DIRECTIVE

CONTINUING ENHANCEMENT OF STATE MANAGEMENT OF EXPLORATION, EXTRACTION PROCESSING, USE AND EXPORT IF MINERALS

On March 30, 2015, the Prime Minister promulgated Directive No. 03/CT-TTg on enhancement of the effect of the legislation on minerals. After 05 years of implementation of the Prime Minister’s Directive No. 03/CT-TTg, multiple legal documents elaborating the Law on Mineral have been amended or issued to complete the system of mineral laws. Mineral-related inspections are also intensified causing a decrease in illegal mineral extraction; many enterprise has made investment in extraction and processing technologies to increase the value of extracted minerals, protect the environment and ensure environmental remediation after mineral extraction.

However, there are still unresolved issues concerning mineral extraction and state management thereof, such as: many enterprises have not invested adequately in safety, personal protective equipment, environmentally safe extraction and processing technologies; have not carried out environmental remediation and mine closing after extraction as per regulations; illegal extraction is not effectively prevented, especially extraction of river sand and gravel; grant of mineral extraction permits by bidding is still limited; illegal transport and export of minerals are yet to be completely eliminated.

In order to continue improving the effectiveness of state management of exploration, extraction processing, use and export of minerals, the Prime Minister’s directive is as follows:

1. The Ministry of Natural Resources and Environment shall:

a) Take charge and cooperate with the Ministry of Finance and the People’s Committees of provinces and central-affiliated cities (hereinafter referred to as “provinces) in implementation of the National Assembly’s Resolution No. 101/2019/QH14 dated November 27, 2019 regarding suspension of the collection of fees for grant of rights mineral extraction specified the Law on Mineral from July 01, 2011 to December 31, 2013; submit a report to the Prime Minister in Q3/2020.

b) Take charge and cooperate with relevant Ministries in completing the report on implementation of the Law on Mineral in 2020, which specifies positive impacts, unresolved issues, difficulties, proposed revisions; submit it to the Government for proposing promulgation of a new Law on Mineral to replace the 2010’s Law. Submit the draft Decree on management of minerals in reserve areas for development of surface project; the draft Decree that replaces the Decree No. 22/2012/ND-CP on mineral extraction right auction.

c) Take charge and cooperate with relevant Ministries, central authorities and local governments in implementation of the Government’s Decree No. 23/2020/ND-CP dated February 24, 2020 on management of river sand and gravel, protection of river beds and banks; propose and carry out investigations and assessment of minerals for production of artificial sand to replace depleting river sand and gravel.

d) Take charge and cooperate with other Ministries, central authorities and local governments in completing the 10-year report on implementation of the Politburo’s Resolution No. 02/NQ-TW dated April, 25, 2011 on the mineral and mineral extraction strategy by 2020 and the visions towards 2030; Implementation of the Prime Minister’s mineral and mineral extraction strategy by 2020 and the visions towards 2030; preside over the drafting of a new Resolution to replace Resolution No. 02/NQ-TW and develop a new mineral strategy.

dd) Enhance inspection of accountability of heads of organizations where illegal mineral extraction occurs, especially sand and gravel extraction. Enhance cooperate with other Ministries and central authorities in inspection of compliance to mineral laws and relevant laws by organizations and individuals having mineral-related operations; produce statistics of extracted minerals in reality. Improve quality of the process of appraising and approving environmental impact assessment reports of mineral extraction projects to minimize negative impacts on the environment in the extraction area; inspect and supervise post-extraction environmental remediation and mine closing. Impose heavy penalties for extraction beyond licensed area or causing environment pollution. Gradually develop the information technology-based mineral extraction control system to contribute to the development of electronic government.

e) Take charge and cooperate with the People’s Committees of relevant provinces in selecting areas where mineral reserves have been determined, in the mineral planning approved by the Prime Minister, and outside of areas where mineral extraction is banned or suspended, and outside of areas relevant to natural forest planning in order to promote mineral extraction right auction.

