Conditions for granting mineral exploration licenses in Vietnam

Conditions for granting mineral exploration licenses in Vietnam (Internet image)

1. Principles for granting mineral exploration licenses in Vietnam

In Clause 1, Article 40 of the Mineral Law 2010, the 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 ofthe Mineral Law 2010.

2. Conditions for granting mineral exploration licenses in Vietnam

Clause 2, Article 40 of the Mineral Law 2010 amended in 2018 stipulates that 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 the 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 the Mineral Law 2010 must sign contracts with eligible organizations defined in Clause 1, Article 35 of the 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.

3. Details of Mineral Exploration License in Vietnam

In Clause 1, Article 41 of the Mineral Law 2010, 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.

4. Mineral exploration validity in Vietnam

Pursuant to Clause 2, Article 41 of the Mineral Law 2010, the time limit for mineral exploration is as follows:

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.

5. Rights and obligations of organizations and individuals licensed for exploring minerals in Vietnam

Article 42 of the Mineral Law 2010 stipulates the rights and obligations of organizations and individuals licensed for exploring minerals as follows:

5.1. Rights of organizations and individuals licensed for exploring minerals in Vietnam

Organizations and individuals licensed for exploring minerals have the following rights:

- To use mineral-related information pertaining to the exploration purpose and area;

- To conduct exploration according to the mineral exploration license;

- To take away from the exploration area, even abroad, specimens with volume and types suitable to the characteristics and requirements of analyses and experiments under the approved exploration project;

- To be prioritized to obtain a license for exploring minerals in the exploration area under Clause 1, Article 45 of this Law;

- To request extension of the mineral exploration license, to return it or return part of the exploration area;

- To transfer the mineral exploration right;

- To lodge complaints or lawsuits against decisions revoking the mineral exploration license or other decisions of competent state agencies;

- Other rights provided by law.

5.2. Obligations of organizations and individuals licensed for exploring minerals in Vietnam

Organizations and individuals licensed for exploring minerals have the following obligations:

- To pay a licensing fee and fulfill other financial obligations provided by law;

- To strictly comply with the mineral exploration license and implement the approved exploration project;

- To report to the licensing agency for consideration and approval changes in exploration methods or volumes which result in an increase of over 10% in estimated expenses;

- To compensate for damage caused by exploration activities;

- To notify the exploration plan to the provincial-level People's Committee of the locality in which they will conduct mineral exploration before implementation;

- To collect and store mineral-related information and report exploration results to state management agencies in charge of minerals; and report other activities to competent state agencies under law;

- To perform all the jobs specified in Clause 3, Article 46 of the Mineral Law 2010 when the mineral exploration license expires;

- Other obligations provided by law.

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