Intergrated Document No. 06/VBHN-BNNMT dated April 24, 2025 Decree on auction of mineral production rights

MINISTRY OF AGRICULTURE AND ENVIRONMENT OF VIETNAM --------	THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness ---------------
No. 06/VBHN-BNNMT	Hanoi, April 24, 2025

DECREE

ON AUCTION OF MINERAL PRODUCTION RIGHTS

Decree No. 22/2012/ND-CP dated March 26, 2012 of the Government on auction of mineral production rights (effective from May 15, 2012) is amended by the following documents:

1. Decree No. 158/2016/ND-CP dated November 29, 2016 of the Government on elaboration on the Law on Mineral (effective from January 15, 2016).

2. Decree No. 22/2023/ND-CP dated May 12, 2023 of the Government on amendments to Decrees on business operations in environment and natural resources sector (effective from May 12, 2023).

3. Decree No. 10/2025/ND-CP dated January 11, 2025 of the Government on amendments to some articles of decrees related to minerals (effective from March 01, 2025).

Pursuant to the Law on Government Organization dated February 25, 2001;

Pursuant to the Law on Mineral No. 60/2010/QH12 dated November 17, 2010; Pursuant to Decree No. 17/2010/ND-CP dated March 04, 2010 of the Government on property auction;

At the request of Minister of Agriculture and Environment;

The Government promulgates the Decree on auction of mineral production rights[1],

Chapter I

GENERAL REGULATIONS

Article 1. Scope

This Decrees elaborates clause 2 Article 79 of the Law on Mineral No. 60/2010/QH12 dated November 17, 2010 of the 12^th National Assembly on principles, requirements, procedures for auction of mineral production rights.

Other regulations related to procedures for auction shall comply with the law on property auction.

Article 2. Definitions[2]

For the purposes of this Decree, the terms below shall be construed as follows:

1. Mineral production right means right to explore, extract minerals of auction winner.

2. Auctions of mineral production rights (hereinafter referred to as “auctions”) means determination of organizations, individuals having the right to explore, extract minerals through auctions complying with principles, requirements, procedures specified herein, Law on Minerals and Law on Property auction.

3. Eligibility requirements for auctions of mineral production rights means a set of requirements and conditions applied to each auction and are specifically stipulated in the Auction Regulations of that auction.

4. The persons with power to put property up for auction are the Ministry of Natural Resources and Environment, the Provincial People's Committees within the licensing authority of mineral operation.

5. Auction application means documents prepared by organizations and individuals participating in the auction and submitted to the receiving agencies or units in accordance with the requirements specified in the Auction Regulations.

6. Winning bid means mineral production licensing fees in sites of awarded mineral production right.

7. Auction organizers include:

a) Department of Minerals of Vietnam (for minerals under the licensing authority of mineral operation of the Ministry of Natural Resources and Environment);

b) Department of Natural Resources and Environment (for minerals under the licensing authority of mineral operation of the provincial People's Committees).

Article 3[3]. (abrogated)

Article 4. Starting price[4]

1. Starting price shall be determined by the rate of mineral production licensing fee (R) specified in Decree on methods for calculation, rate of mineral production licensing fee.

2. Auction organizers shall determine and submit the starting price of each auction to The Ministry of Natural Resources and Environment and the Provincial People's Committees for approval by their licensing authority of mineral operation.

3. The starting price is decided before the announcement of the selection of the property auction organization.

Article 5. Earnest Money Deposit (EMD) and handling of EMD[5]

1. Bidders must pay an EMD in VND or in form of bank guarantee. The EMD must be 5%-20% of the mineral production licensing fee estimated based on the starting price and shall be calculated as follows:

T_đt = Q x G x K1 x K2 x R_đt (dong)

T_đt – EMD;

Q – Auctioned resources at sites where mineral exploration results are not available or auctioned reserves at sites where mineral exploration results are available and approved by competent authorities;

G - Price for calculating mineral production licensing fee specified in Decree 67/2019/ND-CP ;

K₁ - Mineral recovery coefficient related to mining method: K= 0,9 for open-pit mining (including river bed, lake bed, sea waters sand and gravel); K= 0,6 for underground mining; K= 1,0 for mining for mineral water or natural thermal water and other cases;

K₂ – Coefficient related to disadvantaged and extremely disadvantaged areas in accordance with point a of clause 2 of Article 16 of Law on Investment: K2= 0,9 for extremely disadvantaged area; K2= 0,95 for disadvantaged area; K2= 1,0 for other mining areas;

R_đt – Rate of deposits of 5%-20% of the starting price.

