Decision 386/QD-BCT in 2013 approving "Planning for the exploration, exploitation and processing of mica, pyrite, quarzite, quartz, silimanite, sericite, vermiculite minerals in the period to 2020, vision to 2030" issued by the Minister of Industry and Trade

DECISION

APPROVING PLANNING ON EXPLORTION, EXTRACTION AND PROCESSING OF MICA, PYRITE, QUARZITE, QUARTZ, SILIMANITE, SERICITE AND VERMICULITE UP TO 2020, WITH VISIONS TOWARDS 2030

MINISTER OF INDUSTRY AND TRADE

Pursuant to Decree No.95/2012/ND-CP dated November 12, 2012 of the Government on functions, duties, rights and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Law on Mineral No.60/2010/QH12 dated November 17, 2010;

Pursuant to Decree No.92/2006/ND-CP dated September 07, 2006 on preparation, approval and management of total planning on socio-economic development and Decree No.04/2008/ND-CP dated January 11, 2008 on amendments to the former Decree;

Pursuant to Decision No.2427/QD-TTg dated December 22, 2011 of the Prime Minister approving the mineral strategy up to 2020, with visions towards 2030;

Pursuant to Official Dispatch No.10784/VPCP-CN dated December 28, 2012 of the Government’s Office notifying the Prime Minister's opinions on approval for the Planning on exploration, extraction and processing of mica, pyrite, quartzite, quartz, silimanite, sericite and vermiculite up to 2020, with visions towards 2030 by the Minister of Industry and Trade as authorized; 

At the request of Director General of Department of Heavy Industry,

HEREBY DECIDES:

Article 1. Approving the planning on exploration, extraction and processing of mica, pyrite, quartzite, quartz, silimanite, sericite and vermiculite (hereinafter referred to as "industrial minerals") up to 2020, with visions towards 2030 with the following information:

I. Development viewpoints

1. Develop exploration, extraction and processing of industrial minerals in consistent with the mineral strategy up to 2020, with visions towards 2030 approved by the Prime Minister in Decision No.2427/QD-TTg dated December 22, 2011 and the planning on socio-economic and industrial development and requirements for strengthening national defense and security and protecting local authorities with mines.

2. Develop exploration, extraction and processing of industrial minerals in a sustainable manner in conjunction with advanced industry, ensure socio-economic efficiency and environmental protection; and that the processed products have a high economic value and meet domestic demand and parts of which are exported logically.

3. Ensure that exploration and extraction of industrial minerals are in connection with intensive processing or meet the demand for raw materials for domestic production purpose and suitable for the mine's size and ore quality and no unprocessed products are allowed for export.

4. As for pyrite: No exploration, extraction and processing planning up to 2030 is permitted if it fails to ensure socio-economic efficiency and environmental protection.

5. As for mica and silimanite: Exploration, extraction and processing must be balanced and in conjunction with extraction of mica and silimanite attached to the mines of kaolinite, feldspar and graphite with the aim of efficient extraction and economy use of natural resources.

6. As for quartzite and quartz: Extraction and processing shall be associated to the market demand and supply demand of metallurgy facilities, facilities producing phosphate fertilizer, glass or paving materials and take the most advantage of the waste used as building materials for economy use of natural resources and environmental protection.

7. As for vermiculite: Explore, extract and processing mines with potential for extraction at industrial scale in order to meet the domestic using demand, not for export.

8. As for sericite: Complete the investment in extraction and processing of sericite mine in Son Binh, Ha Tinh province to meet the requirements for socio-economic efficiency and environmental protection by applying advanced technologies for the purpose of creating products that satisfy domestic use demand and are only permitted for export if any unused product is available.

II. Development objectives

1. General objective: Extract and process industrial minerals meeting the increasing domestic demand and providing products for export in a logical manner in order to contribute to socio-economic development in areas with mineral mines.

2. Specific objectives:

The objectives of exploration, extraction and processing of industrial minerals shall be described as follows:

a) In terms of exploration

b) In terms of extraction and processing

III. Development planning

1. Scope of use

- Domestic mica is mainly used for production of electric welding rod, ceramics, paints, electrical insulating plates and cosmetics.

- Pyrite is used mainly for processing to collect sulfur for production of sulfuric acid, ammonium sulfate and a partly for vulcanization of rubber.

- Quartzite is mainly used for production of fire-resistant dinas bricks, blast furnace flux and glass.

