Explor Mining Geol., Vol 12, Nos 1-4, pp 61-70, 2003 © 2004 Canadian Institute of Mining, Metallurgy and Petroleum All rights reserved Printed in Canada 0964-1823/00 $17.00 + 00 The Nui Phao Tungsten-Fluorite-Copper-Gold-Bismuth Deposit, Northern Vietnam: An Opportunity for Sustainable Development J.P RICHARDS Department of Earth and Atmospheric Sciences University of Alberta Edmonton, Alberta, Canada T6G 2E3 T DANG, S.F DUDKA Tiberon Minerals Ltd Hanoi, Vietnam M.L WONG Knight Piesold Ltd Vancouver, British Columbia, Canada V6C 2T8 Received December 3, 2002; accepted March 3, 2004 Abstract — The Nui Phao W-F-Cu-Au-Bi deposit is located in one of the poorest regions of northern Vietnam The deposit is currently undergoing a pre-feasibility study by Tiberon Minerals Ltd., with a view to developing what would be the largest WO3 mine and one of the five largest fluorite mines in the world The project is being planned in close compliance with World Bank and national guidelines for environmental and social protection Development of the mine is anticipated to bring the following benefits: remediation of serious pre-existing environmental conditions (natural and anthropogenic heavy metal contamination and acid rock drainage); provision of employment and training, and thereby wealth, to local communities; significant tax and royalty payments to government, which will be reinvested as social spending; and development of municipal and industrial infrastructure to build sustainable post-mining communities The role of governments at all levels is critical in guiding and facilitating this process This paper was written prior to development of the mine, and relays the intentions of the developers Future studies will be needed to evaluate the degree of attainment of sustainable development objectives, both during mine operation and after closure © 2004 Canadian Institute of Mining, Metallurgy and Petroleum All rights reserved Introduction producing tea and rice The advent of mining on the scale proposed by the project investors brings the opportunity for unprecedented social and economic development In addition, the mine plan includes proposals to clean up serious pre-existing pollution, including acid rock drainage and heavy metal contamination, caused by decades of artisanal mining in the area The environmental impact of the mine is therefore planned to be an improvement compared with existing conditions The mine plan and implementation process described herein is intended to result in sustainable development using mine-generated wealth as a driving mechanism The authors believe that this can be achieved through the confluence of a willing investor group, careful planning and consultation with stakeholders, receptive and empowered local communities, and a facilitating and forward-looking state and provincial legal structure This paper first reviews the political and relevant legal structure of Vietnam, then describes the geology of the Nui Phao deposit and the mining plan, and concludes with an assessment of anticipated outcomes and impacts The Nui Phao deposit contains a calculated resource of 87.9 Mt at 0.19% WO3, 7.95% CaF2, 0.18% Cu, 0.19 g/t Au, and 0.09% Bi, including a measured resource of 25.1 Mt at 0.25% WO3, 8.4% CaF2, 0.23% Cu, 0.26 g/t Au, and 0.108% Bi (based upon calculations done by AMEC E&C Services Ltd in October 2003 using a 0.2% WO3 equivalent cut-off) When in production (planned for 2006) it is expected to rank as the largest WO3 mine and one of the five largest fluorite mines in the world; Cu, Au, and Bi will also be recovered as economically important by-products The deposit is being explored by a Canadian junior mining company, Tiberon Minerals Ltd (70% project ownership), in joint venture with two local partners (15% each), and, if approved for development, will be the first internationally developed metallic mine in Vietnam The property is located near the town of Dai Tu in Thai Nguyen province, approximately 80 km north of Hanoi (Fig 1), in an area of high unemployment (~30%) that depends almost exclusively on agricultural small holdings 61 62 Explor Mining Geol., Vol 12, Nos 1-4, 2003 Fig Map of northern Vietnam showing the location of the Nui Phao W-F-Cu-Au-Bi deposit near the town of Dai Tu, in Thai Nguyen province Vietnam’s Political Structure and Mining Laws Levels of Government Vietnam is divided into fifty-seven provinces and four city administrations Government is highly centralized, although in recent years devolution of power from central government to local “People’s Committees” has increased People’s Committee is the term used to refer to the government of a province, district, city, town, commune, or ward The various People’s Committees exercise authority over those matters delegated to them by the central government, and enforce its laws and decrees Taxes are paid directly to the central government in Hanoi, which assesses target revenues for the provinces and reimburses them accordingly Royalties from operations such as mining, however, remain within the province even if the province is a net recipient of central aid The provincial People’s Committee thus has primary control on the distribution