On November 28, a company that won the bid for a sand mine in Da Nang City reported that after more than four months of processing procedures, they have yet to receive a mining exploration permit from the authorities. The delay is attributed to regulatory hurdles.
In connection with this issue, on November 14, Mr. Phan Thai Binh, Vice Chairman of the Da Nang City People’s Committee, sent a document to the Ministry of Agriculture and Environment, requesting a review and amendment of certain provisions in the Law on Geology and Mineral Resources and related regulations.
A sand collection point on the Thu Bon River in Da Nang City
The Da Nang City People’s Committee stated that according to clause 10.4 of Appendix III of Circular No. 40/2025/TT-BNNMT dated July 2, 2025, river sand and gravel exploration projects must:
“Establish monitoring stations or collect data on hydro-sediment dynamics, characteristic hydrological regimes by season, current sedimentation rates, and geological hazards, including erosion, subsidence, and riverbank landslides. Develop models to simulate hydrodynamic processes (water levels, flow rates), sediment transport, and river morphology changes (erosion, deposition) caused by mining activities to determine projected sand and gravel accumulation, extraction distances, depths, and sustainable capacities.”
The Da Nang City People’s Committee argues that this regulation is impractical for mountainous and midland areas, where rivers are small, short, and subject to rapid changes in water levels and flow rates. Exploration periods are brief (a few months), and state monitoring stations are virtually non-existent.
“This obstacle has prevented the issuance of exploration permits for five sand and gravel mines that were successfully auctioned. Despite submitting applications, companies cannot meet the specified requirements,” the committee’s document stated.
The Da Nang City People’s Committee has urged the Ministry of Agriculture and Environment to review, adjust, and provide guidance on clause 10.4 of Appendix III of Circular No. 40 to align with practical realities.
Amid a shortage of construction materials and rising prices, several localities in the former Quang Nam Province (now part of Da Nang City) auctioned sand and gravel mines in June.
Notably, three sand mines in the former Dai Loc District were auctioned for over 940 billion VND, despite starting bids of only a few billion VND per mine. A sand mine in the former Duy Xuyen District, with a starting bid of 1.8 billion VND, was auctioned for 138 billion VND.
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