Decision No. 71/2008/QD-TTg dated May 29, 2008 of the Prime Minister on making of deposits for environmental rehabilitation and restoration in mineral exploitation activities

DECISION

ON MAKING OF DEPOSITS FOR ENVIRONMENTAL REHABILITATION AND RESTORATION IN MINERAL EXPLOITATIONACTIVITIES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government:
Pursuant to the November 29, 2005 Law on Environmental Protection;
Pursuant to the March 20, 1996 Law on Minerals and the June 14, 2005 Law Amending and Supplementing a Number of Articles of the Law on Minerals;
Pursuant to the Government's Decree No. 160/ 2005/ND-CP of December 27, 2005. detailing and guiding the implementation of the Law on Minerals and the Law Amending and Supplementing a Number of Articles of the Law on Minerals;
At the proposal of the Minister of Natural Resources and Environment,

DECIDES:

Chapter 1

GENERAL PROVISIONS

Article 1.- Governing score and subjects of application

1. This Decision details the making of deposits for environmental rehabilitation and restoration in mineral exploitation activities in the territory of the Socialist Republic of Vietnam.

2. This Decision applies to all Vietnamese and foreign organizations and individuals that exploit minerals in the territory of the Socialist Republic of Vietnam.

Article 2.- Interpretation of terms

In this Decision, the terms below are construed as follows:

1. Make a deposit for environmental rehabilitation and restoration means that a licensed mineral exploiter deposits a specified sum of money for a certain period into the Vietnam Environmental Protection Fund or a local Environmental Protection Fund (below collectively referred to as Environmental Protection Fund) in order to financially secure post-mining environmental rehabilitation and restoration.

2. Environmental rehabilitation and restoration means activities to rehabilitate and restore the environment to meet post-mining environmental rehabilitation and restoration requirements specified in Appendix 1 to this Decision.

3. Environmental rehabilitation and restoration project means a project formulated by a licensed mineral exploiter in order to rehabilitate and restore the environment after exploiting minerals and submitted to a competent agency for approval. An environmental rehabilitation and restoration project may be enclosed, considered and approved together with the consideration and approval/certification of environmental impact assessment reports, environmental protection commitments and environmental protection schemes.

4. Agency competent to approve environmental rehabilitation and restoration projects means an agency competent to approve environmental impact assessment reports or certify environmental protection commitments and environmental protection schemes. Agencies competent to approve environmental rehabilitation and restoration projects are also competent to examine and certify the completion of environmental rehabilitation and restoration.

Article 3.- Purposes and principles of depositing

1. Depositing aims to ensure financial sources for rehabilitating and restoring the environment after mineral exploitation activities are conducted by mineral exploiters according to law.

2. A deposit must be at least equal to the actual cost for post-mining environmental rehabilitation and restoration.

Article 4.- Deposit recipients

Environmental Protection Funds may receive deposits of licensed mineral exploiters.

Article 5.- Post-mining environmental rehabilitation and restoration requirements

1. Licensed mineral exploiters must have environmental rehabilitation and restoration projects. Mineral exploiters shall, based on the requirements specified in Appendix 1 to this Decision and specific characteristics of their mineral exploitation activities, formulate environmental rehabilitation and restoration projects and submit them to competent agencies for approval.

2. Post-mining environmental rehabilitation and restoration must ensure that each element of the natural environment such as soil, water, vegetation cover or landscape of the whole or part of a mined area satisfies environmental rehabilitation and restoration requirements specified in Appendix 1 to this Decision and be conducted under environmental rehabilitation and restoration projects already approved by competent agencies.

Article 6.- Depositors

1. Before exploiting minerals, all licensed mineral exploiters shall make environmental rehabilitation and restoration deposits into Environmental Protection Funds.

