The Supreme People's Procuracy of Vietnam on Tuesday issued an indictment against former Deputy Minister of Natural Resources and Environment Nguyen Linh Ngoc for accommodating a company as it illegally mined rare earths for sale to China.

According to the indictment, the former deputy minister was involved in a case at Thai Duong Company and other related entities concerning unlawful rare earth mining in Yen Bai Province, northern Vietnam and smuggling the rare earths to China.

Nguyen Van Thuan, former general director of the General Department of Geology and Minerals of Vietnam, along with five other former officials of the Ministry of Natural Resources and Environment, were also indicted for violating regulations on the management and use of state assets, causing losses and waste.

Doan Van Huan, chairman of Thai Duong Company, faced the same fate over three charges: violating regulations on exploration and mining of resources, violating accounting regulations causing serious consequences, and causing environmental pollution.

The indictment also involves 20 other individuals with various charges.

According to the indictment, in 2009, the Ministry of Natural Resources and Environment granted Thai Duong Company a permit to explore for rare earths at the Yen Phu mine in Yen Bai. 

In May 2011, Thai Duong applied for a mining license.

However, due to changes in the Mining Law, the government ordered a temporary halt on granting mining licenses nationwide, so the Ministry of Natural Resources and Environment did not approve the company's application.

On January 9, 2012, the prime minister issued a directive requiring mineral extraction to be linked with deep processing. 

Thai Duong was required to supplement a project to develop a deep processing complex for rare earths and submit it to relevant agencies for appraisal and to the government for approval.

After receiving approval from the government, the Ministry of Natural Resources and Environment issued a mining license to Thai Duong Company.

Investigations revealed that the company's application for the mining license only included an investment certificate for the ore mining and processing project issued by the administration in Yen Bai Province. However, this investment certificate expired before the license was granted. 

The procuracy accused officials from the General Department of Geology and Minerals of Vietnam of failing to follow proper procedures and using outdated appraisal results from 2011.

These officials were aware that the company's application was incomplete and did not meet the conditions for a mining license, yet they still reported to the Ministry of Natural Resources and Environment’s leadership, proposing the granting of the license.

Nguyen Linh Ngoc, who was Deputy Minister of Natural Resources and Environment at the time, admitted that after reviewing the proposal from the General Department of Geology and Minerals of Vietnam and Thai Duong Company’s application, he found that Thai Duong did not meet the conditions but still issued the mining license to the company.

After being granted the license, Thai Duong Company illegally mined rare earth and iron ores at the Yen Phu rare earth mine, with a total value of more than VND864 billion (US$34 million), from 2019 to October 2023. The company earned an illicit profit of over VND736 billion ($28.9 million).

The former deputy minister denied receiving any personal benefits from Doan Van Huan, chairman of Thai Duong Company.

Ngoc acknowledged that his actions contributed to Thai Duong's illegal mining activities, leading to a loss of more than VND864 billion.

Meanwhile, his subordinate, Thuan, testified that during the process of helping Thai Duong obtain the license, Huan visited his office and gave him VND500 million ($19,642). Thuan has since submitted the full amount to investigators.

According to the indictment, Ngoc and the six other former officials faciliated Thai Duong's illegal mining and smuggling of rare earths, resulting in state losses of VND763 billion ($28.9 million). 

As for Huan, the indictment found that in addition to illicitly earning VND736 billion ($28.9 million), he instructed his subordinates to issue invoices for the sale of rare earth and iron ores at prices lower than the actual selling rates, causing a loss of VND9.6 billion ($376,926) in taxes to the state.

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