Directive No. 02/CT-TTg 2012 state management for exploration, mining, processing, use and export of minerals

DIRECTIVE

ON ENHANCING THE STATE MANAGEMENT FOR EXPLORATION, MINING,

PROCESSING, USE AND EXPORT OF MINERALS

Minerals are non-renewable resources, is one of the important resources to implement the industrialization - modernization of the country. In recent years, the extractive industry is developing to provide materials for many the manufacturing sectors, contributing significantly to the state budget and contributing positively economic-social development of the country.

However, in the recent days, the exploration, mining, processing, use and export of minerals had some complicated happenings. The exploitation of some minerals such as stream gold, iron ore, titanium, white marble, construction sand is not suitable to the actual needs. The number of licenses mining, processing minerals granted with large increase, while the investment in the deep processing projects poorly paid attention. Except for the exploitation of certain types of minerals such as oil and gas, coal, copper, cement limestone has mining technology at the relatively modern level, the rest of other minerals are mined and processed with the backward, old technology. The violations of regulations on labor safety and environmental protection were still popular. Mining activity remains illegal in many localities, focusing on some types of minerals such as coal, gold, titanium, tin, lead, zinc, iron, manganese, construction sand. The illegal export of minerals and trade frauds has increased expression, have not been controlled causing the disorder for social security and pressing in people. Effect of propagation and dissemination, education of law on minerals is limited; inspection, examination of mining, processing of minerals has not been adequate attention. The main reason leading to this situation is partly due to weaknesses in State management of mineral resources and the coordination between the authorities at central and local level is not close. The handling of violations in the exploration, mining, processing of minerals are lack of strict and clear.

In order to reorganize and strengthen the State management for the exploration, mining, processing, use and export of minerals, the implementation of Resolution No.02-NQ/TW dated April 25, 2011 by the Politburo on strategic orientation of minerals and mining industry by 2020, and a vision toward 2030 and implementation of the 2010Minerals Law, the Prime Minister instructs:

1. Minerals are non-renewable natural resources required to be managed, protected, exploited and used rationally, economically and effectively. Basic survey, mineral assessment must take one step forward to clarify the potential, value for the planning, plans to use in each period.

2. Exploration and mining of minerals must take into account needs of short-term as well as long-term of the country to achieve economic - social efficiency in association with ensuring social security - national defense, environmental protection, landscape, historical monuments, culture; mining minerals necessarily equired association with deep processing, using suitably potential, value of each type of mineral.

3. Mineral processing must use modern technology, friendly to environment; to create products of high economic value. The projects mining and processing minerals are licensed only when there are investment projects and are appraised by the Evaluation Council of the Ministry of Industry and Trade, Ministry of Construction and People s Committees of localities under their jurisdiction, the projects are required to apply advanced processing technology and increasing efficiency of resource use. For the minerals have not got modern processing technology, ensuring the effect, resolutely terminate the exploitation.

4. The export of minerals must comply with the provisions of the Government, not to export raw minerals.

5. Mineral planning of the whole country must be consistent with the mineral strategy in each period approved by the Prime Minister; planning of exploration, exploitation, processing and use of local minerals must be consistent with overall minerals planning of the whole country and the economic-social development planning of locaalities.

6. The policy of exploration, exploitation and export of some important minerals:

a) Coal: Continue to permit for the exploration, exploitation as planned. Invest in upgrading and expanding a number of Quang Ninh coal mines, and special attention to the protection and improvement, restoration of environment after exploitation. Consider appropriate technology selection for trial extraction in some areas of the Red River Delta coal basins, on the basis that the proposal for overall solution of coal basin exploitation in phase after 2020. Strictly implement the coal export according to the route has been approved by the Prime Minister, on the basis of meeting need of long-term use in the country.

b) Bauxite ore: To implement the project of mining Tan Rai and Nhan Co mines to serve materials for 02 projects producing alumina in Lam Dong and Dak Nong. The implementation of other projects to exploit bauxite and alumina are taken after the above 02 projects put in operation and evaluated social- economic efficiency. Not to grant new licenses for the exploration of bauxite ore in the Northern provinces.