2. The Ministry of Industry and Trade shall:

a) Take charge and cooperate with relevant Ministries and central authorities in preparation of the planning for exploration, extraction, processing and use of minerals, the planning for exploration, extraction, processing and use of radioactive ores for 2021 – 2030 and the visions towards 2050; submit them to the Prime Minister for approval. Estimates of extraction capacity of each mine and mineral areas shall include market forecasts, maximum capacity, minimum capacity, domestic and export market demands. t

b) Only mineral extraction projects that have specific mineral sources and advanced processing technology, ensure maximum recovery of minerals, satisfy environmental protection requirements.

c) Review and promulgate regulations on export quality norms associated with appropriate ore sorting and treatment processes for minerals with large quantities and medium domestic demands; limited domestic treatment technology, having negative impact on the environment, ensuring economic efficiency and reserve such as: titanium placer deposits, rare earth; export of refined ores from mines with small quantities, low quality, located in remote or bordering areas where transport of ores to processing facilities is costly and causes damage to the road. Propose policies on permission of export - import certain minerals to meet domestic demands. Do not allow taking advantage of export and import policies for smuggling, commission of trade fraud, illegal transport of minerals across the border.

3. The Ministry of Construction shall:

a) Take charge and cooperate with relevant Ministries and central authorities in preparation of the planning for exploration, extraction, processing and use of minerals as building materials for 2021 – 2030 and the visions towards 2050; submit them to the Prime Minister for approval. Estimates of extraction capacity of each mine and mineral areas shall include market forecasts, maximum capacity, minimum capacity, domestic and export market demands.

b) Consider adding to the negative list of exports some minerals as raw materials for cement production in order to meet domestic demands; limit investment in expansion and capacity increase of cement projects in major cities, populated areas and areas with natural scenery that need protecting.

c) Review, promulgate regulations on technical norms for export of stone blocks, stone slabs; silicon sand and yellow molding sand after sorting and treatment on the basis of balance of domestic demand and adequacy of mineral reserves.

d) Review, promulgate technical regulations on sand alternatives for construction; ensure balance between domestic supply and demand of building materials.

4. The Ministry of Transport shall determine the scope, scale, boundaries of channel protection areas and works on rivers under its management; approve, announce the annual plan and time for dredging in port waters and inland waterways as per regulations; intensify inspection and supervision of investors executing dredging projects; impose heavy penalties against failure to comply with design standards, abuse of dredging operations for illegal sand or mineral extraction.

5. The Ministry of Finance shall review finance policies on minerals (resource royalty, export duties, fees and charges, fee for grant of mineral extraction right), especially those applicable to small and medium enterprises; propose revisions to finance policies to improve practicality, promote development, encourage use of river sand and gravel; take actions against legalization of input documents for use of river sand and gravel at construction works and projects; cooperate with mineral authorities in strictly control sources of revenue from minerals according to actual extraction. Request customs authorities to maintain channeling, inspection and control of export and import of minerals as per regulations.

6. The Ministry of National Defense shall request the border guard, the coastguard and relevant units to cooperate with other forces in inspection, control, prevention and taking of actions against illegal exploration, extraction and export of minerals, especially by sea. Cooperate with other Ministries and central authorities in developing the planning for exploration, extraction, processing and use of minerals to ensure defense and security.

7. The Ministry of Public Security shall request units and local police authorities to cooperate with the Ministry of Natural Resources and Environment, the local governments and relevant authorities in effectively preventing and taking actions against violations against regulations on mineral extraction, causing environment pollution; transport, gathering, sale and use of minerals without lawful origins, especially river gravel, sand, coal, titanium, etc.; smuggling, trade frauds, illegal export and import of minerals.

8. The Ministry of Labor, War Invalid and Social Affairs shall take charge and cooperate with relevant Ministries and the People’s Committees of provinces in enhancement of inspection of labor safety in mineral extraction, especially at quarries.