2. Payment of EMDs:

In case the auction is conducted by a property auction organization, the payment of EMDs shall be made in accordance with the provisions of the Law on Property Auction; in case the auction is conducted by a Property auction council, the bidder shall transfer the EMD into the account of the auction organizer.

Article 6. Deposits and handling of deposits[6]

1. The EMD amount paid by the successful bidder and interest thereon (if any) shall be treated as deposit Successful bidders may change the form of deposit from in cash to bank guarantee or vice versa.

2. Successful bidders shall receive their deposit in the following cases:

a) They have been granted mineral exploration licenses by state regulatory authority in accordance with laws on minerals for auctions at sites where minerals have not been explored;

b) They have been granted mineral production licenses by state regulatory authority in accordance with laws on minerals for auctions at sites where mineral exploration results are available;

3. The auction organizer shall refund the deposit within 10 working days from the date the organization or individual is granted a License as prescribed in Clause 2 of this Article.

4. Successful bidders shall not receive their deposit in the following cases:

a) They fail to submit application for issuance of mineral exploration license or mineral production license to the competent state regulatory authority for licensing as prescribed by the law on minerals within the time limit specified in Point c and Point d, Clause 2, Article 11 hereof;

b) Other cases as prescribed by relevant laws.

5. Deposits that are not refundable in the cases specified in Clause 4 of this Article shall be transferred to the state budget.

Article 7[7]. (abrogated)

Chapter II

BIDDERS PARTICIPATING IN AUCTION OF MINERAL PRODUCTION RIGHTS

Article 8. Eligibility to participate in the auction[8]

Organizations and individuals shall be eligible for auction if:

1. They have adequate documents on auction of mineral production right that are selected as per Article 19 hereof.

2. The EMD has been paid as prescribed.

Article 9[9]. (abrogated)

Article 10. Rights and obligations of bidders[10]

1. Bidders have the following rights:

a) Have access to geological and mineral documents related to sites where mineral production right is auctioned in accordance with laws on mineral and other relevant laws;

b) Carry out field surveys at sites;

c) Other rights specified in relevant laws.

2. Bidders have the following obligations:

a) Comply with the rules and regulation on auction;

b) Other obligations specified in relevant laws.

Article 10. Rights and obligations of auction winners[11]

1. Auction winners have the following rights:

a) Be issued with the document approving auction winner;

b) Use information on minerals related to sites where mineral production right is auctioned in accordance with laws on minerals;

c) Be issued with the mineral exploration license, mineral production license after completing procedures for licensing mineral exploration, production as prescribed by laws on minerals;

d) Other rights in accordance with law.

2. Auction winners have the following obligations:

a) Sign the auction record;

b) Pay the winning bid and fulfill other financial obligations as prescribed by law;

c) Submit the application for issuance of the mineral exploration license to a competent licensing state regulatory authority within 12 months after the end of the auction at sites where no mineral exploration has been carried out;

d) Submit the adequate application for issuance of the mineral production license to a competent licensing state regulatory authority within 24 months after the end of the auction at sites where results of mineral exploration are available;

dd) The acquired mineral extraction right must not be transferred to another organization or individual for making an application for licensing mineral operation;

e) Other obligations in accordance with law.

