The Government has approved a plan on the exploration, exploitation, process and use of iron ore by 2010, and vision to 2020.
Under the plan signed by Deputy Prime Minister Nguyen Tan Dung last week, 26 mines in nine provinces will be exploited between now and 2020, including six mines in Lao Cai Province, four in Yen Bai, two in Ha Giang, two in Tuyen Quang, three in Cao Bang, four in Bac Kan, two in Thai Nguyen, two in Thanh Hoa and one in Ha Tinh.
In addition, the exploration of 14 mines and mining areas will be undertaken from now through to 2020.
The move is to ensure there will be enough iron ore to supply domestic metallurgy factories and export in exchange for coke coal.
Some VND60 billion ($3.77 million) will be raised for the exploration and another VND6.9 trillion ($433.96 million) is needed for exploitation and sifting. The funds will be sourced from businesses wishing to participate in mining. In special cases, the Prime Minister will consider and decide upon specific form of support.
The capacity of annual iron ore exploitation is scheduled at 9 million tons in 2010, 14-15 million tons a year during the 2011-2015 period, and 15-16 million tons a year during 2016-2020.
The output can be adjusted in line with the local metallurgy industry’s development and demand from specific foreign-invested metallurgy projects in Vietnam.
According to the plan, Vietnam will encourage all economic sectors to pour their money in exploration, exploitation and process of iron ore on the base of abiding by regulations on mineral activities, ensuring working safety and environmental protection.
For the country’s two biggest iron ore mines of Quy Xa and Thach Khe, the country will encourage foreign investors to get involved. They can establish joint ventures with local partners to exploit the two mines. However, Vietnamese partners must hold the controlling stakes in any such ventures.
For smaller scale mines, the government will encourage domestic enterprises to run the businesses on their own.
Between now and 2010, the government expects some 3.5-4.5 million tons of iron ore will be tapped annually from the Quy Xa mine and other mines in Lao Cai province to provide iron ore to the cast iron plant with an annual capacity of 500,000 tons in the province, the Thai Nguyen Cast Iron and Steel Company and for export exchanges for coke coal and other materials.
In Cao Bang province, some 350,000-450,000 tons of iron ore will also be annually exploited and processed to supply to two balst-furnaces with an annual capacity of 30,000 tons of cast iron a year built in Cao Bang and to the Thai Nguyen Cast Iron and Steel Company.
In the period, around 200,000-350,000 tons of iron ores a year are expected to be tapped in Bac Kan to feed two balst-furnaces that are being constructed in the province and the Thai Nguyen Cast Iron and Steel Company.
In Thai Nguyen province, some 400,000-500,000 tons will be exploited a year from the mines of Trai Cau and Tien Bo and other mines in the province to supply the Thai Nguyen Cast Iron and Steel Company, which is expanding its production capacity.
In Ha Tinh province, preparations are being made to exploit the Thach Khe mine with an initial capacity of 5 million tons a year.
In the period after 2010, some 5-8 million tons of iron ore will be annually tapped from Thach Khe mine in Ha Tinh province to supply material for a giant steel casting complex to be built in the Vung Ang Economic Zone, with a designed capacity of 2.5-4.5 million tons per year.
Other provinces such as Tuyen Quang, Yen Bai, Ha Giang and Thanh Hoa would not be allowed to build steel casting complexes unless they prove they have access to sufficient iron ore resources.
The government asserted that iron mines must be exploited and utilized effectively and economically, catering to the demands of domestic metallurgy factories and export in exchange for coke coal.
Vietnam is seeking to boost steel production because its steel demand is expected to significantly increase to 10 million tons in 2010, 16 million tons in 2015 and 20 million tons in 2020, compared with 6.5 million tons last year, according to the Ministry of Industry.
PM’s Decision Release, VIR
Vietnamese
