Former Deputy Minister of Natural Resources and Environment, Nguyen Linh Ngoc, is facing prosecution for violating regulations on state asset management, resulting in severe financial losses.

27 individuals charged in major resource exploitation case

The Ministry of Public Security’s Investigative Agency has completed its findings and recommended prosecution for 27 individuals involved in violations related to resource exploration, mining, accounting fraud, smuggling, and environmental pollution. The case centers around Thai Duong Group and its affiliated entities.

According to the investigation, Nguyen Linh Ngoc, while serving as Deputy Minister and overseeing mineral licensing, was fully aware that Thai Duong Group did not meet the legal requirements for a mining permit. Despite this, he signed off on a license, allowing the company to exploit rare earth resources illegally. This resulted in unauthorized extraction worth over VND 864 billion (approximately USD 34.5 million).

The former Deputy Minister’s actions are classified under Clause 3, Article 219 of the Penal Code, which pertains to violations in the management and use of state assets leading to financial losses and waste.

Illegal rare earth and iron ore mining operations

From 2019 to 2023, Doan Van Huan, Chairman and CEO of Thai Duong Group, orchestrated illegal mining activities at the Yen Phu rare earth mine. Over this period, the company illicitly extracted rare earth minerals and iron ore valued at over VND 864 billion.

Investigators determined that Huan illegally sold:

Over 10 million kilograms of rare earth minerals, worth more than VND 403 billion (USD 16 million).

Over 280 million kilograms of iron ore, valued at VND 333 billion (USD 13.3 million).

Huan and his company pocketed illicit profits exceeding VND 736 billion (USD 29.4 million).

Huan instructed Nguyen Van Chinh, then Deputy CEO and Chief Accountant of Thai Duong Group, to manipulate invoices for rare earth and iron ore sales. The company deliberately underreported sales figures, keeping VND 27 billion (USD 1 million) off the books and evading over VND 9 billion (USD 360,000) in taxes.

Luu Anh Tuan, Chairman of Vietnam Rare Earth JSC, was found to have conspired with Huan, issuing fraudulent invoices that understated the actual sale prices. This allowed Huan to conceal more than VND 20 billion (USD 800,000) in revenue and evade over VND 7.3 billion (USD 290,000) in taxes.

Additionally, Tuan’s company falsely inflated the value of input materials by VND 16 billion (USD 640,000) to manipulate tax filings, resulting in an additional VND 4 billion (USD 160,000) in tax losses. Investigators determined that Tuan’s actions caused a total tax loss of over VND 11 billion (USD 440,000).

Tuan also engaged in smuggling by falsifying customs declarations for 63 export shipments between 2019 and 2023. His company illegally exported 474.98 tons of "total rare earth oxides" worth over VND 379 billion (USD 15 million).

Environmental violations: massive illegal waste dumping

Investigators revealed that Thai Duong Group failed to construct legally required environmental protection facilities and did not treat waste before discharge. Between 2018 and October 2023, under Huan’s orders:

348,000 tons of tailings sludge were illegally dumped into the environment.

2,425 tons of sludge mixed with gypsum waste were illegally discarded.

These actions not only violated environmental regulations but also posed significant ecological and public health risks.

T. Nhung