Expanding International Business Cooperation

Vinacomin signed an agreement with GeoProMining Group (GPM) of Russia to deploy a project to build a copper smelter with an annual output of 50,000 tonnes in Vietnam. Under the agreement, GPM will contribute 71 percent stake and will lead a study on the copper smelter construction. The project is expected to be built near a deepwater port, a hydroelectric or thermal power plant. The output is expected to be doubled at a later stage. The facility will use advanced, environmentally friendly technology and comply with environmental sanitation regulations in Vietnam.

 

Vinacomin also worked with Mizuho Corporate Bank of Japan. Accordingly, Mizuho Bank pledged to provide financial support for Vinacomin and help it call short-term and long-term funds for its key projects in the future. Mr Tran Xuan Hoa, Chairman of Vinacomin Group, strongly emphasised that given the current growth rate, the investment capital demand for Vinacomin’s development is great, especially key projects. Therefore, Vinacomin will enhance cooperation and take advantage of capital support from foreign banks with good traditional relations like Mizuho Corporate Bank. The cooperation between Mizuho Bank and Vinacomin started in 2007 following the debut credit contract worth US$20 million. This was followed by many short-term and long-term loans. The current cooperation will build up a stronger foundation for future prosperity on both sides.

 

The group has also pushed up environmental cooperation with the Federal Republic of Germany. As part of a cooperative program with Vietnam, in April 2011, a delegation of the Sachsen State, led by Mr Stanislaw Tillich, Premier of the State, paid a working visit to Vinacomin Group in Quang Ninh province. The delegation visited two bio-environmental treatment projects, namely a biological reservoir in Dong Trieu district and the wastewater treatment plant in Vang Danh coalmine. These two works are in the cooperation project between Vinacomin and Germany Research Association of Mining and Environment in Vietnam, in which biological reservoir technology was first applied to mining water treatment in Vietnam, being in the testing process. Premier Stanislaw Tillich highly praised the results of cooperation, as well as the efforts of Vinacomin in the work of environmental protection.

 

Vinacomin also borrowed US$275 million from BNP Paribas Bank and the Bank of China for Mao Khe thermal power project. This export credit agreement (ECA) is guaranteed by the Vietnamese Ministry of Finance and China Export and Credit Insurance Corporation (SINOSURE) for a period of 13 years.