DECISION

TO ISSUE THE REGULATION ON THE ADMINISTRATIVE PROCEDURES CONCERNING MINERAL ACTIVITY PERMITS

THE MINISTER OF INDUSTRY

Pursuant to the Law on Minerals of March 20, 1996 and Decree No.68-CP of November 1st, 1996 of the Government detailing the implementation of the Law on Minerals;
Pursuant to Decree No.74-CP of November 1st, 1995 of the Government on the functions, tasks, powers and organizational structure of the Ministry of Industry;
At the proposal of the Director of the Vietnam Department of Geology and Minerals,

DECIDES

Article 1.- To issue together with this Decision the Regulation on the Administrative Procedures concerning Mineral Activity Permits to be uniformly applied in the whole country.

Article 2.- The Ministries, the ministerial-level agencies, the agencies attached to the Government, the Peoples Committees of the provinces and the cities directly under the Central Government, the organizations and individuals engaged in mineral activities shall have to implement this Decision.

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THE MINISTER OF INDUSTRY




Dang Vu Chu

REGULATION

ON THE ADMINISTRATIVE PROCEDURES CONCERNING MINERAL ACTIVITY PERMITS
(issued together with Decision No.325-QD/DCKS of February 26, 1997 of the Minister of Industry)

Chapter I

GENERAL PROVISIONS

Article 1.- The administrative procedures concerning mineral activity permits are procedures for granting, extending, permitting the return of and withdrawing mineral activity permits; permitting the assignment and/or inheritance of the right to prospect, exploit or process minerals, and for registering mineral activities.

Article 2.- The mineral activity permits mentioned in this Regulation include:

- Mineral prospection permits;

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- Mineral exploitation permits;

- Mineral processing permits;

- Permits for full exploitation of minerals.

Article 3.- The administrative procedures concerning mineral activity permits according to the principles and procedures stipulated in Article 48 to Article 63 of Decree No. 68-CP of November 1st, 1996 of the Government detailing the implementation of the Law on Minerals (Decree No. 68-CP for short) are concretized in this Regulation.

Article 4.- The competence to grant, extend, withdraw, allow the return of mineral activity permits, permit the assignment of the mineral activity right as defined in Article 9 of Decree No. 68-CP is specified as follows:

1. The Ministry of Industry shall grant the following permits:

- Mineral prospection permit;

- Mineral exploration permit;

- Permit for the exploitation and permits for the processing of minerals of various kinds, except those under the granting competence of the Peoples Committees of the provinces and the cities directly under the Central Government (provincial Peoples Committee for short) as stipulated in Clause 2 of this Article;

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2. The provincial Peoples Committee shall grant the following permits for mineral activities to be conducted in the areas under its administrative management:

- Permit for full exploitation of minerals of various kinds in areas marked off by the Ministry of Industry in accordance with Article 66 of Decree No. 68-CP;

- Permit for the exploitation and permit for the processing of minerals to be used as common construction materials and peat granted to Vietnamese organizations and individuals, except those under the granting competence of the Ministry of Industry as stipulated in Clause 1 of this Article.

3. The agency that has the competence to grant permits for a given mineral activity shall be entitled to extend, withdraw and allow the return of permits of this kind and also be entitled to allow the assignment of the mineral activity right under such permits.

Article 5.- The agency under the Ministry of Industry to receive applications and dossiers applying for mineral activity permits is the Vietnam Department of Geology and Minerals.

The agency under the provincial Peoples Committee to receive applications and dossiers applying for mineral activity permits is the provincial Industrial Service.

These agencies shall have to provide guidance and create conditions for the organizations and individuals who seek information related to the selection of sites, their areas and administrative procedures concerning mineral activity permits.

Article 6.- The fee for a mineral activity permit shall be collected in accordance with the joint decision of the Ministry of Finance and the Ministry of Industry.

Chapter II

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Article 7.- An organization or individual applying for a mineral prospection permit must send to the Vietnam Department of Geology and Minerals:

1. An application for a mineral prospection permit;

2. The mineral prospection plan clearly describing the location, boundary and area; the geological base and objects of the prospection (kinds of minerals), prospection method and work volume; duration, timetable and estimated cost, financial sources;

3. A map of the mineral prospection area set against the topographic map with a scale of not smaller than 1:000,000; a system of UTM square angle coordinates, four sets. The boundary line of the mineral exploration area divided into 1 km x 1 km squares.

