaluate plans, projects, mine design or mine closure
in the mineral activities.

Article 42.-

1. The Industry Ministry
shall stipulate, guide and organize the evaluation of mineral prospection
and/or exploration plans before deciding to grant the prospection and/or
exploration permits.

2. The Industry Minister shall base him/herself
on the evaluation results to approve plans on exploration partially or totally
financed with the State capital.

3. For projects not financed with the State
capital, the contents of approving the projects shall be determined in the
mineral exploration permits.

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1. All reports on the
results of mineral exploration partially or totally financed with the State
capital must be evaluated and approved before they are submitted into the State
geological archive or studied for mineral exploitation feasibility.

2. The reports on results of mineral exploration
not financed with the State capital, if being the materials for mineral
exploitation feasibility study, must also be evaluated by the competent State
bodies defined in Clauses 4 and 5 of this Article and submitted into the State
geological archive.

3. The requirements and contents of evaluation
of mineral exploration reports shall include:

a) The credibility in the quantity and quality
of minerals, including accompanied minerals; detection of shortcomings in
exploration which lead to the omission of mineral resources;

b) The extent and quality of the determination
of geological and hydrological, construction-geological conditions as well as
technical and technological conditions related to the selection of technology
for exploitation, processing and rational use of mineral resources;

c) The exploration results, the exploration
investment efficiency ( if using the State capital) as compared with the
objectives of the evaluated, approved projects.

4. The Industry Ministry shall evaluate and
approve reports on exploration of minerals used as common building materials,
which shall be used for exploitation feasibility study.

5. The mineral deposit evaluating council shall
evaluate and approve the deposits in exploration reports used for feasibility
study of the exploitation of assorted minerals, except for minerals used as
common building materials.

Article 44.-

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2. The evaluation of reports on feasibility
study of mineral exploitation under foreign direct investment projects shall
comply with the regulation on evaluation and implementation of foreign direct
investment projects promulgated by the Government.

Article 45.-

1. Organizations or
individuals evaluating mine designs must be organizations or individuals that
are interest-independent from the organizations or individuals that make the
designs and held responsible before law for their evaluation results.

2. The mine designs of investment projects for
mineral exploitation shall be evaluated and approved under the provisions in
the Investment and Construction Management Regulation promulgated by the
Government.

3. The Industry Ministry shall guide in detail
the design contents and the procedures for evaluation and approval of mine
designs.

Article 46.- The
Industry Ministry shall prescribe the periodical reporting regime and contents
in mineral activities.

Article 47.- All plans
for mine closure must be evaluated and approved in terms of their contents,
requirements on safety, environment and land restoration as well as other
requirements as prescribed at Points b and d of Clause 2, Article 40 of the
Mineral Law.

The Industry Ministry shall promulgate detailed
regulations on mine closure.

Chapter VIII

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Article 48.- The main
bases for considering the granting of mineral activity permits shall include:

1. The State’s strategy on socio-economic
development in general, and strategy on development of minerals- related
industries such as energy, metallurgy, building materials, mineral fertilizers,
chemicals, communications and mineral raw materials production and business, in
particular;

2. The Party’s and State’s policies on mineral
resources and strategies as well as planning on development of mining industry
in each province, region, zone and the entire country, in conformity with the
socio-economic development strategy and industrial development strategy in each
period;

3. The socio-economic efficiency of specific
mineral activities, closely linked to the requirements of ensuring security and
defense, protecting ecological environment, protecting and rationally using
natural resources in general, protecting historical and cultural relics and
other public facilities according to the provisions of relevant legislation;

4. The legal status of the applicants
(investors) as prescribed by law and other specific conditions prescribed by
this Decree.

Article 49.- Apart from
the main bases prescribed in Article 48 of this Decree, the granting of mineral
exploration permits must also be based on the written opinions of the
provincial Peoples Committees on the areas planned to grant to the exploration
permits whether or not relating to regions banned or temporarily banned from
mineral activities, regions for which the provincial Peoples Committees have
already granted permits for mineral exploitation according to their competence.

The provincial People’s Committees shall,
according to their State management competence in localities, have to assume
the prime responsibility and coordinate with relevant competent agencies at
central and local levels in determining regions banned or temporarily banned
from mineral activities according to the provisions in Clause 1, Article 14 of
the Mineral Law and Point b, Clause 1, Article 7 of this Decree.

In special cases where mineral exploration or
exploitation should be conducted in regions banned or temporarily banned from
mineral activities according to Article 19 of this Decree, the Industry
Ministry shall have to report such to the Prime Minister for considering and
deciding on the granting of permits for exploration or exploitation in those
regions.

