DECREE No DECREE No.68-CP OF NOVEMBER 1st, 1996 OF THE GOVERNMENT PROVIDING DETAILS FOR THE IMPLEMENTATION OF THE MINERALS LAW THE GOVERNMENT Pursuant to the Law on Organization of the Government of September 30, 1992; Pursuant to the Minerals Law of March 20, 1996; At the proposal of the Minister of Industry; DECREES: Chapter I GENERAL PROVISIONS Article 1.- This Decrees provides details for the implementation of the Minerals Law adopted by the National Assembly of the Socialist Republic of Vietnam on March 20, 1996. Article 2.- The provisions of this Decree are applicable to the management, protection, and basic geological survey of the mineral resources and all mineral activities (survey, prospection, exploitation and processing of minerals) in Vietnam by Vietnamese and foreign organizations and individuals. Chapter II MANAGERIAL COMPETENCE OF THE STATE ON MINERALS Article 3.- 1. The Ministry of Industry performs the function of State management over minerals in the whole country and has the following tasks and powers: a/ To elaborate and submit to the Government for promulgation, or to promulgate according to its competence, legal documents on the management, protection, basic geological survey of mineral resources and mineral activities. b/ To organize and draw up the general plan and plan for development of basic geological survey of mineral resources in the whole country. To assume the main responsibility and coordinate with the Ministries and branches concerned at the central level, the People�s Committees of the provinces and cities directly under the Central Government in drawing up and submitting to the Government for decision the strategy, general plan and policies regarding the mineral resources and the development of the industry of exploiting and processing minerals. c/ To organize the evaluation and approval of the projects on mineral prospection and the feasibility reports on the exploitation and processing of minerals and on designing the mines as prescribed in this Decree. d/ To issue, extend, withdraw and allow the return of the permits for operation in mineral activities, to allow the assignment of the right to conduct mineral activities as prescribed in this Decree. e/ To conduct the popularization, guidance and control among the branches and localities, organizations and individuals in the implementation of legislation on minerals; to organize specialized control and inspection in minerals as provided for in Articles 58,59 and 60 of the Minerals Law; to check and inspect the activities in basic geological survey in mineral resources. g/ To settle the disputes, complaints and denunciations in mineral activities according to its competence defined in Articles 57 and 62 of the Minerals Law. h/ To manage the activities of international cooperation in basic geological survey of mineral resources and in mineral activities. i/ To register, monitor, evaluate and compound the results of the basic geological survey on mineral resources and the mineral activities in the whole country and report them periodically to the Government. k/ To coordinate with the People�s Committees of the provinces and cities directly under the Central Government and the Ministries and branches concerned in the protection of the unexploited mineral resources. 2. The Government shall issue a separate regulation on the system of organization, tasks and powers of the State managerial agencies in geology and mineral resources of the Ministry of Industry. Article 4.- 1. The Ministries, ministerial-level Agencies, the Agencies attached to the Government (hereafter referred to as Ministries) shall, according to their functions, tasks and powers, have to coordinate with the Ministry of Industry in the management and protection of the mineral resources and mineral activities. 2. The Ministries having the State managerial function over the branches producing, using or trading in raw mineral materials have the following duties: a/ To coordinate with the Ministry of Industry and the concerned Ministries and branches at the central level and the People�s Committees of the provinces and cities directly under the Central Government in elaborating and submitting to the Government for decision the mineral resources policies, the strategy, general plan and plans for developing the industry of mining, processing, using and trading in minerals including the import and export of the minerals related to their respective managerial function. b/ To coordinate with the Ministry of Industry in drawing up and submitting to the Government for issuing or to issue according to their competence, the regulations to guide the mining, protection and use of the mineral resources related to their respective managerial function. c/ To direct and control the implementation of the strategy, policies, planning and legislation on minerals by the units under their direct management. d/ To cooperate with the Ministry of Industry in the discharge of other duties concerning State management over the basic geological survey of mineral resources and mineral activities related to their respective managerial function. Article 5.- The Article 6.- The Council for Evaluation of Mineral Reserves which has its head office at the Ministry of Science, Technology and Environment shall assist the Government in the evaluation and approval of the reserves mentioned in the reports on mineral protection (except those minerals for use as common building materials) in order to study their feasibility for exploitation. Its organizations and activities shall be stipulated in a separate Government regulation. Article 7.- 1/ The People�s Committees of the provinces and cities directly under the Central Government (hereafter referred to as provinces) shall, according to their functions, tasks and powers : a/ Issue according to their competence regulations to carry out the provisions of the Government and of the Ministry of Industry concerning the management and protection of the mineral resources and the management of the mineral activities in their localities. b/ Take the initiative in cooperating with the Ministry of Industry, the Ministry of Planning and Investment, the Ministry of Construction, the Ministry of Defense, the Ministry of the Interior, the Ministry of Culture and Information, the Ministry of Agriculture and Rural Development to zone off the areas banned from mineral activities; elaborate or take part in the elaboration of the plans for the development of the industry of mining and processing of minerals on their territories. c/ To organize and direct the implementation of measures to protect the untapped