An auction has raised numerous questions among the public as a Ho Chi Minh City-based enterprise has won the right to exploit a sand mine on the Tien River after offering a purchase price of approximate VND2,812 billion (US$122 million), the auctioneer reported on Friday.

This winning price is around 390 times higher than the starting price of VND7.2 billion ($312,000) set at the bidding, which was participated by 19 enterprises, said the property auction center under the Department of Justice of An Giang.

The winner is T-S. Home Trading and Services Company Limited, located in District 7, Ho Chi Minh City, Zing News reported.

The mine is among the three ones put up for sale a few days ago, said the department, adding that the two other mines are located on the Hau River.

Under the Law on Auction, the People’s Committee of An Giang Province will in a few days issue a decision to confirm the auction results reported by the provincial Department of Natural Resources and Environment, said the leader of the auction center.

“Within 90 days after the date of the decision, the winner must pay VND50 billion to the State budget,” the center leader said, adding that the remaining amount will be paid by annual installments later, provided that the full payment must be completed within the first half of the term of exploitation. 

The sand mine, which is located on the Tien River section in Binh Phuoc Xuan Commune of Cho Moi District, has an estimated reverse of about three million cubic meters of sand, said Tran Thanh Hai, chief office of the provincial Department of Natural Resources and Environment.

“This is the first time such a excessively high price has been offered for an auction for sand mine exploitation right in An Giang,” Hai said.

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