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Call to halt new mining licences
Official inspectors have petitioned the Government to temporarily stop the granting of licences for mineral exploitation projects in Nghe An Province.
They have also recommended temporary suspension of mineral exploitation at nearly 300 mines where there is evidence that laws are being violated.
The inspectors have urged relevant authorised agencies to take more effective measures against improper exploitation to protect the nation's natural resources.
They have warned that unplanned exploitation of minerals is still taking place at an alarming level in many parts of the country, particularly in the central province of Nghe An.
They found towards the end of last month that mineral exploitation was taking place in a haphazard manner in many localities, resulting in a great wastage of resources and causing serious environmental pollution.
Inspectors said that the unplanned exploitation has resulted in large stockpiles of minerals, forcing localities to find ways to export them, which would also mean accepting lower prices.
Late in 2009, the Ministry of Industry and Trade proposed that the Government allow the export of 400,000 tonnes of iron ore, 84,000 tonnes of magnetite ore, 18,000 tonnes of mangan and 44,000 tonnes of zinc. The ministry's proposal contradicts the Government's current policy that requires localities to reduce and gradually stop the export of unprocessed minerals.
Some officials who did not want to be named revealed that the ministry's proposal was based on pressure from some localities that had large stockpiles that they were struggling to clear, including the provinces of Nghe An, Thai Nguyen and Ha Giang, according to Sai Gon Tiep Thi. The main reason for the haphazard exploitation was that local authorities were rash in granting exploitation licences, the inspectors said.
Rush for resources
The central province of Nghe An typifies the trend. According to the Government inspectorate, over the last seven years, leaders of the provincial People's Committee granted hundreds of exploitation licences that were not in line with the Government's regulations.
In particular, provincial leaders granted 125 licences to 212 companies to exploit minerals in areas where Prime Ministerial approval had not been obtained.
Inspectors also said that Nghe An was yet to have a specific process and legal framework to grant mineral exploitation licences.
Consequently, many enterprises arbitrarily transferred their exploitation rights to their partners. Many companies did not abide by the Government's mineral exploitation regulations, causing a huge waste of resources, serious environmental pollution, and a large number of labour accidents.
In Nghe An, 12 labour accidents took place in mineral exploitation areas in 2008, killing 29 people.
Similar situations prevailed in many other provinces including Bac Kan, Ha Giang, Vinh Phuc and Thai Nguyen.
In 2009, Bac Kan illegally granted licences for the exploitation of minerals at 91 sites. In Ha Giang, 100 enterprises received exploitation licences, while only 22 projects were granted investment licences and only around 10 mines were put into operation.
The chaotic situation in areas between Vinh Phuc and Thai Nguyen prompted the Prime Minster to order the provinces to stop mineral exploitation in these areas.
Inspectors also found violations relating to exports of minerals.
In Nghe An, only four out of 42 enterprises involved in export of white stone and marble were licensed to exploit and process these products.
All 42 exporters did not have sufficient legal backing for their activities, inspectors said.
Independent experts have said that the unplanned mineral exploitation boomed when the Government decided to give the right to grant mineral exploitation licences for some projects to provincial administrations.
Within the last four years, provincial authorities have granted more than 4,000 licences, while central agencies licensed just 100 projects, they noted.
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