Article 50.- The
granting of permits for mineral exploitation or processing shall be based on
the feasibility study report, the environmental impact assessment report and
the mineral deposit reports, which have already been evaluated or approved by
competent bodies according to law provisions.

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The provincial People’s Committees shall,
according to their competence, have to reply in writing the
application-receiving agencies within fifteen days at most after the receipt of
letters asking for their opinions.

In case of necessity, the agencies receiving the
applications for mineral exploitation may publish such applications on the mass
media at least fifteen days before granting the exploitation permits in order
to gather comments.

Article 52.-

1. Upon receiving the
valid dossiers and applications for licenses of investment in mineral
exploitation or processing or in activities related to mineral exploitation or
processing with foreign direct investment capital, the Ministry of Planning and
Investment shall have to coordinate with the Industry Ministry in considering
and gathering comments from concerned agencies, then submitting them to the
Prime Minister for decision or make decisions according to competence after
obtaining written agreement of the Industry Ministry;

2. Foreign organizations and individuals or
joint ventures involving foreign parties, that are granted permits for
exploration, may enjoy preferences prescribed by law for conducting the
exploration under the approved projects.

3. The mineral exploitation or processing
permits shall be granted to foreign organizations and individuals or joint
ventures involving foreign parties together with the investment licenses under
the Law on Foreign Investment in Vietnam.

4. An investment license granted to a foreign
organization, individual or a joint venture involving foreign party for the
execution of a mineral exploitation project may cover the mineral exploration,
exploitation and processing activities.

Article 53.- The
maximum time limits for evaluation of dossiers of application for mineral
activity permits, excluding the time for gathering opinions of concerned
agencies as provided for in Articles 49 and 51 of this Decree, are prescribed
as follows:

1. Forty five days after the receipt of complete
and valid dossiers of domestic organizations and individuals;

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3. The above time limits do not include the time
for organizations and/or individuals to supplement dossiers at the request of
the receiving agencies.

Within seven days after the above time limits,
the competent bodies must grant the permits or reply the applicants in writing
about the refusal to grant the permits.

Article 54.- After the
mineral activity permits are granted according to the provisions of this
Decree, the competent State bodies at the central and local levels shall have
to quickly settle conditions related to land rent, the use of infrastructure
and other relevant conditions for organizations and individuals licensed to
conduct mineral activities.

Article 55.-
Organizations and individuals licensed to conduct mineral activities may return
parts of the areas or mineral activity permit under the following conditions:

1. The organizations and individuals licensed
for mineral activities have fulfilled all the law-prescribed obligations by the
time of applying for the return of the permits; have restored environment, land
and ensure safety for the returned areas;

2. Within three months after their exploration
permits are returned, the organizations and/or individuals licensed to conduct
the exploration must fulfill all obligations prescribed at Point b, Clause 2,
Article 30 of the Mineral Law.

Within six months after their exploitation
permits are returned , the organizations and/or individuals licensed for the
exploitation must fulfill all obligations prescribed at Points b, c and d of
Clause 2, Article 40 of the Mineral Law;

3. They are allowed in writing by the competent
bodies that have granted such permits to return the permits.

Article 56.- The
transfer of the right to mineral exploration or exploitation must comply with
the following regulations:

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2. Property, documents and values as well as the
unfulfilled financial obligations of organizations and/or individuals licensed
for exploration or exploitation to be transferred together with the right to
mineral exploration or exploitation must be inventoried, evaluated fully and
truthfully and clearly determined in the contracts on transfer between the
parties;

3. Enclosed with the contract and the
application for the transfer of exploration or exploitation right of organizations
or individuals licensed for the exploration or exploitation must be the report
on the exploration or exploitation results by the time of applying for the
transfer permission;

4. The mineral exploration or exploitation right
transferees must fully meet the conditions prescribed in Article 15 of this
Decree;

5. Where the transferees being foreign
organizations or individuals or joint ventures involving foreign parties, there
must be the investment licenses granted by competent bodies under the provisions
of the Law on Foreign Investment in Vietnam;

6. The transfer of exploration or exploitation
right of organizations or individuals licensed for mineral exploration or
exploitation must be permitted by the bodies competent to grant such permits,
and subject to tax payment under the provisions of law.

