VietNamNet Bridge – According to the Government Inspectorate, the suspension of quarries in Ba Ria – Vung Tau, for a long time has caused millions of USD of losses for Vietnam.

 

Conflicts in stone mining in the southern province of Ba Ria – Vung Tau, between investors and the state-owned Vinaconex Mineral Company have existed for over ten years. Consequently, quarries there have been closed for a long time, causing great losses for the state, society, miners and thousands of workers.

 

According to VietNamNet’s investigation; during the 1996-1998 period, the Ba Ria – Vung Tau Mineral Company, which was renamed as Vinaconex Mineral Company, a subsidiary of the State Capital Investment Corporation (SCIC), was permitted by the Ministry of Industry to mine five quarries in Ba Ria- Vung Tau. These quarries include three construction stone and two Puzzolan stone mines, totaling 150 hectares.

 

The capital to explore the five quarries is VND55.78 billion (around $7 million), according to a decision of the local authorities. According to the Mining Law, to get a mining license, a mining company must have legal capital that is equivalent to at least 30 percent of the exploration capital. In this case, the Vinaconex Mineral Company must have VND16.7 billion of legal capital. However, the firm still got the mining license though it did not have enough legal capital.

 

In lacking capital, this company had to sign business cooperation contracts with seven private companies to mine five quarries.

 

Under these contracts, the Vinaconex Mineral Company is only responsible to get licenses, drill and set off mines but it earns up to 12-17 percent of turnover. To earn the remaining turnover, partners have to invest in exploration and mining activities.

 

In 2000, conflicts between the Vinaconex Mineral Company and its partners boomed. Partners complained that they could not pay for Vinaconex in time, due to difficulties in selling products. Vinaconex, therefore, did not drill and explode mines, resulting in production standstill. Quarries had to close.

 

Vinaconex’s partners petitioned the government in 2001. The Government Office has several times informed the Prime Minister’s instruction to equitize Vinaconex, but this company has not implemented the instruction.

 

According to the Government Inspectorate, five quarries in Ba Ria – Vung Tau has closed for many years, causing heavy losses, because the Ministry of Industry (now the Ministry of Industry and Trade) violated the Mining Law in granting mining licenses to Vinaconex, and Vinaconex does not perform equitization under the Prime Minister’s instruction.

 

Deputy Prime Minister, Truong Vinh Trong has asked relevant agencies to put an end to this case and report the result to the government by June 2011.

 

Trung Thanh