Gold mining project in central Vietnam at legal standstill

A gold mining project with an annual designed capacity of 13,800 tons of ore in Vietnam’s central province of Nghe An is on hold due to legal issues.

Thu Do Construction and Trading General JSC, the project’s owner, was licensed for project exploration in 2008 and exploitation in January 1, 2017 by the Ministry of Natural Resources and Environment (MoNRE), a business representative said at a recent meeting aimed at gathering public input for the project.

The 126.71-hectare project, located in Yen Na and Yen Tinh communes, Tuong Duong district, will be exploited over 15 years by some 40 workers.

The business representative stated that the firm was finalizing necessary documents to get an official exploitation permit. It had submitted an environmental impact assessment report to the MoNRE in 2022, but it has yet to be approved.

The company had fully paid its fees for mineral exploitation rights to the ministry, the firm said, pledging to fulfil all tax obligations and put aside a portion of its profits to support local people.

However, at the meeting, all participants, including officials and residents from the two aforementioned communes, disapproved of the project, citing its potential adverse environmental impacts and the risk of social issues.

A representative of the provincial Department of Natural Resources and Environment noted that environmental consultation is an integral of the compilation of an environmental impact assessment report for the project. The department acknowledged public opinion and said it will work with relevant agencies to advise the local People’s Committee on how to deal with the project.

Thu Do Construction and Trading General JSC, founded on December 7, 2004, had a charter capital of VND8 billion ($314,350) as of December 13, 2020. Its chairman cum legal representative is Tran Van Thanh, 46.

Vietnam’s gold reserves as of November last year were worth $660 million, according to market researcher CEIC Data.