4. The documents on the legal status of the applicant as stipulated by law.

Article 8.- Within sixty (60) days after receiving the full and valid dossier of a Vietnamese organization or individual and within ninety (90) days after receiving the full and valid dossier of a foreign organization or individual or a joint venture with a foreign partner, the Vietnam Department of Geology and Minerals must complete the evaluation of the dossier and submit it to the Minister of Industry for granting a prospection permit or issue a written reply to the applicant if the permit is not granted.

Article 9.- For extension of the mineral prospection permit, at least thirty (30) days earlier to the expiry date of the permit, the organization or individual permitted to conduct the prospection shall send to the Vietnam Department of Geology and Minerals an application clearly stating the reason for such extension together with a report on the result of the mineral prospection already achieved. Within thirty (30) days after receiving the valid application and dossier and the still effective prospection permit, the Vietnam Department of Geology and Minerals must consider and submit them to the Minister of Industry for decision or a written reply to the applicant if the permit is not extended.

Article 10.- To return the mineral prospection permit, the organization or individual permitted to conduct the prospection must send to the Vietnam Department of Geology and Minerals an application clearly stating the reason for returning the permit together with a report on the prospection results by the time it applies for returning the permit.

Within thirty (30) days after receiving the valid application and dossier, the Ministry of Industry shall issue a written decision permitting the return of the permit or a written reply to the applicant.

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Chapter III

MINERAL EXPLORATION PERMITS

Article 12.- An organization or individual applying for a mineral exploration permit must send to the Vietnam Department of Geology and Minerals:

1. An application for a mineral exploration permit;

2. A mineral exploration plan clearly stating the location, boundary line and area; the geological base and the exploration purpose (potential reserves of the mineral); main technology and work volume; the impact on the ecological environment and natural resources; other constructions and assets; operating duration and time table; estimated exploration cost and financial sources...

3. A map of the mineral exploration area set against the background of a topographic map, the system of UTM square angle coordinates, four (4) sets. The boundary line of the mineral prospection area drawn up in the form of a closed polygon. The exploration area of one or more square kilometers (1 km2) shall be represented by squares of one kilometer on a 1 : 50,000 map; the exploration area of one or less square kilometer (1 km2) shall be represented on a map with a scale not smaller than 1 : 5,000.

4. The documents on the legal status, assets and financial capability of the applicant as stipulated by law;

5. A copy of the investment license (if any) certified by a State notary public.

Article 13.- Within sixty (60) days after receiving the full and valid dossier of a Vietnamese organization or individual and within ninety (90) days after receiving the full and valid dossier of a foreign organization or individual or a joint venture with a foreign partner, the Vietnam Department of Geology and Minerals shall complete the evaluation of the dossier, determine the minimum exploration cost, consult the local provincial Peoples Committee and the concerned agencies and inspect the exploration site before submitting them to the Minister of Industry for granting an exploration permit or issue a written reply to the applicant if the permit is not granted.

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Article 15.- Under Article 51 of Decree No. 68-CP, the consulting agency shall have to issue according to its competence a written reply to the Vietnam Department of Geology and Minerals within twenty five (25) days after receiving the written inquiry of the Department. If, after this time limit, there is no written reply from the consulting agency, it shall be deemed that such agency has approved the granting of the mineral exploration permit.

In cases of divergent views in written replies of the concerned agencies, the Vietnam Department of Geology and Minerals may organize a meeting to reach an agreement thereon or submit these views to the Minister of Industry for consideration and decision.

Article 16.- With regard to the mineral exploration permits which, as stipulated by the Government, shall be granted only with the approval of the Prime Minister, within twenty (20) days after receiving an official dispatch from the Office of the Government about the opinion of the Prime Minister, the Vietnam Department of Geology and Minerals shall complete and submit the dossier to the Minister of Industry for granting an exploration permit or issuing a written reply to the applicant if the permit is not granted.

