Hoa Phat proposes forming a joint venture to exploit the Thach Khe iron mine.

Hoa Phat proposed to form a joint venture with leading Vietnamese corporations to research and exploit the Thach Khe iron ore mine. This is a large ore mine with reserves of over 500 million tons.

Mr. Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group. Photo: Nam Khanh .

Billionaire Tran Dinh Long's Hoa Phat Group has proposed a joint venture with leading Vietnamese corporations such as Vietnam Coal and Mineral Corporation (Vinacomin), Thaco , etc., to research and implement the Thach Khe iron mine project.

According to Hoa Phat's document, the group needs 25 million tons of ore annually, estimating the import cost at $3 billion per year. However, nearly 100% of the group's iron ore supply is currently imported, while domestic ore reserves are very limited.

Currently, Vietnam's steel industry is not yet self-sufficient in raw materials and is almost entirely dependent on imports, thus posing many risks of supply chain disruptions.

Meanwhile, the Thach Khe iron mine, a project with reserves exceeding 500 million tons, has been planned, explored, exploited, and processed according to Decision 866/QD-TTg dated July 18, 2023, of the Prime Minister .

Leading experts and scientists from Vietnam and internationally highly appreciate the iron ore parameters at the Thach Khe mine. The magnetite and hematite ores at this mine are relatively clean, suitable for producing high-quality steel such as cold-stamped steel, arc-welded steel wire, elevator cable steel, weather-resistant steel plates, especially steel coils for automobile tire treads (tirecord steel), high-speed rail steel, and other high-quality steels.

However, the Thach Khe iron mine is currently not being exploited to meet domestic demand, resulting in a waste of national resources.

Hoa Phat argues that, given the scale and difficulty of mining at the Thach Khe iron ore mine, only a leading Vietnamese enterprise has the financial capacity and experience to successfully implement the project. Furthermore, the Thach Khe iron ore mine is located in a strategic position, related to national defense and security, and should not be entrusted to a foreign investor.

Therefore, Hoa Phat stated that it is ready to form a joint venture with leading Vietnamese corporations to jointly research and implement this project.

Initially, the corporation proposes that the competent authorities authorize the invitation of consulting organizations and leading experts in metallurgy and mining worldwide to participate in research and provide assessments on technological issues, environmental impacts, and mining safety for the Thach Khe iron ore mine.

The corporation stated its readiness to contribute to the costs and collaborate with the Ministry of Agriculture and Environment in hiring independent consultants to supervise the work and participate in evaluating the research on this important iron mine.

The corporation also committed to dedicating all resources to quickly bring the Thach Khe mine into efficient operation, avoiding waste of resources, contributing to increased state budget revenue; ensuring deep processing of the entire domestic value-added output, in line with the policy of limiting mineral exports.

Source: https://znews.vn/hoa-phat-de-xuat-lap-lien-danh-khai-thac-mo-sat-thach-khe-post1654210.html