Chapter III

THE COUNCIL OF AUCTION OF MINERAL PRODUCTION RIGHTS, PROCEDURES FOR AUCTION OF MINERAL PRODUCTION RIGHTS

SECTION 1. THE COUNCIL OF AUCTION OF MINERAL PRODUCTION RIGHTS

Article 12. The Council of auction of mineral production rights

1. For minerals under the licensing authority of the Ministry of Natural Resources and Environment, the Council of auction of mineral production rights shall be established by the Ministry of Natural Resources and Environment to organize auction of mineral production rights. The auction council consists of no more than 11 members, including:

a) [12]The Council President being a leader of the Ministry of Natural Resources and Environment;

b) The council members including 01 representative of the National Council for Assessment of Mineral Reserves; representatives of the Ministry of Justice, the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment, the Ministry of Finance the Ministry of Industry and Trade[13]; 01 representative of the General Department of Geology and Minerals of Vietnam being the council secretary; 01 representative of the provincial People’s Committee in charge of the mineral area up for auction, and specialists;

c) The Standing auction council affiliated to the Ministry of Natural Resources and Environment is the General Department of Geology and Minerals of Vietnam.

2. For minerals under the licensing authority of provincial People’s Committees, the auction of mineral production rights shall be held by a professional auction organization. The standing authority preparing documents and materials before and after an auction is the Department of Natural Resources and Environment.

For a mines with complex geological structure or it is not able to hire a professional auction organization, the provincial People’s Committee shall establish an auction council to hold the auction of mineral production rights. The auction council consists of no more than 11 members, including:

a) The president being a leader of the provincial People’s Committee;

b) The members being representatives of the Department of Natural Resources and Environment; the Department of Planning and Investment; the Department of Finance; the Department of Industry and Trade; and the Department of Construction, the representative of the Department of Natural Resources and Environment being the council secretary and the representative of the district-level People’s Committee in charge of the mineral area up for auction, and specialists;

c) The Standing auction council affiliated to the provincial People’s Committee is the Department of Natural Resources and Environment.

3[14]. (abrogated)

Article 13[15]. (abrogated)

SECTION 2. PROCEDURES FOR AUCTION OF MINERAL PRODUCTION RIGHTS

Article 14. Preparation and announcement of auction plan[16]

1. Grounds for preparing auction plan:

a) Mineral exploration, production, processing, and use planning; Planning for exploration, production, processing, and use of minerals for construction materials; Mineral exploration, production, processing, and use plan integrated into provincial planning in accordance with laws on planning;

b) The sites not put up for mineral production right auction approved by state regulatory authorities specified in Clauses 3 and 4 of Article 78 of the Law on Mineral;

c) Results of survey, assessment, exploration of minerals and the actual situation of mineral production; mineral demands for local, regional and national socio - economic development in the succeeding year.

2. Responsibility for preparing, approving auction plan:

The auction organizer shall prepare and submit to the Ministry of Natural Resources and Environment and the provincial People's Committees for approval of the auction plan within the licensing authority of mineral operation as grounds for implementation.

3. Announcement of auction plan:

a) For minerals under the mineral operation licensing authority of the Ministry of Natural Resources and Environment, after approval, the auction plan shall be publicly posted on the websites of the Ministry of Natural Resources and Environment and the People's Committee of the provinces where the minerals are located;

b) For minerals under the mineral operation licensing authority of the provincial People's Committees, after approval, the auction plan shall be publicly posted on the websites of the People's Committees of the provinces where the minerals are located.

Article 15. Auction invitation[17]

1. The auction invitations are prepared by the auction organizer to organize the property auction or by the auction council.

2. Auction invitation includes:

a) Names of the minerals, location of the mineral site put up for auction;

b) The scheduled place and time of the auction;

c) Information on mineral reserves and resources; mineral planning; mineral production conditions of the site put up for auction; methods of information reference, the current infrastructural conditions and the land use in the mineral site put up for auction;

d) Starting price, increment, EMD;

dd) The standards of bidder dossier assessment;

e) The forms required in a bidder dossier;

g) Regulations on equity of bidder.

