In Vietnam, if organizations perform 25% of the cost estimate of the mineral exploration project, can they transfer the mineral exploration right?
Can organizations licensed for exploring minerals transfer the mineral exploration right?
Clause 1, Article 42 of the Mineral Law 2010 of Vietnam stipulates the rights and obligations of organizations and individuals licensed for exploring minerals. Accordingly, organizations and individuals licensed for exploring minerals have the following rights:
- To use mineral-related information pertaining to the exploration purpose and area;
- To conduct exploration according to the mineral exploration license;
- To take away from the exploration area, even abroad, specimens with volume and types suitable to the characteristics and requirements of analyses and experiments under the approved exploration project;
- To be prioritized to obtain a license for exploring minerals in the exploration area under Clause 1, Article 45 of this Law;
- To request extension of the mineral exploration license, to return it or return part of the exploration area; - To transfer the mineral exploration right;
- To lodge complaints or lawsuits against decisions revoking the mineral exploration license or other decisions of competent state agencies;
- Other rights provided by law. Thus, organizations and individuals licensed for exploring minerals can transfer the mineral exploration right to other organizations and individuals.
Mineral exploration projects
Contents of mineral exploration projects
Clause 1, Article 42 of the Mineral Law 2010 of Vietnam stipulates mineral exploration projects. Accordingly, a mineral exploration project must have the following principal contents:
- An appropriate system of exploration methods to identify mineral deposit and quality, mining conditions and processing and utilization possibilities for all minerals discovered in the exploration area;
- The volume of exploration work, the quantity and kinds of specimens to be taken for analysis to ensure complete evaluation of natural resources as well as mineral deposit and quality according to the exploration objectives;
- Solutions for environmental protection and labor safety and sanitation during exploration.
- Deposit calculation methods; - Solutions and schedule for the project implementation.
- Exploration cost estimate based on unit prices set by competent state management agencies.
If transferors only perform 25% of the cost estimate of the mineral exploration project, can they transfer the mineral exploration right?
Article 43 of the Mineral Law 2010 of Vietnam stipulates transfer of the mineral exploration right as follows:
- Transferees of the mineral exploration right must satisfy all the conditions for the grant of mineral exploration licenses under this Law.
- Transfer of the mineral exploration right must be approved by a state management agency competent to grant mineral exploration licenses. After obtaining such approval, transferees of the mineral exploration right may be granted new mineral exploration licenses.
- To transfer the mineral exploration right, an organization or individual must have performed at least 50% of the cost estimate of the mineral exploration project.
- The Government shall detail the transfer of the mineral exploration right.
Reference to Clause 1 Article 27 of Decree 158/2016/ND-CP of Vietnam with specific regulations on transfer of mineral exploration rights:
- The transferee must meet all conditions as stipulated in clause 1, Article 34 of the Mineral Law; if not qualified for the practice of mineral exploration, it must have a contract concluded with the organization that is qualified for practice of mineral exploration as stipulated in clause 1, Article 35 of the Mineral Law in order to keep executing the exploration project;
- By the time of transfer, the transferor have fulfilled all obligations prescribed at the points b, c, d and e, Clause 2 of Article 42 and Clause 3, Article 43 of the Mineral Law and regulations in the mineral exploration license; - At the time of transfer, there is no dispute on the rights and obligations relating to the exploration activities;
- The transferor has submitted complete application for transferring the mineral exploration right to the receiving authority while the mineral exploration License is still valid for at least 90 days.
Thus, in order to be transferred mineral exploration rights, the above conditions must be met. And one of those conditions is that the organization or individual transferring the mineral exploration right must have performed at least 50% of the cost estimate of the mineral exploration project.
If your company only perform 25% of the cost estimate of the mineral exploration project, you don't meet the above condition. Therefore, your company has not been able to transfer the mineral exploration right.
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