Decision No. 910/QD-TTg dated July 25, 2018 of the Prime Minister on approving planning on exploration, extraction, processing and use of Vietnams’ gold, copper, nickel and molybdenum ores up to 2025, with visions towards 2035

THE PRIME MINISTER 

Decision No. 910/QD-TTg dated July 25, 2018 of the Prime Minister on approving planning on exploration, extraction, processing and use of Vietnams’ gold, copper, nickel and molybdenum ores up to 2025, with visions towards 2035

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Mineral Law dated November 17, 2010;

Pursuant to Decision No.2427/QD-TTg dated December 22, 2011 of the Prime Minister on approving mineral strategies up to 2020, with visions towards 2030;

At the request of the Minister of Ministry of Industry and Trade,

DECIDES:

Article 1.To grant approval for the planning on exploration, extraction, processing and use of Vietnam’s gold, copper, nickel and molybdenum ores up to 2025, with visions towards 2035 with the following contents:

1. Development viewpoints

- To prepare planning on gold, copper, nickel, molybdenum ores in consistent with the mineral strategy up to 2020 with visions towards 2030, and the local socio-economic development planning, ensure sustainable development requirements, strengthen national defense and security works and ensure harmony in national and local interests and interests of enterprises and people living in the areas for extraction and processing of gold, copper, nickel and molybdenum ores

- To explore, exploit, process and use gold, copper, nickel and molybdenum ores for the purpose of ensuring efficiency in socio-economic and environmental development, protection of environment, natural landscapes and other resources

- To apply advanced and environmentally-friendly technologies or combination and economy use of resources in extraction and processing of gold, copper, nickel and molybdenum ores in conjunction with bases and projects on intensive processing of gold, copper, nickel and molybdenum To conduct a research on international market for import of gold, copper, nickel and molybdenum ores after 2025

- To restrict projects on extraction, sorting and processing of gold, copper, nickel and molybdenum ores which are carried out in small scale, by hands or outdated technologies or those cause losses of resources and environmental protection and consume lots of energy in order to found large-scale enterprises with modern technologies which satisfy environmental requirements and own a number of mines serving the stable and sustainable intensive processing of gold, copper, nickel and molybdenum

2. Development objectives

a) General objectives: To ensure sustainable development, efficiency in resources use, fully satisfy mineral materials demand of the economy and not to export crude ores, gold and copper concentrates

b) Specific objectives

- In terms of exploration

+ Gold ores

Up to 2025: To strive to complete 3 new exploration projects and 15 licensed exploration projects with total target reserves at level 121 and 122 estimated at around 42.407 tons of gold

. During 2026-2035: To strive to complete 2 specific projects and from 4 to 6 orientation projects with total target reserves at level 121 and 122 estimated at about 9.8 tons of gold according to the results of fundamental inspection and gold-ore potential assessment

+ Copper ores

. Up to 2025: To strive to complete 7 new exploration projects and 7 licensed exploration projects with total target reserves at level 121 and 122 estimated at around 421.040 thousand tons of gold

. During 2026-2035: To strive to complete from 3 to 5 new exploration projects with total target reserves at level 121 and 122 estimated at around 9.8 tons of gold according to the results of fundamental inspection and gold-ore potential assessment

+ Nickel ores

. Up to 2025: To complete 1 licensed exploration project in Cao Bang province and continue copper exploration for enriching the reserve of nickel mine in Ban Phuc, Son La province with total reserves at level 121 and 122 estimated at around 97 thousand tons (excluding nickel amount collected from extraction of cromit mine in Co Dinh, Thanh Hoa province)

. During 2026 – 2035: To explore for upgrading and expanding mines in Cao Bang and Son La provinces with total target reserves at level 121 and 122 estimated at 50 thousand tons of nickel according to the nickel-ore potential assessment results

+ Molybdenum ores

. Up to 2025: To strive to complete 2 licensed exploration projects with total target reserves at level 121 and 122 estimated at around 12 thousand tons of molybdenum

. During 2026-2035: To strive to complete from 1 to 2 new exploration projects with total target reserves at level 121 and 122 estimated at around 16.2 thousand tons of molybdenum according to the gold-ore potential assessment results

- In terms of ore extraction and sorting

+ Gold ores

. Up to 2025: To complete 16 new investment projects and 5 projects on reforming and expanding extraction and sorting (processing) of gold ores in Lao Cai, Yen Bai, Lai Chau, Nghe An, Quang Tri, Thua Thien Hue, Quang Nam, Phu Yen and Lam Dong provinces. To strive to achieve 146.433 and 146.393 thousand tons of gold concentrate sorting output by 2020 and 2025, respectively

