Vietnam to Kick off Largest Iron Ore Deposit Early 2008

Vietnam is likely to begin mining its largest iron deposit Thach Khe early 2008 after a favorable feasibility study was completed on the site, the magazine under the Ministry of Planning and Investment reported Wednesday.

 

The country will invest US$850 million in the project and conduct a series of construction tasks including a specialized port and resettlement areas, Vietnam Investment Review magazine cited the study by Russia's Giproruda Institute as saying.

 

“Thach Khe deposits will prove to be highly profitable with affordable investment requirements and effective investment return rates," said Prof Itskovich E.L – a member of the research team.

 

Developers for the Thach Khe mining project comprise nine domestic companies that have scaled up US$150 million for the Thach Khe Iron Ore Investment Company (TLC).

 

The state-run Vietnam Coal and Mining Industries Group contributed 30 per cent of the TIC capital, Vinasteel 20 per cent, Ha Tinh Mining and Trading Corp 4  per cent, Song Da Corp 5 per cent and the Bank for Development of Vietnam 5 per cent. Foreign investors are also allowed to invest in TIC with combined ownership no more than 30 per cent.

 

A senior official of the state-run Vietnam Steel Corporation (Vinasteel) said Thach Khe will supply an average of 10 million tons of ore for both domestic and export demand. (Vietnam Investment Review)