Joint Circular No. 61/2014/TTLT-BTNMT-BKHDT-BTC dated November of the Ministry of Natural Resource and Environment, the Ministry of Planning and Investment and the Ministry of Finance guiding procedures for contributing capital to geological baseline surveys of minerals by organizations and individuals and management of their contributed capital

JOINT CIRCULAR

Guiding procedures for contributing capital to geological baseline surveys of minerals by organizations and individuals and management of their contributed capital[1]

Pursuant to November 17, 2010 Mineral Law No. 60/2010/QH12;

Pursuant to the Government’s Decree No. 15/2012/ND-CP of March 9, 2012, detailing a number of articles of the Mineral Law;

Pursuant to the Government’s Decree No. 21/2013/ND-CP of March 4, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to the Government’s Decree No. 116/2008/ND-CP of November 14, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

The Minister of Natural Resources and Environment, the Minister of Planning and Investment and the Minister of Finance promulgate the Joint Circular guiding procedures for contributing capital to geological baseline surveys of minerals by organizations and individuals and management of their contributed capital.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and subjects of application

1. This Joint Circular guides procedures for the contribution of capital to geological baseline surveys of minerals by organizations and individuals (below referred to as investors) and management of their contributed capital prescribed at Point c, Clause 4, Article 10 of Decree No. 15/2012/ND-CP of March 9, 2012, detailing a number of articles of the Mineral Law (below referred to as Decree No. 15/2012/ND-CP).

2. This Joint Circular applies to state agencies and organizations and individuals engaged in or related to investment in geological baseline surveys of minerals.

Article 2.Conditions for investors to contribute capital to geological baseline surveys of minerals

An investor that contributes capital to a geological baseline survey of minerals must satisfy the following conditions:

1. Being an enterprise established under the Enterprise Law; a cooperative or an union of cooperatives established under the Law on Cooperatives; or a foreign enterprise with a Vietnam-based representative office or branch, that fully satisfies the conditions specified in Clause 1, Article 34 and Clause 1, Article 51 of the Mineral Law;

2. Having sufficient funds for implementing the whole project on the geological baseline survey of minerals as prescribed at Point b, Clause 3, Article 10 of Decree No. 15/2012/ND-CP.

Article 3.Rights of investors contributing capital to geological baseline surveys of minerals

1. To take part in the inspection, supervision and acceptance testing of the projects on geological baseline surveys of minerals they invest in.

2. To be given priority in using information on minerals in surveyed areas when conducting mineral activities.

3. To be selected for mineral exploration licensing as prescribed at Point b, Clause 2, Article 13 of Decree No. 15/2012/ND-CP.

4. To be refunded with funds already paid for geological baseline surveys of minerals in case of failing to obtain mineral exploration licenses as prescribed in Article 7 of this Circular.

Chapter II

PROCEDURES FOR CONTRIBUTING CAPITAL TO GEOLOGICAL BASELINE SURVEYS OF MINERALS AND MANAGEMENT OF CONTRIBUTED CAPITAL

Article 4.Order and procedures for registration and selection of investors to contribute capital to geological baseline surveys of minerals

1. The Ministry of Natural Resources and Environment shall publish on its e-portal a list of projects on geological baseline surveys of minerals eligible for investment promotion after such list is approved by the Prime Minister.

2. Based on the Prime Minister-approved list of projects on geological baseline surveys of minerals eligible for investment promotion, investors shall make dossiers of registration for capital contribution and send such dossiers to the General Department of Geology and Minerals of Vietnam. The time to start and stop receiving dossiers is 10 (ten) working days and 90 (ninety) days respectively after the date of publishing the list as prescribed in Clause 1 of this Article.

3. A dossier of registration for capital contribution comprises:

a/ A copy of the investor’s business registration certificate stating the business line of mineral exploration or mining as prescribed in Clause 1, Article 34 and Clause 1, Article 51 of the Mineral Law;

b/ A document proving the investor’s financial capacity (an independently audited financial statement made at the time of registration for capital contribution or for the preceding year).