Article 17.- For extension of the mineral exploration permit, at least thirty (30) days before the expiry date of the permit, the organization or individual permitted to conduct the exploration must send to the Vietnam Department of Geology and Minerals:

1. An application for extension of the mineral exploration permit;

2. A report on the result and cost of the conducted exploration; the plan, work volume and estimated cost of the continued exploration;

3. A map of the area to be explored, from which at least thirty per cent (30%) of the area under the earlier permit has been excluded.

Within thirty (30) days after receiving the valid application and dossier, the Vietnam Department of Geology and Minerals shall consider and submit them to the Minister of Industry for decision to extend the permit or a written reply to the applicant if the extension is refused.

If the mineral exploration permit has expired but the application and dossier applying for its extension are still under consideration, the permit shall continue to be effective until there is a decision to extend it or a written reply to the applicant refusing the extension.

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1. An application for returning the mineral prospection permit;

2. A report on the mineral exploration result and a report on the cost of the conducted exploration by the time the organization or individual applies for the return of the permit;

3. A list of the fulfilled financial obligations.

Within thirty (30) days after receiving the valid application and dossier, the Vietnam Department of Geology and Minerals shall consider and submit them to the Minister of Industry for decision.

Article 19.- To return part of the exploration area, the organization or individual must send to the Vietnam Department of Geology and Minerals:

1. An application for returning part of the mineral exploration area;

2. A report on the result of the conducted exploration of minerals in the area to be returned;

3. A map of the exploration area where exploration activities will continue;

4. The work volume and estimated expenditure;

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Within thirty (30) days after receiving the valid application and dossier, the Vietnam Department of Geology and Minerals shall consider and submit them to the Minister of Industry for decision or a written reply to the applicant.

Article 20.- To assign the mineral exploration right, the organization or individual must send to the Vietnam Department of Geology and Minerals:

1. An application for the assignment of the mineral exploration right;

2. The contract on the assignment of the mineral exploration right;

3. The list of the values of the assets to be assigned attached to the assignment contract;

4. A report on the exploration results, the expenses already paid and the obligations already fulfilled by the time the organization or individual applies for the assignment of the exploration right;

5. The documents certifying the legal status, assets and financial capability of the organization or individual applying for assignment;

6. A copy of the investment license certified by a State notary public (for assignees that are foreign organizations and individuals or joint ventures with foreign parties).

Within thirty (30) days after receiving the valid application and dossier and the still effective exploration permit, the Vietnam Department of Geology and Minerals shall consider and submit them to the Minister of Industry for decision or a written reply to the applicant if the assignment of the exploration permit is refused.

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Article 22.- For a lawful inheritance of the mineral exploration right, the organization or individual must send to the Vietnam Department of Geology and Minerals:

1. An application for the inheritance of the mineral exploration right;

2. A legal document proving that the applicant is the lawful heir of the individual permitted to conduct mineral exploration;

3. A report on the exploration result, the expenses actually paid and the program for continued exploration.

Within thirty (30) days after receiving the valid application and dossier and the still effective exploration permit, the Vietnam Department of Geology and Minerals shall consider and submit them to the Minister of Industry for decision.

The inheritance of the mineral exploration right shall be approved by the granting of a new exploration permit to the inheriting organization or individual in compliance with the mineral exploration right defined in the earlier permit which shall be withdrawn thereupon.

Article 23.- In cases where the organization or individual lawfully entitled to inherit the mineral exploration right lacks conditions to continue the exploration, they shall be entitled to assign the exploration right to another organization or individual as stipulated in Article 20 or to apply for returning the exploration permit as stipulated in Article 18 of this Regulation.

Article 24.- The mineral exploration permit shall be withdrawn as stipulated in Article 29 of the Law on Minerals and Article 59 of Decree No. 68-CP by decision of the Minister of Industry.

Chapter IV

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Article 25.- An organization or individual applying for a mineral exploitation permit must send to the application receiving agency:

1. An application for a mineral exploitation permit;

2. The competent agencys written approval or document on the evaluation of the exploration report as stipulated in Article 43 of Decree No. 68-CP and a certification that the exploration report has been filed in the State geological archives;

3. A feasibility study report on the mineral exploitation together with an evaluation or approval document as stipulated in Article 44 of Decree No. 68-CP;

4. A map of the mineral exploitation area (projected) set against the background of a topographic map with a scale of not smaller than 1:5,000 and a system of UTM square angle coordinates, four (4) sets.