. During 2026 – 2035: To complete from 1 to 3 new gold-ore extraction and sorting (processing) projects To maintain annual sorting output at about 121.643 tons of gold concentrates

+ Copper ores

. Up to 2025: To complete 10 new investment projects and 5 projects on reforming and expanding extraction and sorting (processing) of copper ores in Lao Cai, Son La, Yen Bai, Dien Bien, Cao Bang and Thai Nguyen provinces To strive to achieve 216 and 206 thousand tons of gold concentrate sorting output by 2020 and 2025, respectively

. During 2026 – 2035: To maintain annual sorting output at about 183 thousand tons of copper concentrate

+ Nickel ores

. Up to 2025: To complete 2 new investment projects and 1 project for reforming and expanding extraction and sorting (processing) of nickel ores in Son La and Cao Bang provinces To strive to achieve 103 and 118 thousand tons of nickel concentrate sorting output by 2020 and 2025, respectively

. During 2026 – 2035: To complete 1 investment project for extraction and sorting (processing) of new nickel ore in Cao Bang province To maintain annual sorting output at about 113 thousand tons of nickel concentrate

+ Molybdenum ores

. Up to 2025: To complete 2 new investment projects on extraction and sorting (processing) of molybdenum ore in Lao Cai province. To strive to achieve 1.500 tons of molybdenum concentrate sorting output by 2025

. During 2026 – 2035: To maintain and raising the output of molybdenum ore extraction and sorting (processing) to about 2.000 tons

- In terms of processing

+ Gold ores

Up to 2025: To maintain current gold sorting and refining projects and make investment in 1 new project in Nghe An province

+ Copper ores

. Up to 2025: To maintain current copper refining projects and make new investment in 2 copper refining projects in Lao Cai and Thai Nguyen provinces to achieve 47.000 tons/year by 2025

. During 2026 – 2035: To maintain and expand invested copper refining projects

+ Nickel ores

Up to 2025: To invest in and put in operation 2 nickel production plants with total output of about from 8.000 to 11.000 tons/year

+ Molybdenum ores

Up to 2025: To invest in at least 1 project for sorting, producing compounds or intensive processing in Lao Cai province upon consideration of detailed exploration results

3. Demand forecast

Demands for gold, copper, nickel and molybdenum mental (or converted) shall be forecasted as follows:

4. Development planning

a) Reserves and resources

Total reserves and resources of gold, copper, nickel and molybdenum ores are specified in Appendix I issued thereto.

b) Exploration planning

- Gold ores

+ Up to 2025: To complete 18 projects on exploration and reserve upgrading exploration, including 15 licensed exploration projects in Lai Chau, Lao Cai, Nghe An, Quang Tri, Quang Nam, Thua Thien Hue, Phu Yen, Lam Dong provinces and license 3 exploration projects in Yen Bai, Nghe An and Phu Yen provinces

+ During 2026 – 2035: To select 2 specific projects and from 4 to 6 gold ores for exploration according to the gold-mineral potential assessment provided in Decision No.1388/QD-TTg dated August 13, 2013 of the Prime Minister

- Copper ores

+ Up to 2025: To complete 14 exploration projects, including 7 licensed exploration projects in Yen Bai, Lao Cai, Cao Bang, Son La, Dien Bien provinces and license 7 exploration projects in Lao Cai, Son La and Thanh Hoa provinces

+ During 2026 – 2035: To select from 4 to 6 copper ores for exploration according to the copper-mineral potential assessment provided in Decision No.1388/QD-TTg dated August 13, 2013 of the Prime Minister

- + Nickel ores

+ Up to 2025: To complete 2 exploration and exploration for reserve upgrading projects, including 1 licensed exploration project in Cao Bang province and 1 exploration project for reserve upgrading in Son La province

+ During 2026 – 2035: To select 2 nickel ore areas for exploration according to the nickel-mineral potential assessment provided in Decision No.1388/QD-TTg dated August 13, 2013 of the Prime Minister

- Molybdenum ores

+ Up to 2025: To complete 2 licensed exploration projects in Lao Cai province

+ During 2026 – 2035: To select from 1 to 2 molybdenum ore areas for exploration according to the molybdenum-mineral potential assessment provided in Decision No.1388/QD-TTg dated August 13, 2013 of the Prime Minister

The list of projects on exploration of gold, copper, nickel and molybdenum ores is provided in Appendix II issued thereto.