of funds within its jurisdiction Administration of the Mineral Sector The Ministry of Industry (MOI) has been the primary State body charged with overseeing mineral resources in Vietnam since the enactment of the Mineral Law in 1996 Recently, however, the new Ministry of Natural Resources and Environment (MNRE) has been set up to take over the mineral portfolio of the MOI, as well as monitoring and enforcing compliance with the Law on Environmental Protection (Government of Vietnam, 1994; approved by the National Assembly on December 27, 1992, and issued according to order 29-1/CTN of the State Chairman, January 19, 1994) The MNRE is empowered to manage all aspects of the mining industry including issuing licences, and cedes authority to provincial People’s Committees only in matters relating to small-scale mining by local Vietnamese concerns However, much of the responsibility for day-to-day administration is delegated to subordinate bodies, such as the Department of Geology and Minerals, and the Mineral Reserve (and Resource) Evaluation Council The latter body is responsible for the certification of calculated geological resource or reserve estimates before an application for an extraction license or mine expansion is submitted Its findings serve as the legal basis for relevant state bodies to inspect exploration and extraction activities and to protect mineral resources and the environment Responsibility for undertaking environmental inspections and monitoring programs is typically delegated to the provincial Department of Natural Resources and Environment (DNRE) The Nui Phao Tungsten-Fluorite-Copper-Gold-Bismuth Deposit, Northern Vietnam • J.P RICHARDS ET AL Article 17 of the Law on Environmental Protection requires that existing facilities and new investments prepare environmental impact assessment reports, including monitoring plans and mitigation measures More specifically, articles 7, 33, and 35 of the Mineral Law (Government of Vietnam 1996; approved by the National Assembly in 1996 — IX Legislature, 9th Session, March 2–20, 1996; see www.mmaj.go.jp/mmaj_e/asianlaw/vietnam.html) require: • protection of the interests of people living in the vicinity of mining or mineral processing operations; • budgeting for socio-economic development and mitigation of social impacts (i.e., resettlement plans); • protection and rehabilitation of the local environment; and • environmental impact assessment and an environmental health and safety plan Environmental impact assessment (EIA) guidelines in Vietnam are in an evolving state but provide general guidance for a two-step approval process The first step is to submit a preliminary EIA along with the engineering prefeasibility report to allow screening and direction by appropriate authorities for three main areas: the current state of the environment in the project area; the impact on the environment and proposed mitigation measures for environmental protection; and general information on the project If deemed necessary, an evaluation council or stakeholder group of up to nine members (scientists, managers, social organizations, local citizens) appointed by the head of a relevant agency will evaluate the report, and may call upon experts from academia, other institutes, ministries, or departments (e.g., Ministry of Agriculture and Rural Development, General Department of Land Administration) In the second step, feedback from the evaluation council is incorporated into a full-scale EIA, where specific environmental impact statements and project alternatives are detailed A performance bond as security for environmental reclamation is required from the extraction license holder Fines for violation of environmental regulations may be issued by the DNRE However, monies from such fines are currently deposited into general revenues and are not available for remediation purposes The Role of People’s Committees The People’s Committees of the provinces and the more important cities like Hanoi and Ho Chi Minh City are authorized to issue extraction licenses for common construction materials However, this authority does not extend to the granting of licenses to foreign investors, who must apply to the MNRE for all mineral licenses Nevertheless, the provincial People’s Committees have authority in several areas relevant to the mining industry Firstly, they administer and enforce environmental, labor, and land legislation in their respective territories Secondly, the boundaries of an area covered by a mineral license must be approved by the local 63 People’s Committee And thirdly, although the MNRE (through the Department of Geology and Minerals) is charged with the duty of evaluating license applications, relevant provincial People’s Committees must be consulted whenever a feasibility study is to be evaluated Mineral Rights Mineral rights in Vietnam flow from a license system, rather than the claim-staking system found in Canada, the United States, and other common-law jurisdictions The mineral legislation creates four categories of “mineral activities”: prospecting, exploration, extraction, and processing Each of these activities requires a specific license which must be applied for