mineral resources in the localities together with the protection of the environment and other natural resources, ensuring security and public order, protecting the lives and health of the people and the properties of the State and citizens. d/ To organize the evaluation and ratification of the feasibility reports on the mining and processing of minerals and mine designing as provided for in this Decree. e/ To issue, extend and withdraw the permits for the mining of minerals for use as common building materials and for their full exploitation according to the competence defined in this Decree; to provide consultancy on the issue of other kinds of permit for mineral activities in the locality; to settle within the ambit of their responsibility and powers the conditions concerning the renting of land, the use of infrastructure and other related conditions for the organizations and individuals that are allowed to conduct mineral activities and basic geological survey on mineral resources in the locality. g/ To conduct popularization, education, supervision and control over the implementation of legislation on minerals by all organizations and individuals in the locality. h/ To settle or take part in settling the disputes in mineral activities and the handling of law-breaking acts in mineral activities in the locality according to the competence defined in Article 57 of the Minerals Law and other provisions of law. 2. The provincial/municipal Industrial Service has the duty to assist the People�s Committee of the province in exerting the function of State management over minerals as provided for in the Minerals Law and this Decree. The State managerial tasks and powers of the provincial/municipal Industrial Service regarding minerals shall be defined by the Minister of Industry. Article 8.- The People�s Committees of the districts and cities under the provinces, the towns, townships and communes (hereafter referred to as district and commune) shall, according to their function, tasks and powers, have the responsibility: 1. To take measures to protect the untapped mineral resources in the locality combined with the protection of the environment and other natural resources, to ensure public security and order, protect the lives and health of the population and the properties of the State and citizens. 2. To settle within its responsibilities and powers the conditions related to the renting of land, the use of the infrastructure and other related conditions for those organizations and individuals that are allowed to conduct mineral activities or basic geological survey on mineral resources in the locality as stipulated by law and under the guidance of the provincial People�s Committee. 3. To conduct the popularization, education and supervision of the implementation of the legislation on minerals; to take part in settling the disputes in mineral activities and handling according to their competence the violations of the legislation on minerals in the locality. Article 9.- Competence to issue, extend, withdraw, allow the return of the operating permit in mineral activities and allow the assignment of the right to mineral activities : 1. The Ministry of Industry shall issue the following kinds of permit: - Permit for mineral survey; - Permit for mineral prospection; - Permit for exploitation and permit for processing minerals of various kinds, except the permits for exploitation and permits for processing of minerals under the granting competence of the provincial People�s Committee defined in Clause 2 of this Article; - Permits for exploitation, permits for processing minerals for use as common building materials in an area lying between two or several provinces or issued to a foreign organization or individual or a joint venture involving a foreign party. 2. The People�s Committee of a province shall issue the following kinds of permit in the area under local administrative jurisdiction: - Permits for the full exploitation of minerals of various kinds in the areas already zoned off by the Ministry of Industry as provided for in Article 66 of this Decree; - Permits for mining, permits for processing minerals used as common building materials and peat issued to organizations and individuals in the country, except permits to mine, and permits to process minerals of the categories under the issuing competence of the Ministry of Industry defined at Clause 1 of this Article. 3. The agency which has the competence to issue a kind of permit for mineral activities shall have the right to extend, withdraw or allow the return of that permit and to assign the right to mineral activities according to this kind of permit. Chapter III BASIC GEOLOGICAL INVESTIGATION OF MINERAL RESOURCES Article 10.- Basic geological investigation of mineral resources comprises the following activities: 1. To investigate and discover the potential of mineral resources together with drawing the geological map of the area and conducting a specialized study on the geology of this area. 2. To evaluate the potential of mineral resources according to the kinds or groups of minerals and in the light of the prospect of the geological structure. Article 11.- The activities in basic geological investigation of mineral resources shall be conducted according to the general plan and plans of the State. The Ministry of Industry shall submit to the Government the general plan and plans for basic geological investigation of mineral resources and the Ministry of Planning and Investment shall evaluate and submit the plan to the Government for ratification. The Ministry of Finance and the Ministry of Industry shall draw up the Regulation on the allocation, management and settlement of the State budget capital for the activities in basic geological investigation of mineral resources and submit it to the Government for promulgation. Article 12.- The organizations conducting basic geological surveys of mineral resources have the following rights and duties: 1. To register their tasks and plan of operation in geological investigation as provided for by the Ministry of Industry; 2. To conduct activities of basic geological investigation of mineral resources according to the project already ratified and the assigned plan. 3. To abide by the process, rules and economic and technical norms for geological investigation issued by the Ministry of Industry. 4. To ensure the faithfulness and adequacy in the collection and compilation of the documents and information about the geology and minerals; to protect the State secrets concerning the information on minerals as prescribed by law. 5. To protect the environment, the mineral and other resources while conducting basic geological investigation. 