c) Extraction and processing (sorting) planning

- Gold ores

+ Up to 2025: To complete new investment, reform and expansion in 21 gold ore extraction and processing (sorting) projects, including 5 licensed extraction and processing projects in Lao Cai, Quang Tri, Quang Nam, Lam Dong provinces and 16 new exploration and processing projects in Yen Bai, Lao Cai, Lai Chau, Nghe An, Quang Tri, Thua Thien Hue, Quang Nam, Phu Yen and Lam Dong provinces

+ During 2026 – 2035: To make investment in from 1 to 3 new gold ore extraction and sorting (processing) projects in Lao Cai, Nghe An, Quang Nam or Phu Yen provinces To maintain and boost investment in exploration and processing of gold ore in current gold exploration and processing facilities

- Copper ores

+ Up to 2025: To complete new investment, reform and expansion in 15 copper ore extraction and processing (sorting) projects, including 5 projects licensed for exploring, processing and extracting attached minerals in Lao Cai, Yen Bai, Son La and Thai Nguyen provinces and 10 new exploration and processing projects in Yen Bai, Lao Cai, Dien Bien, Son La and Cao Bang provinces

+ During 2026 – 2035: To maintain copper ore exploration and processing projects in Lao Cai and Cao Bang provinces

- Nickel ores

+ Up to 2025: To complete new investment, reform and expansion in 3 nickel ore extraction and processing (sorting) projects, including 1 projects licensed for exploring, processing and extracting attached minerals in Son La province and 2 new exploration and processing projects in Son La and Cao Bang provinces

+ During 2026 – 2035: To boost extraction investment in Son La and Cao Bang provinces and invest in 1 new project in Thanh Hoa province

- Molybdenum ores

+ Up to 2025: To complete 2 new investment projects on extraction and processing (sorting) of molybdenum ore in Lao Cai province

+ During 2026 – 2035: To maintain and increase the output of extraction and processing (sorting) of molybdenum ore in Lao Cai

The list of projects on extraction and processing (sorting) of gold, copper, nickel and molybdenum ores is provided in Appendix III issued thereto.

d) Planning on intensive processing of gold, copper, nickel and molybdenum concentrates

- Gold ores

Up to 2025: To maintain current gold refining facilities in Quang Nam, Quang Tri, Lam Dong, Lao Cai provinces and invest in 1 new project in Nghe An province

- Copper ores

+ Up to 2025: To complete 2 new investment projects on extraction and processing (sorting) of copper ore in Lao Cai province

+ During 2026 – 2035: To maintain invested projects and expand gold refining projects in Lao Cai province

- Nickel ores

During 2026 – 2035: To study, invest in and put in operation nickel refining plants with the capacity of 7.000 to 10.000 tons of nickel per year in Son La provinces and plants for production of sodium sulfate or sodium chloride or nickel hydroxide with the capacity of 1.000 tons/year in Thanh Hoa province

- Molybdenum ores

Up to 2025: To invest in 1 facility for processing of intermediate products or ferromolybdenum according to the results of detailed exploration of O Quy Ho and Kin Tchang Ho molybdenum ores in Lao Cai province

The list of processing projects is provided in Appendix IV issued thereto.

dd) Planning on use of gold, copper, nickel and molybdenum ores

- Not to export crude ores or gold and copper concentrates

- To attach investment projects on extraction and processing of gold, copper, nickel and molybdenum ores to specific mineral use facilities according to the planning

5. Investment capital

- Total investment capital required for exploration, extraction and processing of gold, copper, nickel and molybdenum ores up to 2025, with visions towards 2035 is estimated at around VND 3.795 billion for gold ore, VND 2.830,5 billion for copper ore, VND 2.151 billion for nickel and VND 620,4 billion for molybdenum ore.

- Estimated funding sources:

+ Funding for preparation and adjustment of planning on gold, copper, nickel and molybdenum ores shall be allocated from state budget.

+ Funding for exploration, extraction and processing of gold, copper, nickel and molybdenum ores may be raised from capital of enterprises, domestic and foreign commercial loans, loans gained from stock market or work bond issuance and other legal funding sources.

Details on investment capital requirement are specified in Appendix V issued thereto.