separately There is no automatic progression between one license and the next, except to a limited extent in the transition from an exploration license to an extraction license Licenses are issued for land areas rather than particular mineral commodities, although applications must specify which minerals will be sought or extracted Similar to other jurisdictions, each license permits its holder to carry out certain activities, and obliges the holder to carry out those activities in accordance with general and specific terms stipulated in the mineral regime and in compliance with other relevant laws In particular, extraction licenses include obligations to clean up the mine site after expiry or termination of the license Sustainable Development in Vietnam The government of Vietnam signed a United Nations agreement on environmental issues in 1995, but has since recognized the additional importance of social, economic, and political development issues, which together make up the broader understanding of sustainable development (e.g., Veiga et al., 2001; MMSD, 2002; Richards, 2002, 2003; Wellmer and Becker-Platen, 2002) Environmental Management in Vietnam for the next infrastructure building phase is outlined in “A National Strategy for Environmental Protection 2001-2010” and a companion five-year Action Plan (2001–2005), as well as in decisions made during the Ninth Party Congress (March 2001) Vietnamese environmental policy is articulated in the National Plan for Sustainable Development and Environment, which advocates satisfying the basic material, spiritual and cultural needs of current and future generations of Vietnamese people through the sustainable management of natural resources by enforcement of policies, action plans, and institutional frameworks The policy objectives include broad guidelines for ecological preservation, conservation of abundance and richness of biogenetic diversity, ensuring sustainable use of resources, managing population growth and distribution within Vietnam’s nat- 64 Explor Mining Geol., Vol 12, Nos 1-4, 2003 ural carrying capacity, and ensuring adequate living standards for the Vietnamese people Many laws, including those relating to mining and labor, now include provisions for sustainable development, typically as a prerequisite for the granting of licenses However, experience in the enactment of these laws is limited, and the widespread use of old mining technologies restricts the capacity for implementation, particularly in the metals mining sector which is relatively undeveloped Lack of education and understanding of the importance of sustainable development issues in the communities is a further impediment to implementation, and illegal artisanal mining is responsible for widespread and serious environmental degradation It is intended that the Nui Phao project will assist in the reversal of these trends by introducing modern technologies, and by providing employment for and training of local artisanal miners in proper mining techniques The central government is committed to establishing an effective framework for mine development, not least in order to avoid the types of environmental problems that have arisen from over a century of coal mining in northern Vietnam (e.g., Nguyen and Nguyen, 2001), but also because these policies can be applied to other areas, such as the proposed large-scale development of bauxite mining in Dak Lak province to the south It is at the district level that the impact of development is felt most, and local government agencies are aware both of the risk and potential benefits that a large mining project will bring The need to relocate people from affected areas is the most direct impact, and a well-defined system for assessing financial compensation based on the value of affected land and property already exists in law (Decree 22, Prime Ministerial Decision 219/1999/QD-TTg, November 1999; Ministry of Finance Circular No 76/2000/TT-BTC) This code requires that investors provide employment priority and/or retraining for displaced people, as well as financial compensation for the costs of acquiring new land, relocating, rebuilding, and loss of earnings for up to six months The company must also contribute to the costs of infrastructure improvements (e.g., housing, roads, power, and clean water) and upgrading of social and economic institutions (e.g., medical clinics, hospitals, markets, entertainment and sport facilities, and schools), although the local government has the responsibility for implementing these measures Mine development thus has the potential to bring substantial benefits to the community, including improved infrastructure as well as employment opportunities during both the construction and mining phases of the operation Tax and royalty payments, if reinvested by government in the affected region, would bring improvements in social infrastructure such as education and health care, which are the cornerstones of any long-term (i.e., sustainable) development program To this end, the Thai Nguyen provincial government has enacted a strategic plan to develop industry in the province through to 2010 Mining is one sector of interest, but light