Article 57.- The
mineral exploration or exploitation right of individuals licensed for
exploration or exploitation may be bequeathed provided that the lawful heirs of
such individuals fully meet the conditions prescribed in Articles 15 and 16 of
this Decree. If the lawful heirs of the individuals licensed for mineral
exploration or exploitation fail to fully meet the conditions for continued
operations under the permits, the case can be settled as follows:

1. The lawful heirs to the property of the
individuals licensed for exploration or exploitation may transfer the mineral
exploration or exploitation right under the permits if the practical conditions
suit the provisions in Article 56 of this Decree;

2. The mineral exploration or exploitation
permits shall be recovered, the heirs to the property of the individuals
licensed for mineral exploration shall have the rights and obligations
prescribed at Point b, Clause 2, Article 30 of the Mineral Law; the lawful
heirs to the property of the individuals licensed for mineral exploitation
shall have the rights and obligations prescribed at Points b, c and d, Clause
2, Article 40 of the Mineral Law.

Article 58.- The
mineral prospection permits shall be withdrawn under the provisions in Article
24 of the Mineral Law. Where the organizations or individuals licensed for the
prospection breach one of the regulations in Article 23 of the Mineral Law, the
time limit for remedy shall not exceed thirty days after the Industry
Ministry’s body in charge of the State management over minerals issues the
written notice thereon.

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Article 60.- The
mineral exploitation permits shall be recovered under the provisions in Article
39 of the Mineral Law. Where organizations or individuals licensed for
exploitation breach one of the regulations in Article 33 of the Mineral Law,
the time limit for remedy shall not exceed ninety days after the Industry
Ministry’s body performing the State management over mineral issues the written
notice thereon according to competence.

Article 61.-

1. The mineral processing
permits shall be granted to organizations and/or individuals other than those
licensed for mineral exploitation under the following conditions:

a) Organizations and individuals applying for
processing fully meet the conditions prescribed in Articles 15 and 16 of this
Decree;

b) The mineral processing feasibility study
report is evaluated, approved and accepted as provided for in Article 44 of
this Decree;

c) They have their reports on environmental
impact assessment evaluated and approved by competent State bodies.

2. The term of a mineral processing permit shall
be based on the feasibility study report for each project and compatible with
the investment license or the investment decision.

3. The mineral processing permits shall be
recovered when the organizations or individuals licensed for mineral processing
breach one of the regulations in Article 46 of the Mineral Law.

4. The transfer, bequeathal of mineral
processing right shall comply with the provisions in Articles 56 and 57 of this
Decree.

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1. The exploitation of minerals for use as
common building materials shall be conducted within the framework of the
State’s projects on infrastructure construction such as building dams, digging
canals for hydro-electric power generation or irrigation, road bed leveling,
digging tunnels, dredging rivers, lakes, ports, defense works and other works
of the State of similar nature, without exploiting mineral outside the
construction area, the exploitation only for the full extraction but not for
the main purpose of mineral business, investment projects and construction
designs, which have already been evaluated and approved by competent State
bodies according to law provisions;

2. The exploitation of minerals for use as
common building materials for the purpose of utmost exploitation, not for the
main purpose of mineral business shall be conducted within the land areas assigned
by the Government to organizations and individuals for use;

3. Before carrying out the exploitation or full
extraction of minerals for use as common building materials under the
provisions in Clauses 1 and 2 of this Article, the organizations and individuals
entitled to the exploitation must register the capacity, volumes and equipment
together with the exploitation plans at the provincial Industry Service of
their respective localities.

Article 63.- The
exploitation of assorted soils to supply materials for ground fill-ups in
projects or urban construction may be conducted on the basis of meeting the
following conditions:

1. There is document on geological survey of the
exploitation region evidencing that no minerals of higher value are found
therein, which are certified in writing by the provincial Industry Service;

2. The land to be exploited is not the
agricultural land or protection forest land;

3. The exploitation activities shall not cause
adverse impacts on the ecological environment, surrounding landscapes, not
cause damage to public facilities, infrastructure, cultural or historical
relics, defense works and terrain of military value;

4. It is permitted by the provincial People’s
Committee.

Article 64.- The
Industry Ministry shall guide in detail the procedures for granting, extending,
allowing the return of, mineral activity permits, allowing the transfer or
bequeathal of rights to mineral exploration, exploitation or processing, and
for registration of mineral activities for uniform application throughout the
country.

