VietNamNet Bridge – Nguyen Van Thanh, deputy head of the Industrial Safety Techniques and Environment Agency at the Ministry of Industry and Trade, spoke with Dau Tu (Investment) about investors' environmental responsibilities.

How are investors compelled to ensure the environment at sites where minerals have been exploited reverts to its original state?

Under the existing law, investors must set up a project to ensure the environment reverts to its original state after mining operations are over. They must pay a deposit to the Viet Nam Environmental Protection Fund (under the Ministry of Natural Resources and Environment) or environmental protection funds at cities and provinces where they have mines. The exact amount of the deposit will depend on the details of each mining project.

But the thing is the Ministry of Natural Resources and Environment's current instruction is not specific and isn't applied consistently at different types of mining companies. This is a reason why mining companies are paying deposits at a much lower price when compared with actual spending on reverting the environment to its original state after the mining is over.

How is the cost of ensuring the environment reverts to its original state determined?

The cost depends on the specific situation at each mine. For instance, it depends on how big the mine is and the scale of exploitation at the site. It is very complicated to calculate the cost of reverting the environment to its original state after mining is over. It is also a reason why a common formula for all types of mines is not available.

How much would it cost to ensure the environment is not negatively affected by mining across the country?

The expenses are huge and it is currently impossible to determine an exact figure. In the past, we assigned a consultancy company to calculate the cost, but it stopped after collecting statistics for only some small coal mines in Quang Ninh Province. By then the costs had already run up to nearly VND7 trillion (US$333 million).

Will the Viet Nam Coal and Mineral Industries Group (Vinacomin) or the Government cover the huge expenses?

Vinacomin must pay for it, according to the law. However, there are many cases in which mines have been exploited for hundreds of years, operating before these types of regulations were issued. Many mines currently do not have owners and are no longer in operations, so it is very difficult to specify who the investors are.

Who must cover the expenses in case mines do not have owners?

In my opinion the State must cover the expenses.

How do we determine that investors have completed their obligations in this area? Has the Government completed a standard on the issue?

As far as I know a standard to determine the environment has reverted to its original state has not yet been worked out. But in theory, the work includes restoring native vegetation cover to its original state through planting of trees, which also helps protect the soil from erosion.

Which office is in charge of supervising this and enforcing punishment in case investors do not fulfil their obligations?

It is the responsibility of the Ministry of Natural Resources and Environment to do so with mines which are under its control.

The rest fall under the responsibility of the Natural Resources and Environment Departments at cities and provinces.

VietNamNet/Viet Nam News