Vietnam: Guiding the calculation of deposit for environmental remediation and restoration

Calculation of deposit for environmental remediation and restoration is guided in Circular No. 38/2015/BTNMT of the Ministry of Natural Resources and Environment of Vietnam, specifically as follows:

- The total deposit (not including the factor of price slippage) is equal to the total expenditure of items of works of environmental remediation and restoration. The method of calculation and estimation of expenditure for environmental remediation and restoration is specified in the Annex 11 issued with this Circular.

- The annual deposit (not including the factor of price slippage) is calculated by the total deposit minus the first deposit specified in Clause 2, Article 13 of this Circular then divide equally by the remaining years by the time in the investment project or the mineral mining Permit.

- The organizations or individuals submitting the annual deposit must calculate the factor of price slippage defined by the annual deposit specified in Clause 2 of this Article multiplied by the consumer price index of the previous years from the time of approval of the plan or additional plan. The consumer price index is applied as per the announcement from the General Department of Statistics for the locality where the mineral mining activities are carried out or from the competent organs.

Moreover, Circular No. 38/2015/BTNMT also stipulates the duration of deposit as follows:

- Where the organizations or individuals request the issuance of new mineral mining Permit, the time of deposit is defined by the investment projects which are appraised by the competent authorities but must not exceed a maximum of 30 (thirty) years;

- Where the organizations or individuals already have the mineral mining Permit: the time of deposit is defined by the remaining duration of the mineral mining Permit from the time to approve the plan or additional plan;

- Where the mineral mining Permit has its duration of mining different from the time calculated in the approved plan or additional plan, the organizations or individuals shall modify the contents and calculate the deposit amount by the time specified in the issued mineral mining Permit and send it to the organ having the authority to approve the plan or addition plan for consideration and modification.

View details at Circular No. 38/2015/BTNMT of the Ministry of Natural Resources and Environment of Vietnam, effective from August 17, 2015.

Thu Ba

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