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THE STATE COUNCIL
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 22-LCT/HDNN8
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Hanoi, July 28, 1989
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ORDINANCE
ON MINERAL RESOURCES
Mineral
resources are the most precious assets of the nation which need to be protected
and subjected to sustainable use with the aim of satisfying short term need for
mineral materials and the long term goals of social and economic development.
Pursuant to
articles 19, 36 and 100 of the Constitution of the Socialist Republic of
Vietnam;
This
Ordinance makes provisions in relation to the management and protection of
mineral resources in terms of geological exploration, mineral exploitation, and
protection of untapped mineral resources.
Chapter I
GENERAL
PROVISIONS
Article 1
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1. Mineral
resources means natural materials in solid, liquid, and gaseous forms located
under the ground including those at the disposal of the mineral industry, or
for present or future exploitation and use.
2. Mine or
mineral field means an accumulation of a mineral resource, the quality or
quantity of which causes the field to be a target for mineral exploitation.
3. Geological
exploration means geological research activities underground, and the search
for and exploration of, mineral resources.
4. Mineral
exploitation means the act of extracting a mineral resource from a mine with
the aim of producing mineral materials, minerals in their existing form, in
ground water, mineral water and hot water, (hereinafter referred to as mineral
materials) in order to meet different needs and uses.
5. Mineral
exploitation field means a specific part of or total mineral field which is the
subject of, and the surface and depth of which is defined in, the decision made
to assign the mineral exploitation field or the licence issued for the
exploitation of its mineral resources.
6. Untapped
mineral resource means a mineral resource which has not been geologically
explored or has been explored but the exploitation of which has not been
permitted by an authorised State body in accordance with the provisions of this
Ordinance.
Article 2
Total mineral resources contained within thee land, continental
shelves, and inland and sea territory of the
Socialist
Republic of Vietnam constitute the unified mineral resources reserve of the
State which is owned by the people and subject to uniform management by the
State.
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The State encourages investment by organisations and individuals in
the form of labour, materials, capital, and successful scientific and technical
applications for the purposes of geological exploration and exploitation of
mines, and the protection of mineral resources, except in respect of those
mineral resources and areas which are subject to other provisions.
The State
encourages foreign organisations and individuals, international organisations,
and overseas Vietnamese to invest capital and technology in the areas of
geological exploration and exploitation of mines, and the manufacture of
mineral materials in Vietnam in accordance with the provisions of the Law on
Foreign Investment in Vietnam and this Ordinance.
Article 4
Where good results are achieved as the result of investment by
organisations and individuals in the search for and exploration of, mineral
resources, those investors shall be given priority in exploiting the mine in
which those mineral resources are located.
The State
guarantees that organisations or individuals exploiting a mine which has been
allocated to them shall enjoy legal benefits such as the right to enter a joint
venture enterprise for exploration, exploitation and sale of products, the
right to bequeath and inherit exploitation rights, and to transfer, assign or
sell, investment projects constructed in the area of mineral exploitation, in
accordance with the provisions of the law.
Article 5
Any organisations and individuals carrying out operations in
geological exploration and mineral exploitation shall he obliged to implement
regimes in relation to management, protection or mineral resources, the
environment and other resources, regimes which ensure safety within a mine, and
pay taxes and fees in accordance with the provisions of the law.
Article 6
The geological exploration and exploitation of mineral resources and
use of an underground field containing mineral resources without the permission
of an authorised State body, in accordance with the provisions of this
Ordinance, shall be prohibited.
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State management of mineral resources shall include:
1. Preparation
of a scheme and schedule of work for geological exploration, and mineral
resources protection.
2. Making
provisions for regimes for management and protection of mineral resources in
relation to geological exploration, mineral exploitation, and protection of
untapped mineral resources.
3. Allocating
and recovering mineral exploitation fields, granting permission for, and
ceasing the exploitation of, mineral resources, geological exploration, and the
use of land on the surface and underground containing mineral resources.
4. Registration
of responsibilities in relation to geological exploration, of field and mineral
exploitation projects, and of the underground areas to be protected;
establishment of titles to mine and lease mineral resources; preparation of
scientific data in relation to the mineral resources reserve; maintaining a
file of documents on mineral exploitation and geological samples.
5. State
inspection of mineral resources and environment protection.
6. Resolving
disputes which arise in relation to rights to geological exploration and
mineral exploitation, protecting mineral resources and dealing with breaches of
the law on mineral resources, and on protection of the surrounding environment.
Article 8
The Council of Ministers shall unify the individual State management
of mineral resources.
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The ministries
shall, in relation to the exploitation, manufacturing, and the use of mineral
resources, assume the responsibility of managing and protecting mineral
resources delegated in accordance with stipulations by the Council of
Ministers.