c) Iron ore: Stop completely the iron ore export. To organize to effectively exploit the project of mining the Thach Khe iron ore and project of mining other iron ores to serve for the production facilities of pig-iron, steel in the country. For the mines being exploited, if they not be ensured the efficiency and environmental requirements, it should have a plan for mine closure and returning soil as prescribed.

d) Titanium ore: No to grant license for exploration, new mining for placer titanium ore. For those mines being exploited, the Ministry of Natural Resources and Environment, the People s Committees of localities organize to inspect, if they are not guaranteed the environment, then revoke the permits, require restoring environment requirements and include in the planning of national reserves. To construct the scheme of exploration and exploitation of large-scale; centralized processing, ensuring economic - social efficiency to develop titanium industry. To permit the export of ilmenite ore in stock by end of June, 2012. From July 01, 2012, not to export deep unprocessed titanium ore and the export must be approved by the Prime Minister.

đ) Lead - zinc ores: not to export lead - zinc ore and clean ore. To further probe the depth and expand the mine areas being exploited to supplement the reserves of ore for processing projects being operated. The exploration and mining of ore in the new areas must be associated with deep processing projects into the lead and zinc metal.

e) Chromite ore: No to export ores and clean ore. Based on the demand of using products made from chromite ore in the industries by 2030, grant licenses of exploitation in accordance with demand of use and national reserves.

g) Manganese ore: Not to export manganese ore and manganese clean ore. To explore potential areas in the provinces of Ha Giang, Tuyen Quang, Cao Bang to exploit raw materials for projects of processing ferro-manganese, manganese dioxide for domestic demand.

h) Gold ore, copper ore: not to export copper ore, not to grant new license for mining placer gold. To explore and exploit origin gold mines in the direction associated with the deep processing, using modern technology, without adversely affecting the environment. The localities have the responsibility to protect the untapped gold, copper mines. For the mines being exploited, if they not be ensured the efficiency and environmental requirements, it should have a plan for mine closure.

To complete the exploration of copper ore in Lao Cai province to invest more and expand the facility of processing copper metal. The exploration and exploitation of copper in other areas must be linked to deep-processing projects in the country.

i) Apatite ore: Not to export apatite ore. Additional exploration of mining areas as planned. To research processing technology, using ore of grade 2 to invest in production of phosphate, calcined phosphate, DAP, phosphor, animal feed.

k) Rare earth ore: Complete the exploration of rare earth mines have been licensed; urgently implement cooperation projects of mining and processing rare earths with modern technology, ensuring economic-social efficiency and environmental requirements. The mining, processing, and export of rare earth must be approved by the Prime Minister.

l) White Marble, granite: Not to export cubes, temporarily suspend the license for exploration, new mining.

m) The licenses for exploration and exploitation of minerals for making common cement, building materials:

- Minerals for making cement: Continue to grant licenses of exploration, mining of limestone, clay and cement additives for cement projects in accordance with approved plans.

- Minerals to make common building materials: the People s Committees of provinces continue to consider extending, licensing to exploit building stone mines, sand mines for the mines in the planning, full compliance with conditions on labor safety and environmental protection.

7. To allow continuing appraisal and licensing for the records of requesting for granting mineral activity licenses received before July 01, 2011, in accordance with the approved plan or approved in principle by the Prime Minister; with commitment on the using address or association with the investment projects in deep processing, eligibility for legal, not contrary to the provisions mentioned above.

8. Organization of implementation

a) Ministry of Natural Resources and Environment shall:

- Preside over and coordinate with the Ministry of Industry and Trade, Ministry of Construction and other concerned ministries and branches urgently finalize, submit to the Government for issuing a Decree on sanctioning of administrative violations in the mineral sector. Review to modify, supplement, or promulgate newly the concerned Circulars guiding the implementation of provisions of the Minerals Law, to ensure uniformity in implementation. Focusing on communication, dissemination, and education of laws on mineral management for the organizations and individuals engaged in mineral activities and local people where minerals have.

- Step up the basic geological surveys of mineral resources on land and sea and islands. To delimit and submit to the Prime Minister for approving the area of not auctioning​​mining rights; areas with minerals scattered in small numbers; the areas of national mineral reserves; to intensify the inspection, examination of mineral activities and strict handle and suspend and revoke licenses for mineral activities contrary to law.

