Circular No. 04/2015/TT-BTNMT dated February 13, 2015, exploration and classification of reserves and natural resources of lead - zinc

• Official number: 04/2015/TT-BTNMT
• Legislation Type: Circular
• Organization: The Ministry of Natural Resources and Environment
• Signer: Tran Hong Ha
• Issued Date: 13/02/2015

THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT -------	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness ---------------
No. 04/2015/TT-BTNMT	Hanoi, February 13, 2015

CIRCULAR

EXPLORATION AND CLASSIFICATION OF RESERVES AND NATURAL RESOURCES OF LEAD - ZINC

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

Pursuant to the Government’s Decree No. 15/2012/NĐ-CP dated March 09, 2012 detailing the implementation of the Law on Mineral;

Pursuant to the Government’s Decree No. 21/2013/NĐ-CP dated March 04, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Natural Resources and Environment;

At the request of Chief Officer of the Council for Evaluation of National Reserves, Director General of Legal Department;

The Minister of Natural Resources and Environment promulgates the Circular on exploration and classification of reserves and natural resources of lead - zinc;

Chapter I

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Article 1. Governing scope

This Circular regulates exploration and classification of reserves and natural resources of lead - zinc.

Article 2. Regulated entities

This Circular applies to state administration agencies for minerals, mineral exploration practicing organizations, organizations and individuals involved in exploration and exploitation of minerals and other relevant organizations and individuals.

Chapter II

ASSESSMENT OF CLASSES OF RESERVES AND NATURAL RESOURCES

Article 3. Classification of reserves and natural resources

1. Natural resources of lead - zinc are divided into two groups:

a) Defined natural resources;

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2. Group of defined natural resources is divided into two kinds: reserves and natural resources.

a) Kind of reserves is divided into three classes: Class 111; Class 121 and Class 122.

b) Kind of natural resources is divided into six classes: Class 122, Class 221, Class 222, Class 331, Class 332 and Class 333.

3. Group of natural resources is divided into two classes: Class 334a and Class 334b.

4. Classification of reserves and natural resources is detailed in Appendix 1 enclosed herewith.

Article 4. Requirements for assessment of Class 121 reserve

1. Level of geological assessment

a) Define shape, size, positions and laws of form change and inside structure of lead – zinc ore bodies;

b) Define natural or industrial ore deposits with typical character of mineral and chemical composition, structure, architecture, physico-mechanical and technical properties of ore deposits;

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d) Define character of hydrological and engineering geology, conditions of mining exploitation and other relevant natural factors guaranteeing adequate provision of reliable figures, parameters for the establishment of investment projects for mineral extraction and mining design;

dd) Reliability of the reserve guaranteed at least 80%;

2. Defined boundaries for reserve calculation:

Boundaries of Class 121 reserve is defined within a range controlled by exploration and/or exploitation works.

3. Assessment of feasibility, technology and economic efficiency:

a) Select appropriate technical solutions, ore exploitation and processing technology;

b) Economic efficiency of reserve class is determined on the basis of reserve calculation indices.

Article 5. Requirements for assessment of Class 122 reserve

1. Level of geological assessment

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b) Separate natural and industrial ore deposits on the basis of character of mineral composition, structure, architecture, chemical composition, physico-mechanical and technical properties of ore types;

c) Quality of lead – zinc ores is carefully analyzed; material composition, physico-mechanical and technical properties of ore types determined;

d) Define character of hydrological and engineering geology, conditions of mining exploitation as foundations for the establishment of investment projects for mineral extraction and mining design;

dd) Reliability of the reserve guarantees at least 50%;

2. Boundaries defined for calculation of reserve:

Boundaries of Class 122 reserve is defined within a range controlled by exploration works. For ore bodies with uncomplicated structures, ore deposits with relatively stable depth and quality, limited extrapolation from documents of geology, geophysics is permitted but not in excess of half of the prescribed network.