The people's
councils and People's Committees at all levels shall in accordance with the
stipulation by the Council of Ministers have the power to manage and protect
the mineral resources within their locality in accordance with the size amount
and importance of those mineral resources.
Article 9
State management bodies, social organisations and citizens shall be
obliged to protect mineral resources and the surrounding environment.
The State
bodies shall, in accordance with their powers and obligations, be responsible
for giving full consideration to the recommendations of social organisations
and individuals made in relation to the implementation of measures for the
management and protection of mineral resources and the surrounding environment.
The State shall
protect the interests of local residents residing at a place where an operating
mine is located.
Chapter II
GEOLOGICAL
EXPLORATION
Article 10
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Article 11
Before performing a geological exploration project, the organisation
or individual carrying out the geological exploration shall register the
objectives of the project with the State management body for geological
exploration.
Article 12
People's Committees at all levels shall, within the scope of their
powers, be responsible for the creation of conditions for the use of land and
for allocating land in accordance with the provisions contained in articles 13
and 39 of the Land Law to organisations and individuals in order that they may
implement the objectives of the geological exploration project registered.
Article 13
In establishing and performing geological exploration projects,
organisations, and individuals performing geological exploration shall be
obliged to:
1. Clearly
determine the objectives, contents, degree, scope, and method of work which has
a scientific basis ensuring quality and success.
2. Ensure the
accuracy of the quantity and quality of the main mineral reserve, the type of
mineral resources and other useful materials contained therein, and specify the
economic and technical production arising from exploitation of a mine in
accordance with State provisions in relation to the phases and degree of search
and exploration.
3. Use
technical and industrial methods to protect the mineral resources and
surrounding environment and ensure safety.
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5. Pay fees and
fulfil all other obligations in accordance with the provisions of the law.
6. Pay
compensation in respect of damage caused by the geological exploration.
Article 14
In completing the implementation of the geological exploration
project, organisations and individuals carrying out geological exploration
shall be responsible for the following:
1. The
maintenance of land survey and geology projects which are still required, and
after the dismantling of geological projects in order to ensure safety and the
protection of mineral resources.
2.
Establishment of data files, geological reports, geological samples and the
submission of records to the State in accordance with the provisions of the
Law.
3. Submission
of geological reports to the authorised State body for approval where the
project is to be implemented using capital from the State and for evaluation
where the project is to be implemented with funding from other sources.
Article 15
The economic and technical basis for calculation of a mineral
resource reserve shall be established and approved in respect of each mine
which is explored using funds invested by the State, in accordance with the
regulations of the body considering and approving the mineral resource reserve.
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EXPLOITATION
OF MINES
Article 16
The allocation of a mineral exploitation field and granting of
permission to exploit mineral resources shall be based on the following
considerations:
1. The economic
policy, social development plan, and mineral exploitation strategy of the
State.
2. The results
of geological exploration of, and the reserve of mineral resources within, the
field which is the subject of the application for exploitation.
3. The
feasibility study for exploitation ensuring the full exploitation and
sustainable use of the mineral resources of the mine.
4. Conditions
in respect of finance, the economy, technology, professional knowledge of
geology, mineral exploitation and management capacity of the organisation which
or individual who is applying to operate the mine and has signed the contract
for operation of the mine.
5. Requirements
necessary for protection of the environment, historical and cultural buildings and
famous landscapes, and for ensuring security and defence.
6. State
provisions in relation to technology and safety in the operation of mines and
manufacture of mineral materials.
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Decisions to allocate mineral exploitation fields and grant permission
for the exploitation of mineral resources shall be made within the powers of
the Council of Ministers, the State management body responsible for mineral
resources, and the People's Committees of provinces and cities under central
authority, and equivalent administrative units.
The Council of
Ministers shall, on the basis of ensuring the centralised and uniform
management of mineral resources by the State, make detailed provisions for the
delegation of its power to allocate mineral exploitation fields or grant
permission for the exploitation of mineral resources, especially in respect of
important mineral resources and mines throughout the country or in individual
economic zones, while ensuring the improvement of strength, active character,
self sufficiency, and in accordance with the size of the development in the
local economy and the management capacity of local government.
Article 18
The allocation of land for the purpose of operation of a mine shall
lake place in accordance with the provisions contained in articles 13 and 39 of
the Land Law. The body allocating land for operation of a mine shall base its
decision to allocate the land on the plan and operating strategy.
Article 19
In preparing a feasibility study of, and plan for the operation of, a
mine, the body preparing the feasibility study or plan shall be obliged to
include the following:
1. An
appropriate system of establishment of projects on the surface and underground
at locations, which ensure maximum recovery from the mineral reserve and safety
in the mine.