- Quartz rocks are mainly used for production of ceramics and artificial quartz stones. Small amount of high-quality quartz is used for house decoration, decoration of watch and jewelry and production of quartz chips for electronic industry (mainly is quartz crystal).

- Silimanite is used mainly for production of fore-resistant bricks (over 90%) and partly in ceramic, chemical and casting industry. However, there exists no silimanite extracting and processing facility in Vietnam at the moment and there is a little demand for silimanite.

- Sericite is used for production of ceramics, paint additives, polymer and cosmetics.

- Vermiculite is a good heat and noise-resistant material and is used mainly for production of fire-resistant materials, fertilizers or used as materials for land reform or desiccant or active agents for production of heat-resistant paints. However, the domestic use of vermiculite is still limited, mainly used as desiccant.

2. Demand for mineral products

* Fail to define the silimanite amount used for producing highly fire-resistant materials of alluminium due to multiple alternative materials.

** Little demand, fail to determine the sericite amount due to multiple alternative materials

3. Mica exploration, extraction and processing planning

a) Exploration planning

- Up to 2015:

+ Explore the mine of mica-feldspar in Lang Tot-Ca Nong (Quang Ngai) with predicted reserve at level 121 and 122 of about 20.000 tonnes of mica.

+ Explore the Khau Lau mica mine (Ha Giang) with predicted reserve at level 121 and 122 of about 96.000 tonnes.

- After 2015: Carry out additional exploration in order to enrich the mineral reserve and explore and extract mines put into extraction.

b) Extraction and processing planning

- Up to 2015:

+ Invest in restoration and extraction of Son Mang and Lang Muc mica mines (kaolinite and feldspar) in Lao Cai and invest in development of technology for fine crushing and mica sorting. The extraction and sorting capacity in each mine is expected to be 150 tonnes of mica powder/year.

+ Invest in extraction of Khau Lau mica mine (Ha Giang) with the capacity of 5.000 tonnes of crystal and types of mica powder/year.

- During 2016-2020:

+ Maintain the capacity of existing mines and processing facilities;

+ Make new investment in extraction and processing of mica-feldspar of Lang Tot-Ca Nong mine (Quang Ngai) with the capacity of about 1.000 tonnes of types of mica powder/year.

- During 2021-2030: Maintain the capacity of extracting and processing facilities in operation.

4. Pyrite exploration, extraction and processing planning

No additional exploration and extraction is carried out from now to 2030 due to non-competitive technology, environment and processed products. Mines and mine spots that have been explored and have their reserves assessed will be added into the list of national mineral reserve areas.

5. Quartzite exploration, extraction and processing planning

a) Exploration planning

- Up to 2015:

+ Explore and expand Lang Lai quartzite mine (Thai Nguyen) in order to maintain the capacity and reserve at level 121 and 122 of about 41,5 million tonnes.

+ Explore Khe Dam quartzite mine (Phu Tho) with the predicted reserve at level 121 and 122 of about 2 million tonnes.

+Explore Xuan Hong quartzite mine (Ha Tinh) with predicted reserve at level 121 and 122 of about 4 million tonnes.

+ Explore Sa Nghia quartzite mine (Kon Tum) – the area permitted for exploration by the Prime Minister.

+ Explore mines and mine spots licensed for extraction but not explored such as Lang Chang, Ban Giang and Minh Ha (Bac Ha, Lao Cai), Huong Phong (A Luoi, Thua Thien-Hue) mine.

- During 2016-2020:

Explore to enrich the quartzite reserves of Don Vang mine in Giap Ha and Dong Co (Phu Tho).

b) Extraction and processing planning

- Up to 2015:

+ Maintain the capacity of mines and mine spots under extraction as specified in the license for mineral extraction issued by the competent authority for the purpose of meeting local demand for industrial production.

+ Make new investment in extraction and processing of Khe Dam mine (Phu Tho).

Strive to achieve the capacity of quartzite extraction of about 260-300 thousand m3 by 2015.

- During 2016-2020:

+ Make new investment in extraction and processing of Xuan Hong quartzite mine (Ha Tinh) with the capacity of 100.000 m3/year; Lang Ngam-Lang Nganh mine (Hoa Binh) with the capacity of about 20.000 m3/year and Ban Bo mine (Thanh Hoa) with the capacity of 100.000 m3/year.

+ Invest in extraction and processing of quartzite of Ngoc Kon Kring, Bo Y or Plei Kyong mine in Kon Tum province.

