Decision No. 2427/QD-TTg dated December 22, 2011 of the Prime Minister approving mineral resources strategy to 2020, with a vision toward 2030

DECISION

APPROVING MINERAL RESOURCES STRATEGY TO 2020, WITH A VISION TOWARD 2030

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THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Law on Minerals No.60/2010/QH12 dated November 17, 2010;

Pursuant to the Resolution No.02-NQ/TW dated April 25, 2011 of the Politburoon strategic orientations for mineral resources and mineral exploitation to 2020, with a vision to 2030;

Pursuant to the strategy of Social-Economic Development in period from 2011 - 2020;

At the proposal of Minister of Natural Resources and Environment,

DECIDES:

Article 1.To approve the "Strategy for mineral resources to 2020, with a vision toward 2030" with the main contents as follows:

1. Directive viewpoints

a) Minerals are non-renewable natural resources, to be of the assets of national importance; must be managed, protected, exploited and used rationally, economically and efficiently to meet the requirements of industrialization, modernization of the country, sustainable social - economic development in short-term, long-term and maintenance of defense, security and environmental protection;

b) Survey and evaluation of the mineral resources must be implemented in advance to clarify the potential of mineral resources for planning exploration, exploitation, processing, and use of mineral resources and national reserves.

c) Exploration and mining must be associated with the processing and use in accordance with the potential of each type of mineral and needs of all economic sectors;

d) Processing of minerals must use advanced technology, environmental friendly, producing products of high economic value; primarily for domestic demand, for exporting products after processing with high economic value for large-scale minerals;

đ) To promote international cooperation to absorb modern science and apply advanced technologies in the survey, exploration, mining, and mineral processing.

2. Strategy

To prioritize for investment in basic survey of geological minerals both land and sea and islands in order to clarify the potential mineral resources; exploration and exploitation of minerals associated with processing and efficient use. Balance between exploitation with reserve of minerals, sustainable development of mining industry associated with the environmental protection and ensuring national defense - security.

3. Objectives

a) To complete mapping the geology and mineral survey, rate of 1/50,000 per land area; to complete the geological, sea mineral survey, rate of 1/500,000; and assess to clarify the potential mineral resources for exploitation and the national reserve;

b) To explore to meet the needs of mining and processing to 2050 for the minerals: coal, uranium, titanium - zircon, rare earths, apatite, iron, lead - zinc, copper, tin, manganese, chromites, bauxite , glass sand and some other minerals;

c) Mining of mineral must be associated with processing, creating products of high economic value; to 2020 it shall terminate the facilities processing minerals scattered, outdated technology, low economic efficiency and contaminating environment; forming the industry zones processing minerals concentrated with advanced technology, the scale corresponding to potential of each type of mineral;

d) Only export products after processing of high value for the large-scale mineral. The remaining minerals shall be exploited and processed according to domestic demand to strengthen national mineral resource reserves for use as a basis for sustainable social - economic development;

đ) To encourage cooperation of survey, exploration, exploitation, and processing of some minerals in foreign countries, giving priority to the minerals having the need to use in Vietnam.

4. Development Orientation

a) The basic geological surveys of mineral resources

- To prioritize completion of geological mapping and mineral survey, the rate of 1/50,000 on land area, the islands; geological surveys of sea minerals, the rate of 1/500,000, focusing on survey and detection of minerals in the areas of geological structure favorable for creating ore;

- To assess the overall potential of some important minerals: brown coal in the Red River Delta; bauxite, iron laterite in the West Highlands; rare earth - uranium, lead, zinc in the Northwest, Viet Bac, Central; lithium, gold in the central; white marble in the North; paving stones at Central; uranium and some other minerals in the structures having premise and favorable signs to a depth of 500 m, a number of areas to a depth of 1,000 m.

b) Exploration, mining and processing of minerals

- Coal: To promote the exploration of part deeper than 300m for the mines in coal basins of Quang Ninh, Thai Nguyen, Quang Nam; to select some areas of most potential in the Red River Delta, exploration to the depth of 1,000m. To invest newly and renovate, extend the exploitation of the depth of a number of mines in Quang Ninh coal basin; to upgrade industrial zones of coal preparation in Quang Ninh, Thai Nguyen to ensure environmental safety standards; to select trial mining method in some areas of the Red River Delta coal basin to ensure safe environment, not affecting economic - social development on the ground as a basis for proposing solutions to exploit overall coal basin of the phase after 2020;

- Radioactive mineral (uranium): Complete the exploration of uranium ore in the mines Pa Lua - Pa Rong, Khe Hoa - Khe Cao in Quang Nam and some other potential areas; study technology, perfect the technical uranium processing process and safe measures in mining and processing uranium ore, for the demand of raw materials for nuclear power plants.

