Conditions for bidders to attend auctions for the mineral extraction right in Vietnam

Conditions for bidders to attend auctions for the mineral extraction right in Vietnam (Internet image) 

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

1. Conditions for bidders to attend auctions for the mineral extraction right in Vietnam

Conditions for bidders to attend auctions for the mineral extraction right according to Article 8 of Decree 22/2012/ND-CP are as follows:

- Bidders may attend the auction when the following conditions are satisfied:

+ Being organizations and individuals of which the bidder dossiers are selected by a competent state agency specified in Article 19 of Decree 22/2012/ND-CP;

+ The auction charge and deposit have been paid as prescribed.

- When legal status is changed, the selected bidder must submit additional documents to the agency that receives the bidder dossier before the auction.

- An auction winner that refuses the auction winning result without obtaining the consent from the auction council shall be banned from any auction in 1 (one) year from the end of that auction.

2. Subjects banned from auctions for the mineral extraction right in Vietnam

Subjects banned from auctions for the mineral extraction right in Vietnam according to Article 9 of Decree 22/2012/ND-CP are as follows:

- The president and members of the auction council; officers that receive and prepare mineral extraction right bidding dossiers of the General Department of Geology and Minerals of Vietnam and provincial Services of Natural Resources and Environment of localities in charge of the area in which the mineral extraction right is up for auction; fathers, mothers, spouses and children of the above persons.

- Other banned subjects under law provision on property auction.

3. Rights and obligations of winners auctionfor the mineral extraction right in Vietnam

Rights and obligations of winners auctionfor the mineral extraction right in Vietnam according to Article 11 of Decree 22/2012/ND-CP are as follows:

- An auction winner have the rights to:

+ Be issued with the mineral extraction right auction winner certificate;

+ Use information on minerals related to the area in which  the mineral extraction right is given as prescribed by law provisions on  Mineral.

+ Be issued with the mineral exploration license, mineral extraction license after completing procedures for the application for the mineral activity license as prescribed by law provisions on mineral;

+ Other rights as prescribed by law.

- The auction winner has the following obligations:

+ Paying the auction winning amount under Article 24 of this Decree and fulfill other financial obligations as prescribed by law;

+ Submitting the application for the mineral exploration license to a competent licensing state agency within 6 (six) months after the end of the auction in case no mineral exploration has been carried out in the area in which the mineral extraction right is up for auction.

+ Submitting the application for the mineral extraction license to a competent licensing state agency within 12 (twelve) months after the auction in case the mineral exploration has been carried out in the area in which the mineral extraction right is up for auction.

+ The acquired mineral extraction right must not be transferred to another organization or individual for making an application for the mineral extraction license;

+ Other obligations under law.

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