3. Assessment of feasibility, technology and economic efficiency is prescribed in Clause 3, Article 4 hereof.

Article 6. Requirements for assessment of Class 221 natural resources

1. Geological assessment and definition of boundaries of natural resources are prescribed in Clauses 1, 2, Article 4 hereof;

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Article 7. Requirements for assessment of Class 222 natural resources

1. Requirements for geological assessment and definition of boundaries of Class 222 natural resources are prescribed in Clauses 1, 2, Article 5 hereof;

2. Requirements for assessment of feasibility, technology and economic efficiency is prescribed in Clause 3, Article 4 hereof. Class 222 natural resources are part of natural resources that has been explored but has not yet achieved reserve norms, or lies in the areas banned or temporarily banned from mineral activities.

Article 8. Requirements for assessment of Class 333 natural resources

1. Requirements for geological assessment

a) Define basic aspects of shape, position and distribution of lead – zinc ore bodies;

b) Preliminarily define depth, structure and level of stability of lead – zinc ore bodies;

c) Quality of lead – zinc ores is preliminarily determined according to results of sampling at natural exposures, clearance works, ditches, wells or extrapolation from adjacent plots geologically assessed in more detail;

d) Natural conditions determining mining exploitation conditions of which detailed assessment is not yet required are mainly preliminarily studied and based on adjacent plots assessed in more details;

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2. Requirements for assessment of feasibility, technology and economic efficiency:

Economic efficiency or potential economic efficiency from exploitation and processing of lead – zinc ores from these natural resources is still undetermined at the time of assessment.

Chapter III

DIVISION OF MINE GROUPS AND REQUIREMENTS FOR EXPLORATION

Article 9. Division of mine groups

1. Foundations for division of mine groups:

a) Shape, size, positions of lead – zinc ore bodies, level of stability in depth, change of lead – zinc content and level of complexity in structure of mining geology;

b) Quantitative indicators for assessment of level of depth change, content of ore bodies and geological conditions for mining exploitation;

c) Specific arguments, evaluation of key lead – zinc ore bodies accounting for at least 70% of mine reserves; 2. Division of mine groups into the following groups:

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b) Relatively complicated groups (II);

c) Complicated groups (III);

d) Very complicated groups (IV);

3. Conditions for classification of mine groups:

a) Simple groups (I);

Include mines or part of big mines of simple geological structures with ore bodies of flat and horizontal veins; ore bodies of simple shapes with ore ratio from 0.8 to 1.0; coefficient of depth transformation by works from 40% and under; content of key beneficial composition equally distributed, coefficient of content transformation from 40% and under.

b) Relatively complicated groups (II);

Include mines or part of big to medium mines of relatively complicated geological structures with ore bodies in the shape of veins, lens, columns, pipes; depth of ore bodies relatively stable to unstable; coefficient of depth transformation by works from 40% - 70%; content of key beneficial composition distributed equally to unequally; coefficient of content transformation by sample from 40% - 70% and ore ratio from 0.7 – 0.8;

c) Complicated groups (III);

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d) Very complicated groups (IV);

Include mines or part of small mines of very complicated geological structures with ore bodies being small to very small in size, and in the shape of veins, lens, columns, pipes...; shapes of ore bodies every complicated, depth of ore bodies very unstable; coefficient of depth transformation by works over 100%; content of key beneficial composition distributed very unequally; coefficient of content transformation by sample over 100% and ore ratio below 0.6;

Article 10. General requirements for tasks of exploration

1. Carry out exploration from general to details, from surface to depth; network for exploration from thin to thick; geological maps from small to large in scale;

2. Adequately collect information, figures and documents regarding geology, hydrographical, engineering and environmental geology; conditions for mine exploration serving assessment and establishment of investment projects for mineral extraction and mining design;

3. Sequence of exploration must be based on level of complexity of geological structure, reserve scale and economic value.

4. Exploration must be carried out over an entire area and depth with ore bodies within the selected boundaries.

Article 11. Requirements for topography and surveying

1. Exploration area must be topographically mapped in a scale as requested. Topographical maps must be established according to applicable regulations on surveying in mineral exploration. Scale of topographical maps is from 1/2000 to 1/500 depending on geological structure, scale of ore bodies and complexity of terrain.