4. As soon as the General Department of Geology and Minerals of Vietnam receives a dossier, it shall send a receipt (made according to the form provided in Appendix 1 to this Circular) to the investor concerned.

5. Within 20 (twenty) working days since the time limit for receiving dossiers specified in Clause 2 of this Article expires, the General Department of Geology and Minerals of Vietnam shall proceed with the selection of investors and publicly announce selection results (announcing both investors selected and not selected to contribute capital) on the e-portal of the Ministry of Natural Resources and Environment.

6. The selection of investors to contribute capital to a geological baseline survey of minerals is carried out as follows:

a/ Upon expiration of the time limit for receiving dossiers specified in Clause 2 of this Article, if there is only investor submitting dossier, such investor will be selected, provided that it fully meets the conditions specified in Article 2 of this Circular;

b/ Upon expiration of the time limit for receiving dossiers specified in Clause 2 of this Article, if there are 2 (two) or more investors meeting the conditions specified in Article 2 of this Circular, the investor with the highest proportion of equity capital to total investment capital for implementation of the project on the geological baseline survey of minerals (at the time of selection) will be selected.

Article 5.Order and procedures for contributing capital to geological baseline surveys of minerals

1. Within 30 (thirty) days after receiving the General Department of Geology and Minerals of Vietnam’s notice of investor selection results, the selected investor shall sign with the General Department of Geology and Minerals of Vietnam a written commitment to invest in the geological baseline survey of minerals (made according to the form provided in Appendix 2 to this Circular) and submit a letter of guarantee worth 1 (one) billion Vietnamese dong issued by a domestic credit institution or Vietnam-based foreign bank branch to secure the elaboration of a project on the geological baseline survey of minerals.

Past the 30 (thirty)-day time limit, if the selected investor fails to sign a commitment, the next qualified investor will be selected in replacement.

2. Within 45 (forty five) days after signing a commitment with the investor, the General Department of Geology and Minerals of Vietnam shall elaborate a project on the geological baseline survey of minerals and submit it to the Ministry of Natural Resources and Environment for approval.

3. Within 5 (five) working days after the project on the geological baseline survey of minerals is approved, the General Department of Geology and Minerals of Vietnam shall notify the investor to come to sign a contract on contribution of capital to the project on the geological baseline survey of minerals with the unit assigned to implement the project.

The contribution of capital to geological baseline surveys of minerals shall be effected via contracts and contract liquidation documents (made according to the forms provided in Appendices 3 and 4 to this Circular).

4. Within 30 (thirty) days after the issuance of a notice prescribed in Clause 3 of this Circular, if the investor concerned does not come to sign the contract, it will be regarded as having failed to comply with its commitment. The guarantee amount prescribed in Clause 1 of this Article shall be used to pay for the elaboration of the project on the geological baseline survey of minerals according regulations; the remainder, if any, will be refunded to the investor.

5. The capital contribution progress stated in the contract on contribution of capital to a geological baseline survey of minerals must be guaranteed by a domestic credit institution or Vietnam-based foreign bank branch.

Article 6.Management of investment capital contributed to geological baseline surveys of minerals

1. Capital contributed by an investor to a project on a geological baseline survey of minerals is a money amount in Vietnamese dong or a foreign currency converted into Vietnamese dong at the time of deposit.

2. Grounds for investors to contribute capital to projects on geological baseline surveys of minerals are techno-economic norms issued by the Ministry of Natural Resources and Environment, unit prices approved by competent authorities and current expenditure regime.

3. The General Department of Geology and Minerals of Vietnam shall open a deposit account at the State Treasury to receive capital contributed by investors and manage and use such capital according to the law on the state budget.

4. The management and use of capital contributed by investors to projects on geological baseline surveys of minerals shall comply with the signed contracts and regulations on management and use of economic non-business budget expenditures of the geological and mineral sector.

5. The State Treasury shall control expenditures made from the source of capital contributed to geological baseline surveys of minerals according to regulations similar to current regulations on management, allocation and payment of state budget expenditures via the State Treasury.

