Vietnam stops licensing new mining projects

With little economic effectiveness gained from the large number of mining projects around the country, the Vietnamese Prime Minister has ordered ministries and localities nationwide to temporarily stop licensing new projects since August 30, 2011.
The decision was the government’s effort to curb the disorderly state in the mining sector on a national scale, which has resulted in negative consequences for social development as well as the environment.

Pham Quang Tu, an official from the Vietnam Union of Science and Technology Associations, told Tuoi Tre newspaper that experts and media reports have been raising alarms over the issue but the government has yet to have any solution.

He said since the Mineral Law 2005 allowed localities to approve mining projects, 4,000 licenses have been granted within only five years.

The licensing had boomed since most localities believed that the extractive industry would increase their budgets and contribute to local economic development, he said.

In fact, since most of the minerals exploited were exported as raw materials, their contribution to the local budgets was inconsiderable. Instead, the mining projects have left the localities burdened with serious environmental problems.

The government also had a loose control and management over the mining industry, he added.

“The government didn’t monitor the extractive businesses’ operation after granting them licenses…Hence, we do not know how much they had exploited or exported.”

He urged the government to review all of the mining projects around the country to eliminate those making no economic effectiveness but causing harm to the environment.

The government should also complete the legal documents regarding the extractive industry and develop a proper plan and strategy for the mining projects before re-allowing the licensing process, he advised. – Tuoi Tre

Tags: Vietnam mining industry