All 35 samples related to 44,000 tonnes of bauxite ores of Bao Nguyen Trading Joint Stock Company (Bao Nguyen Company) havebeen determinedby the Vietnam Institute of Geosciences and Mineral Resources (Ministry of Natural Resources and Environment) as rawbauxite ore.

The ore samples in the shipment of Bao Nguyen Company have many different sizes

The case of more than 44,000 tonnes of bauxite ore of Bao Nguyen Company is attracting public attention.

To handle the case carefully and objectively and not cause difficulties for the company but not omit violations, the GDVC’ Anti-Smuggling and Investigation Department has sent all the samples to the Vietnam Institute of Geosciences and Mineral Resources for verification.

On September 15, the Anti-Smuggling and Investigation Department worked with the Vietnam Institute of Geosciences and Mineral Resources on the verification results forthese samples. At the working session, the Vietnam Institute of Geosciences and Mineral Resources provided information, documents, and a basis to conclude that 35 samples of bauxite ores are raw ores.

Specifically, the Vietnam Institute of Geosciences and Mineral Resources has worked with Geological Test and Analyse Center under the General Department of Geology and Minerals of Vietnam (Vilas No.: 032) to analyse samples according to threemethods: Mineral analysis method, Ronghen analysis and chemical analysis.

Analysis under the electron microscope shows the structure of the ore are still preserved and the minerals are often impregnated and dyed with dense clay and iron hydroxide on the surface.

The results of mineral analysis and Ronghen analysis show all samples not only contain typical minerals of bauxite such as diaspor, gipxite but also contain many other minerals with high content, especially mineral group of clay, quartz and feldspar.

Chemical analysis results showed the average Al2O3 content is 48.7%. This content is lower or equivalent to the average content of the raw bauxite ore of the north of Vietnam as diaspor bauxite of the late Perminan age, which usually reaches 50-61% in the world. This is in accordance with the investment certificate showing the quality of raw bauxite ore at the Leo Cao mine of Bao Nguyen Company, when it is unprocessed, it has an AL2O3 content of 48.61-52. 59%.

On the other hand, the samples have tree roots and are in the form of chips and lumps with different sizes from the small size such as clay, powder andgrit to block of more than 20 cm with clay. On the surface of the blocks and chips are covered with clay minerals.

The Vietnam Institute of Geosciences and Mineral Resources said that this is raw bauxite ore.

For test result sheet No. 19V02kk4551 dated October 18, 2019 issued by Vinacontrol and the sample taken by Bao Nguyen Company without the witness of the Customs authority, the sampling did not comply with provisions in Clause 1, Article 5 of Circular 41/2012/TT-BCT (amended and supplemented in Clause 3 andArticle 1 of Circular 12/2016/TT-BCT), so it is not valid for carrying out customs procedures for the above exported goods.

With the test result of the export shipment raw bauxite ore, the export shipment of Bao Nguyen Company has HS code 2606.00.00.10 and export tax rate of 30% instead of HS code 2606000090 and an export tax rate of 20% (payable tax is VND 2,040,948,000) as declared by the company.

Notably, Directive No.03/CT-TTg dated March 30, 2015 of the Prime Minister on the enhancement of the effect of the legislation on minerals states “the exportation of raw minerals shall be prohibited”.

Document 2017 issued by the Ministry of Industry (now as the Ministry of Industry and Trade) quoted by Bao Nguyen Company to respond to the Customs authority to distinguish ores and concentrates according to Circular No.02/2006/TT- BC is an invalid document. Currently, as per Circular No. 41/2012 / TT-BCT dated December 21, 2012 of the Ministry of Industry and Trade (amended and supplemented in Circular No.12/2016/ TT-BCT dated July 5, 2016), itemsprocessed from bauxite ores, they must meet the quality standards for aluminum hydroxide - Al (OH) 3 as AL2O3> = 64%; Alumin as AL2O3> = 98%.

Therefore, non-allowance of customs clearance and temporary seizure of shipment by the Customs is in accordance with the law.

Customs Newspaper will continue to update the results of investigation, verification and settlement by the Anti-Smuggling and Investigation Department for the violation involving more than 44,000 tonnes of ore of Bao Nguyen Company to readers.