03 cases of no refund of charge for granting mining right in Vietnam

03 cases of no refund of charge for granting mining right in Vietnam 2024 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

Grounds for calculating charges for granting mining right in Vietnam 2024

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 of Decree 67/2019/ND-CP; 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: %.

(Article 5 of Decree 67/2019/ND-CP)

03 cases of no refund of charge for granting mining right in Vietnam 2024

No refund of charge for granting mining right is made in the following cases:

(1) In case of surrender of mining license (for entire mineral reserve) or relinquishment of a part of mining area (for a part of mineral reserve), the amount paid in the first payment shall not be refunded;

(2) In case the charge for granting mining right for the mineral reserve specified in the mining design has been fully paid but the mining operation is not yet complete or the mineral reserve specified in the license is not yet reached when the licensed mining period expires and conditions for license extension are not met, the paid charge shall not be refunded;

(3) The entity that has its mining license revoked according to Point a, Point b or Point c Clause 1 Article 58 of the Law on minerals 2010 shall not be refunded the charge for granting mining right paid up to the time of revocation of mining license.

 A mining license will be revoked in the following cases:

= The licensed organization or individual fails to build mine infrastructure within 12 months since the effective date of the license, except force majeure events;

= The licensed organization or individual fails to conduct mining within 12 months since the proposed date of commencement of mining, except force majeure events;

= The licensed organization or individual breaches any of the obligations specified at Points a, b, c, d, e, f and g, Clause 2, Article 55 of the Law on minerals 2010 without taking remedies within 90 days after the date of written notice by a competent state management agency in charge of minerals;

In such case, the licensing authority shall take charge of calculating and appraising the amount payable of charge for granting mining right, and then notifying it to the relevant provincial Department of Taxation for handling in accordance with law regulations on tax administration.

(Clause 7 of Article 10 of Decree 67/2019/ND-CP)

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