Vietnam: Must a mineral exploration project through a mineral extraction right auction carry out the procedures for investment guideline approval?
Shall mineral exploration projects be approved by the provincial People's Committees in Vietnam?
Pursuant to the provisions of Clause 1, Article 32 of the Law on Investment 2020 (supplemented by Clause 2, Article 3 of the Law amending the Law on Public Investment, the Law on public-private partnership Investment, the Law on Investment, the Law on Housing, The Law on Bidding, the Law on Electricity, the Law on Enterprises, the Law on Law on Special Excise Duties and the Law on Civil Judgment Enforcement 2022), the power of Provincial People's Committee are as follows:
1. Except for the investment projects set out in Articles 30 and 31 of this Law, the provincial People’s Committees shall grant approval for investment guidelines of the following investment projects:
- Investment projects that request the State to allocate or lease out land without auction or bidding for or receipt of land use rights, and investment projects that request permission to repurpose land, except for cases of allocation, lease or permission for repurposing of land of households or individuals not subject to the written approval by the provincial People's Committee in accordance with regulations of law on land;
- Investment projects on construction of residential housing (for sale, lease or lease purchase) and urban areas that use less than 300 hectares of land or with a population of less than 50,000 people;
- Investment projects regardless of the area of land used or population within the safety perimeter of relics of level II recognized by the competent authority as the national and special national relics; except for the special national relics under the World Heritage List; investment projects regardless of the area of land used or population within a restricted development area or within an historic inner area (determined in accordance with urban area planning projects) of a special urban area;
- Projects on investment in golf course construction and business;
- Investment projects of foreign investors and foreign-invested business organizations executed on islands or in border or coastal communes; in other areas affecting national defense and security.
What do a mineral extraction right auction invitation in Vietnam include?
According to the provisions of Article 15 of Decree 22/2012/ND-CP (supplemented by Clause 3, Article 68 of Decree 158/2016/ND-CP), a mineral extraction right auction invitation must contain the following primary contents:
1. Based on approved annual plans on mineral extraction right auction, the General Department of Geology and Minerals of Vietnam and provincial Services of Natural Resources and Environment shall make the mineral extraction right auction invitation.
2. A mineral extraction right auction invitation must contain the following primary contents:
- Names of the minerals, location of the mineral area put up for auction;
- The scheduled place and time of the auction;
- The basic geological and mineral information; mineral extraction conditions of the area put up for auction; methods of information reference, the current infrastructural conditions and the land use in the mineral area put up for auction;
- The reserve price and deposit;
- The standards of bidder dossier evaluation;
- The forms required in a bidder dossier (application for auction attendance; basic economic-technical requirements, etc.).
3. For mineral extraction right auction in an area with mineral exploration results, the agency that makes the auction invitation specified in Clause 1 of this Article shall on the written request for the specifications of the mineral extraction technology, intensive processing and use of minerals, including:
- The minimum requirements for the methods, technology and equipment of mineral extraction and processing;
- The minimum requirements for mineral quality after mineral extraction and processing;
- The purposes and addresses of post-extraction mineral use in order to supply to mineral processing projects stated in the planning for extraction and utilization of the same kind of mineral approved by competent State agencies.
4. The evaluation of bidder dossiers according to criterion of owner’s equity of the bidder in the auction of mining rights prescribed in Point dd Clause 2 Article 15 shall be carried out as follows:
- Pursuant to the actual cost per unit upon the exploration of the mineral to be put up for auction in the area where exploration findings have not been provided or the actual cost per unit upon the exploration of the mineral to be put up for auction in the area where exploration findings have been provided in similar conditions, the auction council of the Ministry of Natural Resources and Environment or People's Committee of province shall decide the estimates of mineral exploration project or total investment of the mining project;
- The estimates of mineral exploration project or total investment of the mining project prescribed in Point a Clause 4 hereof shall be the basis in order for the receiving authority to evaluate the criterion of owner’s equity of the bidder upon selection of bids prescribed in Clause 2 Article 19 hereof.
What are the contents and forms of bidder dossiers for the investor participating in mineral extraction right auction?
Pursuant to the provisions of Article 16 of Decree 22/2012/ND-CP (point b, Clause 2 of this Article amended by Clause 4, Article 68 of Decree 158/2016/ND-CP), the contents and forms of bidder dossiers are mentioned as follows:
1. The bidder shall make a bidder dossier and submit it to the agency specified in Article 17 of this Decree.
2. The documents in a mineral extraction right bidder dossier include:
- The original application for mineral extraction right auction attendance;
- The original certified true copy or the copy enclosed with original for collation of: the business registration certificate or enterprise registration certificate; written introduction of capability and experience in mineral exploration, extraction and processing; introduction of financial situation and fund raising capability;
- For areas with mineral exploration results, the bidders must formulate a preliminary investment program for mineral extraction, intensive processing, product sale and make a written commitment to implementing such program if they win the auction.
- For an area without mineral exploration results, the bidders must formulate a preliminary investment plan on exploration, mineral extraction, intensive processing, product sale and make a written commitment to implementing such plan if they win the auction.
Thus, for your question, based on the above provisions and the provisions in Official Dispatch 2541/CV-TCT dated April 18, 2022 guiding some contents on execution of business investment projects under the provisions of the law, investment projects that request the State to allocate or lease land without auction or bidding, and investment projects that request permission to repurpose land must be approved investment guideline by the provincial People's Committee. A mineral exploration project (winning at auction of mineral exploration rights) must carry out procedures for investment guideline approval when requesting the State to allocate or lease land without auction or bidding or to change the land use purpose. Bidder dossiers for the investor participating in mineral extraction right auction does not require a written approval of investment guidelines.
Here is the information about the mineral exploration projects that we provide to send to you. Best regards!
Here is the information about the mineral exploration projects that we provide to send to you. Best regards!
Thư Viện Pháp Luật