Article 16. Bidder dossiers[18]

A bidder dossier includes:

1. Original copy: Application form for participation in the auction using Form 03 of Appendix attached hereto.

2. The original copy, certified true copy or the copy enclosed with original for collation, certified electronic copy of the original of: written introduction of capability and experience in mineral exploration, production and processing using Form 04 of Appendix attached hereto.

3. For sites where results of mineral exploration are available: Bidder must have the original copy, or certified electronic copy of a preliminary investment program for mineral production, intensive processing, product sale and make a written commitment to implementing such program if they win the auction.

4. For sites where no mineral exploration has been carried out: Bidder must have the original copy, or certified electronic copy of a preliminary investment plan for mineral exploration, production, intensive processing, product sale and make a written commitment to implementing such plan if they win the auction.

Article 17. Receiving authorities[19]

1. In case the auction is conducted by an Property auction organization, the receipt of application for participation in the auction of mineral production rights shall be carried out in accordance with the Law on Property Auction.

2. In case the auction is conducted by an Property auction council, the receipt of application for participation in the auction of mineral production rights shall be carried out as follows:

a) The Department of Minerals of Vietnam shall receive applications for participation in the auction of mineral production rights for minerals under the licensing authority of the Ministry of Natural Resources and Environment;

b) The Department of Natural Resources and Environment shall receive applications for participation in the auction of mineral production rights for minerals under the licensing authority of the provincial People's Committee.

Article 18. Announcement and publication of information about the auction of mineral production rights

1. Based on the approved plan on the auction of mineral production rights, the authorities competent to hold the auction of mineral production rights prescribed in Article 12 of this Decree shall publicly announce the auction of mineral production rights at its office and on the website of the authority competent to issue licenses.

The time for notification and publication of an auction is 30 consecutive days before the date of receiving bidder dossiers. Information on the auction of mineral production rights shall also be published on the central or local means of mass media at least twice with an interval of 03 days.

2. Information on the auction of mineral production rights includes:

a) Name of the minerals, location of the mineral area put up for auction;

b) The reserve price, deposit;

c) The place and time of the auction;

d) The starting date of receipt of bidder dossiers;

dd) Other relevant information.

Article 19. Selection of bidder dossiers

1. After the deadline for receiving bidder dossiers, the receiving authorities shall examine the dossiers and select eligible bidders.

After 03 times of announcement and by the deadline for receiving bidder dossiers, if the number of bidders is smaller than that prescribed in Clause 2, Article 3 of this Decree, the authority that receives the bidder dossier shall report such to the authority competent to issue licenses and shall not organize the auction.

2. The bidders selected for the auction of mineral production right must fulfill the following requirements:

a) Its bidder dossier has the documents and materials made under Clause 2, Article 16 of this Decree;

b) It satisfies requirements on mineral exploration or mineral extraction under Articles 34 and 51 of the Law on Mineral;

c) It commits that its mineral extraction and processing equipment and technology and product sale plan conform with the requirements set in the bidding dossier.

3. Within 30 (thirty) days after the deadline for receiving bidder dossiers, the receiving authority shall complete the selection of bidder dossiers for reporting to the auction council president.

For an auction conducted via professional auction organizations prescribed in Clause 2, Article 12 of this Decree, the Department of Natural Resources and Environment shall transfer bidder dossiers of selected bidders to such organizations for holding the auction after the above time limit is over as prescribed in this Decree and the law provisions on property auction.

Within 30 days after receiving a report on selection of bidder dossiers, the auction council president or the professional auction organization shall hold the auction of mineral production rights.

4. For disqualified bidder dossiers, the authority that receives the bidder dossier shall notify relevant organizations and persons in writing specifying the reasons

5. The authority that receives the bidder dossier is responsible for disclosing the list of eligible bidders and post it on the website of the authority competent to issue licenses before the auction is held; and notify in writing the time and place of the meeting providing information related to the auction; time of field survey in the area put up for auction; and time of auction charge and deposit payment to eligible bidders.

