Procedures for grant of mineral exploration licenses in Vietnam

Procedures for grant of mineral exploration licenses in Vietnam (Internet image)

1. What is mineral exploration?

According to Clause 6, Article 2 of the Mineral Law 2010, mineral exploration means activities to identify mineral deposits and quality and obtaining other information for mineral mining.

2. Mineral exploration licenses in Vietnam

The content and term of the mineral exploration license under Article 41 of the Mineral Law 2010 are as follows:

- A mineral exploration license must contain the following principal details:

+ Name of the exploring organization or individual;

+ Kind of mineral, location and size of the exploration area;

+ Method and volume of exploration;

+ Exploration duration;

+ Financial and other relevant obligations.

- A mineral exploration license is valid for 48 months at most and may be extended multiple times for a total maximum duration of 48 months. Upon each extension, the licensed organization or individual shall return at least 30% of exploration area stated in the granted license.

The exploration duration includes the time for implementing a mineral exploration project, time for submitting mineral deposit for approval and time for formulating a mining investment project. In case an organization or individual licensed lor exploring minerals transfers the mineral exploration right to another, the exploration duration is the remaining period of the previously granted mineral exploration license.

3. Principles and conditions for granting mineral exploration licenses in Vietnam

Principles and conditions for granting mineral exploration licenses under Article 40 of the Mineral Law 2010 (amended in 2018) are as follows:

- Mineral exploration licenses are granted on the following principles:

+ Mineral exploration licenses shall be granted only for areas in which no organization or individual is lawfully conducting mineral exploration or mining and which are not banned or temporarily banned from mineral activities, national mineral reserves areas or areas in which geological baseline surveys are being conducted for minerals of the same kind of minerals being applied for;

+ Each organization or individual shall be granted no more than 5 mineral exploration licenses, excluding the expired ones; the to-be-explored total area for a specific mineral under all licenses must not exceed 2 times the exploration area under a single license prescribed in Clause 2, Article 38 of Mineral Law 2010.

- To be granted mineral exploration licenses, organizations and individuals must meet the following conditions:

+ Being selected by competent state management agencies under Article 36 of Mineral Law 2010 or having won auctions for mineral mining rights in unexplored areas under this Law; organizations and individuals that are ineligible for mineral exploration practice under in Clause 1, Article 35 of Mineral Law 2010 must sign contracts with eligible organizations defined in Clause 1, Article 35 of Mineral Law 2010;

+Set up an exploration project that is conformable with relevant planning as prescribed by the law on planning. In case of exploration of hazardous minerals, it is required to obtain written permission from the Prime Minister;

+ Having an equity capital at least equal to 50% of the total investment capital for the implementation of the mineral exploration project.

- Business households defined in Clause 2, Article 34 of Mineral Law 2010 may explore minerals for use as common construction materials if they fully meet the conditions set by the Government

- Dossier for issuance of mineral exploration license

4. Dossier of application for a mineral exploration license in Vietnam

A dossier of application for a mineral exploration license under Clause 1, Article 47 of the Mineral Law 2010 (amended in 2018) includes:

- An application for a mineral exploration license;

- The mineral exploration project must be conformable with relevant planning as prescribed by the law on planning;

- A map of the exploration area;

- Art environmental protection commitment, in case of exploration of toxic minerals;

- A copy of the business registration certificate; for a foreign enterprise, a copy of the decision establishing its Vietnam-based representative office or branch is also required;

- A document certifying the applicant's equity Capital under Point c, Clause 2, Article 40 of Mineral Law 2010;

- A document certifying the winning of the mineral exploration right for unexplored areas, in case of winning the mining right through auction.

5.  Procedures for grant of mineral exploration licenses in Vietnam

Procedures for grant of mineral exploration licenses under Article 48 of the Mineral Law 2010 are as follows:

- Applicants for grant, extension or return of mineral exploration licenses or return of part of the exploration area shall submit dossiers at competent licensing state management agencies defined in Article 82 of Mineral Law 2010.

- The time limit for processing dossiers for grant, extension or return of mineral exploration licenses or return of part of the exploration area is ninety days after receiving complete and valid dossiers, for dossiers of application for mineral exploration licenses

- When necessary to consult concerned agencies and organizations on matters related to the grant, extension or return of mineral exploration licenses or return of part of the exploration area, the time for seeking consultations is not included in the time limit as prescribed.

Quoc Dat

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