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3. Exploration site must include at least two national marks.

Article 12. Requirements for geological measurements

1. The tasks of geological mapping in lead – zinc exploration must be carried out at scale from 1/2000 – 1/1000 depending on size of ore bodies and complexity in structure of mining geology;

2. Geological maps must provide a clear explanation of character of mining geological structure, distribution of formations of magma, sediments, foldings, faults from action of plate tectonic forces, rock and mineralized zones and lead – zinc ore bodies; foundations for assessment of character of distribution and conditions for ore formation, relationship between ore bodies and surrounding rock and key geological structure.

Article 13. Requirements for choice and location of exploration works

1. Choice of exploration works:

a) In the exploration of lead – zinc, excavation (ditches, wells, kilns) and drilling are chosen. Chosen exploration works must be appropriate to conditions of bedded deposits, distribution, structural geology, forms, depth of each ore body.

b) Sampling must be done at exploration works to determine quality, laws of ore distribution, weathered depth and structure of walls, pillars of ore bodies;

c) For mines of very complicated geological structures, particular exploration works must be carried out to find out conditions for positions, shape, inside structure of ore bodies.

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dd) For vertical, slanting drill holes with a depth of over 100 meters, variance in drill holes must be checked every 10 – 20 meters.

e) Slanting or horizontal drilling methods should be used for ore bodies of large angles of declination;

g) Exploration works should cut through all the depth of an ore body.

2. Location of exploration works:

a) Exploration works must be located in such a way that the comprehensive assessment of character of structural geology, forms, size, positions, stability, depth and quality of ore bodies is ensured;

b) Network of exploration works is prescribed in Appendix 2 enclosed herewith;

c) Exploration, exploitation works, natural and man-made exposures inside the exploration areas must be described, geologically mapped and documented in a timely, accurate and adequate manner according to applicable regulations on collection of original documents in mineral exploration and put in the actual map.

Article 14. Requirements for sampling

1. Any ore deposit found by exploration works must be carefully and systematically sampled to define ore body and assess quality of key beneficial composition. Position of sampling must be detailed in original documents.

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3. Principles of sampling:

a) Any ore deposit found by exploration works should be continuously sampled to define boundaries of ore bodies and interlayers. Length of sample is based on inside structure of ore bodies; transformation of material composition; character of structure, architecture and physico-mechanical properties of ore deposits;

b) Result of sampling should be made in images;

c) Samples should be representative of chemical, mineral composition, physico-mechanical properties, granularity and other properties suitable for average composition of each ore type, main ore bodies.

Article 15. Sample processing

1. All samples shall be broken down and crushed to grains below 01 mm in size. The successive stages of processing shall be carried out according to the processing chart for each mine;

2. Quality of sample processing and compliance with the processing chart must be systematically inspected in all phases. All chemical samples should be processed to 0.074 mm sized grains before analysis.

Article 16. Requirements for sample analysis

1. Results of sample analysis should give insights into content, existing forms of key beneficial composition and other accompanying beneficial composition (if any).

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b) Analysis of chemical samples is conducted on two components Pb and Zn. Basic chemical analysis is conducted on 100% of samples taken at exploration works. Harmful composition and other composition are determined by chemical sample group accounting for at least 10% of basic sample.

c) Chemical sample groups should be taken as representative of natural or industrial ore deposits.  For chemical sample groups, such components as Cu, S, As, Fe, Au, Ag, Te, Cd should be analyzed in addition to Pb and Zn.

d) Mineral composition, character of structure, architecture and other physical properties of ore deposits should be evaluated via petrographical, mineral, physical, chemical and other methods.

dd) Technological sample research

Technological samples should be studied in laboratories or expanded laboratories. Results of technological sample research should give insights into material composition of ore deposits, main economic and technical factors of selection phases, proposals for appropriate technological charts for recovery of key components.

