Many Foreign Investors Keen on Biggest Iron Ore Mine

Many foreign investors have expressed interest in Vietnam’s largest iron ore deposit, and a steel refinery at Thach Khe in central Ha Tinh province, a fast track route to turning the country into a steel self-sufficient nation.

 

However, both the high zinc content of Thach Khe ores and the lack of infrastructure to exploit the ores have deterred bodies from tapping the site.

 

The feasibility study for Thach Khe is being carried out by Russia’s Giproruda Institute.

 

Regarding the Ha Tinh steel refinery to be built close to the Thach Khe deposit, at least five foreign investors firms have shown interest in the project – India’s Tata and Essar, China’s Bao Shan, Korea’s Posco and Russia’s Evraz.

 

The Vietnam Steel Corporation says it has just delivered written documents about these firms’ cases, leaving the government to select the final candidate for the project.

 

Last year, the government approved foreign investor involvement in building Ha Tinh steel refinery under the wholly foreign-owned investment form, as a result of domestic firms’ capital handicaps and limited mining technologies.

 

According to a pre-feasibility study, the steel refinery is estimated to cost some US$3.5 billion and turn out 4.5 million tons a year, while the Thach Khe mining project could require as much as US$400 million in investment. Additionally, an estimated US$160 million will be spent building routes to the deposit and housing for workers.

The Thach Khe deposit was discovered by Soviet and Vietnamese geologists in 1960s. Geologists estimated that Thach Khe had iron ore reserves of 500-600 million tons, at least 300 million tons of which is thought to be commercially exploitable. (Vietnam & World Economy, VIR)