6. To send the report on the results of the basic geological investigation on mineral recourses to the State geological archives and the samples of geology and minerals to the geology museum as prescribed by the Ministry of Industry. 7. To be commended and rewarded by the State when they have made meritorious accomplishments in geological research and the discovery of mineral resources. 8. To be allowed to send samples abroad for analyses and tests as prescribed by the Government. Article 13.- All reports on the results of basic geological investigation of mineral resources must be evaluated, registered and submitted to the State geological archives as prescribed by the Ministry of Industry. The State geological archives agency has to protect the State secrets on mineral resources and create favorable conditions for all organizations and individuals to use the results of the basic geological investigations of mineral resources and the information and documents on minerals as prescribed by the Ministry of Industry. Article 14.- The Ministry of Industry shall provide details of the contents of the project of basic geological investigation on mineral resources; of the State registration of the tasks and plans for the activities in basic geological investigations of mineral resources, the State geological archives and geological museums, issue and guide the implementation of the regulatory documents, the norms and unit prices in basic geological investigations of mineral resources. Chapter IV ORGANIZATIONS AND INDIVIDUALS ENGAGED IN MINERAL ACTIVITIES Article 15.- The organizations and individuals allowed to conduct mineral activities as prescribed by the Minerals Law shall include: 1. The Vietnamese organizations qualified under the legislation on State enterprises, private enterprises, stock companies and limited liabilities companies, cooperatives and other economic organizations whose founding objectives in mineral activities are allowed by the competent State agency which founds it, or allows its founding and registration or recognized it. 2. The foreign organizations or individuals or the joint ventures involving foreign parties operating in Vietnam according to the legislation on foreign investment in Vietnam. Article 16.- The organizations and individuals mentioned in Article 15 of this Decree that wish to be granted an operating permit in mineral activities must have the necessary investment capital (including loans) in order to carry out the project. The prescribed capital of an organization or individual allowed to exploit minerals shall not be less than thirty per cent (30%) of the total estimated investment capital of the project applying for permission to exploit minerals. Article 17.- The organization or individual conducting mineral prospection must have the necessary technical equipment and professional standard as prescribed by the Ministry of Industry. Article 18.- An organization or individual allowed to exploit minerals shall conduct their exploitation activities as defined in the permit only if the executive director has the managerial standard and capacity in mining recognized under Article 36 of the Minerals Law; the Ministry of Industry shall issue an appropriate regulation concerning the exploitation of mineral water or natural hot water or full exploitation. The Minister of Industry shall issue the criteria for the required standard and capacity of the executive director of a mine. Chapter V AREA, SCOPE AND DURATION OF MINERAL ACTIVITIES Article 19.- The areas banned to mineral activities are areas which need protection or are specifically reserved for important objectives of the State or society as prescribed by law. 1. The areas banned to mineral activities comprise the following: - Areas with historical and cultural relics already classified and registered; - National preserves, protection forests, geological protection areas; - Areas exclusively devoted to defense and security purposes; - Areas within the corridor for the protection of dykes, embankments, river banks, bridges, national highways and railways; - Areas exclusively reserved for religious practices; - Urban areas or areas with important infrastructures. 2. The Ministry of Defense, the Ministry of the Interior, the Ministry of Culture and Information, the Ministry of Agriculture and Rural Development shall, within their functions, tasks and powers, have to coordinate with the People�s Committees of the provinces to set the delineation between the areas banned to mineral activities within the scope of administrative jurisdiction of each province. The President of the People�s Committee of the province shall submit the report to the Government for decision and inform in writing the Ministry of Industry of the areas banned to mineral activities. 3. With regard to the areas temporarily banned to mineral activities for any reason as prescribed by law, the State agency with managerial competence over these areas shall have to inform by writing the Ministry of Industry and the provincial People�s Committee. 4. The exploitation of subsoil minerals within the areas banned to mineral activities without using the surface ground shall also have to get the written consent of the State agency with managerial competence over these areas. Article 20.- The areas with restrictions to mineral activities are areas where the State decides to restrict such activities in one of the following forms: - To give exclusive right to mineral activity to one or a number of organizations of the State; - To limit the production output; - To limit the export of products of the exploitation. The areas with restrictions to mineral activities shall be prescribed in a separate document of the Government. Article 21.- The areas submitted to bidding in mineral activities comprise the following: - Areas where lie minerals which, under Government regulation, must be submitted for bidding in prospection and exploitation activities; - Areas or mineral mines which have been explored with State capital and which are now submitted to bidding or to the selection of bidders for exploitation. Article 22.- 1. The area to be surveyed and allotted to one mineral exploration permit shall not exceed two thousand square kilometers (2,000 km2) to be zoned off according to square coordinates without limitation as to the kinds of minerals to be surveyed in the area. In special cases where an area of more than 2,000 square kilometers is needed, the Ministry of Industry shall have to submit the project to the Prime Minister for

Decree 68-CP