- Metallic minerals

+ Ores of titanium - zircon: exploration and exploitation of large-scale to supply raw materials for deep processing projects focused in the region of Luong Son, Binh Thuan province. To speed up the construction of deep processing plants of titanium ores (artificial rutile, pigment, sponge titanium, metallic titanium) by using the advanced technology, not polluting the environment; to form the industry mining titan - zircon corresponding to the potential resources discovered. To plan the national mineral reserve area according to the period in Binh Thuan for implementing the social - economic development projects on the ground.

+ Bauxite ore: Complete the exploration of bauxite mines in the West Highlands - Binh Phuoc that have been surveyed and evaluated. To deploy activities of mining Tan Rai and Nhan Co mines for raw material for 02 projects producing alumina in Lam Dong and Dak Nong. The implementation of other projects of exploration, production of alumina in Lam Dong, Dak Nong and Binh Phuoc is only done after 02 above projects put into operation and assessed that it has economic efficiency. To study feasibility of aluminum production project in Vietnam to deploy after 2015.

+ Iron ore: to deploy exploration for potential mines in the province of Yen Bai, Lao Cai, Son La, Ha Giang, Phu Tho, Bac Kan, Quang Ngai. Exploitation activities must be associated with the using address, for domestic steel, pig-iron production projects, not exporting iron ore.

+ Rare earth ore: Complete the exploration for the rare earth mines in Lai Chau, Lao Cai. Deploy projects mining and processing rare earth ore in the mines Dong Pao (Lai Chau) and Phu Yen (Yen Bai).

+ Copper ore: Complete the exploration of the copper mines in Lao Cai, Lai Chau, Yen Bai, Son La. Investment in expansion of the facilities processing metallic copper in Lao Cai. The mining projects must be associated with the using address for domestic processing projects, not exporting copper ore.

+ Lead - zinc ores: To explore the depth and areas extending the mines in Cho Dien, Cho Don to supplement ore reserves for mining projects; complete exploration of potential mines in Dien Bien and Yen Bai, Tuyen Quang, Ha Giang, Cao Bang. The ore mining is only for deep processing project to metals lead, zinc; not exporting ores of lead - zinc. The new ore regions developed in Bac Kan, Cao Bang shall be put into region of national mineral reserves.

+ Manganese ore: To complete the exploration in the potential areas in provinces of Ha Giang, Tuyen Quang, Cao Bang to exploit for used as raw materials for projects processing feromangan, EMD electrolytic manganese for domestic needs; not exporting manganese ore and post-processing products.

+ Chromite ore: Based on the demand for using products made from chromite ore in the industries to 2030 to supply for mining and processing in accordance with user’s needs; balance between exploitation with the national reserve to form industrial zone mining and processing chromite in Co Dinh, Thanh Hoa province. Not exporting chromite ore processing and and post-processing products.

+ Gold: The exploration and exploitation is made only for the original gold mine. the processing of gold ore must be used advanced technology, without adversely affecting the environment, water source; not exploring and exploiting stream gold.

+ For other types of metallic minerals: Implementation of exploration and exploitation must be associated with deep processing projects primarily serving the domestic demand, not exporting ore and post-processing products.

- Non-metallic minerals

+ Minerals used as raw materials for cement: to explore and exploit the mines for cement projects in the cement industry development plan approved. Not exploiting limestone in the area the mountain side along two sides of national highway to protect the landscape.

+ Chalky limestone: large-scale mining and concentrated processing of chalky limestone in Nghe An, Yen Bai; to limit small-scale mining; not exporting piece stone.

+ Minerals used as ceramic - glass raw materials: to explore and exploit in the areas of kaolinh, feldspar in Tuyen Quang, Yen Bai, Phu Tho, Lao Cai, Quang Binh and Thua Thien Hue and Binh Duong, Binh Phuoc, Kon Tum used as material for producing tile, ceramics. to explore and exploit white sand mines in Quang Ninh, Quang Binh and Thua Thien Hue, Quang Tri and Khanh Hoa used as material for the projects processing glass, molds, glaze frit, adobe brick.

+ Minerals used as paving materials: to explore and exploit granite, gabbro in the provinces of Yen Bai, Thanh Hoa, Nghe An, Binh Dinh, Phu Yen, Khanh Hoa and Ninh Thuan and Dak Lak, Gia Lai, Kon Tum, Tay Ninh and quarries of tiles sediments in Cao Bang, Thai Nguyen, Yen Bai, Thanh Hoa, Nghe An for construction needs. Not exporting piece stone.