Article 17. Requirements for inspection of sample analysis

1. Inspection of sample analysis must be regularly and systematically conducted.

2. Control of quality of sample analysis results is prescribed in the Minister of Natural Resources and Environment’s Circular No. 62/2014/TT-BTNMT dated December 09, 2014 promulgating National technical regulations on quality control for results of mineral sample analysis.

Article 18. Requirements for assessment of hydrographical and engineering geology

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a) Collect information about meteorology and hydrology in exploration areas at least five recent years;

b) Results of explorations should provide insight into key water fielding strata that may flood mines, especially part of the mines most susceptible to flooding for water drainage;

c) Depth, rock composition of water fielding strata, relationship between water fielding strata, between surface water and underground water and other factors must be determined.

d) Study chemical and microbiological composition of water, erodibility toward concrete, metal, content of useful and harmful components in water, effects of pumping mine water to underground water use works in the area as well as possibilities of using it as domestic water; Make proposals for solutions concerning water supply and drainage and level of effect of mine water drainage on surrounding areas;

2. Requirements for assessment of engineering geology:

a) Results of explorations should provide insight into physico-mechanical properties, surrounding and covering rocks in natural conditions and water-saturated conditions, character of engineering geology of rock strata and their anisotropy, composition of soil, rock, fissures, plate tectonic forces, destructive weathering;

b) Results of explorations should provide insight into sustainability of mining works, basic indicators of mining pits, stability of kilns;

c) All conditions of hydrological and engineering geology, and other relevant natural factors should meet requirements for the establishment of investment projects for mineral extraction and mining design; In case conditions of hydrological and engineering geology are found complicated, a project on special investigation and assessment must be put forward. Assessment of hydrographical and engineering geology should be in compliance with applicable regulations.

Article 19. Requirements for assessment of environmental pollution and impacts

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2. Assess geological catastrophe and negative impacts on the environment caused by exploration activities and propose prevention measures; Contents and level of environmental impact assessment should be mentioned in the exploration project.

Article 20. Requirements for assessment of technical conditions for mine exploitation

1. Carry out preliminary assessment of boundaries of mine sites, bench face angle, pit slope angle, stripping ratio, weight of stripped soil, pressure of soil, rock of ore bodies;

2. Carry out assessment of areas that do not contain industrial lead – zinc ores as the basis for the establishment of investment project for mineral extraction and mining design;

Article 21. Calculation of reserves and natural resources

1. Calculation of reserves and natural resources of lead – zinc must be based on reserve norms as detailed in reports on mineral explorations in each mine.

2. Chosen methods of calculating reserves and natural resources of lead – zinc ore deposits must be appropriate to character of structure of ore bodies of each mine. Application of specialized software for reserve calculation is encouraged.

3. Calculated reserves and natural resources of zinc ore deposits are existing reserves under the earth without taking account of losses for extraction and processing and represented in unit of 1,000 tons for crude ore and ton for lead and zinc metals.

4. Reserves and natural resources of lead – zinc are represented in topographical map of reserves with scale from 1/2000 to 1/1000 depending on size and character of ore bodies. Results of reserve calculation must fully represent individual ore bodies, classes of reserves and natural resources.

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1. Highest reserve class for Group I and II mines and Group III and IV mines to be explored is Class 121 and Class 122 respectively.

2. Proportion of Class 121 and 122 reserves shall be defined by the investor on the basis of geological features of mines, financial resources, technical conditions for extraction, expected extraction capacity but proportion of highest class reserves over total reserves of mines must guarantee no less than 10% and be represented in the exploration project.

Article 23. Contents and manner of reports on exploration results

Contents and manner of reports on exploration results are prescribed in the Minister of Natural Resources and Environment’s Circular No. 16/2012/TT-BTNMT dated November 29, 2012 regulating projects on mineral exploration and mine closure, report forms for mineral activities, application forms for mineral operation permits, applications for approval for mineral reserves, closure of mines.

Chapter IV

IMPLEMENTATION

Article 24. Effect

This Circular takes effect since April 01, 2015;

Article 25. Implementation

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2. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Natural Resources and Environment for consideration and handling./.

PP THE MINISTER
DEPUTY MINISTER




Tran Hong Ha