2. Mineral exploiters that have not yet made environmental rehabilitation and restoration deposits shall make deposits according to the following regulations:

a/ Mineral exploiters that have prepared environmental impact assessment reports which, however, have no environmental rehabilitation and restoration contents or estimates, shall also formulate environmental rehabilitation and restoration projects and submit them to competent agencies for evaluation and approval.

b/ Mineral exploiters that have made environmental protection commitments which, however, have no environmental rehabilitation and restoration contents or cost estimates, shall also formulate environmental rehabilitation and restoration projects and submit them to competent agencies for evaluation and approval.

3. Organizations and individuals that have construction investment projects and are licensed by competent state agencies to exploit minerals in areas covered by those projects are not required to make environmental rehabilitation and restoration deposits.

Chapter II

BASES FOR AND METHODS OF DETERMINING DEPOSITS

Article 7.- Bases for determining deposits

1. Deposits shall be calculated based on the exploitation scope, adverse impacts on the environment, specific characteristics of the exploited mine areas and expenses necessary for post-mining environmental rehabilitation and restoration. Deposits shall be specified in environmental rehabilitation and restoration projects already evaluated and approved by competent agencies.

2. Deposits shall be calculated on the basis of the most adverse impacts expected to be caused by mineral exploitation activities to the eco-environment.

3. Environmental rehabilitation and restoration deposit is a sum of money to financially secure environmental rehabilitation and restoration during and after mineral exploitation. Actual sums of money for environmental rehabilitation and restoration depend on environmental rehabilitation and restoration projects and activities actually carried out by owners of mineral exploitation projects in order to rehabilitate and restore the environment.

Article 8.- Methods of calculating deposits and modes of depositing

1. A deposit is the total cost for environmental rehabilitation and restoration specified in Appendix 2 to this Decision.

2. In case the licensed mining duration is different from the duration anticipated in the investment report and environmental impact assessment report, a deposit is the total environmental rehabilitation and restoration cost multiplied by the coefficient of time T.

With T. being the licensed mining duration and Tb being the duration anticipated in the investment report and environmental impact assessment report.

3. In case a mineral exploitation license has a term of less than 3 (three) years, a lump-sum deposit must be made. The level of deposit is equal to 100% (one hundred per cent) of the estimated total cost for environmental rehabilitation under the environmental rehabilitation and restoration project already evaluated and approved by a competent agency.

4. In case a mineral exploitation license has a term of 3 (three) or more years, deposits may be made in installments.

a/ The first deposit installment is specified as follows:

- For projects with a licensed term (Tg) of less than 10 years, the first deposit installment is equal to 25% (twenty five percent) of the to-be-deposited sum;

- For projects with a licensed term (Tg) of between 10 and under 20 years, the first deposit installment is equal to 20% (twenty per cent) of the to-be-deposited sum:

- For projects with a licensed term (Tg) of 20 or more years, the first deposit installment is equal to 15% (fifteen per cent) of the to-be-deposited sum.

b/ Each subsequent deposit installment is the to-be-deposited sum minus the first deposit installment, and equally divided by the remaining years of the licensed term.

5. In cases in which they are permitted to make deposits in installments, mineral exploiters may opt to make a lump-sum deposit for the whole licensed mineral exploitation term.

6. In case of extension of the exploitation duration, mineral exploiters snail formulate additional projects on environmental rehabilitation and restoration and make additional deposits for extended exploitation activities.

Chapter III

ORDER OF AND PROCEDURES FOR DEPOSITING

Article 9.- Time of depositing

1. Licensed mineral exploiters shall make the first deposit installment 30 (thirty) days before commencing mineral exploitation activities.

2. Operational mineral exploiters that have not yet made environmental rehabilitation and restoration deposits under Clause 2, Article 6 of this Decision shall formulate environmental rehabilitation and restoration projects and submit them to competent agencies for evaluation and approval, and make environmental rehabilitation and restoration deposits before December 31,2008.

3. When deposits are made in installments, installments from the second time on must be made before January 31 of the subsequent year.

4. In case of extension of the exploitation duration, an additional deposit must be made within 30 (thirty) days after the receipt of the extended exploitation license.

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