Overview of Vietnam mining industry

Mining industry Vietnam is formed from the late 19th century by the French initiative. In 1955, Vietnam started to manage, maintain and develop the base extraction and processing of minerals. So far, Vietnam has carried out baseline surveys, exploration and discovery of new mineral deposits on 5,000 points. In particular, a number of valuable minerals industry has been rated as the oil - gas (1.2 billion - 1.7 billion m3), coal (240 billion tons), iron (2 billion tons), copper (1 million tons of metal), titanium (600 million tons of heavy minerals), bauxite (10 billion tons), lead, zinc, tin, apatite (2 billion tons), rare (11 million tons) and mineral materials construction (52 billion m3) ( Le Dang Doanh, 2014, Nguyen Manh Quan, 2014) .

However, the vast continental shelf over 1 million km2, the exploration and exploitation of mineral resources in the sea is limited, mainly due to capacity issues and marine geological exploration investment. In the above minerals, except minerals such as oil, gas, coal, iron, titanium apatite were relatively basic exploration and sure; the remaining metallic minerals and non-ferrous metals including precious minerals exploration newly-level baseline survey (search).

Before investing operators, enterprises must conduct additional exploration to limit risk ( Nguyen Manh Quan 2014).

Most of Vietnam's mineral reserves do not have large zones and distributed in scattered, and unfocused areas. Oil and gas reserves in Vietnam are not much. With the current speed of mining output, Vietnam's oil and gas resources will run out within the next three decades if there are no new reserves discovered. When the oil and gas in the mainland are exhausted, Vietnam will have to import coal from

abroad to ensure domestic demand. Fortunately, coal reserves in the Red River Delta according to calculations can be several hundred billion tons.

However, the extraction of coal from deep below the required technology is complex, there is currently no satisfactory solution for both underground mining, both protect rice fields. Without appropriate technology, the operators will greatly affect the environment and social security. Uranium and geothermal potential in Vietnam negligible. For other essential minerals such as gold or diamonds, Vietnam has very little or none. Some minerals such as bauxite Vietnam has many, rare earths, titanium ore, the world has more to ensure consumers hundreds of years and longer.

For a number of important minerals and has great potential, the Government has allocated to a number of state enterprises assumed a pivotal role in exploiting the model economy socialist orientation. Specifically, mining and processing of oil and gas delivery Vietnam Oil and Gas Corporation; mining and processing of coal and other minerals assigned to Coal-Mineral Vietnam (Vinacomin); mining and mineral processing chemicals (apatite) primarily assigned to Vietnam Chemical Corporation; mining and processing of iron ore mainly from Vietnam Steel Corporation and Vinacomin done; extraction and processing of building materials mainly assigned to the Corporation of Vietnam Cement and construction businesses, transportation performed (mineral industry of building materials by the Ministry of Construction Management).

In addition, there are many private enterprises and joint-stock company engaged mining and processing mineral mines in smaller localities. The total number of mining companies (including construction materials) so far about 2,500 now.

Besides, there exist hundreds of thousands of grassroots illegal operators compete with each other.

Dr. Nguyen Khac Vinh² - President of the Geological Association of Vietnam said, summarizing 13 years of implementation of the Law on Minerals (1996-2009) and the fact that extraction of mineral resources and mineral rampant held in many places was not only a great loss of resources but also adversely affect the infrastructure, severely degrade the system of roads, bridges, destroy habitats, many evils arise the local society where the mine.

Labor accidents in mining, particularly in underground mining and quarrying, occur frequently with a high casualty rate. This represents a low level of development and management very loosely in this field. In 13 years, the central level has issued 353 permits for mining and local levels to 3822 levels mining license. Many minerals such as copper, lead, zinc, antimony, coal or crude exported to foreign quota significant loss and depletion of mineral resources of the country.

Results of recent studies by experts Institute of Development Consultants and the Center for Human Nature also demonstrated that, although the Law on Minerals restrictions on mining exports crude product but most of the mining enterprises of Vietnam today want quick profits should only focus on mining and ore exports in the ore.

Therefore, the value and low efficiency, is not commensurate with the value of mineral resources, as well as causing a huge waste of resources because no significant advantage other mineral products come. Many small-scale mining operators only get the parts richest reserves, leaving the entire poor ore and associated minerals, leading to waste of resources due to the low level of mechanization of mining technology and backward.

More worryingly, the exploitation in the form of "eating away" and cause major losses in mineral processing. Reality resource loss in the extraction process was at a high level, especially in the mines and the mines managed by local authorities. For

2 Dr. Nguyen Khac Vinh - President of the Geological Association of Vietnam, Interview by author on March, 2015  

example, in gold mining, the recovery of gold ore processing (total return) is only about 30-40%, ie about half the emissions into the environment. A survey of research on mining loss and damage extent that the apatite mining la26-43%; Metal ore mining is 15-30%, construction materials is 15-20% ( Nguyen Manh Quan 2014).

Dr. Luu Duc Hai³, Faculty of Environment, University of Natural Sciences - VNU said that the current shortcomings in the processing of minerals in Vietnam are very few businesses are interested in the products and substances Waste can be recovered during mineral processing, wasting the resources of the country. In some cases, the value of solid waste, liquid removed from the ore processing line with economic value, underused.

In fact, the chromite ore in fixed tissue (Thanh Hoa), a large amount of clay minerals are excreted with the mineral composition is mainly nontronit the value used as the drilling fluid. The slow development of industrial processed into finished products with high added value is a major shortcoming led to last for a long time our country was "bleeding ore", production of crude ore, mainly to China.

The most important thing is the lack of transparency about the exact reserves of mineral deposits of each point can be exploited to the full exploitation of the licensing process, creating asymmetric information in serious business relationship with the licensing authority. There have now suffered significant because geological data unreliable. Minerals Act 2010, although has been added, modified, but still no regulations on the valuation of minerals, petroleum pricing.

In summary, the mining industry of Vietnam exist many shortcomings. The issue of transparency and accountability should be enhanced to more effectively manage the mineral resources of the country. To do this, first of all, the government should assign a civil society organization independent building report on the status of mining and mineral management in Vietnam with recommendations for reform in a

3 Interview by author on March, 2015  

proper route including the amendments and supplements Minerals Act, regulation by decentralization of mining licenses and mineral management ... In addition, the government must soon decide to join Transparency Initiative in the mining industry (EITI) and the full implementation of standards and regulations in the EITI.