+ Apatite ore: to complete exploration of expansion, supplementation for the areas surveyed. To research technologies using types II ore, for investment in processing projects. The licensing of mining projects must be associated with processing, producing phosphate fertilizer, DAP, phosphorous production, fused phosphate, not exporting apatite ore; to balance the demand for domestic use to adjust the national mineral reserve regions.

- Group of minerals as common construction materials

Mining and processing of minerals as common construction materials must be associated with occupational safety, protection of landscape and environment. Not mining construction materials at the foot of hillsides, mountains, along the national highways to protect the landscape.

- The hot water mineral, mineral water

To promote exploration to identify reserves and quality of mineral water, hot water for exploring, using efficiently, reasonably according to demands of social and economic development.

- For oil and gas: to implement the development strategy of Vietnam Oil and Gas Industry that was approved by the government with the objective of "developing the petroleum industry into the critical economic - engineering sector, synchronization, including: exploration, exploitation, transportation, processing, storage, distribution, service and import and export."

c) International cooperation: Priorities for international cooperation, investment in foreign countries for investigation, exploration, and exploitation of coal, iron ore, gypsum, rock salt and other minerals overseas. To promote cooperation with developing countries to absorb advanced technology in basic geological surveys of mineral resources, mineral exploration and in mining, processing ores of rare earths, titanium - zirconium, lithium...

5. The policies

a) Policy of protection, use and storage of mineral resources

- Use of mineral resources to ensure savings and efficiency, meeting the requirements of sustainable development;

- Balance to ensure that reserves of mineral resources for the needs of economic development in short and long term;

- Priority to the exploitation, processing and use of minerals for domestic production; the import and export of minerals in the principles of balance and ensuring domestic needs of production; only export products after processing of high economic value to large-scale mineral.

b) Policy of Science and Technology

- To encourage the cooperation of transfer of advanced technology, environmental friendly in mining and processing minerals;

- To strengthen capacity and renewal of equipment and technology; policies of high qualified human resource development in the management, survey, exploration, and processing of minerals.

c) Investment policy

- Priority in investment to accelerate the basic geological surveys of mineral resources;

- To diversify investment capital sources for the basic geological surveys of mineral resources;

- To encourage investment in technology of mining and deep processing, and environmental friendliness.

6. The solutions

a) Management and Planning

- To perfect the system of legal documents on minerals; improve management capacity from the central to local levels;

- To ensure close coordination between central and local levels to speed up inspection and examination of mineral activities; strictly handle law violations in mineral activities, create a mechanism and restructure industry of mining and processing minerals;

- To set up minerals planning according to the provisions of the Mineral Law and in accordance with the orientation of the Strategy; to delineate the areas of national mineral reserves.

b) Science and technology

- To train staffs of science and technology of high qualifications in various forms;

- Step by step apply advanced techniques, modern equipment in the survey, exploration, mining and processing of minerals;

- To improve capacity of pit mining technology in great depth;

- To develop technical standards of equipment, technology of mining, processing minerals in order to protect the environment and not wasting natural resources.

c) Finance

- Annually to prioritize the allocation of sufficient funding from the state budget for the basic geological surveys of mineral resources in accordance with planning, plans approved;

- To increase investment for scientific research and application of new technologies in the field of geological surveys of minerals, exploration, mining and processing of minerals;

- To adjust the financial policies related to the export of minerals in the orientation of only exporting products post-processing of high value for large-scale minerals;

- To set up mechanism of occupational incentives in accordance with specific occupations, to ensure stable development of human resources for survey, exploration, mining and processing of minerals.

d) Environmental Protection

To speed up the inspection and supervision of the implementation of the provisions of law on environmental protection; strictly handle violations according to law.

Article 2. Organization of implementation

The ministries, branches and People s Committees of provinces, cities and other concerned organizations and individuals shall, according to functions, tasks, coordinate to organize and follow content of mineral strategy and develop the programs and duties under the action program of the Government in implementation of Resolution No.02-NQ/TW dated April 25, 2011 of the Political Bureau of the strategic orientation of mineral resource and mining industry to 2020, with a vision toward 2030.

Article 3.This decision takes effect from the date of signing.

Article 4.The ministers, heads of ministerial-level agencies, heads of governmental agencies, presidents of People s Committees of provinces and cities under central authority shall implement this Decision./.