Mineral exploration is an important stage for determining the quality, reserves, distribution conditions, and geological characteristics of mineral resources before considering investment in exploitation. Under Vietnamese law, organizations and individuals may not arbitrarily conduct mineral exploration activities but must fall within cases permitted by law and obtain a Mineral Exploration License from the competent authority.
From 1 January 2026, the legal framework on geology and minerals has undergone significant changes pursuant to Law No. 147/2025/QH15, which amends and supplements the Law on Geology and Minerals No. 54/2024/QH15. At the same time, Decree No. 193/2025/ND-CP was amended and supplemented by Decree No. 21/2026/ND-CP, effective from 16 January 2026. These changes directly affect the conditions, competent authorities, and procedures for obtaining a Mineral Exploration License.
1. What is a Mineral Exploration License?
Mineral exploration means activities conducted to determine information on ore bodies, quality, quantity, reserves, geological conditions, and other factors necessary to assess the feasibility of mineral exploitation.
A Mineral Exploration License is a document issued by a competent state authority permitting an organization or individual to conduct exploration of one or more types of minerals within a specified area, surface area, depth, and period.
Under Article 44 of the Law on Geology and Minerals, a Mineral Exploration License must contain key information such as:
- type of mineral;
- location and area of the exploration site;
- exploration methods and volume of exploration work;
- exploration period;
- financial obligations and other relevant obligations;
- responsibilities of the licensed organization or individual.
A Mineral Exploration License should be distinguished from a Mineral Exploitation License. Obtaining an exploration license does not mean that the enterprise is permitted to commercially exploit the mineral resources.
2. Which types of minerals require a Mineral Exploration License?
Under the current legal framework, mineral exploration licensing procedures mainly apply to Group I, Group II, and Group III minerals.
Minerals are currently classified into different groups, including:
- Group I, comprising metallic minerals, energy minerals such as coal, precious stones, semi-precious stones, and industrial minerals not falling within Group II;
- Group II, mainly comprising minerals used as raw materials in the construction materials industry, such as raw materials for cement production, tiles, construction glass, facing stones, ornamental stones, industrial lime, and refractory materials;
- Group III, mainly comprising certain minerals used as common construction materials as prescribed by law;
- Group IV, which is subject to a separate management mechanism mainly associated with surveying, assessing general information on minerals proposed for exploitation, and procedures for exploitation of Group IV minerals.
Law No. 147/2025/QH15 amended the scope of certain mineral groups from 1 January 2026.
Therefore, before carrying out the licensing procedure, enterprises should accurately identify the type and group of mineral, as this serves as the basis for determining the applicable planning, competent authority, conditions, and procedures.
3. Not every party wishing to conduct exploration is automatically entitled to apply for a License
One of the important principles under mineral law is that exploration rights are not granted simply on a “first to file, first to receive” basis.
An organization or individual applying for a Mineral Exploration License must fall within a case eligible for consideration under law, such as:
- an organization or individual that has won an auction for mineral exploitation rights in an area without completed exploration results;
- an organization or individual selected for consideration for licensing in an area not subject to auction of mineral exploitation rights;
- an organization or individual that has participated in geological investigation of minerals and falls within a case permitted by law;
- an organization or individual falling within a special case prescribed by law;
- an investor of a cement production project in respect of a raw material area identified in the relevant planning;
- an organization or individual operating a mineral processing plant and applying for exploration of raw material sources for the plant, provided the applicable conditions are satisfied.
For areas not subject to auction of mineral exploitation rights, where multiple organizations submit applications, the competent state authority must conduct a selection process to determine the organization or individual eligible for consideration for a Mineral Exploration License. Only after being selected may such organization or individual proceed with the licensing procedure.
4. Principles for granting a Mineral Exploration License
Under Article 43 of the Law on Geology and Minerals, the grant of a Mineral Exploration License must comply with the fundamental principles prescribed by law.
As a general rule, the proposed exploration area must not overlap with an area in which another organization or individual is lawfully conducting mineral exploration or exploitation, except in special cases prescribed by law.
The exploration area must also be consistent with the applicable mineral planning or provincial planning, depending on the type of mineral and licensing authority.
