MINISTRY OF FINANCE No. 05/1998/TT-BTC	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness
	Hanoi, 09 January 1998

CIRCULAR

GUIDING THE PROCEDURES FOR MAKING AND MANAGING DEPOSITS OR ESCROW DEPOSITS FOR MINERAL EXPLORATION LICENCES

Pursuant to Article 27, Chapter 5 of the Mineral Law of the Socialist Republic of Vietnam;

Pursuant to Article 30, Chapter VI of Decree No. 68-CP dated 01 November 1996 of the Government on the implementation of the Law on Minerals;

The Ministry of Finance hereby guides the procedures for making and managing deposits and escrow deposits for mineral exploration licences as follows:

I. GENERAL PROVISIONS

1. Objects and scope of application: All organisations and individuals granted mineral exploration licences (excluding activities of exploration of oil and gas and other kinds of natural waters, which are regulated by other legal documents) which are valid for 6 months or more, except for organisations and individuals having mineral exploration licences to operate with the State’s direct investment capital, shall make deposits or escrow deposits.

2. An organisation or individual engaged in mineral exploration activities is entitled to opt whether to make deposit at the State Treasury or to make escrow deposit at a bank (the State Bank of Vietnam or a foreign bank licensed to operate in Vietnam).

3. The amount of the deposit or escrow deposit shall be equal to 25% of the estimated cost of exploration of the first year of exploration and shall be made in one instalment before the mineral exploration licence is granted.

4. After 6 months from the effective date of the mineral exploration licence, if the mineral exploration activities are carried out in accordance with the set schedules and plans, the organisations or individuals shall be entitled to have their deposits or escrow deposits refunded.

5.During the deposit period, the deposits or escrow deposits shall be eligible for interests at the rates applicable to demand deposits at the banks or treasuries.

6. The mineral exploration licence granting agency shall be competent to request the payment, refund or remittance of deposits or escrow deposits into the State budget.

II. SPECIFIC PROVISIONS

1. The procedures for making deposits or escrow deposits

- Upon the approval of a mineral exploration project and before granting a mineral exploration licence, the licence granting agency shall notify in writing the project owner who applied for the mineral exploration of the deposit or escrow deposit amount to be made.

- Based on the written request for deposit or escrow deposit issued by the competent agency, the concerned organisation or individual shall make the deposit at the State treasury or the escrow deposit at a bank as proposed by the organisation or individual conducting mineral exploration in the prescribed amount.

- The State treasury or bank concerned shall have to open an account to monitor in details each licence, each organisation or individual and certify the payment of deposits or escrow deposits.

2. The procedures for refunding deposits or escrow deposits

- After 6 months from the effective date of the mineral exploration licence, if the exploration activities are carried out in accordance with the set schedules and plans, the concerned organisations or individuals shall be entitled to have their deposits or escrow deposits refunded. Basing itself on the written permissions issued by the competent agency authorising the refund of deposits or escrow deposits, the concerned State treasuries or banks shall refund the deposits or escrow deposits to such organisations or individuals.

- After 6 months from the effective date of the mineral exploration licence, if the exploration activities have not been carried out, the mineral expiration licence has been withdrawn, the deposit or escrow deposit shall be remitted to the State budget.

- The Ministry of Finance shall authorise the agency competent in granting licences to issue the notice of the remittance of the deposit to the State budget. The concerned State treasury or bank shall base themselves on the notice issued by the competent agency of the remittance to the State budget to carry out the procedures for remitting the deposit or escrow deposit to the State budget.

III. ORGANISATION OF IMPLEMENTATION

This Circular shall take effect 15 days after its signing. Previous regulations contrary to this Circular shall be no more effective.

FOR THE MINISTER OF FINANCE

VICE MINISTER

Le Thi Bang Tam