Hoa Phat Group, Minerals Corp Ink Cooperation Deal

The Hoa Phat Group and the Minerals Corp of the Vietnam Coal and Minerals Group have signed a long-term cooperation deal to jointly exploit mining this year, the Vietnam News Agency reported Thursday.

 

Under the deal, the Minerals Corp and the Hoa Phat Group will apply for licenses for joint exploitation in several mining activities in Laos and Cambodia.

 

Hoa Phat group plans to expand its overseas operations by building a 300,000-ton iron ore processing plant in Laos' HouaPhan province and planting rubbers in Cambodia.

 

The deal is Hoa Phat’s important step to secure material supply for its steel complex project which is scheduled to be operational in 2009, said General Director Tran Tuan Duong.

 

The Minerals Corp is a leading affiliate of the Coal and Minerals Group with some large plants, including the Song Cong Zinc Plant with a capacity of 1,000 tons per year, the Thai Nguyen Steel Plant with 20,000 tons per year, and the Cao Bang Steel Plant with 220,000 tons of steel ingot per year.

 

Hoa Phat Group (HPG), one of five top steel producers in Vietnam, said this year it expects revenues of VND7 trillion (US$437.5 million), up 24.1 per cent on year and net profit of VND720 billion (US$45 million), up 10.09 per cent.

 

Last year, it made revenues of VND5.64 trillion (US$352.5 million) and netted profit of VND654 billion (US$40.87 million). (VNA)