On June 9, 2026, the Government issued Resolution No. 28/2026/NQ-CP (“Resolution 28”) on a specific mechanism allowing coal extraction to exceed capacity by no more than 15% for currently valid coal mining licenses, aiming to ensure national energy security.
Resolution 28 introduces a specific mechanism with streamlined procedures, allowing organizations and individuals to extract coal exceeding the capacity specified in their licenses by no more than 15% without having to undergo license adjustment procedures. At the same time, it establishes conditions and control mechanisms for the additional extracted volume. Below are the prominent new features that enterprises need to note.
1. Are enterprises automatically allowed to increase their extraction capacity by 15%?
The answer is: No.
Under Resolution 28, organizations and individuals are permitted to extract coal exceeding the capacity specified in their coal mining licenses by no more than 15% without having to perform procedures to adjust the contents of the mining license. However, not having to adjust the license is distinct from being automatically allowed to extract over capacity. Accordingly, eligible enterprises must complete the registration procedures in accordance with Resolution 28 prior to conducting over-capacity extraction.
The 15% over-capacity extraction rate serves only as a ceiling. Depending on the specific case, the total volume of coal extracted—including the over-capacity portion—by organizations and individuals must not exceed the permitted extractable coal reserves, and must be monitored, supervised, and periodically reported as prescribed.
2. Does holding a coal mining license automatically entitle an enterprise to apply the specific mechanism?
The answer is: No.
Organizations and individuals are only eligible to apply the mechanism specified in Article 3 of this Resolution upon fully satisfying the following conditions:
- Holding a valid mineral extraction license;
- Possessing sufficient technical capacity, ensuring that equipment and technology meet the increased extraction capacity;
- Ensuring occupational safety, mine safety, and environmental protection;
- Ensuring that the additional extracted coal volume remains within the scope of reserves approved and licensed by competent authorities. The additional extracted mineral volume must solely be supplied to and serve power generation.
The mechanism under Resolution 28 sets limits not only on capacity, but simultaneously on reserves, intended purpose, and technical, safety, and environmental conditions. Enterprises must not only evaluate their ability to increase output, but also pay special attention to determining the remaining permitted extractable reserves, equipment and technological capacity, as well as safety and environmental conditions before registering for over-capacity extraction.
3. What procedures and tasks must enterprises complete to extract over capacity?
One of the notable favorable points of Resolution 28 is that enterprises do not have to perform procedures to adjust the contents of their mineral extraction license when extracting up to 15% over capacity. However, enterprises must complete registration procedures.
Prior to conducting over-capacity extraction, the enterprise must submit a registration document to the Provincial People's Committee where the mine is located, and send a copy to the Ministry of Agriculture and Environment for information and monitoring.
Within 05 working days from the date of receiving the registration document, the Provincial People's Committee where the mine is located shall issue written approval, or disapproval if conditions are not met, and forward a copy to the Ministry of Agriculture and Environment for information.
Enterprises should note that the registration dossier is not merely procedural; enterprises will be held liable for the information registered. Therefore, prior to registration, enterprises must not only prepare a complete registration dossier but also verify it to ensure consistency with actual conditions. Furthermore, following registration, enterprises need to focus on archiving records and documentation that demonstrate compliance with and maintenance of the required conditions throughout the subsequent over-capacity extraction process.
4. Can the over-capacity extracted volume be sold to other customers?
The answer is: Yes, but strictly to power generation plants.
One of the most critical limitations of this specific mechanism is that the additional volume extracted beyond capacity must solely be supplied to and serve power generation. The registration document also requires specifying the address of the power plant consuming the over-capacity output.
Therefore, enterprises must maintain separate control over the additional output and retain full documentation and vouchers proving the intended purpose and designated consumers.
5. Enterprise responsibilities and risks of non-compliance?
Being allowed to apply this specific mechanism does not imply that enterprises are exempt from or granted reductions in other legal obligations during extraction. Under Resolution 28, enterprises should take note of the following responsibilities:
- Periodically reporting extraction output;
- Ensuring environmental and safety requirements throughout the extraction process;
- Fully fulfilling all relevant financial, tax, and fee obligations;
- Exclusively supplying the over-capacity volume to serve power generation.
In addition, the implementation of this mechanism remains subject to inspection and supervision by the Ministry of Agriculture and Environment, Provincial People's Committees, and competent State agencies.
Furthermore, Resolution 28 stipulates that in case of violations, organizations and individuals must temporarily suspend capacity expansion and may face consideration for the revocation of their mineral extraction license, as well as liability for damage compensation in cases of severe violations. Therefore, the 15% mechanism should not be interpreted simply as a policy of "relaxing" capacity limits. It is a specific mechanism accompanied by strict control requirements and high compliance accountability.
Consequently, enterprises should proactively establish internal control mechanisms and conduct comprehensive reviews of extraction conditions, production volume, technical documentation, environmental safety, and documentation proving the consumption purpose of the additional output. These mechanisms will enable coal mining enterprises to fully leverage the policy while simultaneously controlling, preventing, and mitigating risks during compliance.
Resolution No. 28/2026/NQ-CP takes effect from June 9, 2026, and remains applicable through December 31, 2027. Upon expiration of this period, mineral extraction shall revert to the terms of the issued mineral extraction license and current applicable laws.
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