Why was Ha An Tin Company Limited fined and had its operations suspended?
During an inspection of the mining operations of Ha An Tin Company Limited at the Suoi Bac tin mine (Quy Hop district), the inspection team from the Ministry of Natural Resources and Environment determined that the company's conversion of mining output from cubic meters to tons was "unfounded"...
Nhat LanAugust 10, 2024
Previously, on April 5, 2024, the Ministry of Natural Resources and Environment issued Decision No. 901/QD-BTNMT establishing an inspection team to conduct inspections on compliance with the law on minerals.organizations engaged in mineral extractionIn Nghe An province, the mining activities of Ha An Tin Company Limited at the eastern part of the Suoi Bac tin mine, Chau Hong and Chau Thanh communes (Quy Hop district), were inspected by the Ministry of Natural Resources and Environment's inspection team on April 23rd and May 28th, 2024.
On May 29, 2024, by Document No. 04-1/CHS-VPHC, the Inspection Team informed the People's Committee of Quy Hop District that during the inspection, they discovered that Ha An Tin Company Limited had committed violations in the field of mineral resources. Therefore, the Inspection Team drew up a record of administrative violations and, based on legal regulations, "transferred the entire case file and submitted it to the Chairman of the People's Committee of Quy Hop District for consideration and issuance of a decision on administrative sanctions within his/her authority."
The first violation identified is that Ha An Tin Company Limited used minerals for purposes other than those stipulated in the mining license, without obtaining permission from the competent state management agency as required. The second violation is the failure to maintain complete records, documents, and materials detailing the actual annual mining output. The third violation is the failure to submit the approved mine design to the competent state management agency for minerals.
Based on the three aforementioned violations, in Document No. 04-1/CHS-VPHC, the inspection team of the Ministry of Natural Resources and Environment, relying on legal regulations, proposed monetary fines and supplementary penalties, and requested the People's Committee of Quy Hop District to consider applying them. Specifically, they requested the People's Committee of Quy Hop District to fine Ha An Tin Company Limited a total of 220 million VND and apply a supplementary penalty of suspending mineral mining activities for 3 to 6 months.
Based on the recommendations of the Inspection Team of the Ministry of Natural Resources and Environment and the documents provided, on June 4, 2024, the People's Committee of Quy Hop District issued Decision No. 2981/QD-UBND imposing administrative penalties on Ha An Tin Company Limited, including a fine of 250 million VND; an additional penalty of suspending mineral exploitation activities for 4.5 months; and requiring the company to pay all costs for expert assessment, inspection, and measurement.
Following the recent incident of the Nam Huong stream (Chau Thanh commune) changing color and unusually killing fish, we investigated the violations committed by Ha An Tin Company Limited, which resulted in a fine of 250 million VND and a 4.5-month suspension of mineral mining operations. Through this investigation, we gained a detailed understanding of the violations committed by this company.
Of particular concern are the violations committed by Ha An Tin Company Limited in converting mining output from...3The transfer of goods to the wrong weight was not in accordance with regulations. Specifically, the inspection team from the Ministry of Natural Resources and Environment discovered that, according to the periodic reports of Ha An Tin Company Limited, the production volume recorded from the mine carts (calculated in m³) was not in compliance with regulations.3) is multiplied by a factor of 2.7; but in the exploration report, the density of ore rock in the mine is determined to be 2.54 tons/m³.3Therefore, the inspection team commented that "the company's calculation based on a rate of 2.7 tons/m²" was incorrect.3"This is unfounded." In addition, the inspection team found that Ha An Tin Company Limited violated regulations by selling refined ore after beneficiation. Regarding this violation, the inspection team clearly stated in the inspection report: "Through a review of several contracts for the sale of refined ore after beneficiation, it was found that from 2022 to 2023, the company sold refined ore to other businesses or hired other businesses to process and refine tin instead of bringing it back to the company's smelting plant in Quy Hop district to process into tin ingots as stipulated in Appendix 02 of Mineral Exploitation License No. 377/GP-BTNMT dated March 27, 2013"...
Based on the inspection, the inspection team from the Ministry of Natural Resources and Environment compiled a list of shortcomings and violations committed by Ha An Tin Company Limited during its operation. These include: Failure to submit the approved revised mine design to the competent state management agency; failure to register the start date of basic mine construction and the start date of mining with the competent state agency that issued the license; failure to report to the competent state management agency on minerals the temporary suspension of mining at the mine; the time of inspection; and the absence of a weighing station at the mine.
Failure to maintain complete records, documents, and related materials to determine the actual annual mining output (in 2022 and 2023, the company did not maintain sufficient records to verify the volume of minerals according to the mining technology for underground mining; and did not monitor mineral mining output through weighing stations). Using minerals for purposes other than those stipulated in the mining license without permission from the competent state management agency as required…
In addition to identifying existing shortcomings and violations, the inspection team from the Ministry of Natural Resources and Environment requested Ha An Tin Company Limited to implement the following: Submit the approved revised mine design to the competent state management agencies, including the Ministry of Natural Resources and Environment, the Department of Natural Resources and Environment, and the Department of Industry and Trade. Submit a written report to the Ministry of Natural Resources and Environment, the Provincial People's Committee, the Department of Natural Resources and Environment, and the local authorities regarding the temporary suspension of mining operations, as well as any difficulties and proposals (if any) for consideration and resolution in accordance with regulations.
The organization shall install weighing stations to monitor and record data and documents on the actual mineral output when the mine resumes operation. Mineral processing and utilization shall be carried out in accordance with the regulations stipulated in the mining license. Immediately, a report on mineral processing and utilization at the mine, as well as any obstacles, difficulties, and proposals (if any), shall be submitted to the Ministry of Natural Resources and Environment for consideration and resolution in accordance with regulations. Complete all relevant books, documents, and records to determine the actual annual mining output as required. Production and mining plans shall be arranged and organized to ensure accurate and complete measurement and statistical recording of the actual mineral output at the mine, maintaining complete records and documents, and declaring, reporting, and inventorying mineral reserves in accordance with regulations...
One request from the Ministry of Natural Resources and Environment's inspection team to Ha An Tin Company Limited particularly caught our attention: "Work with the local tax authorities to review and receive guidance on fulfilling financial obligations (taxes, fees, mineral exploitation rights fees, etc.) to the State as stipulated." This concern stems from the fact that in recent years, inspections conducted by the province on mineral exploitation businesses have demonstrated the inaccuracies in converting mining output from mineral resources.3Improper tonnage transfer is one of the "loopholes" leading to revenue losses for the State budget.
Therefore, when the inspection team of the Ministry of Natural Resources and Environment determined that Ha An Tin Company Limited had not kept complete books, documents, and related records to determine the actual annual mining output; and had not converted mining output from m3If the accusation is "unfounded";..., then there is suspicion that this enterprise has problems fulfilling its tax and fee obligations to the State!
