START UP

Mineral Activities

Application for Investment in Mineral Activities

A.  Procedures of Prospecting and Exploration.

-        Investors (legal entity) whose objectives are to operate the mineral business must request the approval for primary data collection of any minerals from natural resource and environment sector (by submitting the request to Geology Department, MoNRE or provincial Natural Resource and Environment Sector);

-        The primary data collection will be conducted in the office and at the site to study the mineral appearance locations, environment and collect the surface sample for analysis (and that the record of the primary data collection and the report of primary mineral data collection will be made);

 -        After the primary data collection,if sufficient data are found, the domestic and foreign investors who have objectives to operate the mineral business (concession for mineral prospecting and exploration) must submit their request to Planning and Investment Sector for consideration in accordance with the procedures stipulated in Investment Promotion Law.

 

The investors must submit their request to PI Sector at central levels or local levels in accordance with the decentralization as follows:

No.

Considered by Central Level

Considered by provincial, VTE levels

1

All mineral prospecting and exploration activities (except the mineral prohibited by law)

Mineral excavation by handicraft (using basic tools and without excavators) approved minerals for handicraft excavation are: alluvial gold, alluvial tin and tailings

2

Industrial mineral exploitation activities (using machinery in excavation)

Excavation activities of stones, sand for construction work

3

Mineral processing activities

 

4

Exploration-exploitation activities of oils and gas

 

  • Complementary documents in submitting the request
  1. Application for investment in mineral printing form;  
  2. Brief proposal about the project development, certified by president or director-general of the company (or attorney);
  3. Histories-Experiences of the company, license or business registration certificate of the company;
  4. General business agreement (in case there are two company or more);
  5. Power of Attorney for representative of stockholders or company, in case the person is not at the top position of the company;           
  6. Map of project location (global positioning scope of concession area);
  7. Documents about project technical data;
  8. Documents about project primary data collection;    
  9. Supporting letter of financial institutes or banks (if any);
  10. other related documents (if any);

The submitted application must be of 6 sets and the investor must maintain 1 copy as the evidence.

 

Processes for considering the approval request and the issuance of minerals concession registration certificate for prospecting and exploration activities

 

 

Remarks:      After the investors have received concession license for prospecting and exploration, the investors request the approval for prospecting  and exploration activity operation from Ministry of Natural Resource and Environment (MoNRE).

  • Any company who has received the searching and exploration rights from the Government must create an operational plan, starting from general searching in the scope of Concession Agreement, followed by the exploration in extracting areas. The searching and exploration plans of each period must be legalized by Ministry of Natural Resource and Environment before the implementation.  The operational plan is divided in 3 steps:

1.      Prospecting period:

-        Study of data documents;

-        Field activity operation about geological status and mineral existing phenomena;

-        Summary of mineral characteristic assessment;

-        Area selection for possible exploration.

2.      Exploration period:

-        It is the study of geological structure and mineral sources in the selected area for exploration;

-        It comprises of the works of geology, geophysics, survey, excavation, canalization, well drilling, sample collection, analysis and others;

-        To know the accumulative quantity and quality of the minerals;

-        Assess the primary economic-technical possibility and technical conditions of the excavation;

3.      Primary  Feasibility Study (FS) creation period:

-        The FS possibility study is with 1 year validity and renewable no longer than 1 year based on the consideration of Ministry of Natural Resource and Environment;

-        In this step, the focus will be emphasized on the calculation result of mineral accumulative quantity to be used in creating a clear analysis that is closed to the standard of implemented mineral accumulative quantity classification;

-        Furthermore, it is an initial assessment of planning for excavation, processing, production and distribution;

-        Initial assessment on environmental and social impact, as well as the assessment of economic effectiveness of the project.

 

Remarks: The 3 periods of activity operation depend on the negotiation outcome;

 

  • Deposit of warranties in mineral searching and exploration:

Concession land area

Warranties

1-300 Km2

50.000 US dollars

301-500 Km2

100.000 US dollars

For the warranty deposit in non-metal minerals, energy minerals, and liquid minerals, the specific regulations in determining areas and amount of the warranties are applied.

Submit to FacebookSubmit to Google Plus
867133
Last update: 10 November 2016.