6. The acceptance testing of projects on geological baseline surveys of minerals shall comply with the regulation on inspection and acceptance testing promulgated by the Ministry of Natural Resources and Environment

7. The balances of contributed capital left unused at every year-end may be carried forward to the subsequent year for further use.

8. The annual settlement of capital contributed to geological baseline surveys of minerals (settlement of other funding sources) shall comply with the Ministry of Finance’s regulations on approval, appraisal and notification of annual settlement applicable to administrative agencies, non-business units and organizations eligible for financial support from the state budget and budgets of all levels.

9. When a project on a geological baseline survey of minerals completes, the General Department of Geology and Minerals of Vietnam shall approve the project implementation fund settlement document according to current regulations.

In case the fund amount stated in the settlement document is less than the amount of capital contributed by investors, the General Department of Geology and Minerals of Vietnam shall refund the unused amount to the investors. In case the fund amount stated in the settlement document is higher than the amount of capital contributed by investors, the General Department of Geology and Minerals of Vietnam shall notify investors thereof for capital supplementation.

10. The results of acceptance testing of projects on geological baseline surveys of minerals shall act as a basis for liquidation of contracts.

Article 7.Refund of funds already paid for geological baseline surveys of minerals

1. In case an investor that contributes capital to a geological baseline survey of minerals is unqualified for being licensed to conduct mineral exploration in the surveyed area, the organization or individual licensed to conduct mineral exploration in such area shall refund the amount already paid for geological baseline surveys of minerals to such investor in accordance with law.

2. In case the surveyed area is unqualified for mineral exploration licensing, the investor will not be eligible for refund of contributed capital.

Chapter III

IMPLEMENTATION RESPONSIBILITIES AND EFFECT

Article 8.Responsibilities of investors contributing capital to geological baseline surveys of minerals

1. To contribute capital to implement projects on geological baseline surveys of minerals in accordance with signed contracts.

2. Not to be refunded contributed capital if failing to comply with signed contracts.

Article 9.Responsibilities of the Ministry of Natural Resources and Environment

1. To approve or assign the General Department of Geology and Minerals of Vietnam to approve projects on geological baseline surveys of minerals to be implemented with capital contributed by investors.

2. To assume the prime responsibility for, and coordinate with related ministries and investors in, conducting periodical or unexpected inspection of the implementation of projects on geological baseline surveys of minerals, ensuring proper and efficient management and use of capital contributed by investors.

Article 10.Responsibilities of the General Department of Geology and Minerals of Vietnam

1. To receive, manage and use capital contributed by investors to geological baseline surveys of minerals in accordance with law.

2. To notify results of geological baseline surveys of minerals to investors having contributed capital to the surveys on a periodical basis and provide them with all survey results after the projects on geological baseline surveys complete.

3. To guide and collect money from organizations or individuals licensed to conduct mineral exploration in surveyed areas for refund to investors in case investors are unqualified for being licensed to conduct mineral exploration in such areas as prescribed in Joint Circular No. 186/2009/TTLT-BTC-BTNMT of September 29, 2009, of the Ministry of Finance and the Ministry of Natural Resources and Environment, guiding the method of determining, and mode and procedures for payment of, charges for use of data and information on the State’s mineral survey and exploration results, and Joint Circular No. 64/2012/TTLT-BTC-BTNMT of April 25, 2012, of the Ministry of Finance and the Ministry of Natural Resources and Environment, amending and supplementing a number of articles of Joint Circular No. 186/2009/TTLT-BTC-BTNMT.

4. To implement, inspect, conduct acceptance testing of, and supervise, projects on geological baseline surveys of minerals approved by the Ministry of Natural Resources and Environment.

Article 11.Effect

1. This Circular takes effect on December 29, 2014.

2. In case legal documents referred to this Circular are amended or supplemented, the modifying or supplementing documents shall apply.

3. Any problem arising in the course of implementation should be reported to the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment and the Ministry of Finance for study, amendment or supplementation as appropriate.-

*All appendices to this Joint Circular are not translated.