Coal selection at the Cua Ong Coal Company in Quang Ninh (Source: VNA)In a round-tableorganised by the Party Central Committee’s Commission for Economic Affairs(PCEA) on December 23, Le Ai Thu from the Vietnam Mining Coalition pointed totwo particular articles of the law, which he believed to be "verydifficult to apply in real life".
The first is the term"money to have a mineral resources exploitation licence granted", forwhich there is no clear definition."Many believe the money is actually amineral resources tax calculated according to a scientifically baseless andunrealistic formula in the law," Thu said.
According to theGovernment’s Decree 203 of 2013, "money to have a mineral resourcesexploitation licence granted" will depend on the particular mineralresources tax decided by each locality’s People’s Committee. "That createdso much unfairness to mineral resource firms operating in differentlocalities," Thu said. "They would sell the same product at the sameprice but would have to pay the Government at different rates".
He also raised concernsabout the bidding process for the rights to exploit mineral resources, whichhas not recorded a single success over the last six years since the LoMR wentinto effect in 2010.
The bidding for areasthat are already exploited was simply "impossible", he said, as theexploitation licences to work at those areas were all granted way before theLoMR was in effect.
Regarding the areas yetto have their minerals explored, neither the authorities hosting the biddingnor the minerals companies - the bidders - know about what they are trying tosell and buy.
"That’s why biddingwas only held in a couple of localities on a few small mines so far," Thusaid. "I think it’s time to amend the LoMR particularly on those twoissues."
A report by the PCEA onimplementation of Politbureau Resolution 02 on the orientation of the mineralresources and the mining industry strategy towards 2020 acknowledged that thenumber of successful bids for mines "was not many", while there hasnot been any assessment yet on the performance of the bidding process..
Natural Resource andEnvironment Deputy Minister Nguyen Linh Ngoc, meanwhile, was against the ideaof amending the LoMR as it was "too soon to do that".
"We have not yetfully implemented the LoMR and Resolution 02, due mainly to lack of appropriatefinancial mechanism," he said. "That is the core problem now."
Deputy General Directorof the General Department of Geology and Minerals of Vietnam, Lai Hong Thanh,agreed with the two problems in the LoMR mentioned by Thu, but added that a newly-issuedGovernment resolution might be able to help.
Resolution 158, whichwill come into effect on January 15, 2017, imposes various changes in thebidding process, he said. For example, it allows a bidding to take place aslong as there are two bidders, not three as required so far.
"Bidding formineral exploitation right is unprecedented in Vietnam. That’s why confusion ishard to avoid," he said. "But we will soon have an assessment reporton the issue for proper adjustments and changes."-VNA
VNA
