Directive No. 10/2005/CT-TTg on mineral exploration, exploitation, processing and export activities

DIRECTIVE

ON STRENGTHENING THE STATE MANAGEMENT OF MINERAL EXPLORATION, EXPLOITATION, PROCESSING AND EXPORT ACTIVITIES

THE PRIME MINISTER

In the past period mineral exploration, exploitation, processing and export activities have made important contributions to the socio-economic development. However, in mineral exploration, exploitation and processing there is still a lack of specific strategies and plans; due attention is still not paid to the investment in advance techniques and technologies for ore beneficiation and production of metals or alloys, but mainly to the extraction and export of crude ores, causing depletion and waste of mineral resources.

The main cause of the above situation is that State management of mineral resources is still weak and inadequate. The formulation of strategies and plans for mineral exploration, exploitation and processing by ministries and sectors within their functions is still slow. In assignment and decentralization of the state management of minerals the powers of local people s committees are not attached with their responsibilities. The coordination between relevant ministries, sectors with local people s committees in the control and treatment of violations to the mineral legislation is still loose and inefficient. In some localities, the management and protection of mineral resources is neglected, even the people s committees of some localities permit exploitation of minerals as common construction material and issue artisanal mining license not in accordance with the provisions of the law.

With the aim to strengthen the state management of mineral resources according to the mineral law and the documents guiding its implementation, the Prime Minister requires Ministries, sectors, People s Committees of provinces and cities under the central authority to implement immediately some works as follows:

1. The People s committees of provinces and cities under the central authority shall take the lead and coordinate with the Ministries of Natural Resources and Environment, Public Security, Trade, Finance to organize the control of the present status of exploitation, processing and trade of minerals within their areas of jurisdiction; suspend immediately any exploitation, processing, trading, export of minerals not in compliance with the provisions of the law; take measures to sanction strictly against any organizations or individual violating the law in their exploitation, processing, trading and export of minerals; deprive the right of using license within their competence or propose to the competent agency to revoke mineral licenses; revoke immediately artisanal mining licenses issued not in accordance with the regulations; clarify responsibilities and sanction strictly those organizations or individuals that have issued mining and mineral processing licenses not in accordance with the regulations. Actions of serious violation must be prosecuted for responsibility according to the law. The People s Committee of provinces and cities directly under the central authority shall report to the Prime Minister before 30 May 2005 about their implementation of the above works.

2. Pending the promulgation of the Law on Amendment and supplement of some articles of the mineral law, according to its jurisdiction and the approved mineral exploration, exploitation, processing plans, the Ministry of Natural Resources and Environment shall only grant mineral exploration, mining and mineral processing license to organizations and individuals having investment projects for ore beneficiation or processing into metals, alloys or making products with high value and socio-economic efficiency.

As regards mineral export: for mineral export contracts which have been legally signed and are being implemented in accordance with the provisions of the law, export shall be allowed to be continue according to the contract. Signing of new contracts on export of solid minerals in the form of crude raw material shall be suspended until the issuance of new regulations (the special cases shall be decided by the Prime Minister).

Approval and issuance of artisanal mining licenses shall be suspended for metallic minerals including gold, silver, gemstone, except the case of secondary mining in tailing dumps and remining in the mines which have been decided to be closed.

The Ministry of Natural Resources and Environment shall take the lead and coordinate with the Ministry of Public Security, Ministry of Finance (the General Department of Customs) and the people s committees of provinces and cities directly under the central authority to organize control over the mining and export of iron, lead-zinc, titanium, chromite, manganese ores of the organizations and individuals holding mining licenses; revoke mining licenses stop the export of minerals according to its jurisdiction for the cases of violating the provisions stated in the licenses issued, especially those on the mining duration, acreage of the mining areas, mining production, requirements concerning mineral processing, occupational safety and environmental protection.

3. The Ministry of Natural Resources and Environment shall urgently work out documents guiding on the implementation of the law on amendment and supplement of some articles of the Mineral Law to ensure the availability of guiding documents when the law comes into force..

4. The Ministry of Natural Resources and Environment shall work out proposals for evaluating the potential of some important minerals, those in the areas covered by plans for construction of national projects; proposals for evaluating the potential of mineral resources in some coastal areas submit to the Prime Minister in Quarter III of 2005.

Ministries, sectors and People s Committees of localities, when planning infrastructures, urban areas, industrial areas, historic areas and other infrastructures must consult state mineral management agencies.

5. The Ministry of Industry shall take the lead and coordinate with the Ministries of Natural Resources and Environment, Trade and Finance in Quarter II 2005 to work out and promulgate concrete regulations on the list, conditions, and criteria for minerals to be exported to serve as the basis for supplementing the mechanism of management and operation of export and import for period 2006 - 2010 of the Government.

The Ministry of Industry shall take the lead and coordinate with relevant ministries and sectors and people s committees of localities to work out plans for exploration, exploitation and processing of some important minerals such as: bauxite, iron ore, lead - zinc, titanium, chromite, manganese according to concrete objectives, time schedule, and needs, attaching exploitation with fine processing, rational and economical use, ensuring long reservation of mineral resources for the mining industry. The submission to the Prime Minister for iron, lead-zinc ores shall be in Quarter II 2005 and for other minerals shall be in Quarter IV 2005.

6. The Ministry of Finance shall take the lead and coordinate with the Ministry of Natural Resources and Environment and related ministries and sector to review regulations on mineral royalties, mineral export duties and propose issues to be amended and supplemented in the direction of encouraging fine processing, limiting to the minimum and eventually suspending the export of crude minerals or concentrates.

7. The People s Committees of provinces and cities directly under the central authority shall take the lead and coordinate with the Ministry of Defense and related ministries and sectors to delineate areas where mineral activities are to be prohibited or temporarily prohibited according to the provisions of the law on minerals, submit the results of delineation to the Prime Minister in Quarter III 2005.

8. The People s Committees of provinces and cities directly under the central authority shall strengthen the environmental management work in mineral activities. Mining and mineral processing projects must be in compliance with the regulations on environmental impact assessment, environmental protection commitment, escrow depositing for environmental rehabilitation after completion of the mining operation; not affecting the watershed forests, special-use, landscapes, historic and cultural sites and population areas; taking resolute measures to check immediately the use of toxic chemicals in mining and mineral processing, ensuring safety and hygiene for water resources; ensure social order, and security and occupational safety in mineral activities.

9. Ministries, sectors, People s Committees of provinces and cities directly under the central authority shall intensify the communication, education, enhance the knowledge for the local authorities of lower levels, enterprises engaged in exploitation, processing and trading of minerals and the people in the areas having mineral resources about policies and laws on minerals, enhance their sense of protection and rational exploitation of mineral resources, fighting against actions of violating the legislation on minerals.

10. The Ministry of Culture and Information shall take the lead and coordinate with the Ministry of Natural Resources and Environment and people s committees of provinces and cities directly under the central authority to guide press, radio and television broadcasting agencies to adopt plans for regularly propagating policies and legislation on minerals, commend well behaving units and individuals, reveal and blame actions of violating the legislation on minerals.

The Prime Minister requires related Ministries and sectors and People s Committees of provinces and cities directly under the central authority to organize the implementation of this Directive. During the implementation, if any problem arises, these agencies shall report in time to the Prime Minister.