Conditions for transferring mineral mining rights in Vietnam

Conditions for transferring mineral mining rights in Vietnam (Internet image)

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

1. Conditions for transferring mineral mining rights in Vietnam

According to Clause 1, Article 37 of Decree 158/2016/ND-CP, the conditions for transfer of the mining right include:

- The transferee is qualified as prescribed in clause 1, Article 51 and point c, clause 2, Article 53 of the Law on mineral 2010;

+ According to Clause 1, Article 51 of the Law on mineral 2010, organizations and individuals having registered mining as their business line may be licensed for mining. They include:

++ Enterprises established under the Law on Enterprises;

++ Cooperatives and unions of cooperatives established under the Law on Cooperatives.

+ Point c, Clause 2, Article 53 of the Law on mineral 2010 stipulates having an equity capital at least equal to 30% of the total investment capital of the mining investment project.

- By the time of transfer, the licensed mining entity has finished works as prescribed in clause 1, Article 66 and the obligations as prescribed at points a, b, c, d, e and g, clause 2, Article 55 of the Law on mineral 2010;

+ Clause 1, Article 66 of the Law on mineral 2010, organizations and individuals licensed for mining that have completed capital construction work and put mines into operation may transfer the mining right.

+ According to Points a, b, c, d, e and g, Clause 2, Article 55 of the Law on mineral 2010:

++ To pay a fee for the grant of the mining right, a licensing fee. royalties, taxes, and charges, and fulfill other financial obligations under law;

++ To ensure the schedule of mine infrastructure construction and mining activities stated in the mining investment project and mine design;

++ To register the date of commencement of mine infrastructure construction and date of commencement of mining with competent licensing state management agencies and notify them to People's Committees at all levels in the locality in which the mines are located before construction or mining;

++ To exploit to the maximum main and accompanied minerals; to protect mineral resources; to ensure labor safety and sanitation and take measures to protect the environment;

++ To collect and store information on results of further exploration for mineral deposits and on mining results;

++ To compensate for damage caused by mining activities;

- At the time of transfer, there is no dispute on the rights and obligations relating to the mineral exploration;

- The transferor has submitted sufficient application to the receiving authority when the mining license is still valid for at least 90 days.

2. Dossier for transfer of the mining right in Vietnam

According to Clause 4, Article 59 of the Law on mineral 2010, a dossier for transfer of the mining right comprises:

- An application for transfer of the mining right;

- A contract on transfer of the mining right, enclosed with the statement of the value of to-be-transferred assets;

- A map of the mining status at the time of application;

- A report on mining results and fulfillment of obligations by the time of application;

- Copies of the transferee's business registration certificate and investment certificate.

3. Content of transfer of mining right in Vietnam

According to Clause 2, Article 37 of Decree 158/2016/ND-CP, the content of transfer of mining right is made by the contract between the transferor and the transferee with the main content as follows:

- The real state of quantity, volume, value of exploitation work, technical infrastructure invested and built; situation of financial obligation fulfillment of the transferor that make transfer by the time of signing the contract of transfer;

- The responsibility of the transferee for the continuation of work performance, unfinished obligations of the transferor by the time of signing the transfer contract;

- Other relevant rights and obligations of the transferor and the transferee as prescribed.

4. Time limit for processing the application for transfer of the mining right in Vietnam

According to Clause 3, Article 37 of Decree 158/2016/ND-CP, the time limit for processing the application for transfer of the mining right is within 45 days from the date on which the receiving authority has provided a receipt note.

In case the application for transfer is not approved by the licensing competent authority, the transferor is allowed to continue the performance of the mining license or return the mining license.

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