MINING - Ministry mulls amending mining rules

The Ministry of France intends to submit a decree to the government in
favour of amending current regulations on the management of mineral
exploitation in Vietnam.

Under the current decree, No 137/2005/NB-CP, companies engaged in
mineral exploitation have to pay environmental protection fees for only
10 kinds of minerals, which are mainly non-metallic and used in
construction.

The companies are required to pay the fees according to the quantity of
minerals that they exploit.

According to the finance ministry however, current regulations are
outdated making it difficult for the nation's mining industry to both
grow sustainably and protect the environment.

The ministry said that although the industry exploits a large quantity
of minerals, the amount of money collected for environmental protection
fees is insignificant as metallic minerals are not subject to the fees.

According to the ministry's statistics, a total of 2.5 million tonnes of
a patite ore, 800,000 tonnes of iron ore, 370,000 tonnes of bauxite ore
and 35,000 tonnes of manganese ore are exploited here every year:

A Ministry of Finance report said that provincial budgets lose more than
57 trillion dong (US$3.5 billion) a year as metallic mineral companies
don't have to pay environ mental protection fees.

To nullify the loophole, the finance ministry plans to add several kinds
of metallic minerals including manganese, iron, lead, zinc and copper to
the list of those having to pay the fees.

Under the draft, instead of paying the fees based on the quantity of
minerals exploited, the provincial people's committees will set the fee
levels based on the kind of mineral, the quantity exploited and its
market price.

At present, total fees collected by provinces with mines are more than
330 billion dong. If approved by the government, the new decree will
help to increase provincial annual budgets by around 400 billion dong.

The ministry expects the amendment to develop the nation's mining
industry more sustainably while doing a better job of protecting the
natural environment..[VNS]



	MINING - Ministry mulls amending mining rules

	The Ministry of France intends to submit a decree to the government in favour of amending current regulations on the management of mineral exploitation in Vietnam. Under the current decree, No 137/2005/NB-CP, companies engaged in mineral exploitation have to pay environmental protection fees for only 10 kinds of minerals, which are mainly non-metallic and used in construction. The companies are required to pay the fees according to the quantity of minerals that they exploit. According to the finance ministry however, current regulations are outdated making it difficult for the nation's mining industry to both grow sustainably and protect the environment. The ministry said that although the industry exploits a large quantity of minerals, the amount of money collected for environmental protection fees is insignificant as metallic minerals are not subject to the fees. According to the ministry's statistics, a total of 2.5 million tonnes of a patite ore, 800,000 tonnes of iron ore, 370,000 tonnes of bauxite ore and 35,000 tonnes of manganese ore are exploited here every year: A Ministry of Finance report said that provincial budgets lose more than 57 trillion dong (US$3.5 billion) a year as metallic mineral companies don't have to pay environ mental protection fees. To nullify the loophole, the finance ministry plans to add several kinds of metallic minerals including manganese, iron, lead, zinc and copper to the list of those having to pay the fees. Under the draft, instead of paying the fees based on the quantity of minerals exploited, the provincial people's committees will set the fee levels based on the kind of mineral, the quantity exploited and its market price. At present, total fees collected by provinces with mines are more than 330 billion dong. If approved by the government, the new decree will help to increase provincial annual budgets by around 400 billion dong. The ministry expects the amendment to develop the nation's mining industry more sustainably while doing a better job of protecting the natural environment..[VNS]

	Oliver Massmann International Attorney at Law

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