Communes in Southeast Asia's largest iron mining region want special mechanisms after merger

A view of the Thach Khe iron mine project – Photo: LE MINH

Located in the former Thach Ha district, the Thach Khe iron mine has ore reserves of over 544 million tons, making it the largest iron mine in Southeast Asia and accounting for half of the country's total iron ore reserves.

The Thach Khe iron ore mining and processing project is invested in by Thach Khe Iron Joint Stock Company (TIC), a subsidiary of Vietnam Coal and Mineral Corporation (TKV). In September 2009, TIC officially launched the project by conducting technology trials and removing the overburden.

However, the overburden removal process encountered shortcomings in engineering design, mining technology, and faced financial difficulties. By November 2011, the project had to be temporarily suspended for reassessment of the engineering design and restructuring of shareholders.

For over 13 years, the project's suspension has significantly impacted the lives of people in five iron ore mining communes, including Thach Khe, Thach Hai, Dinh Ban, Thach Tri, and Thach Lac.

Mr. Tran Van Hoi (53 years old, residing in Thanh Lam village, Thach Khe commune) said that since the iron mine exploitation project began, the localities adjacent to the mine have been included in the planning. Therefore, the lack of investment projects has led to many difficulties in the lives of the local people.

“From January 1, 2025, Thach Khe commune and four neighboring communes near the iron mine will be merged into Ha Tinh City, so we very much hope to completely stop the project to attract investment projects, helping localities have more resources to develop their economy, ” Mr. Hoi said.

Mr. Phan Xuan Mau, chairman of the Thach Khe commune People's Committee, said that the locality is located within the iron mine planning area, so since the project was initiated, roads, infrastructure, and government offices have deteriorated and have not received investment or repairs, significantly affecting the local development.

Due to planning restrictions, land cannot be sold, affecting the commune's budget revenue. People's lives are not stable enough to support socio-economic development.

“The government and people want to completely halt the iron mine project to attract investment projects and develop the economy. Furthermore, after the communes in the iron mine area are merged into the new administrative unit, our wish is for Ha Tinh City to invest towards the east, where there are abundant resources such as rivers and the sea, to develop tourism, ” Mr. Mau shared.

Mr. Pham Cong Tung – Chairman of the People's Committee of Dinh Ban Commune – Photo: LE MINH

We hope for a special mechanism.

Mr. Pham Cong Tung, chairman of the People's Committee of Dinh Ban commune, said that among the communes affected by the Thach Khe iron mine project, Dinh Ban commune is the most disadvantaged. The locality has 90 poor households and 104 near-poor households, and the lives of the people are generally still very difficult.

Due to the prolonged suspension of the Thach Khe iron mine's planning, the transportation infrastructure is deteriorating, schools are in disrepair, and the committee hall is cramped but has not received investment for upgrading or repair.

"For example, in a locality with 400 party members, when there's an event, they have to gather in a hall that only has a capacity of 150 people. This hall was also built in 2003, so it's already dilapidated," Mr. Tung said.

Notably, Dinh Ban commune currently lacks irrigation facilities to support agricultural production. Therefore, local rice farmers can only cultivate one crop per year, relying on rainwater, resulting in low yields.

“Like other localities adjacent to the iron mine, we hope to see the mining operations cease soon so that higher-level authorities have a basis for investment. If the Thach Khe iron mine project has not yet received a final decision, then a special mechanism is needed for the communes to create incentives for development and attract investment projects,” Mr. Tung said.

Source: https://tuoitre.vn/cac-xa-vung-mo-sat-lon-nhat-dong-nam-a-muon-co-che-dac-thu-sau-sap-nhap-20250106144107286.htm