Keeping mineral resources for future

Source: Pano feed

Promoting management of mineral resources as planned; fighting against smuggling; tightening the export of minerals, especially raw minerals… are the practical actions contributing to limit the “blood flow” of minerals in Vietnam, keeping resources for the future.


* “Mineral bleeding”


Vietnam is considered the country with rich and diverse mineral reserves. However, mining efficiency is low with high loss rate and serious impact on the environment.


Mineral resources, which are not renewable, are exported as crude, smuggling causing State’s revenue loss, rapid depletion of minerals but mining industry, mineral processing have not developed or materials must be imported from abroad with expensive price. There are so many harms!


Mineral mining for crude export is the sector making huge profit, but the profit only flows into a small group of enterprises. The massive exploitation of natural resources and mineral for export makes the economy continue to pay the price for many more years.


Because mining companies only focus on crude minerals, they are solely interested in the main ore sources so that they cannot fully mine accompanied minerals as well as other low-grade ores. The rate of loss is high. The loss in coal pit mining reaches 40-60%; apatite-mining losses 26-43%; the loss in metal ore mining is 15-20%…


In some fields, and under pressure from the government, mining companies also have “invested in processing” for export, but the fact is only “less crude“.


Exploitation of crude mineral without association with the development of processing industry will accelerate “mineral bleeding“. When the domestic industries develop, the resources may no longer exist. More ominously, the economic development relying heavily on the extraction and export of raw resources also suppresses dynamics of scientific and technological development.


Mineral depletion is caused by not only crude export, but also complicated status of smuggling in many forms and subtle tricks. The most common trick currently on the sea route was using local transportation to bypass authorities and smuggling crude ore.


The criminals use ore trading and local transportation documents to conceal the behaviors of smuggling mineral which is a common trick causing difficulties for inspection activities.


Titan is one of the most smuggled ore. Titanium ores from the provinces like Binh Dinh, Binh Thuan… are trading around in the country with the label of “domestic sales“, then the final destination is smuggling into China.


In 2013, a sensational case is that Binh Thuan commercial and mineral investment joint stock Company had the actions of tax perjury, made false export contracts, tax evasion and illegally sold thousands of tons of titanium ore.


At the end of 2013, the Coast Guard Region II found and detained a ship carrying more than 3,000 tons of iron ore without lawful papers.


According to the Vietnam Steel Association (VSA), the crude mineral exports from Vietnam to China is actually far exceed any statistics of Vietnam Customs, that makes Vietnam have tax losses of up to 1,700 billion VND per year.


* Raw mineral export ban


It is the consistent policy of the Government, even emphasizing on not promoting resource export. Because minerals are non-renewable resources, we must investigate to know exact reserve of each type of minerals in order to prepare state planning, mining plan to ensure the highest efficiency in all three goals of economy, society and environment.


As the State management agency on minerals, Ministry of Natural Resources and Environment announced that banning export of raw minerals must be performed in a variety of measures. During recent business trips in the mountainous provinces with rich minerals such as Lao Cai, Dien Bien, Lai Chau, the Minister of Natural Resources and Environment, Nguyen Minh Quang, emphasized that Ministry of Natural Resources and Environment would be determined to ban raw mineral export by the strong sanctions, the system of strict legal documents.


Firstly, the resource management according to plan must be done thoroughly. Mining Act 2010 has defined clearly the hierarchy of minerals that Provincial People’s Committees are able to license. It helps to avoid the local issuing licenses uncontrollably, or dividing large mines into smaller mines to license.


Mining Act 2010 has added regulations to implement the policy of “economic reform” in geological – mineral field. Accordingly, it is required to clearly define revenue sources of the State budget from minerals, regulate the valuation of mineral resources; add regulations on auction of exploration – mineral, auction of mining mineral to limit the “ask – give” mechanism, increase the autonomy and accountability of organizations and individuals in the mining, processing and use of natural resources under public ownership. Whereby, the new regulation clause is set on “compensation of mineral resources“…


The regular inspection is a way to limit the loss of resources. Additionally, the ministries should have a close coordination to prevent smuggling, restrict “resources bleeding“.


P.Oanh




Đăng ký: VietNam News

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