THE GOVERNMENT

Decree No. 203/2013/ND-CP dated November 28, 2013 of the Government on defining the method of calculation and grant charge of mineral exploitation right

Pursuant to the December 25, 2001 Law on Organization of Government;

Pursuant to the November 17, 2010 Law on Minerals;

At the proposal of Minister of Natural Resources and Environment,

The Government promulgates Decree defining the method of calculation and grant charge of mineral exploitation right

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details Clause 3 Article 7 of the November 17, 2010 Law on Minerals of the XII National Assembly on:

1. The calculation method and grant charge of the mineral exploitation right.

2. Method of collection, regime of management and use of grant charge of mineral exploitation right.

Article 2. Subjects of application

1. State agencies that perform the work of calculation, collection, management and use of grant charge of the mineral exploitation right.

2. Organizations and individuals that are granted the exploitation license without auction of mineral exploitation right.

Article 3. Interpretation of terms

In this Decree, the following terms are construed as follows:

1. The geological reserves means a part or whole mineral reserves in the explored zone already been approved by competent State agencies.

2. Reserves to calculate grant charge of the mineral exploitation right (Q) means geological reserves located in boundaries of the zone licensed for exploitation.

3. The mining reserves means the geological reserves located in boundaries of the zone licensed for exploitation; in which a part of reserves that applies measure of open-pit exploitation or pit mine has been discarded aiming to ensure for feasibility during exploitation.

4. Coefficient of mineral recovery involving measure of exploitation (K1) is the rate between the geological reserves already been discarded partly due to design of mining method and the geological reserves in boundaries of the zone licensed for exploitation.

5. The grant charge of the mineral exploitation right (R) is defined by the percentage (%) of value of original ore of the mineral zone licensed for exploitation. This value is defined on the basis of elements such as geological reserves, price to calculate royalty and coefficient of mineral recovery involving the method of exploitation, economic-social conditions.

Chapter 2.

CHARGE, CALCULATION METHOD, METHOD OF COLLECTION, PAYMENT, REGIME OF MANAGEMENT AND USE OF GRANT CHARGE OF THE MINERAL EXPLOITATION RIGHT

Article 4. Grant charge of the mineral exploitation right (R)

The grant charge of the mineral exploitation right (R) is defined according to group, kind of minerals valued at between 1% and 5%, presented at Annex I enclosed with this Decree.

Article 5. Formula to calculate grant charge of the mineral exploitation right

Grant charge of the mineral exploitation right is calculated under the following formula:

T = Q x G x K₁ x K₂ x R

In which:

T- Grant charge of the mineral exploitation right; calculation unit is VND;

Q- Reserves to calculate grant charge of the mineral exploitation right specified in Article 6 of this Decree; calculation unit is m³, ton;

G- Price to calculate grant charge of the mineral exploitation right specified in Article 7 of this Decree; calculation unit is VND/ reserves unit;

K₁- coefficient of mineral recovery involving the mining method, specified: Open-pit mining K1 = 0.9; pit-mine mining K1 = 0.6; mining of mineral water, natural hot water and the remaining cases K1 = 1.0;

K₂– coefficient involving special disadvantaged and disadvantaged economic-social conditions applied to list of investment preferential geographical areas as prescribed by Government: Zones of mineral mining in the areas with special disadvantaged economic-social conditions, K₂ = 0.90; zones of mineral mining in the areas with disadvantaged economic-social conditions, K₂ = 0.95; zones of mineral exploitation in the remaining areas, K₂ = 1.00;

R- Rate of grant charge of the mineral exploitation right; calculation unit is percentage (%).

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