6. Solutions and policies

a) Solutions

- With regard to resources management:

+ Increase the quality of reserve and resource investigation, exploration and assessment Well prepare statistic reports and publicize data on extraction, processing or losses of resources

+ Establish a database on gold, copper, nickel and molybdenum ores serving the resources planning and management

+ Prioritize the license for extraction that satisfy materials demand of projects on intensive processing of gold, copper, nickel and molybdenum that have been invested so far

- With regard to science technology and international cooperation: Invest in renovation of technologies and equipment used in extraction, sorting and processing of gold, copper, nickel and molybdenum ores for the purpose of minimizing resources losses, ensuring labor safety and environmental protection Develop study on science, technology, international cooperation for advanced technology transfer in extraction and processing of nickel and molybdenum ores, and exhaustively extract gold, copper and nickel metal

- With regard to investment capital mobilization: Develop internal sources, diversify investment capital sources by contribution to investment, joint stock companies, joint ventures and other credit loans

- With regard to state management:

+ Strengthen the cooperation between the Ministry of Natural Resources and Environment, Ministry of Industry and Trade and People’ Committees of provinces in licensing mineral-related activities and providing information on development of the licensed extraction and processing

+ Complete and amend legal policies to facilitate exploration and extraction projects in conjunction with projects on intensive processing of gold, copper, nickel and molybdenum metal Strictly control exploration and extraction activities to make sure those activities comply with legal policies on minerals and environment and ensure absolute labor safety

+ Publicly reveal coordinates of boundary of projects on gold, copper, nickel and molybdenum ore planning
Enhance inspection and guard of mine boundary and recently-discovered mine spots as well as areas for reserving mineral resources of gold, copper, nickel and molybdenum ores

+ Restructure small-scale enterprises which use limited resources, apply outdated technologies and highly cause losses of resources and environmental pollution; carry out extraction separately from the place of mineral use in order to establish large-scale enterprises for concentrated extraction and processing which apply advanced technologies for the purpose of ensuring labor safety and environmental protection by acquisition, joint venture, association or transfer of mineral license

b) Regulations and policies

- With regard to extraction and processing of gold, copper, nickel and molybdenum ores: Encourage acquisition of small-size mines with outdated technologies to develop large-scale projects run by advanced technologies

- With regard to finance: Timely review and adjust taxes, fees and charges in a reasonable manner to ensure harmony in state interests, enterprises interests and interests of people living in areas of gold, copper, nickel and molybdenum ores under extraction

- With regard to science and technology: Prioritize funding sources for science and technology to conduct study on technology application for efficient processing of nickel and molybdenum ores

- Formulate supporting policies for restructured enterprises

- Formulate reasonable policies intended for people subject to production and residence land expropriation

Article 2. Implementationorganization

1. The Ministry of Industry and Trade shall:

- preside over and cooperate with relevant ministries and local authorities in publicizing the planning and providing guidelines for implementation of the planning and inspecting such implementation

- suggest solutions for strict control of circulation and consumption of gold, copper, nickel and molybdenum ores, cooperate with ministries and local authorities in formulating specific policies and regulations to encourage and foster the efficiency and economy in use of gold, copper, nickel and molybdenum ores for environmental protection assurance

- preside over and cooperate with local authorities in making investing in projects on extraction and processing of gold, copper, nickel and molybdenum ores according to the planning

- carry out periodic review and assessment of the planning implementation results, update information and suggest the adjustments to the planning where necessary

2. The Ministry of Natural Resources and Environment shall:

- boost fundamental investigation of gold, copper, nickel and molybdenum minerals in potential areas such as Northwest, Northeast, North Central coast and Central Highlands, especially potential areas of gold, copper, nickel and molybdenum minerals distributed deep beneath the Earth’s surface. review and instruct investors of projects to carry out assessment and exploration of gold, copper, nickel and molybdenum ores licensed for extraction but fail to be explored in accordance with provisions of the Mineral Law zone and supplement areas of gold, copper, nickel and molybdenum ores not included in the planning in the list of national mineral reserving areas and submit it to the Prime Minister for ratification

- closely cooperate with the Ministry of Industry and Trade and relevant People Committees of provinces in issuing license for activities related to gold, copper, nickel and molybdenum minerals for the purpose of increasing the planning management quality, ensuring exploration and processing (sorting) projects are run by using advanced technologies, labor safety, environmental protection and socio-economic efficiency and ensuring stable and sustainable materials for intensive processing projects (gold, copper and nickel refining)

- closely cooperate with the Ministry of Industry and Trade, Ministry of Finance and Ministry of Investment and Planning in managing activities related to gold, copper, nickel and molybdenum minerals and share information on those activities performed by licensed enterprises

