| THE GOVERNMENT ------- No. 22/2012/ND-CP | THE SOCIALIST REPUBLIC OF VIETNAM Independence– Freedom – Happiness --------------- Hanoi , March 26, 2012 |
DECREE
ON MINERAL EXTRACTION RIGHT AUCTION
Pursuant to the Law on Government organization on December 25, 2001;
Pursuant to the Law on Mineral No. 60/2010/QH12 November 17, 2010;
Pursuant to the Government’s Decree No. 17/2010/ND-CP on March 4, 2010, on property auction;
At the proposal of the Minister of Natural Resources and Environment;
The Government promulgates the Decree on mineral extraction right auction,
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Decree elaborates Clause 2, Article 79 of the Law on Mineral No. 60/2010/QH12 November 17, 2010 of the 7th National Assembly on the principles, conditions and procedures for mineral extraction right auction.
Other provisions on auction must comply with law provisions on property auction.
Article 2. Interpretation of terms
In this Decree, the following terms are construed as follows:
1. Mineral extraction right auction means a form of public sale of mineral extraction right by increasing bids under the principles and procedures specified in this Decree.
2. Bidder are the legal representatives of eligible organizations and individuals attending mineral extraction right auctions (hereinafter referred to as bidders).
3. Auction guarantee is the commitment made by a credit institution to assure the financial obligation fulfillment of organizations and individuals participating in the Mineral extraction right auction.
Article 3. Principles of mineral extraction right auction
Mineral extraction right auctions shall be held in accordance with the following principles:
1. Transparent, open, continuous, equitable and in which the lawful rights and interests of bidders are protected.
2. An mineral extraction right auction shall be held only when at least 3 bidders attend the auction.
3. Mineral extraction right auction shall only be held at areas of which auction plans have been approved by competent State agencies.
Article 4. Reserve price
1. The reserve prices are set by a state management agency competent to issue mineral extraction licenses specified in Article 82 of the Law on Mineral before an auction.
2. The reserve price in an mineral extraction right auction must not be lower than the price the mineral extraction right.
3. The Ministry of Natural Resources and Environment shall be in charge and cooperate with the Ministry of Finance in specifying the reserve price calculation in mineral extraction right auctions.
Article 5. Deposit
1. Deposit means an amount (in VND) paid by the bidders before the mineral extraction right auction. The deposit shall be decided by the mineral extraction right auction council (hereinafter referred to as auction council) as follows:
a) For auctions of mineral extraction rights areas with mineral exploration results, the deposit is 1%-15% of the reserve price;
b) For auctions of mineral extraction rights in areas in which mineral exploration has not yet been carried out, the deposit shall depend on mineral surveys and mineral assessment results and be calculated as specified in Point a this Clause.
2. Bidders may pay the deposit in cash or by auction guarantees as follows:
a) For cash payment, bidders shall deposit in the suspense account of the agency that receives bidder dossiers specified in Article 17 of this Decree;
b) For auction guarantees, bidders must submit their auction guarantees to the agency that receives the bidder dossiers.
3. The deadline for deposit payment stated in the bidding invitation is at least 7 (seven) days before the auction. Deposits of auction winners shall be remitted to the State Treasury and deducted from the auction winning amount when issuing the mineral extraction license.