industry, manufacturing (clothing, footwear, and mechanical, agricultural, and forestry products), crafts, and service industries are also being pursued A major investment such as the proposed Nui Phao mine could provide the springboard for such long-term growth and prosperity in the region, sustainable beyond the initial miningled growth The Nui Phao W-F-Cu-Au-Bi Deposit Mining and Exploration History The Dai Tu area has been a focus for artisanal mining of tin and minor gold for several decades Tin (as cassiterite) is recovered from regionally widespread veins, which also carry abundant sulfides, most notably arsenopyrite (the source of pervasive arsenic contamination of groundwaters) Mine waste dumps and tailings ponds are widely scattered throughout the area, and environmental baseline studies have detected surface water acidities as low as pH 2.7, and arsenic levels as high as 109 ppm in well waters (based on samples from six wells) Geologists from Tiberon Minerals Ltd were first attracted to the area in 1997 by this artisanal mining activity, and by the presence of large gossanous zones visible from the road Exploration has consisted of geological mapping, ground geophysics (magnetic and induced polarization surveys), soil geochemistry, and over 16 500 m of diamond core drilling (as of October 2002) The Nui Phao deposit coincides with a strong, WNW-trending, positive magnetic anomaly, which extends for over km in length and 400 m to 500 m width Drilling has confirmed polymetallic mineralization along 1.3 km of this strike length, but the zone is open along strike in both directions At the time of writing a pre-feasibility study is being prepared, consisting of an assessment of ore reserves, preliminary mine plan (including processing operations and tailings scheme), and environmental and social baseline studies Nui Phao Deposit Geology Nui Phao is a pyrometasomatic W-F-Cu-Au-Bi deposit with both skarn and greisen characteristics, formed near the contact between a two-mica granite of presumed Late Cretaceous age (the Da Lien granite) and Ordovician-Silurian sediments of the Phu Ngu Formation (Hai et al., 2003) Cross-cutting relationships in drill core demonstrate that the Phu Ngu Formation has undergone two stages of granitic intrusion, the first being emplacement of the biotite-rich Nui Phao granite in the Late Triassic (inferred), followed by the Da Lien intrusion The two intrusions, Nui Phao to the south and Da Lien to the north, effectively sandwich the package of Phu Ngu Formation sedimentary rocks (Fig 2) The Phu Ngu Formation consists of micaceous shale, sandstone, silt- The Nui Phao Tungsten-Fluorite-Copper-Gold-Bismuth Deposit, Northern Vietnam • J.P RICHARDS ET AL 65 Fig Outline geological map of the Nui Phao W-F-Cu-Au-Bi deposit Skarn and greisen mineralization are developed near the contact between the Cretaceous two-mica Da Lien granite and Paleozoic sedimentary rocks of the Phu Ngu Formation stone, marble, and siliceous rock, and is the host to much of the mineralization The distribution of mineralization, especially the W-fluorite mineralization, is most clearly related to the Da Lien granite contact (Fig 3), but the prior involvement of the Nui Phao granite has not been ruled out Because of the more mafic, granodioritic character of the Nui Phao intrusion, it is conceivable that this pluton was responsible for early introduction of Cu-Au-Bi mineralization, which was subsequently reworked and overprinted by W-F-rich fluids from the leucocratic Da Lien granite This could explain the somewhat unusual metal association of the deposit The orebody occurs as skarns and greisens formed both internally and externally to the steeply dipping Da Lien granite contact (Fig 3) Early metasomatic rocks consist of pyroxene-(garnet) skarn, retrograde amphibole-biotite(danalite) skarn, calc-silicate hornfels, marble, and magnetite-(danalite) skarn (Danalite is a beryllium-iron silicate mineral.) Granitic and pegmatitic dikes and sills intrude the sedimentary rocks, and are similarly metasomatized Albitefluorite greisenization accompanied by biotite and pyrrhotite overprints the skarn alteration in a halo around the Da Lien granite contact, and quartz stockworks are also present The polymetallic mineralization is best developed in the greisenized rocks, and consists of fluorite, scheelite (rare wol- framite), native gold, chalcopyrite, native bismuth, and bismuthinite Other minor phases are allanite, cassiterite, and rare molybdenite and Pb-Zn sulfides Much of the ore is truly polymetallic with all ore minerals occurring together, but scheelite and fluorite also occur independently from the CuAu-Bi mineralization in some zones Detailed geological and paragenetic studies have not been undertaken to date Preliminary Mine Plan The Nui Phao deposit is characterized by uniformly high grades of mineralization, amenable to a relatively simple open pit mining operation with a low stripping ratio (waste:ore approximately 1:1) Current plans indicate a final pit size of 1.2 km by 0.8 km, but the deposit is open in its long dimension offering the potential for extension or even underground development The processing plant will be located 