From 2026, licensing authority is generally determined as follows:
- Mineral Exploration Licenses for Group I minerals are, in principle, issued by the Minister of Agriculture and Environment;
- Mineral Exploration Licenses for Group II and Group III minerals fall within the authority of the Chairperson of the provincial-level People’s Committee;
- for Group I minerals located in areas containing scattered and small-scale mineral resources that have been delineated and announced by the Minister of Agriculture and Environment, licensing authority belongs to the Chairperson of the provincial-level People’s Committee;
- for marine areas located outside the administrative maritime boundaries of provinces and centrally governed cities, or in marine areas where administrative boundaries have not yet been determined, licensing authority belongs to the Minister of Agriculture and Environment.
This is one of the notable decentralization measures under the mineral legal framework applicable from 2026.
5. Conditions applicable to organizations and individuals applying for the License
5.1. Conditions regarding legal status
Depending on the type of mineral, applicants for a Mineral Exploration License may include:
- enterprises established under the Law on Enterprises;
- cooperatives and cooperative unions;
- foreign enterprises having a representative office or branch in Vietnam where permitted by law;
- in certain cases, household businesses in respect of minerals falling within the scope permitted by law.
The enterprise must have business lines appropriate to mineral activities.
5.2. Conditions regarding financial capacity
Under the current regulations, an organization or individual applying for a Mineral Exploration License must ensure funding equal to 100% of the estimated budget of the mineral exploration project.
Such financial assurance may be provided through one of the following forms:
- owner’s equity;
- bank guarantee;
- a combination of owner’s equity and bank guarantee.
For an organization established before the year in which the application is submitted, owner’s equity is generally determined based on the audited financial statements of the immediately preceding year or audited financial statements prepared in the year of application.
For an organization newly established in the year of application, owner’s equity is determined based on audited financial statements prepared during that year.
Accordingly, an enterprise must demonstrate its ability to secure the entire estimated budget of the exploration project, rather than merely demonstrating a minimum percentage of capital.
5.3. Conditions regarding exploration capability
If the enterprise directly conducts mineral exploration activities, it must satisfy the conditions for providing mineral exploration services as prescribed by law.
If the enterprise does not directly conduct such activities, it must enter into a contract with an organization qualified to provide mineral exploration services to implement the exploration project.
Accordingly, it is necessary to distinguish between:
- the entity granted the mineral exploration right; and
- the organization directly performing the technical exploration activities.
These two entities may be the same if the enterprise itself satisfies all applicable professional and technical requirements.
6. The Mineral Exploration Project is a key document
The Mineral Exploration Project is one of the most important technical documents in the application dossier for a Mineral Exploration License.
The Project should address key matters such as:
- the target and type of mineral to be explored;
- existing geological basis and available documentation;
- exploration objectives;
- exploration methods;
- network and volume of exploration works;
- sampling, analysis, and testing activities;
- requirements for assessment of mineral resources and reserves;
- technical and safety measures;
- organization of implementation;
- estimated budget;
- implementation schedule.
The competent authority must organize an appraisal of the Mineral Exploration Project before deciding whether to issue the License. For complex projects, the competent authority may establish an appraisal council or seek opinions from specialized experts.
Therefore, the Project should not be prepared merely as a formality but must be consistent with the actual geological conditions of the proposed exploration area.
7. Application dossier for a Mineral Exploration License
Under the current regulations, the basic application dossier generally includes:
First, a written application for a Mineral Exploration License.
Second, a map of the mineral exploration area.
Third, the Mineral Exploration Project and accompanying drawings.
Fourth, documents proving financial capacity to implement the Project.
Fifth, a contract with an organization qualified to provide mineral exploration services, where the applicant itself does not have sufficient capacity to directly conduct exploration activities.
In addition, depending on the specific case, the organization or individual may be required to provide further documents regarding legal status and documents proving eligibility for consideration for licensing.
The applicable forms are currently provided under Circular No. 37/2025/TT-BNNMT, as amended and supplemented by Circular No. 04/2026/TT-BNNMT.
8. Receiving authority and licensing authority
For minerals falling within central-level authority, the licensing decision is made by the Minister of Agriculture and Environment.
The specialized authority responsible for receiving and appraising applications is the Vietnam Department of Geology and Minerals for procedures falling within the Ministry’s authority.
For minerals falling within local authority, the licensing decision is made by the Chairperson of the provincial-level People’s Committee.
The specialized advisory and appraisal authority is generally the Department of Agriculture and Environment.
Accordingly, accurately determining the mineral group and exploration area is essential for identifying the proper authority to receive and process the application.