5. The documents on the legal status of the applicant (if the applicant is not the organization or individual already permitted to conduct exploration);

6. The documents certifying the assets and financial capability of the applicant (investor);

7. A copy of the investment license (if any) for exploiting minerals certified by a State notary public(for foreign organizations and individuals or joint ventures with foreign partners);

8. A report on the environmental impact already examined and approved in accordance with the legislation on environmental protection;

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Article 26.- Within sixty (60) days after receiving the full and valid dossier of a Vietnamese organization or individual and within ninety (90) days after receiving the full and valid dossier of a foreign organization or individual or a joint venture with a foreign partner, the application receiving agency shall complete the evaluation of the dossier, inspect the exploitation site and consult the concerned agencies before submitting it to the competent level for granting an exploitation permit or issuing a written reply to the applicant if the permit is not granted.

Article 27.- The order, procedures and time limit for consulting the concerned agencies or seeking the Prime Ministers opinion when the application is considered before a mineral exploitation permit can be granted shall comply with Articles 15 and 16 of this Regulation.

Article 28.- When it is necessary to publicize the mineral exploitation application on the mass media for public comments the application receiving agency must publicize it at least twenty five (25) days before the date the permit is granted

Article 29.- For extension of the mineral exploitation permit, at least three (3) months before the expiry date of the permit the concerned organization or individual must send to the application receiving agency:

1. An application for extension of the mineral exploitation permit;

2. A report on the result of the exploitation activities from the date the permit becomes effective to the time its extension is applied for; the remaining mineral reserve and the area applied for continued exploitation;

3. A list of fulfilled obligations: payment of taxes, damage compensation, environmental protection, recuperation of land in areas where the exploitation activities have terminated...

3. The map of the mine under exploitation by the time the extension is applied.

Within thirty (30) days after receiving the valid application and dossier, the application receiving agency must consider and submit them to the competent level for decision on the extension or a written reply to the applicant if the extension is refused.

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1. An application for returning the mineral exploitation permit;

2. A report on the mineral exploitation result from the date the permit becomes effective to the time the organization or individual applies for returning the permit;

3. A list of obligations fulfilled by the time the organization or individual applies for returning the permit: payment of taxes, damage compensation...

4. A plan on the closure of the mine for liquidation or for protection as stipulated by the Ministry of Industry.

5. A map of the mine under exploitation.

Within thirty (30) days after receiving the valid application and dossier, the application receiving agency shall consider and submit them to the competent level for decision.

Article 31.- For returning part of the exploitation area, the organization or individual must send to the application receiving agency:

1. An application for returning part of the mineral exploitation area;

2. A report on the exploitation result, the geological situation and the remaining mineral reserve in the area to be returned;

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4. The map of the mine under exploitation at the time the organization or individual applies for returning part of the exploitation area.

Within thirty (30) days after receiving the valid application and dossier, the application receiving agency must consider and submit them to the competent agency for decision.

Article 32.- For assigning the mineral exploitation right, the organization or individual must send to the application receiving agency:

1. An application for the assignment of the mineral exploitation right;

2. The contract on the assignment of the mineral exploitation right;

3. The list of the values of the assets to be assigned attached to the contract on the assignment of the mineral exploitation right;

4. A report on the exploitation result and obligations fulfilled by the time the organization or individual applies for the assignment of the exploitation right;

5. The map of mine under exploitation at the time the organization or individual applies for assigning the exploitation right;

6. The documents certifying the legal status, assets and financial capability of the organization or individual as assignee of the mineral exploitation right;

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Within thirty (30) days after receiving the valid application and dossier and the still effective exploitation permit, the application receiving agency shall consider and submit them to the competent agency for decision or a written reply to the applicant if the exploitation right can not be assigned.

Article 33.- The assignment of the mineral exploitation right shall be approved by the granting of a new exploitation permit to the organization or individual assignee in compliance with the exploitation right defined in the earlier permit which shall be withdrawn thereupon. In cases where the exploitation right is not qualified for the assignment as stipulated in Article 56 of Decree No. 68-CP such organization or individual shall be entitled to return the exploitation permit as stipulated in Article 30 of this Regulation.

