Rectifying mineral management and exploitation

(Baonghean) - Decree No. 203/ND-CP dated November 28, 2013 of the Government regulating the method of calculating the fee for granting mineral exploitation rights took effect from January 20, 2014. Pursuant to the content of the 2010 Mineral Law and the current situation of mineral management and exploitation in recent years, it can be affirmed that collecting fees for granting mineral exploitation rights is a correct decision and must be seriously implemented...

Most businesses, although agreeing with the policy of collecting fees for granting mineral exploitation rights, expressed concern about the detailed provisions in Decree 203. Mr. Nguyen Giang Hoai, Chairman of the Board of Directors of Phu Quy Stone and Mineral Joint Stock Company, Chairman of the Quy Hop District Small and Medium Enterprises Association, said that when grasping Decree 203, mineral exploitation businesses in Quy Hop area were really worried. On March 1, 2014, the Quy Hop Small and Medium Enterprises Association sent Official Dispatch No. 02/CV-HDN to relevant agencies, pointing out the difficulties for businesses when implementing Decree 203. In particular, the biggest difficulty is the collection of fees for granting mineral exploitation rights calculated based on geological reserves. Because the reserves and actual exploitation output of mineral mines are dozens of times lower than geological reserves.

In addition, the fee for granting rights calculated based on the resource tax price is not satisfactory because in the resource tax price, in addition to the resource value, there are a series of other costs such as: license exploration costs, mine construction costs, labor wages, fuel, depreciation of machinery and equipment, management costs...; The mineral exploitation recovery coefficient related to the exploitation method for open-pit mining method K1 = 0.9 is not close to reality; Before Decree 203 was issued, all enterprises did not include the fee for granting rights to exploit minerals in production costs and calculate product costs, sales prices, and tax settlement with the State, so the application of collecting rights fees from the effective date of the Mineral Law (July 1, 2011) caused enterprises to suffer losses...

Stone exploitation in Chau Cuong (Quy Hop).

During the training session on mineral exploitation fee calculation organized by the Ministry of Natural Resources and Environment on March 6, 2014, in response to comments on difficulties and obstacles in implementing Decree 203 of provinces and enterprises, the Director General of the General Department of Geology and Minerals, Mr. Nguyen Van Thuan, said that the General Department of Geology and Minerals will be responsible for collecting opinions, from which it will advise the National Assembly and the Government so that the collection of fees for granting mineral exploitation rights is applied reasonably and in accordance with reality. At the same time, he affirmed that Draft Decree 203 was studied since 2010, implemented in accordance with the process, and consulted with agencies, departments, branches, and enterprises. Therefore, enterprises cannot be unaware of the content of collecting fees for granting mineral exploitation rights stipulated in the Law on Minerals and blame the management agencies. Regarding the issue of inaccurate mine reserves, in the process of applying for mining licenses, businesses take the initiative in exploring reserves. Many businesses only care about getting licenses quickly and do not care about actual reserves, thus leading to "virtual" reserves...

In Nghe An, up to now, there are 177 enterprises licensed by the Provincial People's Committee to exploit minerals, of which 127 enterprises were licensed from 2009 to June 2011 (the Mineral Law took effect from July 1, 2011). Before 2010, the state management of minerals and mineral exploitation activities of enterprises in the province still had many shortcomings, even violations (in 2010, the Government Inspectorate recommended the Prime Minister to temporarily suspend the granting of mineral exploitation licenses in Nghe An, temporarily suspend mineral exploitation activities at 241 mines, and suspend mineral exploitation at 54 mines in Quy Hop district). Obviously, the cause of the "virtual reserves" pointed out by the Director General of the General Department of Geology and Minerals Nguyen Van Thuan is completely well-founded, in which the majority is the fault of the enterprise.

Mr. Tran Van Toan, Head of the Mineral Resources Department, Department of Natural Resources and Environment, said: "Up to now, only 3 enterprises including: Thien Son Company Limited - exploiting construction stone in Quy Chau district; Minh Quang Company Limited - exploiting construction stone in Quynh Luu; Hai Quan Company Limited - exploiting clay for making bricks and tiles in Yen Thanh have submitted documents to calculate the fee for granting mineral exploitation rights. The Department of Natural Resources and Environment has calculated the fee for granting exploitation rights for Hai Quan Company Limited, with the amount of 94,269,000 VND". Mr. Toan also said: The Department of Natural Resources and Environment has proposed the Government to consider the method of calculating the fee for granting mineral exploitation rights related to determining reserves; Regulations on refunding the fee for granting rights for licenses to adjust capacity or reserves; Proposing the Provincial People's Committee to consider and adjust the price for calculating natural resource tax on stone products related to calculating the fee for granting rights to suit the reality. On March 11, 2014, the Provincial People's Committee issued a directive in Official Dispatch No. 1271 on advising on the decision to issue the price for calculating natural resource tax. Therefore, in parallel with urging businesses to promptly submit their documents, the Department of Natural Resources and Environment is currently working with a number of departments and branches to implement the construction of prices for various types of minerals.

Tin mining area in Chau Hong commune, Quy Hop district

Referring to the 2010 Mineral Law, Article 77 on "Mineral exploitation right granting fee" stipulates: 1 - Organizations and individuals exploiting minerals must pay mineral exploitation right granting fee. The State collects mineral exploitation right granting fee through auction or without auction; 2 - Mineral exploitation right granting fee is determined based on price, reserve, quality of minerals, type or group of minerals, mineral exploitation conditions; 3 - The Government specifically stipulates the method of calculation and collection level of mineral exploitation right granting fee. Thus, it can be seen that Decree 203 of the Government is a document detailing the implementation of Clause 3, Article 77 of the Mineral Law. The meaning and purpose of Decree 203/ND-CP were also summarized by Deputy Minister of Natural Resources and Environment, Mr. Tran Hong Ha, that according to the Constitution, land and underground resources belong to the ownership of the entire people and the State represents that ownership. When a business is granted a mining license by the State, the ownership of the mineral resources is transferred to the business. Therefore, the mineral mining business must pay for the mining license, which demonstrates social fairness.

The 2010 Mineral Law was developed with the policy of discouraging mineral exploitation that does not comply with planning and is ineffective; only exploiting minerals when ensuring compliance with unified planning from the central to local levels; ensuring harmony of interests of the State - enterprises and local people where minerals are located... Obviously, Decree 203 was issued to guide the implementation of the Mineral Law on the right roadmap, urgent, ensuring legality, in accordance with the policies of the Party and State, and is truly a reform of the management and exploitation of mineral resources. Implementing Decree 203 is to have a source of revenue for investment in infrastructure, social security, environmental improvement and other consequences caused by mineral exploitation; limiting the situation of indiscriminate and small-scale mineral exploitation, eliminating weak and uncompetitive enterprises, thereby effectively managing mineral resources. Therefore, relevant agencies need to show responsibility and urge mineral exploitation enterprises to strictly implement Decree 203.

Ha Giang