Decree 67: Guidelines for calculating charges for granting mining right in Vietnam

Currently, the rate of charge for granting mining right (R) is a percentage (%) of the value of the crude ore in the permitted mining area. R of each mineral group/type is prescribed in Appendix I enclosed with Decree No. 67/2019/NĐ-CP of Vietnam’s Government.

According to Decree No. 67/2019/NĐ-CP of Vietnam’s Government, charge for granting mining right is calculated by adopting the following formula:

T = Q x G x K1 x K2 x R

Where:

- T – Charge for granting mining right; unit: VND;

- Q – Mineral reserve for calculating charge for granting mining right which is prescribed in Article 6 hereof; unit: m3, metric ton, kg and other units as decided by the regulatory authority that has the power to approve the mineral reserve;

- G – Price for calculating charge for granting mining right which is the unit price of crude mineral after mining, calculated according to the price for calculating resource royalty as regulated in the law on resource royalties applicable at the time of granting mining right and provided for in Article 7 hereof; unit: VND/mineral reserve unit;

- K1 – Mineral recovery coefficient related to mining method: K1= 0,9 for open-pit mining; K1= 0,6 for underground mining; K1= 1,0 for mining for mineral water or natural thermal water and other cases;

- K2 – Coefficient related to disadvantaged and extremely disadvantaged areas according to the List of areas eligible for investment incentives announced by the Government: K2= 0,9 for extremely disadvantaged area; K2= 0,95 for disadvantaged area; K2= 1,0 for other mining areas;

- R – Rate of charge for granting mining right; unit: %.

View more details at Decree No. 67/2019/NĐ-CP of Vietnam’s Government, effective from September 15, 2019.

Thu Ba

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