What is the amount of deposit before the mineral extraction right auction in Vietnam?

What is the amount of deposit before the mineral extraction right auction in Vietnam? (Internet image)

1. What is mineral extraction right auction?  

Mineral extraction right auction means a form of public sale of mineral extraction right by increasing bids under the principles and procedures specified in Decree 22/2012/ND-CP.

(Clause 1, Article 2 of Decree 22/2012/ND-CP)

2. What is the amount of deposit before the mineral extraction right auction in Vietnam?

- Deposit means an amount (in VND) paid by the bidders before the mineral extraction right auction. The deposit shall be decided by the mineral extraction right auction council (hereinafter referred to as auction council) as follows:

+ For auctions of mineral extraction rights areas with mineral exploration results, the deposit is 1%-15% of the reserve price;

+ For auctions of mineral extraction rights in areas in which mineral exploration has not yet been carried out, the deposit shall depend on mineral surveys and mineral assessment results and be calculated as specified in Point a this Clause.

- Bidders may pay the deposit in cash or by auction guarantees as follows:

+ For cash payment, bidders shall deposit in the suspense account of the agency that receives bidder dossiers specified in Article 17 of Decree 22/2012/ND-CP;

+ For auction guarantees, bidders must submit their auction guarantees to the agency that receives the bidder dossiers.

- The deadline for deposit payment stated in the bidding invitation is at least 7 (seven) days before the auction. Deposits of auction winners shall be remitted to the State Treasury and deducted from the auction winning amount when issuing the mineral extraction license.

(Article 5 of Decree 22/2012/ND-CP)

3. Case of deposit refund in mineral extraction right auction in Vietnam

- Deposits shall be refunded within 2 days from the end date of the auction, except for the cases specified in Clause 2 of Article 6 of Decree 22/2012/ND-CP.

- Cases ineligible for deposit refund:

+ The bidders selected to attend the auction and paid the deposit are not present at the auction, except for force majeure;

+ The bidders withdraw their bids;

+ The auction winner refuses to sign the auction record;

+ The auction winner fails to submit the application for the mineral exploration license, mineral extraction license after the time limit specified in Points b and c, Clause 2, Article 11 of Decree 22/2012/ND-CP;

+ The mineral exploration license is revoked as prescribed by law.

- Deposit not being refunded in the cases specified in Clause 2 of Article 6 of Decree 22/2012/ND-CP shall be remitted to the state budget.

(Article 6 of Decree 22/2012/ND-CP, as amended by Decree 158/2016/ND-CP)

4. Principles of mineral extraction right auction in Vietnam

Mineral extraction right auctions shall be held in accordance with the following principles:

- Transparent, open, continuous, equitable and in which the lawful rights and interests of bidders are protected.

- An mineral extraction right auction shall be held only when at least 3 bidders attend the auction.

- Mineral extraction right auction shall only be held at areas of which auction plans have been approved by competent State agencies.

(Article 3 of Decree 22/2012/ND-CP, as amended by Decree 158/2016/ND-CP)

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