0.5 km away from the pit, built on firm Nui Phao granite bedrock A multi-step processing stream is envisaged, with each stage recovering a component of the ore Sulfides will be separated by flotation from a coarse primary grind, followed by regrinding and flotation to recover a copper concentrate containing significant amounts of gold Bismuth 66 Explor Mining Geol., Vol 12, Nos 1-4, 2003 Fig Cross-section (18569080E: see Fig for location) through the Nui Phao deposit, showing the development of various skarn and greisen facies at the contact between the Da Lien granite and the Phu Ngu Formation sedimentary rocks The Da Lien granite appears partially to envelop the package of sedimentary rocks at this location, which may account for the unusually intense metasomatism and mineralization Long intervals of high-grade WO3 mineralization are highlighted on drill hole projections will be recovered by gravity concentration of the sulfide separate Gravity treatment of the sulfide tailings will be used to recover scheelite, which will be further concentrated by flotation; additional scheelite recovery will be achieved by regrinding and scavenger circuits Finally, a high-grade fluorite concentrate will be floated from the scheelite flotation tailings The handling of waste rock and tailings are of prime concern to the mine planners A quarter of the anticipated 60 Mt of waste material (consisting of sulfide tailings and sulfide-rich rock) is potentially acid-generating, and will be buried in a carefully designed valley-enclosed tailings impoundment Non-acid-generating waste rock not used for construction will be piled in front of the retaining dam to buttress it At the end of mine life, the tailings area will be consolidated and capped with clay and topsoil to isolate it from groundwater leaching The pit will be partially backfilled to prevent leaching and then flooded A road and railway run across the top of the deposit, and both will have to be re-routed Plans for this re-routing, the siting of all mine facilities, and the relocation of affected communities will be included in the pre-feasibility study and EIA Various options are being considered for shipping mine products to port for export, including road and rail; the close proximity of a railway line makes the latter option the most favorable from an environmental and public safety perspective The mine is currently estimated to have a life of approximately 20 years, but indications of more extensive resources in the area could extend this life span considerably Anticipated Outcomes of Project Development The following section describes how the planned mining operation might contribute to sustainable development in the Dai Tu region Because at the time of writing the pro- The Nui Phao Tungsten-Fluorite-Copper-Gold-Bismuth Deposit, Northern Vietnam • J.P RICHARDS ET AL ject is only at the pre-feasibility stage, these ideas constitute objectives Whether or not these objectives are achieved depends on the actual way in which the project is developed and by whom, and the actions that various levels of government actually take It will be instructive to compare results in several years’ time with the objectives outlined below Environmental Impacts Biodiversity values for the Dai Tu midlands are considered relatively low due to large pre-existing land-use impacts from agriculture, forest enterprises, and artisanal mining A rapid biodiversity assessment (RBA) survey was conducted by a specialist team from the National Institute of Ecology and Biological Resources (IEBR) of the National Center for Natural Science and Technology (NCST) in November 2002 (Nguyen et al., 2002) Results showed that the project would likely have little if any impact on current land uses Most of the forest cover has been lost as a result of forest exploitation and land clearing for agricultural purposes The main threats to biodiversity at the site are overexploitation of firewood and timber, and forest clearance for agriculture The vegetation of the Dai Tu midlands is dominated by scrub and grassland, characterized by Rhodomyrtus tomentosa, Melatoma candidium, Cratoxylon spp., and Eupatorium odoratum, typical of early successional habitats following large disturbance (Scott, 1989) The primary commercial crops are tea and eucaplyptus plantations grown on the hill slopes Cassava, corn, sweet potato, rice, and other vegetables are grown on the flat tillable areas No nationally or globally threatened plant species are found in the area (IUCN, 2000) Original fauna in the area had seriously declined but is now recovering, although fauna abundance and diversity is generally low The flora and fauna of the Nui Phao Project area plays an important role in environment protection (erosion prevention, water source regulation, climate regulation), ecological functions (pollination, seed dispersal, etc.), and contribute to the socioeconomic development of the area However, the area does not play an important role in conservation of threatened animals as the species identified are widespread, the area has low abundance, and is sub-optimal habitat The Nui Phao project site and surrounding area currently experience significant