Conditions for mineral exploitation in Vietnam

According to Clause 1, Article 51 Mineral Law 2010, organizations and individuals allowed to exploit minerals include:

- Enterprises established under the Law on Enterprises;

- Cooperatives and unions of cooperatives established under the Law on Cooperatives

Therefore, foreign investors who want to invest in mineral exploitation projects in Vietnam must establish a business or invest capital, buy shares, or buy capital contributions to businesses in Vietnam.

Note, before establishing an economic organization, foreign investors must have an investment project and carry out procedures for granting and adjusting the Investment Registration Certificate.

In addition, to operate in the field of mineral exploitation, foreign investors must be granted a Mineral Mining License.

To be granted a Mineral Mining License, it is necessary to fully meet the following conditions according to Clause 2, Article 53 of the Mineral Law:

- Having an investment project to mine minerals in the explored area with approved mineral deposits in conformity with the master plans

- Such a project must contain a plan on employment of professional human resources, and advanced and appropriate equipment, technologies and mining methods; for toxic minerals, the Prime Minister's written permission is also required;

- Having an environmental impact assessment report or an environmental protection commitment made under the environmental protection law;

- Having an equity capital at least equal to 30% of the total investment capital of the mining investment project.

Accordingly, the Mineral Mining License has the following main contents: Name of the mining organization or individual; Type of mineral, location, area of ​​mining area; Reserves, capacity, exploitation methods; Exploitation period; Financial obligations and other related obligations.

In particular, a mineral exploitation license has a term of no more than 30 years and can be renewed many times but the total extension period must not exceed 20 years.

Rights and obligations of foreign investors exploiting minerals

Foreign investors exploiting minerals in Vietnam have the following rights according to Clause 1, Article 55 of the Mineral Law:

- To use mineral-related information pertaining to the mining purpose and area permitted for mining;

- To mine minerals under the mining license;

- To further explore mineral deposits within the permitted area and depth and, before exploration, notify the volume and duration of such exploration to competent licensing state management agencies;

- To store, transport, sell and export the exploited minerals under law;

- To apply for extension or return of the mining license or return of part of the mining area;

- To transfer the mining right;

- To lodge complaints or lawsuits against decisions revoking the mining license or other decisions of competent stale agencies;

- To rent land under the land law according to the approved mining investment project or mine design;

- Other rights provided by law.

Organizations and individuals licensed for mining have the following obligations:

- To pay a fee for the grant of the mining right, a licensing fee. royalties, taxes, and charges, and fulfill other financial obligations under law;

- To ensure the schedule of mine infrastructure construction and mining activities stated in the mining investment project and mine design;

- To register the date of commencement of mine infrastructure construction and date of commencement of mining with competent licensing state management agencies and notify them to People's Committees at all levels in the locality in which the mines are located before construction or mining;

- To exploit to the maximum main and accompanied minerals; to protect mineral resources; to ensure labor safety and sanitation and take measures to protect the environment;

-To collect and store information on results of further exploration for mineral deposits and on mining results;

- To report mining results to competent state management agencies under regulations of the Ministry of Natural Resources and Environment;

- To compensate for damage caused by mining activities;

- To create favorable conditions for other organizations and individuals to conduct scientific researches permitted by the State in the mining area;

- To close mines, restore the environment and rehabilitate the soil when the mining license expires;

- Other obligations provided by law.