Article 34.- For a lawful inheritance of the mineral exploitation right, the organization or individual must send to the application receiving agency:

1. An application for the inheritance of the mineral exploitation right;

2. A legal document proving that the applicant is the lawful heir of the individual permitted to exploit minerals;

3. A report on the mineral exploitation result by the time the organization or individual applies for inheritance;

4. A map of the mine under exploitation at the time the organization or individual applies for inheritance.

Within thirty (30) days after receiving the valid application and dossier and the still effective exploitation permit, the application receiving agency shall consider and submit them to the application receiving agency for decision.

The inheritance of the mineral exploitation right shall be approved by the granting of a new exploitation permit to the inheriting organization or individual in compliance with the mineral exploitation right defined in the earlier permit which shall be withdrawn thereupon.

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Article 36.- The mineral exploitation permit shall be withdrawn as stipulated in Article 39 of the Law on Minerals and Article 60 of Decree No. 68-CP by decision of the agency competent to grant such permit.

Article 37.- The administrative procedures concerning full exploitation permits shall be stipulated by the provincial Peoples Committee after consulting the Ministry of Industry and in compliance with the provisions of the Law on Minerals, and Article 65 to Article 70 of Decree No. 68-CP. Applications for full exploitation and full exploitation permits shall conform to the unified regulation for the whole country.

Article 38.- The provisions in Clause 4, Article 65 of Decree No. 68-CP on full exploitation contracts and full exploitation cards shall apply as follows:

1. A full exploitation contract shall be signed between an organization, which is an enterprise permitted to conduct full exploitation and an individual (not an enterprise) for conducting full exploitation on the basis of ensuring the legal responsibility of the organization which is an enterprise for its full exploitation right and the reciprocal responsibilities of the parties to the contract.

2. A full exploitation card shall be granted by the organization, which is an enterprise permitted to conduct full exploitation to an individual (not an enterprise) for conducting full exploitation where it is impossible to determine separate areas for full exploitation by each individual. The full exploitation card shall be uniform, have a duration of not more than 12 months, may be extended several times but for no more than 12 months each time, and shall not exceed the effective duration of the full exploitation permit granted to the enterprise.

Chapter V

MINERAL PROCESSING PERMITS

Article 39.- An organization or individual that does not possess a mineral exploitation permit and wishes to apply for a mineral processing permit must send to the application receiving agency the following as stipulated in Article 5 of this Regulation:

1. An application for a mineral processing permit;

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3. A copy of the investment license for processing minerals certified by a State notary public (for foreign organizations and individuals or joint ventures with foreign partners);

4. The documents certifying the legal status, assets and financial capability of the applicant

5. A report on the environmental impact already evaluated and approved in accordance with the legislation on environmental protection;

Article 40.- Within sixty (60) days after receiving the full and valid dossier of a Vietnamese organization or individual and within ninety (90) days after receiving the full and valid dossier of a foreign organization or individual or a joint venture with a foreign partner, the application receiving agency shall complete the evaluation of the dossier, conduct field inspection, gather comments from the concerned agencies and submit it to the competent level for granting a permit or issuing a written reply to the applicant if the permit is not granted.

Article 41.- The order, procedures and time limit for gathering comments from the concerned agencies or seeking the Prime Ministers opinion for considering the application before a mineral processing permit is granted shall comply with Articles 15 and 16 of this Regulation.

Article 42.- For extension of the mineral processing permit, at least three (3) months before the expiry date of the permit, the concerned organization or individual must send to the application receiving agency:

1. An application for extension of the mineral processing permit;

2. A report on the result of the processing activities from the date the permit becomes effective to the time the extension is applied for; the volume of minerals to be processed;

3. A list of fulfilled obligations: payment of taxes, damage compensation, environmental protection,

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Article 43.- For returning a mineral processing permit, the organization or individual must send to the application receiving agency:

1. An application for returning the mineral processing permit;

2. A report on the mineral processing result from the date the permit becomes effective to the time the organization or individual applies for the return of the permit;

3. A list of the obligations fulfilled by the time the organization or individual applies for the return of the permit: payment of taxes, damage compensation...

Within thirty (30) days after receiving the valid application and dossier, the application receiving agency shall consider and submit them to the competent level for decision.