impacts from acid rock drainage originating from the natural hydrogeology of the area, as well as land disturbance from artisanal mining activities Metal concentrations in some areas represent a serious environmental and human health hazard in relation to drinking water, soil, sediment, and bioaccumulation within the food chain Initial results of baseline studies show irrigation waters and local drinking water sources (shallow dug wells) to be characterized by low pH (3.2 to 6.6, n = 16), with elevated concentrations of various metals including As, Sb, B, Cd, Cu, Cr, Fe, Pb, Mn, Ni, and Zn In particular, arsenic in household drinking water wells locally exceeded World 67 Health Organization (WHO) standards by up to 10 times (WHO, 1993) A human health risk assessment is currently underway to assess the pre-existing impact of current conditions on the local community, and is scheduled for completion in midDecember 2003 Preliminary results show that current environmental conditions are seriously contaminated with abnormally high levels of As and Pb, as well as other associated metals Concentrations of As in soils, groundwater, and biota currently exceed acceptable human health standards and the community is at serious risk of cancer and other illnesses (e.g., toxicity values defined by CCME, 1999, and WHO, 1993) Acceptable risks in North America for individuals developing cancer-related illness from As range from 1:100,000 (Canada) to 1:1,000,000 (United States) Preliminary results suggest that pre-existing risk in the Nui Phao project area is close to 1:20 on average (Shum, 2003) This risk factor does not include cumulative effects from other metals of concern, such as Pb, Be, Cr, and is thus considered to be a conservative value This preliminary result underscores the potential benefits that international project development could bring to the local community through environmental remediation The pre-feasibility mine plan includes capacity to reclaim or remediate lands previously contaminated by artisanal workings This action would include identification, removal, and burial of acid-generating waste rock and tailings (which are scattered throughout the project area) in an engineered tailings facility In addition, pre-existing contaminated areas would be incorporated into the area of the mine plan where possible Thus, the mine is planned to have a net positive impact on the existing environmental conditions Ensuring the environmentally safe handling of mined products and wastes is central to the mine plan, and the site will be developed according to a policy of progressive rehabilitation, world best practice, and integration of environmental aspects into all aspects of its business A key aspect of the environmental management plan will be to ensure that local authorities acknowledge the preexisting environmental conditions However, the provincial environmental monitoring station responsible for the Nui Phao area currently has little capacity to conduct a rigorous monitoring program or evaluate an EIA Equipment and laboratory facilities were provided by the Danish International Development Agency in the late 1990s, but the follow-up training program was cancelled due to funding cutbacks The Nui Phao Project plans to support proposals for a capacity building program for the provincial monitoring station The benefits of this support include increased buy-in from local authorities, and building long-term capacity for selfmanagement in the future Closure, reclamation, and post-closure planning are critical issues for mine development around the world (Smith and Underwood, 2000; Laurence, 2001; MMSD, 2002) Planning for closure is most effective when it is integrated during mine development planning, and closure plan- 68 Explor Mining Geol., Vol 12, Nos 1-4, 2003 ning should involve all mine facilities, including open pit, waste rock storage areas, and tailings areas Mitigation and remediation measures can be implemented progressively (i.e., clean as you go) rather than waiting until the end of mine life, when the operators may be presented with an unmanageable long-term liability Consideration of postclosure use of the property and the means to mitigate closure impacts on local and regional economies will be included in planning from the earliest stages of mine development Social Impacts: General Tiberon Minerals recognizes the importance of stakeholder rights and community engagement, and its mine plan includes the following norms and objectives: • respect for values of the local community and a commitment to ongoing consultation; • open and honest description of the potential impact associated with mining activities; • support for capacity building, training, and socio-economic initiatives; • development and maintenance of a strong health and safety leadership and culture; • review, test, and audit performance of health and safety programs; • development of long-term relationships built on mutual respect, trust, common objectives, consultation, and consensus; • comply with all statutory laws and regulations; • prepare and develop closure and rehabilitation plans from outset; • employ non-skilled labor from the local area