9. The Ministry of Agriculture and Rural Development shall:

a) Take charge and cooperate with the People’s Committees of provinces in inspection of forest replacement when repurposing forest for mineral extraction; impose heavy penalties for violations against regulations of law on forest replacement.

b) Take charge and cooperate with relevant Ministries, central authorities and local governments in resolving enterprises’ difficulties regarding mineral exploration and extraction in land with forests; underground mineral extraction without affecting the surface of land with forests.

c) Take charge and cooperate with relevant Ministries, central authorities and local governments in management of mineral extraction within protection areas of irrigation works prescribed by the Law on Irrigation; protection of river bed and banks while fulfilling requirements for river regulation and improvement of riverside scenery prescribed in Decree No. 23/2020/ND-CP.

10. The People’s Committees of provinces shall:

a) Demand review of mineral plannings under their management which are approved before January 01, 2019 in order to prepare the plan for protection, extraction and use of resources in their provinces; submit it to the Prime Minister for approval in accordance with the Law on Planning.

b) Closely cooperate with the Ministry of Natural Resources and Environment and relevant Ministries to identify areas where mineral activities are prohibited or suspended; review planning for natural forests. Strictly implement the instructions of the Secretariat in Directive No. 13-CT / TW dated January 12, 2017 on strengthening the Communist Party's leadership in forest management, protection and development in the field of mineral exploration and extraction; submit progress reports and proposals to the Prime Minister during the process.

c) Inspect, review and evaluate the grant of licenses for mineral exploration and extraction in the mineral areas delineated and announced by the Ministry of Natural Resources and Environment as scattered and small mineral areas. review and evaluate the payment of fees for grant of mineral extraction right by organizations and individuals extracting minerals in their provinces, including those licensed by the Ministry of Natural Resources and Environment; supervise the payment of fees for grant of mineral extraction right; submit annual reports to the Ministry of Natural Resources and Environment.

d) Organize the fulfillment of responsibilities of the People's Committees at all levels according to Decree No. 23/2020/ND-CP. Accordingly, review the river sand and gravel extraction areas; dredging projects that have been licensed are in progress; identify projects affecting the drainage of flood, stability of river banks, causing landslides of river banks or threatening the safety of riverside structures.

dd) Intensify inspection of mineral-related activities, focus on the environmental protection in mineral extraction and processing, especially the extraction and use of river sand and gravel; put an end to the extraction, carry out mine closure and environmental remediation in extraction areas that are inefficient and causing environmental pollution; impose heavy penalties for illegal extraction, trade, transport and export of minerals; review and inspect the mine closure for the expired mining licenses according to regulations.

e) Request the waterway police, the environment police authorities to cooperate with relevant authorities and units to effectively prevent and take actions against of illegal extraction, transport and trade of minerals without lawful origin, especially river sand and gravel in their provinces. It is strictly forbidden to take advantage of dredging activities for illegal extraction of sand or minerals.

g) Improve the quality of the process of appraising and approving mineral exploration reports within their jurisdiction, especially those of scattered and small mines; Send mineral exploration and extraction licenses they issue to the Ministry of Natural Resources and Environment as per regulations; request the organizations and individuals that have received the reserves approval by the People’s Committee of the province in their mineral exploration reports to submit geological archives at General Department of Geology and Minerals of Vietnam; take actions against those who fail to do so.

h) Presidents of the provincial People’s Committees are responsible to the Prime Minister for illegal mineral extraction, serious environment pollution, taking advantage of dredging activities for illegal sand and gravel extraction in their provinces.

11. This Directive replaces the Prime Minister’s Directive No. 03/CT-TTg dated March 30, 2015 on enhanced implementation of mineral policies and laws. Before January 31 every year, Ministries and the People’s Committees of provinces shall submit reports on performance to their tasks specified in this Directive to the Ministry of Natural Resources and Environment, which will submit a consolidated report to the Prime Minister.

12. Central Committee of Vietnamese Fatherland Front shall request inferior Vietnamese Fatherland Front units to supervise the implementation of mineral laws, mainly prevention of illegal extraction of mineral, especially river sand and gravel.

The Prime Minister requests that relevant Ministries, central authorities, the People’s Committees of provinces promptly organize the implementation of this Directive and report difficulties that arise during the implementation of this Circular to the Prime Minister.

---------------

This document is handled by Vinas Doc. Document reference purposes only. Any comments, please send to email: [email protected]