Article 44.- For assigning the mineral processing right, the organization or individual must send to the application receiving agency:

1. An application for the assignment of the mineral processing right;

2. The contract on the assignment of the mineral processing right;

3. The list of the values of assets to be assigned;

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5. The documents certifying the legal status, assets and financial capability of the organization or individual as assignee of the mineral processing right;

6. A copy of the investment license for processing minerals certified by a State notary public (for assignees that are foreign organizations and individuals or joint ventures with foreign partners).

Within thirty (30) days after receiving the valid application and dossier, the application receiving agency must consider and submit them to the competent agency for decision or a written reply to the applicant if the mineral processing permit can not be assigned.

Article 45.- The assignment of the mineral processing right shall be approved by the granting of a new processing permit to the organization or individual as assignee in compliance with the mineral processing right stipulated in the earlier permit which shall be withdraw thereupon In cases where the mineral processing right is not qualified for the assignment as stipulated in Clause 4, Article 61 and Article 56 of Decree No. 68-CP such organization or individual may return the mineral processing permit as stipulated in Article 43 of this Regulation.

Article 46.- For a lawful inheritance of the mineral processing right, the organization or individual must send to the application receiving agency:

1. An application for the inheritance of the mineral processing right;

2. Legal documents proving that the applicant is the lawful heir of the individual permitted to process minerals;

3. A report on the mineral processing result and the plan on continued mineral processing activity;

Within thirty (30) days after receiving the valid application and dossier and the still effective processing permit, the application receiving agency shall consider and submit them to the application receiving agency for decision.

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Article 47.- In cases where the organization or individual entitled to legally inherit the mineral processing right lacks conditions for continuing the mineral processing activity, they shall be entitled to assign the processing right to another organization or individual as stipulated in Article 44 or to apply for the return of the processing permit as stipulated in Article 43 of this Regulation.

Article 48.- The mineral processing permit shall be withdrawn as stipulated in Clause 3, Article 61 of Decree No. 68-CP by decision of the agency competent to grant such permit.

Chapter VI

STATE REGISTRATION AND ANNOUNCEMENT OF MINERAL ACTIVITIES

Article 49.- A mineral activity shall be subject to State registration at the application receiving agency defined in Article 5 of this Regulation before the permit is handed to the applicant.

All mineral activities defined in the permits granted by the competent agencies in the whole country must be registered and fully synthesized at the Vietnam Department of Geology and Minerals.

Article 50.- The application receiving agency shall have to file the dossiers regarding the mineral activity permits.

Article 51.- Two copies of a mineral activity permit shall be handed to the applicant and the permit shall be also sent to the agencies for State registration or announcement of the mineral activity according the following regulation:

1. One set of the mineral prospection permit or the mineral exploration permit and a map of the prospection area or the exploration area shall be sent to the concerned provincial Industrial Service

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3. One set of the permit for the exploitation of minerals to be used as common construction materials and the exploitation of peat, or one set of the full exploitation permit and one set of the mineral processing granted by the President of the Peoples Committee together with a map of the exploitation area and the information needed for the registration of the mineral exploitation or processing activity prepared by the provincial Industrial Service shall be sent to the Vietnam Department of Geology and Minerals.

4. Copies of the mineral activity permit shall be sent by the organization or individual permitted to conduct mineral activity to the other concerned agencies at the request of the latter when the former fill in the procedures for renting land or registering business and production activities...

Article 52.- The volume of minerals to be used as common construction materials that can be exploited without a mineral exploitation permit in the cases defined in Article 62 of Decree No. 68-CP must be registered at the agencies performing the State management over minerals is stipulated as follows:

1. If the exploitation activity is conducted in an area under the administrative management of a province, it shall be registered at the provincial Industrial Service;

2. If the exploitation activity is conducted in the boundary area of two or more provinces, it shall be registered at the Vietnam Department of Geology and Minerals and the concerned provincial Industrial Services.

Article 53.- The announcement of the mineral activity plans and programs as well as the regime of reporting the mineral activity results shall be subject to a separate Regulation.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 54.- This Regulation takes effect from the date of its issue. The earlier regulations which are contrary to this Regulation are now annulled.

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