9. Procedure
Step 1. Determine eligibility for licensing consideration
The enterprise must determine whether the proposed exploration area falls within:
- an area subject to auction of mineral exploitation rights;
- an area not subject to auction;
- an area falling within a special case permitted by law;
- or an area in respect of which the enterprise does not yet have a legal basis for licensing consideration.
This is a preliminary step that should be completed before the enterprise incurs significant costs in preparing technical documents.
Step 2. Prepare and submit the application dossier
The organization or individual prepares the application dossier in accordance with applicable regulations and submits it to the competent receiving authority.
For provincial-level procedures currently published, the receiving authority conducts an initial review of the dossier within 03 working days.
Step 3. Appraisal of the dossier and the Mineral Exploration Project
The specialized authority will:
- verify the legal status and eligibility of the applicant;
- assess financial capacity;
- review the proposed exploration area;
- appraise the technical contents of the Project;
- obtain expert opinions or establish an appraisal council where necessary;
- request amendments or supplements where the dossier fails to satisfy the applicable requirements.
For currently published provincial-level procedures, the appraisal period may be up to 70 days from the date of receipt of a dossier satisfying the prescribed requirements.
Step 4. Consideration and decision on licensing
After completion of the appraisal, the specialized authority submits the dossier to the competent person for consideration and decision.
For provincial-level procedures, the currently published period for consideration and decision is 05 working days from the date the dossier is submitted for approval.
If the License is refused, the competent authority must respond in accordance with the law and clearly state the reasons for refusal.
Step 5. Return of results
For provincial-level procedures, the currently published period for returning results is 02 working days from the date the receiving authority obtains the final result.
As procedures differ depending on whether they fall within central or provincial authority and whether the area is subject to auction, enterprises should check the administrative procedure published at the time of submission.
10. Licensing fee
Under the currently applicable fee schedule, the fee for issuance of a Mineral Exploration License is determined according to the size of the exploration area:
- area of less than 100 ha: VND 4,000,000 per License;
- area from 100 ha to 50,000 ha: VND 10,000,000 per License;
- area exceeding 50,000 ha: VND 15,000,000 per License.
This licensing fee should be distinguished from the actual costs incurred in preparing and implementing the Mineral Exploration Project, including:
- preparation of the Project;
- surveying and mapping;
- engagement of consultants;
- drilling, excavation, and sampling;
- sample analysis;
- geological surveys;
- implementation of exploration works;
- preparation of the Mineral Exploration Results Report.
11. How long is a Mineral Exploration License valid?
Under Article 44 of the Law on Geology and Minerals, the exploration period stated in the License includes the period for implementation of the Project and preparation of the Mineral Exploration Results Report.
The ordinary exploration period must not exceed 48 months.
The License may be extended no more than 02 times, with a total extension period not exceeding 24 months.
Where the licensed period expires but the exploration work cannot be completed due to a force majeure event, the matter may be considered under the mechanism prescribed by law.
For exploration of strategic and important minerals conducted under intergovernmental agreements, the exploration period may follow the relevant agreement.
12. Priority right to apply for a Mineral Exploitation License after exploration
Completion of mineral exploration and official recognition of the exploration results grants the organization or individual a priority right to submit an application for a Mineral Exploitation License for the explored area.
From 2026, the priority periods are prescribed as follows:
- 36 months from the date of recognition of exploration results for Group I and Group II minerals;
- 18 months for Group III minerals.
If the priority period expires without the organization submitting a complete application for a Mineral Exploitation License, the priority right may be lost, except where otherwise provided by law.
Accordingly, enterprises should prepare their exploitation investment plans while completing exploration activities rather than waiting until the exploration results have been formally recognized.
13. Obligations of enterprises after obtaining the License
An organization or individual granted a Mineral Exploration License is responsible for:
- fulfilling all financial obligations;
- conducting exploration within the licensed area, scope, depth, methods, work volume, and period;
- implementing the approved Mineral Exploration Project;
- notifying the provincial-level People’s Committee where the exploration area is located of the exploration plan before commencement;
- compensating for damage caused by exploration activities;
- collecting and retaining mineral information;
- preparing and submitting the Mineral Exploration Results Report;
- complying with inspections, examinations, and supervision by competent authorities;
- complying with environmental protection, occupational safety, and other relevant legal requirements.
Obtaining the License is therefore not the end of the legal process. Rather, it establishes a set of ongoing obligations that must be complied with throughout the exploration period.