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FULL EXTRACTION

Article 65.- The full
extraction means a form of mineral activities suitable to the following
conditions:

1. It is not compulsory to explore the areas
allowed for mineral activities before commencing the exploitation;

2. The declared dug volume, including discarded
earth, rock and minerals for a full extraction permit granted to an individual
shall not exceed five thousand (5,000) tons/year, and to an organization shall
not exceed one hundred thousand (100,000) tons/year;

3. In cases where explosive is used, such must
be permitted according to the provisions of law; toxic chemicals must not be
used;

4. Each individual shall be granted only one
full extraction permit.

Article 66.- The
regions licensed for full extraction shall include:

1. Regions where exist minerals in forms of
mineral sand, rolling ore and small ore bodies lying scattered, which have been
surveyed and evaluated, where investment in the industrial-scale exploitation
does not yield economic efficiency;

2. Regions where exist minerals used as common
building materials, which lie far from roads, lakes, rivers, canals and urban
population centers where the socio-economic conditions as well as consumption
demands do not permit the investment in industrial-scale exploitation;

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Article 67.- The
Industry Ministry shall approve the full extraction regions, except where exist
precious metals, gems, on the basis of the proposal of the provincial People’s
Committees so that the latter manage and grant permits for full extraction
according to the provisions in Article 66 of this Decree and the guidance of
the Industry Ministry. Full extraction permits shall not be granted to mineral
locations not yet approved by the Industry Ministry.

Article 68.- The full
extraction area of a permit granted to an organization shall not exceed twenty
hectares, and to an individuals shall not exceed one hectare.

Article 69.- A full
extraction permit shall be valid for not more than thirty six months, extended
more than once but the total extended time shall not exceed twenty four months
under the following conditions, by the time of applying for extension:

1. Organizations and individuals licensed to
conduct full extraction have fulfilled the obligations prescribed in Article 52
of the Mineral Law;

2. The regions being applied for permit
extension are still suitable to the form of full extraction under the
provisions of the Mineral Law and Articles 65 and 66 of this Decree;

3. The full extraction permits remain valid for
not less than thirty days.

Article 70.- The full
extraction permits shall be withdrawn under the provisions of Article 53 of the
Mineral Law. Where a region being permitted for full extraction is no longer
suitable to the form of full extraction, the full extraction permit shall be
withdrawn and the consequences shall be settled according to the following
regulations:

1. Organizations or individuals licensed to
conduct full extraction must remove all of their property from the exploitation
regions, restore the environment and land and shall be entitled to the damage
compensation paid by organizations or individuals licensed to conduct mineral
activities regarding regions for which the full extraction permits have been
recovered;

2. Where there is no organization or individual
licensed to conduct mineral activities regarding the regions which are no
longer suitable to the form of full extraction or the full extraction permits
are recovered under the provisions in Clause 2, Article 14 of the Mineral Law,
the damage incurred by organizations and/or individuals shall be considered and
settled by the State according to the provisions of law;

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Article 71.-
Organizations and individuals licensed to conduct full extraction may request
State bodies, scientific and technological research institutions and
enterprises engaged in mineral activities to provide technical and
technological guidance and assistance. The above-said organizations shall have
to satisfy the legitimate request of organizations and individuals licensed for
full extraction.

Article 72.- The
provincial People’s Committees shall base themselves on the provisions of the
Mineral Law and this Decree to specify the organization of management and
granting of full extraction permits, suitable to the conditions of their
localities after reaching agreement with the Industry Ministry.

Chapter X

SPECIALIZED MINERAL
INSPECTORATE

Article 73.- Mineral
Inspectorate shall have to abide by the law provisions on labor safety, labor
hygiene and environmental protection, take initiative in coordinating with the
State Inspectorate regarding labor and the specialized inspectorate for
environmental protection for the performance of the tasks of examination and
inspection on labor safety, labor hygiene and environmental protection in
mineral activities, particularly the mineral exploitation activities;
coordinate with the State Inspectorate of various branches and various levels
in settling complaints and denunciations of organizations and individuals in
mineral activities.

Article 74.- The
organization, tasks and powers of the specialized mineral inspectorate shall
comply with the provisions in Articles 59 and 60 of the Mineral Law and be
prescribed by the Government.

Chapter XI

IMPLEMENTATION
PROVISIONS

Article 75.- This
Decree takes effect 15 days after its signing and replaces Decree No.68/CP of
November 1, 1996 of the Government which detailed the implementation of the
Mineral Law.

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Article 77.- The
ministers, the heads of the ministerial-level agencies, the heads of the
agencies attached to the Government and the presidents of the People’s
Committees of the provinces and centrally-run cities shall have to implement
this Decree.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER

Phan Van Khai