- preside over and cooperate with the Ministry of Industry and Trade and local authorities in carrying out inspection of projects on extraction and processing of gold, copper, nickel and molybdenum ores and strictly take any legally prescribed action against projects run inconsistent with the Mineral Law

- preside over and cooperate with local government authorities in carrying out inspection of compliance with regulations on environmental protection applied to projects on extraction and processing of gold, copper, nickel and molybdenum ores and strictly take any legally prescribed action against projects run inconsistent with the Law on Environmental protection

- preside over the establishment and update of the database on reserves and resources of gold, copper, nickel and molybdenum ores and relevant activities

3. The Ministry of Science and Technology shall:

preside over and cooperate with the Ministry of Industry and Trade in managing technology transfer, invention of equipment for processing of nickel and molybdenum minerals, apply advanced technologies, mechanize and synchronize equipment and increase the capacity and quality of extraction and processing of gold, copper, nickel and molybdenum ores

4. The Ministry of Finance shall:

preside over and cooperate with the Ministry of Industry and Trade and Ministry of Natural Resources and Environment in reviewing and adjusting tax and charge policies in consistent with characteristics of extraction, processing and use of gold, copper, nickel and molybdenum ores; improve the management of financial income and ensure sufficient and proper collection of taxes and charges on mineral-related activities, in general, and activities concerning gold, copper, nickel and molybdenum minerals, in particular.

5. Relevant ministries shall cooperate with the Ministry of Industry and Trade and Ministry of Natural Resources and Environment in efficiently launching projects included in the planning.

6. People’s Committees of provinces and centrally-affiliated cities in which activities related to gold, copper, nickel and molybdenum minerals are performed shall:

- closely cooperate with the Ministry of Industry and Trade in implementing and managing the planning on gold, copper, nickel and molybdenum ores

- preside over and cooperate with the Ministry of Industry and Trade and Ministry of Natural Resources and Environment in reviewing and re-assessing enterprises involved in the extraction and processing of gold, copper, nickel and molybdenum ores in the localities; promote the investment in projects on intensive processing of gold, copper, nickel and molybdenum ores on schedule which ensure efficiency and environmental protection

- increase inspection and supervision of activities related to gold, copper, nickel and molybdenum minerals and efficiently avoid illegal mineral extraction or export take actions against facilities for extraction and processing of gold, copper, nickel and molybdenum ores that fail to satisfy requirements for safety techniques or cause environmental pollution

- enhance dissemination of policies and laws on minerals when implementing the planning and encourage small-scale enterprises to carry out the restructuring policy

Article 3.This Decision takes effect on the signing date and replaces Decision No.11/2008/QD-BCT dated June 05, 2008 of the Ministry of Industry and Trade.

Article 4.Ministries, Directors of ministerial agencies and Governmental agencies, Chairmen of People’s Committees of provinces and centrally-affiliated cities and relevant enterprises shall implement this Decision./.

The Minister

The Deputy Minister

Trinh Dinh Dung

APPENDIX I

TOTAL RESERVES AND RESOURCES OF VIETNAM’S GOLD, COPPER, NICKEL AND MOLYBDENUM ORES
(Issued together with Decision No.910/QD-TTg dated July 25, 2018 of the Prime Minister)

1. Gold ore

2. Copper ore

3. Nickel ore

4. Molybdenum ore

APPENDIX II

LIST OF PROJECTS ON EXPLORATION OF GOLD, COPPER, NICKEL AND MOLYBDENUM ORES UP TO 2025, WITH VISIONS TOWARDS 2035
(Issued together with Decision No.910/QD-TTg dated July 25, 2018 of the Prime Minister)

1. Gold ore

 Calculation unit: kg (Au)

2. Copper ore

Calculation unit: kg (Cu)

3. Nickel ore

 Calculation unit: kg (Ni)

4. Molybdenum ore

APPENDIX III

LIST OF INVESTMENT PROJECTS ON EXPLOITTION OF GOLD, COPPER, NICKEL AND MOLYBDENUM ORES UP TO 2025, WITH VISIONS TOWARDS 2035
(Issued together with Decision No.910/QD-TTg dated July 25, 2018 of the Prime Minister)

1. Gold ore

2. Copper ore

3. Nickel ore

4. Molybdenum ore

APPENDIX IV

LIST OF PROJECTS ON PROCESSING OF GOLD, COPPER, NICKEL AND MOLYBDENUM ORES UP TO 2025, WITH VISIONS TOWARDS 2035
(Issued together with Decision No.910/QD-TTg dated July 25, 2018 of the Prime Minister)

1. Gold ore