Why was Ha An Tin Company fined and suspended?
Inspecting the mineral exploitation activities of Ha An Tin Company Limited at Suoi Bac tin mine (Quy Hop), the inspection team of the Ministry of Natural Resources and Environment determined that this enterprise's conversion of mining output from m3 to tons was "unfounded"...
Nhat Lan• 08/10/2024
Previously, on April 5, 2024, the Ministry of Natural Resources and Environment issued Decision No. 901/QD-BTNMT to establish an Inspection Team to inspect compliance with legal regulations on minerals formineral exploitation organizationsin Nghe An province. With the mineral exploitation activities of Ha An Tin Company Limited at the tin mine in the East of Suoi Bac mine, Chau Hong commune and Chau Thanh commune (Quy Hop), the Inspection Team of the Ministry of Natural Resources and Environment organized an inspection on April 23 and May 28, 2024.
On May 29, 2024, by Document No. 04-1/CHS-VPHC, the Inspection Team notified the People's Committee of Quy Hop District that during the inspection, Thiec Ha An Company Limited had committed violations in the field of minerals. Therefore, the Inspection Team drew up a Record of Administrative Violation and, at the same time, based on the provisions of law, "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 to sanction administrative violations according to its authority".
The first violation was that Ha An Tin Company Limited used minerals for purposes other than those specified in the Mineral Exploitation License without permission from the competent state management agency as prescribed. The second violation was that it did not fully establish books, vouchers, documents, and materials related to actual annual mining output. The third violation was that it did not submit the approved mine design to the competent state management agency for minerals.
For the above 3 violations, in Document No. 04-1/CHS-VPHC, the Inspection Team of the Ministry of Natural Resources and Environment based on the provisions of the law to propose fines and additional penalties, thereby requesting the People's Committee of Quy Hop district to consider applying. Specifically, it requested the People's Committee of Quy Hop district to fine Ha An Tin Company Limited a total of 220 million VND, and apply an additional penalty in the form of suspending mineral exploitation activities from 3 to 6 months.
Based on the request of the Inspection Team of the Ministry of Natural Resources and Environment and the documents and materials provided, on June 4, 2024, the People's Committee of Quy Hop district issued Decision No. 2981/QD-UBND to impose administrative sanctions on Thiec Ha An Company Limited, in which the form of fine is 250 million VND; the additional penalty is to suspend mineral exploitation activities for 4.5 months; at the same time, forcing to pay all costs for requesting appraisal, inspection and measurement.
Following the recent incident of Nam Huong stream (Chau Thanh commune) changing color and having unusual fish deaths, we have investigated the violations of Thiec Ha An Company Limited that led to a fine of 250 million VND and suspension of mineral exploitation activities for 4.5 months. Thereby, we have grasped the details of the violations committed by this enterprise.
The noteworthy violations are the conversion of mining output from m by Ha An Tin Company Limited.3Specifically, the Inspection Team of the Ministry of Natural Resources and Environment discovered that according to the periodic report data of Ha An Tin Company Limited, the statistical output from trolleys (calculated by m3) is multiplied by a factor of 2.7; but in the exploration results report, the volume of ore rock of the mine is determined to be 2.54 tons/m3Therefore, the Inspection Team commented that "the Company calculated at the rate of 2.7 tons/m3is unfounded". In addition, the discovery that Ha An Tin Company Limited committed the violation of selling ore concentrate after selection in violation of regulations. Regarding this violation, the Inspection Team clearly stated in the inspection record as follows: "Through reviewing a number of contracts for buying and selling ore concentrate after selection, it was found that from 2022 to 2023, the Company sold ore concentrate to other enterprises, or hired other enterprises to process and smelt tin without bringing it to the Company's smelting workshop 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"...
From the inspection work, the Inspection Team of the Ministry of Natural Resources and Environment summarized the shortcomings and violations that Thiec Ha An Company Limited committed during its operation. These are: Not submitting the approved adjusted mine design to the competent state management agency. Not registering the date of commencement of basic construction of the mine, the date of commencement of exploitation with the competent state agency that issued the license. Not reporting to the competent state management agency on minerals about the temporary suspension of exploitation at the mine; time of inspection; no weighing station at the mine.
Incompletely maintaining books, vouchers, documents, and related materials to determine actual annual mining output (in 2022 and 2023, the Company did not maintain sufficient books to accept the volume of minerals according to mining technology for underground mining; did not monitor mineral mining output through weighing stations). Using minerals for purposes other than those specified in the Mineral Exploitation License without permission from a competent state management agency as prescribed...
In parallel with pointing out the existing problems and violations, the Inspection Team of the Ministry of Natural Resources and Environment requested Thiec Ha An Company Limited to carry out the following contents: Submit the approved adjusted 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. Report in writing to the Ministry of Natural Resources and Environment, the Provincial People's Committee, the Department of Natural Resources and Environment and local authorities on the suspension of mining activities as well as difficulties and proposals (if any) for consideration and resolution according to regulations.
Organize the installation of weighing stations to monitor and store data and documents on the actual mineral output when the mine is put back into operation. Process and use minerals in accordance with the provisions of the Mineral Exploitation License. Immediately report to the Ministry of Natural Resources and Environment on the processing and use of minerals at the mine as well as any problems, difficulties, and proposals (if any) for the Ministry of Natural Resources and Environment to consider and resolve according to regulations. Prepare complete books, vouchers, documents, and related materials to determine the actual annual mining output according to regulations. Arrange and organize production and mining plans to ensure full and accurate weighing and statistics of the actual mineral output at the mine to fully maintain related books, vouchers, and declare, report statistics, and inventory mineral reserves according to regulations...
There is a request from the Inspection Team of the Ministry of Natural Resources and Environment for Ha An Tin Company Limited that we are particularly interested in, which is "working with the local tax authority to review and guide the implementation of financial obligations (taxes, fees, mineral exploitation rights fees...) to the State according to regulations". The reason for our interest is because in recent years, through the inspection and examination work of the province on enterprises operating in mineral exploitation in the area, it has been proven that the conversion of mining output from m3Illegal tonnage is one of the "loopholes" leading to loss of revenue for the State budget.
Therefore, when the Inspection Team of the Ministry of Natural Resources and Environment determined that Ha An Tin Company Limited did not fully establish books, vouchers, documents, and related materials to determine the actual annual mining output; converted the mining output from m...3If the accusation is "unfounded";..., then there is doubt that this enterprise's performance of tax and fee obligations to the State has problems!
