The auction for the right to exploit sand as a common construction material at the DB2B mine in Dien Ban town started at 8am on October 18 and lasted until 4am on October 19, through 200 rounds. The starting price was 1.2 billion VND but ended up reaching 370 billion VND.
The reserve of the DB2B sand mine is less than 160,000m3, and the winning bid was 370 billion VND, equivalent to more than 2.3 million VND/m3. If we calculate the costs of resource tax, environmental protection fee, exploitation cost... then how can we make a profit when the market price is only around 150,000 VND/m3?
Therefore, immediately after the auction ended, the Chairman of the People's Committee of Quang Nam province immediately ordered the suspension of recognition of the results and requested the authorities to check for signs of irregularities.
The auction price increased 308 times the starting price is partly unusual, but the price of sand calculated at 2.3 million VND/m3 compared to the average price of only 150,000 VND/m3 is unreasonable and unrealistic.
If it is for profit, even if the bidding is to win to solve jobs and break even, then companies can stop at the 5th or 6th round. If the bidding reaches 200 rounds, the winning price is unrealistic and impossible, but still deliberately bidding to the end is clearly "disrupting the party". Bidding for purposes other than exploitation and business.
Also in Quang Nam, there are currently nearly 1.4 million m3 of sand - exploited to the fullest extent when dredging the Co Co River. After many auctions (from 2021 to present, with a starting price of 144,000 VND/m3), no unit or individual has participated. Sand is available, can be measured, and is cheap, but is... rejected. Unsold.
Sand under the river, rocks in the mountains, gold in mines... are minerals and resources that exist in an estimated form. Is it true that the assessment is only relative through exploration and quantification on paper, so when auctioning for exploitation, it attracts people regardless of the price? When inspecting and checking, it is often concluded that the competent authorities and local authorities are lax in managing exploitation, "lacking capacity", or because the surveillance cameras are broken, the scales are damaged...
Not only Quang Nam, but in early October, the Hanoi Department of Natural Resources and Environment also decided to cancel the auction results for the exploitation rights of 3 sand mines: Lien Mac (Bac Tu Liem district), Tay Dang - Minh Chau and Chau Son (Ba Vi district) because the auction price was unusually high compared to the starting price, up to about 1,700 billion VND.
If there is no auction, or the winning bid is low, the locality will also be criticized for causing budget loss and resource loss. Opening an auction with few participants, a few people registering, and winning a low bid is suspected of collusion. But winning with an unrealistic, exorbitant price like the sand mine auction in Quang Nam this time, the auction and bidding regulations are not enough to "accuse". At most, the enterprise will forfeit the deposit.
Therefore, in addition to Quang Nam and Hanoi stopping the recognition of auction results, checking and reviewing irregularities for handling, ministries, branches and the Government need to consider and promptly adjust the loopholes and inadequacies of the current auction and bidding regulations. Especially in the context that many localities across the country are facing a shortage of sand and earth supply, leading to price increases.