2. Technical
methods and system to be used, industrial area and rate of progress of
exploitation, industrial manufacture of mineral materials ensuring maximum
utilisation, general use of principal mineral resource, other mineral resources
and useful composition.
3. Appropriate
use of soil and discarded stone; statistics, protection of mineral resources or
soil and stone which is exploited for the purpose of extracting a particular
mineral resource but also contains other useful mineral resources not required
at the time.
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5. Measures to
be taken to ensure the safely of the mine and the protection of the surrounding
environment; and rehabilitation of the land in order that it may again be used
sustainably after exploitation.
Article 20
Upon commencing operations, organisations and individuals operating
mines shall register the field being exploited or the exploitation project with
the State management body responsible for mineral resources.
Article 21
Organisations and individuals operating mines shall have the
following obligations:
1. To comply
with the decision made to allocate to it the sight to exploit the mineral
field, operate within the defined exploitation areas, manufacture those mineral
materials which have been approved, and observe rules on mine safety and
protection of the surrounding environment.
Where an
amendment to an exploitation plan of diagram or manufacturing mineral materials
is to be made which shall result in an increased amount of mineral resources
being removed, such amendment shall be approved by the State management body of
mineral resources.
2. To carry out
the tasks of surveying the land for the mine and geological exploitation;
calculation of real loss, deduction, statistics, and balancing the mineral
reserve in accordance with State provisions.
3. To implement
measures which decrease the rate of loss, enable extraction of any further
mineral resources discovered or located within the allocated mineral
exploitation field; to refrain from deliberately choosing lo exploit only high
quality mineral resources, and from leaving out parts of the mineral reserve in
the list of its resources; building fixtures or construction on, or removing
discarded soil and stone to an area containing untapped mineral resources.
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5. To reimburse
the costs incurred by the State or other investors who or which funded in
advance the original search and exploration of the mines.
6. To pay
compensation in respect of losses caused due to the operation of a mine; recover
the land in order that it may again be used reasonably after the completion of
the mineral exploitation.
Article 22
Organisations and individuals operating mines shall be entitled to
the following benefits:
1. They shall
be permitted to use the mineral exploitation field in order to perform their
activities of mineral resources exploitation in accordance with the decision
made by the State to allocate to them a mineral exploitation field in terms of
space, time, quantity and type of mineral resources.
2. They shall
be permitted to transfer, assign, sell or use the products of their operation
in the mine in accordance with State provisions regarding the circulation of
such products after payment of royalties has been made and all other
obligations have been fulfilled, in accordance with provisions of the law.
3. They shall
be permitted to apply for a reduction in or exemption from payment of royalties
in accordance with the provisions of the law.
4. They shall
be entitled to bequeath to successors the right to exploit, transfer, assign
and sell the projects constructed as part of their investment for the purpose
of operation of the mine in accordance with the provisions of the law.
5. They shall
be compensated for real loss in special cases where the mineral exploitation
field being used is recovered due to the needs of the State or society, and
shall be allocated another mineral exploitation field if required;
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7. They shall
be protected by the law where the right to legally use the allocated mineral
exploitation field has been breached by any organisation or individual.
Article 23
Where the mine is closed for maintenance or its operation has been
terminated, the individual or organisation operating the mine shall take all
measures necessary to ensure the safety of the mine, maintain data in relation
to mineral geology, and protect untapped mineral resources and surrounding
areas.
Article 24
A mineral exploitation field shall he recovered or its exploitation
ceased in any of the following cases:
1. If, after
one to two years, depending on the particular exploitation site, from the date
on which a decision was made to allocate an exploitation field, the task of
mineral construction or exploitation has not been implemented with approval
obtained from an authorised body.
2. Where the
period for operating the mine has expired and the authorised body has not
granted an extension.
3. Where the
organisation operating the mine has been dissolved or the individual who is the
owner of the exploitation license dies without bequeathing to a successor the
right to operate the mine in accordance with the provisions of the law; or
where there is a lack of capacity and conditions necessary for continuing the
exploitation or a deliberate delay in the exploitation.
4. The decision
to allocate a mineral exploitation field or to grant permission to mine has not
been made by an appropriate authority in accordance with the provisions of
article 17 of this Ordinance.
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6. The
organisation or individual operating the mine commits a serious breach of the
regimes for the management and protection of mineral resources and the
surrounding area.
The body which
has the power to make a decision to allocate a mineral exploitation field or to
permit the exploitation of a particular type of mineral resource shall have the
power to make a decision to recover the mineral exploitation field or to cease
the exploitation of that particular type of mineral resource.