wherever possible; and • provision of training and education opportunities for semi-skilled and skilled jobs The mine plan includes working with local authorities and other stakeholders in a participatory manner to ensure that compensation plans, monitoring programs, and mitigation measures reflect the needs of the community Social Impacts: Community Relocation The Nui Phao mine will physically impact an area of approximately km2, and will encroach on the land of three communes within the Dai Tu district Of these, the Ha Thuong commune (1522 households) is likely to be most affected, requiring relocation of up to 300 households The welfare of these affected people is a primary concern to all levels of government as well as the investors, and is protected by law The following steps will be undertaken to compensate these individuals properly for the disturbance Firstly, as noted above, direct financial compensation for physical losses of land and assets will be awarded based on an established formula; this process will be overseen by the provincial Finance Department, and all award amounts are approved by the land/property owners Secondly, in partnership with the investors, assistance will be provided for relocation and retraining where jobs have been affected And thirdly, the investors will be expected to contribute to infrastructure development in the relocation area Selection of relocation areas will be overseen by the People’s Committee of Thai Nguyen province, which will set up a compensation committee composed of various stakeholder representatives, including the district of Dai Tu, the three communes directly impacted by the development, and the Nui Phao joint venture company In addition to meeting national guidelines for compensations and relocation, the Nui Phao Project plans to meet World Bank standards for resettlement, including preparation of a Resettlement Action Plan (IFC, 2002) In keeping with national guidelines, this plan will ensure that impacts on the livelihoods of resettled people are positive over the long term through an assessment and monitoring program In the broader community, multiple benefits are anticipated from the mine project Provision of mine-related jobs in an area of high unemployment and marginal farming will be the most immediate benefit, but the government, in partnership with the investors, plans to broaden these employment opportunities through training and diversification, to ensure that the region will have a sustainable economy after mine after closure Social Impacts: Community Infrastructure and Health Natural contamination (high acidity and heavy metal content) of the soil and groundwater in the region has been exacerbated by local artisanal mining, which is mostly illegal This situation has already improved to some extent through law enforcement by district police, resulting in closure of many local adits that were exploiting narrow but high-grade Sn-Cu-arsenopyrite vein mineralization in the Nui Phao granite located directly south of the greisen-skarn deposit However, acid rock drainage and improper disposal of arsenopyrite-rich tailings from these operations has left a legacy of acidity and high metal content in soils and groundwaters, which exacerbates the natural condition As part of the EIA, medical assessment of the current health conditions of local residents will quantify the magnitude of the metal poisoning of some individuals Then, once mining begins, it is planned that many sites containing waste materials from earlier mining activities will be removed and confined in the mine’s secure tailings facility As part of government’s contribution to sustainable development, it is expected that royalty payments will be reinvested in the community to pay for infrastructure projects such as schools, hospitals, and roads A proposal to build a $1 million water purification system may be integrated into the design of a large facility to supply potable water both to the mine and the community The need for this The Nui Phao Tungsten-Fluorite-Copper-Gold-Bismuth Deposit, Northern Vietnam • J.P RICHARDS ET AL facility is urgent, given the high levels of arsenic found in well waters throughout the district, and indications of chronic arsenic poisoning in some communities Economic Impacts The direct and indirect creation of new jobs in the Dai Tu district would be a significant benefit, where unemployment is currently around 30% and annual incomes are generally below CDN$100 It is anticipated that the Nui Phao mine will employ over 300 people for its planned twenty year life Many of these workers will be local residents who are either already qualified or will be trained by Tiberon Minerals Ltd., or will be young persons that seek out the required education to qualify for the positions they desire Although the salaries paid to workers will be in line with those paid by domestic companies, the mine will create new jobs, paid from new money invested into an area that is considered poor even by Vietnamese standards Vietnam is changing very rapidly, but most development is taking place in the major cities such as Hanoi, Hai Phong, and Ho Chi Minh City The development of a modern, large-scale