What Are Causes behind Squandered Mineral Resources?

Data presented at the conference showed that up to current time, Vietnam has detected more than 50,000 mines and ores consisting of more than 60 different types of minerals. In particular, some minerals have enough potential for exploitation and processing on industrial scale for long time such as bauxite, titanium zicon, rare soil, coal, apatite, white marble, white sand, etc. Some minerals which can be exploited and processed on medium scale include iron, copper, lead, zinc, chromite, tin, tungsten, kaolin, etc. Some exploited and processed on small scale but having high significance include molypen, antimony, rare metals, tacl, graphite sericite, etc.

 

According to the Ministry of Natural Resources and Environment, by May 2013, the Ministry had licensed 79 mineral explorations; Central Government’s agencies had licensed 503 mineral miners; and local People's Committees had granted 4,200 mining licenses which are all still valid. Although mineral reserves and the number of exploration and mining licenses in the country is quite large, authorities are not able to control the real mining output, leading to loss of state revenue. Currently, only about 40 percent of the organisations and individuals in extractive industry voluntarily make periodic reports on mining operations. Meanwhile, relevant central and local agencies can only check mining area once in every two years.

 

Mr Lai Hong Thanh, Director of Mining Activity Control of the Ministry of Natural Resources and Environment expressed that in the actual management of mineral resources in Vietnam still exists loopholes which cannot be filled quickly. The overlapping is true. In fact, in the same mineral deposits, there are two plans approved at different times carried out by two ministries in charge. In addition, a number of plannings are not very stable and dependent on the actual needs of businesses and localities. Another reason is that the legal system and financial institutions in this field of Vietnam have not been fully issued. Accordingly, up to now, there has been no regulation guiding money collection and payment method of mining authorization, no administrative penalty decrees in the field of water and mineral resources and no circulars guiding the auction mining rights.

 

Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI) shared that Vietnam is endowed with preferable natural resources. However, in the past long time, there have been too many shortcomings in mineral resources’ management and exploitation.

 

Dr Le Dang Doanh analysed that for nearly 40 years, management problems in mineral resources of Vietnam were loose. Besides, there exists the phenomenon of group interests in mining. Particularly, the Ministry of Natural Resources and Environment, the central agent in extractive industry, licenses only a few projects while localities license too many projects. Many mines have huge mineral reserves, which need to be centrally managed, are broken down by localities to be locally managed. Moreover, weak monitoring capacity and incomplete legal system make great resource from nature fall into some individuals. The paradox is that mineral resources are exhausted while people in resource areas have to suffer from pollution and sickness.

 

Therefore, according to Mr Lai Hong Thanh, in the future, the government should implement some solution groups. Particularly, it is essential to quickly issue Decrees of the Government on the handling of violations, mechanism guiding the use of money granted to mining rights; enhancing dissemination of law; improving viability of mineral planning and quality of assessment; strengthening inspection, supervision and management of mineral resources of organisations and individuals; enhancing coordination in the implementation of tasks among focal agencies of the state in charge of mineral management; and make research roadmap towards 2015 to join Extractive Industries Transparency Initiative (EITI).

 

In the time to come, sanctions should be imposed more heavily for those who carry out mining activities impacting seriously the environment. Also license revocation will be imposed for certain acts causing serious environmental pollution, according to Mr Thanh.