What are regulations on mineral extraction right auction council in Vietnam?

What are regulations on mineral extraction right auction council in Vietnam?

Pursuant to Article 12 of the Decree 22/2012/NĐ-CP stipulating mineral extraction right auction council in Vietnam as follows:

1. For minerals under the licensing authority of the Ministry of Natural Resources and Environment, the auction council shall be established by the Minister of Natural Resources and Environment to organize mineral extraction right auctions. The council consists of no more than 11 members, including:

a) The Council President being the Director of the General Department of Geology and Minerals of Vietnam;

b) The council members including 01 representative of the National Council for Assessment of Mineral Reserves and representatives of the Ministry of Justice; the Ministry of Natural Resources and Environment; the Ministry of Planning and Investment; the Ministry of Finance; the Ministry of Industry and Trade; and the Ministry of Construction, 01 representative of the General Department of Geology and Minerals of Vietnam being the council secretary, 01 representative of the provincial People’s Committee in charge of the mineral area up for auction, and specialists;

c) The Standing Auction Council affiliated to the Ministry of Natural Resources and Environment is the General Department of Geology and Minerals of Vietnam.

2. For minerals under the licensing authority of provincial People’s Committees, the mineral extraction right auctions shall be held by a professional auction organizations. The standing agency preparing documents and materials before and after an auction is the provincial Service of Natural Resources and Environment.

For a mines with complex geological structure or it is not able to hire a professional auction organization, the provincial People’s Committee shall establish an auction council to hold the mineral extraction right auction. An auction council consists of no more than 11 members, including:

a) The president being a leader of the provincial People’s Committee;

b) The members being representatives of the provincial the Service of Natural Resources and Environment; the Service of Planning and Investment; the Service of Finance; the Service of Industry and Trade; and the Service of Construction, the representative of the provincial Service of Natural Resources and Environment being the council secretary and the representative of the district-level People’s Committee in charge of the mineral area up for auction, and specialists;

c) The Standing Auction Council affiliated to the provincial People’s Committee is the provincial Service of Natural Resources and Environment.

3. The Ministry of Natural Resources and Environment shall promulgate the Regulation on the auction council operation.

What are regulations on authority and responsibilities of auction councils and professional auction organizations in Vietnam?

Pursuant to Article 13 of the Decree 22/2012/NĐ-CP stipulating authority and responsibilities of auction councils and professional auction organizations in Vietnam as follows:

1. Auction council:

a) Authority:

- Promulgating the auction regulation of the mineral extraction right auction;

- Determining the deposit specified in Article 5 of this Decree and bid increments for an auction session;

- Depriving the right to attend the auction of bidders that cause disturbance at the auction place or commits acts of collusion or compromise to suppress prices or other acts which affect the objectivity and truthfulness of the auction;

- Terminating or suspending the mineral extraction right auction when detecting violations of auction procedures.

b) Responsibilities:

- Operating the auction as prescribed in this Decree and the regulation of the auction council; being responsible for the truthfulness of auction winning results before law and to the state management agency competent to issue licenses;

- Settling complaints during the auction; assisting the state management agency competent to issue licenses in receiving, settling complaints intra vires, or suggest the settlement of complaints arising after the auction;

- Submitting the auction results to the state management agency competent to issue licenses for approval;

- Fulfilling other tasks as prescribed.

2. Professional auction organizations:

a) Authority:

- Requesting the provincial Service of Natural Resources and Environment to provide information about the area in which the mineral extraction right is up for auction: bidder dossiers of eligible bidders; the reserve price;

- Requesting the provincial Service of Natural Resources and Environment to defray the cost of the mineral extraction right auction.

b) Obligations:

- Organizing the auction in accordance with the principles and procedures specified in this Decree and being responsible for the auction results;

- Providing the auction record for the Service of Natural Resources and Environment;

- Paying compensation for the damage caused by the auctioneer and other employees during the auction;

- Fulfilling other obligations as prescribed by law provisions on auction.

What are regulations on planning and announcing areas up for mineral extraction right auction in Vietnam?

Pursuant to Article 14 of the Decree 22/2012/NĐ-CP stipulating planning and announcing areas up for mineral extraction right auction in Vietnam as follows:

1. Bases for mineral extraction right auction planning:

a) The mineral extraction areas under the mineral planning specified in Points b, c and d, Clause 1, Article 10 of the Law on Mineral, which have been approved by competent state agencies;

b) The areas not put up for mineral extraction right auction specified in Clauses 3 and 4, Article 78 of the Law on Mineral, which have been approved by competent agencies;

c) The results and reality of mineral extraction and intensive processing of minerals in localities and nationwide; mineral demands for local, regional and national socio - economic development in the succeeding year.

2. Responsibilities for making and approving mineral extraction right auction plans

Under the authority to license the mineral extraction specified in Clauses 1 and 2, Article 82 of the Law on Mineral; and Clause 1 of this Article, the General Department of Geology and Minerals of Vietnam shall annually formulate and submit the plans on mineral extraction right auction to the Minister of Natural Resources and Environment for approval, the provincial Services of Natural Resources and Environment shall formulate and submit the plans on mineral extraction right auction to provincial People’s Committees for approval,.

3. After being approved, the list of mineral areas put up for auction and annual plans on mineral extraction right auction shall be publicly announced and posted on the websites of the Ministry of Natural Resources and Environment and provincial People’s Committees of in charge of the mineral areas.

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