Chapter IV
PROTECTION OF
UNTAPPED MINERAL RESOURCES
Article 25
State bodies, social organisations and citizens shall he obliged to
protect untapped mineral resources. Where a mineral resource is discovered, it shall
be reported lo the State management body responsible for mineral resources as
soon as possible, the State management body responsible for geological
exploration or to People's Committees.
The State
management body responsible for mineral resources, people's councils and
People's Committees at all levels shall be responsible for the implementation
of measures necessary to protect the untapped mineral resources, ensure the
sustainable use of land, and protection of the surrounding area.
Article 26
The State management body responsible for mineral resources and the
State management body responsible for geological exploration shall determine
the specific areas where mineral resources are in need of protection.
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Article 27
Special geological formations, rare archaeological sites, and other
objects situated underground which are of scientific and geological value shall
be protected in accordance with the provisions of this Ordinance.
Chapter V
Article 28
The State management body responsible for mineral resources shall
perform the function of State inspection of mineral resources throughout the
country.
Article 29
The duties involved in State inspection of mineral resources shall
include:
1. Inspection
of the implementation of plans for management and protection of mineral
resources during geological exploration.
2. Inspection
of the implementation of plans for management and protection of mineral
resources during mineral exploitation and of protection of untapped mineral
resources.
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The State management body responsible for mineral resources shall
have the power:
1. To form
inspection groups or to delegate to inspectors the responsibility to carry out
State inspection of mineral resources.
2. To make
decisions compelling organisations and individuals to implement measures aimed
at the prevention and termination of acts in breach of the law in relation to
mineral resources.
3. To order
that all geological exploration, mineral exploitation and other acts which are
committed contrary to the law in relation to mineral resources cease.
4. To deal with
breaches in accordance with its powers or make recommendations to the State body
which has the power to punish organisations or individuals breaching the law on
mineral resources and protection of the surrounding environment.
Article 31
In carrying out State inspection of mineral resources, the
inspection group or inspector shall have the power:
1. To demand
that the organisations and individuals concerned provide data and documents and
reply to matters necessary for the inspection, to perform the task of technical
inspection at the scene.
2. To
temporarily cease geological exploration, mineral exploitation and other acts
committed in breach of the law where it has clear evidence that those acts are
likely to result in an accident or substantial loss of mineral resources.
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Article 32
The people's councils and People's Committees at all levels shall,
within their respective localities, control and inspect compliance with the law
in relation to mineral resources.
People's
Committees at all levels shall have the power to stop all geological
exploration and exploitation of mineral resources which takes place without the
requisite license having been issued in accordance with the provisions of this
Ordinance.
Chapter VI
RESOLUTION OF
DISPUTES
Article 33
The power to resolve disputes arising from geological exploration
rights or from exploitation of mineral resources shall be as follows:
1. The State
management body responsible for geological exploration shall resolve disputes
which arise from geological exploration rights.
2. The body
which has the power to make decisions to allocate a mineral exploitation field
and grant permission to exploit the particular type of mineral resources it
contains shall be responsible for resolving disputes which arise from the right
to operate the mine and that particular type of mineral resource.
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4. In the event
that the parties disagree with the decision of the body resolving the disputes
then they shall be entitled to complain to the next highest body to that which
resolved the dispute. The decision of the higher body shall he binding.
5. Where a
dispute arises in relation to rights to geological exploration and exploitation
of mineral resources in Vietnam in which one or more parties are foreign
Organisations or individuals then the dispute shall be resolved in accordance
with the laws of Vietnam except in cases where an agreement signed between
Vietnam and a foreign country or international organisation contains provisions
to the contrary.
Chapter VII
REWARDS AND
PENALTIES
Article 34
Any body, organisation or individual recording achievements in the
discovery of mineral resources or geological materials which have scientific
value and in the management, protection, and sustainable use of mineral
resources shall, according to the degree of achievement, be commended and
rewarded in accordance with general provisions.
Article 35
Any person who, carrying out geological exploration or exploitation
of mineral resources, illegally causes damage to mineral resources beyond a
fixed level, illegally uses a field containing mineral resources which are
protected, obstructs the legal implementation of geological exploration work or
exploitation of a mineral resource, or who breaches other provisions of this
Ordinance shall, according to the degree of seriousness of the offence and the
nature of the act committed, be disciplined or subject to administrative
penalty or criminal prosecution in accordance with the provisions of the law.
Chapter VIII
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Article 36
The Council of Ministers shall make detailed provisions for the
implementation of this Ordinance.
All previous
provisions which are contrary to this Ordinance are hereby repealed.
Vo Chi Cong