Exploration is the compulsory gateway to every mining project in Vietnam: without exploration results and approved reserves there is no exploitation licence. But an exploration licence is not an unconditional land-banking paper — it is tied to capacity conditions, an approved exploration plan, area caps by mineral group and a term within which fieldwork must be completed. This article sets out the conditions, area and term of exploration licences under the 2024 Geology and Minerals Law, and the price of exploring without finding reserves.
The legal frame of exploration activity
- Governing law today — Law on Geology and Minerals 54/2024/QH15 (adopted 29 November 2024, effective 1 July 2025; Group IV mineral rules effective early from 15 January 2025) replaces Minerals Law 60/2010/QH12. Minerals are classified into four groups (I: metals and precious/strategic minerals; II: industrial; III: construction materials; IV: common filling materials), with licensing levels and conditions varying by group.
- Applicant conditions: appropriate business registration, financial and technical capacity matching the exploration plan, and a professional geology team; the requested area must not lie in a zone prohibited for mineral activities and must conform to the approved mineral planning.
- Area and term are capped by group: an exploration licence states a maximum area for each mineral group and a term sufficient to complete the plan (extendable on conditions); the exact caps and terms sit in implementing instruments current at filing — this article asserts no figure without checking the current guidance, and applicants should verify the decree/circular applying to their mineral group.
- Exploration cost is the investor’s risk: if exploration finds no economic reserves, sunk exploration cost is in principle not reimbursed by the State; the stage’s value lies in the results report and the priority to move to exploitation where reserves are approved.
Obtaining and keeping an exploration licence
- Lock the area first: check the coordinates against mineral planning, prohibited/restricted zone lists and overlapping licences — most files die at this step, not at technical appraisal.
- Build the exploration plan as a performance commitment: work volumes (drilling, trenching, sampling), yearly schedule and matching budget; the licence issues on the plan, and non-performance is a ground for revocation.
- Manage the reserves milestone: on completion, file the results report for reserve approval by the competent authority — the gateway condition to an exploitation licence and a transferable data asset of the project.
An exploration licence buys the investor exactly one thing: the right to learn what is underground, within a fixed term. Whoever treats it as land-banking paper loses it for non-performance; whoever explores seriously ends up holding approved reserves — the mining project’s first real asset.
Frequently asked questions
What conditions apply to a mineral exploration licence?
The applicant needs appropriate business registration, financial and technical capacity and a geology team matching the exploration plan; the area must avoid prohibited zones and conform to mineral planning under Law on Geology and Minerals 54/2024/QH15.
What are the maximum exploration area and term?
Maximum area and term are capped by mineral group (I–IV) and detailed in implementing instruments; verify the rule applying to the specific mineral group at filing time instead of relying on a single general figure.
If exploration finds no reserves, is the cost refunded?
In principle no: exploration cost is the enterprise’s investment risk. In exchange, exploration results and any approved reserves ground the exploitation licence application and form a data asset of the project.
Does an exploration licence convert automatically into mining?
No: the exploring organisation receives priority consideration for an exploitation licence over the explored area once reserves are approved and exploitation conditions are met, but a separate exploitation licence procedure is still required.
This article has been quality-reviewed by the FLAW AI Legal Council