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Hanoi reviews auction process for 3 sand mines at hundreds of times higher than starting price

VietNamNetVietNamNet15/11/2023


In response to the Prime Minister's request, the Hanoi People's Committee has assigned the Department of Natural Resources and Environment and other departments to immediately review the entire process of surveying, assessing mine reserves, preparing documents and organizing auctions for the exploitation rights of three sand mines: Chau Son mine (Ba Vi district), Lien Mac mine (Bac Tu Liem district) and Tay Dang - Minh Chau mine (Ba Vi district).

Hanoi City requested the Department of Natural Resources and Environment and other departments to review the auction process of the above sand mines to ensure strictness and compliance with legal regulations. Relevant units must report to the Hanoi People's Committee the results of the review of these three sand mines before November 17.

The Department of Natural Resources and Environment is responsible for checking and reviewing all sand mining licenses issued in the city that have expired, reporting on the current status, legal basis, and implementation of environmental protection measures in mineral exploitation activities.

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Customers auction the right to exploit Chau Son sand mine (Ba Vi district). Photo: HNM

In addition, Hanoi City also assigned the Department of Natural Resources and Environment to review financial obligations regarding land, environment, and minerals; and close mines according to regulations.

Based on the review, the Department of Natural Resources and Environment is also assigned to propose a plan to exploit mines with remaining reserves but whose deadline has expired according to regulations.

For sand mines that have not yet expired, the Hanoi People's Committee assigned the Department of Natural Resources and Environment to inspect and strictly handle violations.

Hanoi also assigned the City Police and People's Committees of districts to inspect and strictly handle illegal sand and mineral exploitation.

Previously, the auction of the three sand mines mentioned above took place on November 5 and raised nearly 1,700 billion VND. The winning amount was hundreds of times higher than the starting price.

Specifically, Chau Son sand mine (Ba Vi district) has an exploitable reserve of more than 700,000 m3, with a starting price of nearly 2.9 billion VND. After 89 rounds of auction, the winning bidder earned nearly 400 billion VND, more than 137 times the starting price.

The company that won the auction for the right to exploit Chau Son sand mine is Viet Son Investment and Trade Joint Stock Company. According to the business registration, this company is headquartered in Nam Vo Cuong urban area, Bac Ninh city (Bac Ninh province).

Lien Mac sand mine (Bac Tu Liem district) has a reserve of nearly 500,000 m3, starting price of 2 billion VND, with 28 qualified organizations participating. After 53 rounds, a business won the mining rights with a price of 408 billion VND, 204 times higher than the starting price.

Tay Dang - Minh Chau mine (Ba Vi district) with a reserve of 4.9 million m3 of sand, starting price of over 19 billion VND, was auctioned by 16 organizations. After 21 rounds, TN&MT determined the investor who won the mining rights with a winning price of over 880 billion VND, 46 times higher than the starting price.

One week after the businesses won the auction for the three sand mines, the Prime Minister issued a telegram directing Hanoi City to review the process of surveying, assessing reserves, preparing documents, and organizing auctions to grant sand mining rights.

The telegram stated that the auction results for the right to exploit the three sand mines were "many times higher than the starting price, with unusual factors". The public is particularly interested in this auction result and it could create an effect on the construction materials market.

Therefore, the Prime Minister requested a review of the entire auction process, not allowing organizations and individuals to take advantage of loopholes in management to profit, cause loss, waste, or group interests.

Violations in the auction of three sand mines must be detected early and handled. "Prevent acts of taking advantage of auctions to push up prices and disrupt the market," the Prime Minister directed and requested Hanoi to report before November 20.

Prime Minister asks Hanoi to review unusually high sand mine auction price

Prime Minister asks Hanoi to review unusually high sand mine auction price

The Prime Minister requested the Chairman of the Hanoi People's Committee to immediately review the auction for the right to exploit three sand mines with results many times higher than the starting price.



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