mining operation in Thai Nguyen province has the potential to provide a multitude of spin-off jobs and rapid growth of infrastructure that might otherwise never happen in the area Concluding Remarks The Nui Phao W-F-Cu-Au-Bi deposit presents a remarkable opportunity for sustainable development in one of the world’s poorest and underdeveloped regions It is essential, when considering the role that this project might play, to bear in mind that no potential for development would have been recognized without the discovery of this rich mineral resource through geological exploration, nor will the potential revenue stream be available to contribute to the development of the area without its exploitation Thus, if properly managed, mining will be the primary driver of economic growth and social development in this impoverished region Perhaps it should not be surprising that Vietnam, by virtue of its strong centralized government and policies, is also an ideal political environment in which, potentially, to ensure that a fair share of the benefits to be derived from mining will accrue to the stakeholders most affected by the mining operations, i.e., communities in the Dai Tu area and, more broadly, within Thai Nguyen province In addition, although the various relevant government ministries currently have limited capacity for monitoring and ensuring compliance, the legal framework is in place to ensure adhesion to strict environmental controls Thus, development of the Nui Phao project offers an opportunity to meet the four key criteria for sustainable development: equitable economic benefit to all stakeholders, environmen- 69 tal protection, and social protection and advancement, all supported by strong governance Specific benefits that are planned to be derived from development of the Nui Phao deposit include: minimal new environmental impact and remediation of serious preexisting environmental conditions; provision of much needed employment and training to local people; provision of new infrastructure for social development (e.g., schools, hospitals, potable water, roads), both directly by the mine and indirectly through reinvestment by government of taxes and royalty payments; and provision of new infrastructure and opportunities for business development, which will form the foundation for sustainable communities after the end of mine life As described above, it is the investors intention to develop the Nui Phao project in accordance with sustainable development principles However, it is recognized that achieving this goal requires delivery on the various aspects of the development plan by both the investors and government The project is at the pre-feasibility stage at this time, and it will be instructive to re-visit the project at several points in the future, including after mine closure, to assess the degree to which these objectives have been achieved Acknowledgments The authors thank the management of Tiberon Minerals Ltd for permission to publish this work, and for the support of field studies They also thank the various representatives of government at all levels, from Central to local People’s Committees, who took time to discuss and explain the various issues They are grateful to Tom Setterfield, Ian Thomson, and Jim Franklin for critical reviews of the manuscript, and note that the final version probably still does not measure up to their criticisms Perfectly sustainable development is probably an unachievable goal, but by documenting and applying best practice in planning, followed by best practice in action, we will move toward that objective References CCME (Canadian Council of Ministers of the Environment), 1999 Canadian Environmental Quality Guidelines: CCME, Environment Canada, Guidelines and Standards Division, Hull, Quebec, 1300 p HAI, T.T., TU, L., FARMER, M and STEMLER, J.U., 2003 The structural controls on mineralization at the Nui Phao polymetallic (W-F-Cu-Au-Bi) deposit, North Vietnam Geological Association of Canada/Mineralogical Association of 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Section A, 109, p A202–A209 VEIGA, M.M., SCOBLE, M and McALLISTER, M.L., 2001 Mining with communities Natural Resources Forum, 25, p 191–202 WELLMER, F.-W and BECKER-PLATEN, J.D., 2002 Sustainable development and the exploitation of mineral and energy resources: A review International Journal of Earth Sciences (Geologische Rundschau), 91, p 723–745 WHO (World Heath Organization), 1993 Guidelines for Drinking Water Quality, 2nd Edition, Volume 1: Recommendations World Heath Organization, Geneva, 188 p ... through the Nui Phao deposit, showing the development of various skarn and greisen facies at the contact between the Da Lien granite and the Phu Ngu Formation sedimentary rocks The Da Lien granite... integrated into the design of a large facility to supply potable water both to the mine and the community The need for this The Nui Phao Tungsten-Fluorite-Copper-Gold-Bismuth Deposit, Northern Vietnam... investment such as the proposed Nui Phao mine could provide the springboard for such long-term growth and prosperity in the region, sustainable beyond the initial miningled growth The Nui Phao W-F-Cu-Au-Bi