- During 2021-2030:

Make new investment in extraction and exploration of quartzite of Don Vang mine in Giap Ha and Dong Co with the capacity of 150.000 m3/year.

6. Quartz exploration, extraction and processing planning

a) Exploration planning

- Up to 2015:

+Explore quartz mine spot in Ban Mu-Lang Nhi in Tram Tau district, Yen Bai province with total predicted reserve at level 121 and 122 of around 3,8 million tonnes.

+Explore quartz Nam Bung and Gia Hoi commune, Van Chan district, Yen Bai province with total predicted reserve at level 121 and 122 of around 5,2 million tonnes.

+ Explore quartz in Nui Da in Le Loc Binh village, Thanh Dong commune, Tay Tuy Hoa district, Phu Yen province and Ha Dom quartz distributed in Xuan Tho 1 commune, Song Cau district-level town and Xuan Son Bac commune, Dong Xuan district, Phu Yen province with total predicted reserve at level 121 and 122 of about 2 million tonnes.

+Explore quartz in An Huu, An Phong and An Duc commune, Hoai An district, Binh Dinh province with total predicted reserve at level 121 and 122 of around 0,5 million tonnes.

- After 2016-2020: Carry out additional exploration in order to enrich the mineral reserves and explore and extract active mines.

b) Extraction and processing planning

- Up to 2015:

+ Maintain the capacity of active quartz mines licensed for extraction.

+ Make new investment in the project on construction of the silicon metal producing facility in Nhon Hoi industrial park, Quy Nhon city, Binh Dinh province with the capacity at stage 1 of 1.600 tonnes/year.

- During 2016-2020:

+ Make new investment in projects on extraction and processing of quartz mines in Ban Mu and Lang Nhi commune, Tram Tau district, Yen Bai province with the capacity of quartz rock, grain and powder production of about 200.000 tonnes/year and mines in Nam Bung and Gia Hoi in Van Chan district, Yen Bai province with the capacity of around 250.000 tonnes/year.

+ Make new investment in projects on extraction and processing of quartz mines in An Huu, An Phong and An Duc commune, Hoai An district, Binh Dinh province or in Nui Da, Thanh Dong commune, Tay Tuy Hoa district and Ha Dom, Xuan Tho 1 commune, Song Cau district-level town and Xuan Son Bac, Dong Xuan district, Phu Yen province with the capacity of about 50.000 tonnes/year.

+ Invest in stage II-expansion of the silicon metal producing facility in Nhon Hoi industrial park, Quy Nhon city, Binh Dinh province to increase its capacity to 12.000 tonnes/year.

- During 2021-2030: Maintain the output of active mines and the silicon metal producing facility in Nhon Hoi industrial park.

7. Silimanite exploration, extraction and processing planning

No investment in exploration and extraction of silimanite mines/mine spots is made if no result of assessment of independent mines shows that such mines have the potential to attract investment in technology, extraction and sorting for the purpose of collecting all silimanite attached to other mineral mines like Hung Nhuong graphite mine in Quang Ngai

8. Sericite exploration, extraction and processing planning

a) Exploration planning

The investigation result shows that there is no mine with industrial value other than Son Binh mine in Ha Tinh province; therefore, no sericite exploration planning is set up until 2020.

b) Extraction and processing planning

Up to 2015:

Invest in construction of Son Binh sorted sericite mine in Ha Tinh province with a capacity of 42.000 tonnes of crude ore/year equivalent to 16.082 tonnes of powder/year (6.615 of which is Type I powder) for domestic demand and export.

- After 2015: Strive to reach the designed capacity of Son Binh mine and continue to maintain such capacity and made no investment in new mines.  

9. Vermiculite exploration, extraction and processing planning

a) Exploration planning

Up to 2015:Explore Son Thuy vermiculite mine in Son Thuy, Chieng Ken and Tan Thuong commune, Van Ban district, Lao Cai province if the basic investigation result shows that such mine has the potential for extraction.

b) Extraction and processing planning

- Up to 2015: No available planning

- During 2016-2020: If the exploration result shows that Son Thuy vermiculite mine has the potential for extraction, investment in extraction at an appropriate scale may be made in order to meet the domestic market demand, not for export.

Reserves of industrial minerals can be found in Appendix 01 and the list of exploration and extraction planning up to 2020 is specified in Appendix 02 issued thereto.