- Conduct the auction of mining rights; urgently implement the recovery of state funds invested for the basic geological surveys of mineral resources and mineral exploration; implement the money collection from granting mining rights as prescribed.

- Strengthen inspection, examination and strictly handle violations of law on minerals and environmental protection.

b) Ministry of Industry and Trade:

- Preside over and coordinate with the Ministry of Natural Resources and Environment and ministries, branches and concerned localities to review for adjustment, supplement, new construction of minerals planning with specific regulations on the products after processing and apply advanced technology in mining and processing; focus on exploitation and deep processing according to industrial scale, improve economic –social efficiency for the use of mineral resources and environmental protection.

- Urgently adjust and supplement policies and standards for mineral export in the direction of tight management of mineral export, not exporting crude ore or clean ore; regularly organize inspection, examination of the implementation of mineral export.

c) Ministry of Construction:

- Preside over and coordinate with the Ministry of Natural Resources and Environment and ministries, branches and concerned localities to review, adjust, supplement, newly construct planning for exploration, exploitation, and use of each type, group of mineral to make building materials in the whole country.

- Strengthen the management of the exploitation, processing, use, and export of minerals to make construction materials and cement production. The exploitation of minerals for making construction materials and cement must be attached to environmental protection, landscape and labor safety.

d) Ministry of Finance directs the General Department of Customs to inspect and take effective measures to prevent commercial fraud in the export of minerals; ensuring close procedures; review and issue guidance on the treatment of minerals seized.

đ) The Department of Defense directs the Border Guard to coordinate with functional forces to enhance inspection and control for timely prevention of the phenomenon of illegal export of minerals, particularly through the sea way.

e) Ministry of Public Security directs the police forces (especially Public Security in border provinces), closely coordinate with the relevant authorities, especially for market management forces, the Border Guard to strengthen fighting and prevention of crimes of smuggling and trade fraud in the export of minerals.

g) 127 Steering Committee directs the functional forces to coordinate with local authorities to strengthen inspection and effectively prevent the illegal export of minerals and commercial fraud in the area.

h) People s Committees of provinces and cities directly under the Central Government shall:

- Review and adjust, supplement and set up the planning of exploration, exploitation and use of local minerals; complete the delimitation of restricted areas, temporary prohibition of mineral activities in the area in 2012; inspect the mining projects in the area, if they are not guaranteed the environmental conditions, then revoke or propose the competent authorities for revoking permits, require for environmental rehabilitation requirements;

- Preside over and coordinate with the ministries, concerned branches to strengthen propaganda and education of people to abide by the provisions of the law on minerals; drastically direct the authorities in the area (the agencies of Tax, Market Management, Natural Resources and Environment, Public Security, Border Guards, Customs) to promote examintion and prevention and timely handling of illegal exploitation, transport and export of minerals in the area.

- Focus on the inspection and control of transport routes, harbors and ports gathering minerals; direct and create favorable conditions to accelerate the investment projects of deep processing of minerals by the master plan approved; create favorable conditions for the facilities of purchase, processing, transportation of minerals for processing deep in the country; to strengthen the management of the grant of mining license to make common building materials in the area under the provisions of the 2010 Minerals Law.

i) Ministry of Natural Resources and Environment, People’s Committees of provinces and cities under central authority coordinate with other ministries and branches to conduct inspection, examination for the mining projects being operated, suspend the operation, revoke the mining permits for the absence of the implementation of deep processing project as committed, for the exploitation causing serious pollution to the environment, direct causing damage for  infrastructure, unstability for security and order leading to pressing to the people where have minerals.

k) Request the ministries, branches, and localities to take measures to urge and overcome difficulties to promote investment projects of deep processing of minerals, closely coordinate in the inspection, examination of mining activities in the area, ensure strict compliance with the provisions of the2010 Minerals Law.

This Directive replaces the Directive No.26/2008/CT-TTg dated September 01, 2008 of the Prime Minister on further strengthening the management of state for mining, processing, use and export of minerals.

Ministers of Natural Resources and Environment, Industry and Trade, Construction, Finance, Planning and Investment, Science and Technology, Agriculture and Rural Development, Transport, Defense, Public Security ; 127 Steering Committee, Chairmen of People s Committees of provinces and centrally-run cities deploy to strictly implement this Directive.