The Ministry of Natural Resources and Environment has approved a planto auction mineral mining rights in 2015, reported the VietnamInvestment Review (VIR).
The plan denotes three northern areas where the mineral mining rights will be auctioned off.
Thefirst is an iron mine with an unknown reserve volume in Thu Cuccommune, Tan Son district, Phu Tho province. The second is a 1.4 millioncubic-metre metacacbonat mine in Suoi Giang commune, in Yen Baiprovince’s Van Chan district. The third mine is a fluorit mine with anunknown volume in Binh Duong commune, Nguyen Binh district, Cao Bangprovince.
The plan also includes the auction of mineral miningrights for a gold reserve of undetermined quantity in Xa Khia commune,in the Le Thuy district of Quang Binh central province.
All these sites have been earmarked by the government for exploration and exploitation.
Accordingto the Ministry of Natural Resources and Environment (MoNRE), if thesale of mining rights for any of these mines fails to take place thisyear, it will be conducted in the years to come.
The MoNRE’sGeneral Department of Geology and Minerals will work with relevantagencies to prepare dossiers and organise the auction of mining rightsfor these mines.
Tran Thanh Thuy, coordinator of the Vietnam Mining Coalition, welcomed this move by the MoNRE.
“Exploiterswill have a more competitive investment climate thanks to auctions. Itwill also help reduce the legal, environmental, and social risks,” shetold VIR.
According to Thuy, the granting of mining rights is oneof the most important stages in the mineral exploitation process. Thisstage is aimed at selecting financially and technologically-competententerprises capable of the exploitation task.
Under the MineralLaw approved in November, 2010, there are two licencing mechanisms. Oneis a non-auction-based licence, while the other licence isauction-based.
“However, since this law took effect in July 1, 2011, not a single mine has been licenced via auctioning,” Thuy said.
Thismeans that all mines exploited to date have not been subject toauction, but have been licenced on an ask-give mechanism. In thisscenario, actions by lower officials are contingent upon approval fromsuperiors, with various ‘favours’ exchanged in return.
“This hascaused big risks to enterprises, the state, and community. Manyenterprises have lost lots of money and time, and in the end they haveeven failed to get the mining rights,” Thuy said.
“Additionally,many financially and technologically-incompetent enterprises havesomehow received mining rights. They later sold the rights to otherenterprises at a profit, making it harder for the authorities to managethe mines. This has negatively affected both the collection of statebudget revenue and the environment,” she added.
According to theVietnam Mining Coalition, almost all nations worldwide grant miningrights via auctions. In Vietnam, if such auctions are implementedproperly, the government will be able to select able exploiters, therebylimiting the social and environmental risks.
The coalition alsosuggested that as with any auctioning form, the government would need toestablish clear regulations on publicising the names of the auctionparticipants as well as their financial and technological capacity andexperience.-VNA
The plan denotes three northern areas where the mineral mining rights will be auctioned off.
Thefirst is an iron mine with an unknown reserve volume in Thu Cuccommune, Tan Son district, Phu Tho province. The second is a 1.4 millioncubic-metre metacacbonat mine in Suoi Giang commune, in Yen Baiprovince’s Van Chan district. The third mine is a fluorit mine with anunknown volume in Binh Duong commune, Nguyen Binh district, Cao Bangprovince.
The plan also includes the auction of mineral miningrights for a gold reserve of undetermined quantity in Xa Khia commune,in the Le Thuy district of Quang Binh central province.
All these sites have been earmarked by the government for exploration and exploitation.
Accordingto the Ministry of Natural Resources and Environment (MoNRE), if thesale of mining rights for any of these mines fails to take place thisyear, it will be conducted in the years to come.
The MoNRE’sGeneral Department of Geology and Minerals will work with relevantagencies to prepare dossiers and organise the auction of mining rightsfor these mines.
Tran Thanh Thuy, coordinator of the Vietnam Mining Coalition, welcomed this move by the MoNRE.
“Exploiterswill have a more competitive investment climate thanks to auctions. Itwill also help reduce the legal, environmental, and social risks,” shetold VIR.
According to Thuy, the granting of mining rights is oneof the most important stages in the mineral exploitation process. Thisstage is aimed at selecting financially and technologically-competententerprises capable of the exploitation task.
Under the MineralLaw approved in November, 2010, there are two licencing mechanisms. Oneis a non-auction-based licence, while the other licence isauction-based.
“However, since this law took effect in July 1, 2011, not a single mine has been licenced via auctioning,” Thuy said.
Thismeans that all mines exploited to date have not been subject toauction, but have been licenced on an ask-give mechanism. In thisscenario, actions by lower officials are contingent upon approval fromsuperiors, with various ‘favours’ exchanged in return.
“This hascaused big risks to enterprises, the state, and community. Manyenterprises have lost lots of money and time, and in the end they haveeven failed to get the mining rights,” Thuy said.
“Additionally,many financially and technologically-incompetent enterprises havesomehow received mining rights. They later sold the rights to otherenterprises at a profit, making it harder for the authorities to managethe mines. This has negatively affected both the collection of statebudget revenue and the environment,” she added.
According to theVietnam Mining Coalition, almost all nations worldwide grant miningrights via auctions. In Vietnam, if such auctions are implementedproperly, the government will be able to select able exploiters, therebylimiting the social and environmental risks.
The coalition alsosuggested that as with any auctioning form, the government would need toestablish clear regulations on publicising the names of the auctionparticipants as well as their financial and technological capacity andexperience.-VNA