IV. Investment capital

1. Investment capital demand: Total investment capital required for exploration, extraction and processing of industrial minerals up to 2020 is estimated at about VND 896 billion.

Where, VND 106 billion is spent on exploration; VND 495 billion for ore exploration and sorting and VND 295 billion for intensive processing.

2. The funding is sourced from capital of domestic enterprises in which the enterprise's equity accounts for 20%-30%; 30%-40% of which is State's loans granted to investment projects in the areas with poor and seriously poor economic conditions as regulated and 35-40% is commercial loans from domestic and foreign credit institutions.

More details can be found in Appendix 3 issued thereto.

V. Solutions and policies for planning implementation

1. Solutions

- Enhance natural resources management and inspection of local and central activities related to mica, pyrite, quartzite, quartz, silimanite, sericite and vermiculite (including attached products collected from exploration and processing of other minerals such as kaolinite, feldspar and graphite);

- Promote research and domestic and foreign cooperation in research on intensive processing and renovation of sorting technology (high-quality mineral sorting or chemical sorting)  in order to create high-quality products used in cosmetic or medicine industry and/or other new products, especially focus on collection of mica, quartz, sericite and vermiculite attached to other mines for the purposes of enhancing the efficiency in product use and increasing the rate of natural resources extraction;

- Issue specific requirements and conditions for target technology, quality and specifications of the products processed from industrial minerals;

- Conduct environmental monitoring in closed pyrite mines/mine spots; assess the results of return of environment’s natural state after extraction and work out solutions for dealing with the consequences of arsenic contamination for health of people living in and around the extracted area.

- Perform zoning and grant approval for restricted areas, temporarily restricted areas and mineral reserve areas serving management and protection of natural resources; tighten inspection and control of mineral areas not licensed for performing mineral-related activities, timely prevent illegal extraction, processing and export.

2. Policies on planning implementation

Issue policies on promotion of research on and cooperation in transfer of technology for investment in intensive processing of industrial minerals; maximize the capacity for extracting attached minerals from extraction and processing of other minerals.

Article 2. Implementation

1. The Ministry of Industry and Trade shall:

- take charge and cooperate with other ministries and local government authorities in checking implementation of projects on industrial mineral extraction and processing according to the planning;

- periodically update additional information and propose adjustments to the planning according to the reality;

- provide guidelines for development of intensive processing investment by using advanced technology, ensure protection of environment of independent industrial mineral mines and industrial mineral mines attached by other minerals for the purpose of extracting natural resources as many as possible.

2. The Ministry of Natural Resources and Environment shall:

- take charge of conducting basic investigation of mica, quartzite, quartz, silimanite, sericite and vermiculite in potential areas in order to include such areas in the planning;

- Send the proposal of national pyrite reserve areas; areas with small and divided amount of minerals under local management to the Prime Minister for approval purpose;

- provide guidelines for environmental monitoring and control of environmental restoration projects after closing pyrite mines.

3. The Ministry of Science and Technology shall run the applied research program for products created by intensive processing of industrial minerals, supervise and assess transfer of technology for intensive processing of industrial minerals.

4. People's Committees of provinces and centrally-affiliated cities shall:

- Check and supervise investment in projects on exploration, extraction and processing of industrial minerals according to the local planning;

- Intensify protection of natural resources in the areas of industrial minerals not licensed for exploration and extraction, national reserve areas and timely prevent illegal extraction and export. 

Article 3. This Decision comes into force the on which it is signed.

Article 4. Ministries, ministerial agencies, Governmental agencies, People’s Committees of provinces and centrally-affiliated cities and relevant agencies shall take responsibility to implement this Decision./.

APPENDIX 01

SUMMARY OF NATURAL RESOURCES AND RESERVES
(Issued together with Decision No.386/QD-BCT dated January 18, 2013 of the Minister of Industry and Trade)

Note: Those marked with (*) are determined according to new reserve classification.

APPENDIX 02

LIST OF NEW INVESTMENT PROJECTS UP TO 2020
(Issued together with Decision No.386/QD-BCT dated January 18, 2013 of the Minister of Industry and Trade)

I. Exploration projects

II. Extraction and processing projects

III. Intensive processing projects

APPENDIX 03

SUMMARY OF INVESTMENT CAPITAL
(Issued together with Decision No.386/QD-BCT dated January 18, 2013 of the Ministry of Industry and Trade)

Calculation unit: billion VND

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