SECTION 3. ORGANIZATION OF AUCTION OF MINERAL PRODUCTION RIGHTS

Article 20[20]. (abrogated)

Article 21[21]. (abrogated)

Article 22. Approval of auction winning results[22]

1. Within 01 working day after the auction closes, the property auction organization must transfer all auction documents to the auction organizer to report the auction results to the persons with power to put property up for auction.

2. Within 05 working days after the auction closes, the auction organizer must submit the application for approval of auction results to the state regulatory authority with licensing authority of mineral operation. The application includes:

a) The auction record using Form No. 05 of Appendix attached hereto;

b) The auction winner’s bidder dossier;

c) A draft written approval of the auction winning result.

2. Within 05 working days after receiving an application for approval of auction winning result, the agency with its licensing authority shall issue a written approval of the auction winning result using Form No. 06 or Form No. 07 of Appendix attached hereto. In case of refusal, there must be a written notice stating the reasons and additional requirements (if any).

Article 22a. Cancellation of auction results and Decision on approval of auction results

1. The cancellation of auction results shall comply with Article 72 of the Law on Property Auction. Document on cancellation of the Decision on approval of auction results using Form No. 08 and Form No. 09 of the Appendix attached hereto.

2[23]. In case the auction winner fails to submit adequate application for issuance of mineral exploration license/mineral production license as prescribed to the competent licensing state regulatory authority as prescribed by the law on minerals within the time limit specified in Point c and Point d of Clause 2 of Article 11 hereof, the competent state management agency shall cancel the Decision on approval of the auction results.

Article 23. Notification of auction winning results[24]

1. The auction results must be publicly announced at the offices of the receiving agencies, units, and on the official website of the competent licensing authority within 03 working days from the approval of the auction results by the competent authority.

2. The notification of auction winning results includes:

a) The name of the auction winner;

b) The name of the minerals; location of the sites of which the mineral property right is acquired;

c) Auction winning value.

3. Auction winning results of minerals under the licensing authority of the Ministry of Natural Resources and Environment must also be publicly posted on the websites of the People's Committees of the provinces where the minerals are located.

SECTION 4. THE WINNING BID OF MINERAL PRODUCTION RIGHT

Article 24. Methods for determining, collecting, paying the winning bid[25]

1. Depending on the winning bid of mineral production right with auction results approved by the state regulatory authority with licensing authority of mineral operation, the methods for determining, collecting, paying the winning bid shall be the same as the methods at sites permitted for mineral production without auctioning mineral production rights and as stipulated in clauses 3 and 4 of this Article.

2. The Department of Minerals of Vietnam, the Department of Natural Resources and Environment, shall submit to the winning bid at sites of awarded mineral production right within the mineral operation licensing authority to the Ministry of Natural Resources and Environment and the provincial People's Committees for approval.

3. Within the auctioned site, the winning bid for the mineral production rights for the type of minerals of which production right is awarded shall be stable throughout the licensed production period, even in cases where exploration and upgrading of mineral reserves are conducted by organizations or individuals as regulated in point c of clause 1 of Article 55 of the Mineral Law and approved by the state regulatory authority with the competence to approve mineral reserves.

4. If mineral exploration results reveal a different type of mineral other than the minerals of which production right is awarded and are approved by the state regulatory authority with the competence to approve mineral reserves, the mineral production licensing fee for such mineral shall equal the mineral production licensing fee at sites where mineral production rights are not auctioned.

Article 25[26]. (abrogated)

Chapter IV

IMPLEMENTATION CLAUSE[27]

Article 26. Effect

This Decree comes into force from May 15, 2012.

Article 27. Implementation

1. The Ministry of Natural Resources and Environment shall take charge and cooperate with Ministry of Finance and relevant ministries in taking responsibility for guiding the implementation of this Decree.

2. Ministers, Heads of ministerial authorities, Heads of governmental authorities, Presidents of People's Committees of provinces and central-affiliated cities, and related organizations are responsible to implement this Decree./.

CERTIFIED BY PP. MINISTER DEPUTY MINISTER Tran Quy Kien