Construction starts on nation’s second largest iron mine

Infrastructure construction on Vietnam’s second largest iron mine has begun in the northern mountainous Lao Cai Province.
The Quy Sa Mine project is developed by the Vietnam-China Minerals and Metallurgy Company – a joint venture between Kunming Iron & Steel Group Ltd (KISG) - the largest steel enterprises in southwestern China's Yunnan Province and a Vietnamese consortium of Vietnam Steel Corporation (VSC) and Lao Cai Minerals Company.

The joint venture’s total investment is valued at US$175 million, in which holdings of KISG and VSC were 45 percent respectively, with the balance held by the Lao Cai Minerals Company.

It will operate mainly out of the Quy Sa iron mine, including exploitation, processing, smelting and sales.

In its first phase, the Quy Sa iron mine is set to operate in the first quarter of 2008, churning out at between 1.5 million tons a year.

The mine is scheduled to be in full-run in 2010 with its capacity scaling up to 2.5-3 million tons per year.

It expected to extract some 120 million tons of iron from the Quy Sa mine worth some $175 million, crucial to the country’ steel industry still heavily depended on imports

The venture also plans to build a steel mill in Tang Loong Industrial Zone in the Bao Thang District next year.

Vietnam's largest iron ore deposit is located in Thach Khe District, central Nghe An province with reserve of 550 million tons.

Top plan

Vietnam has intensified exploitation of iron ore deposits by 2020 to meet its increasing demand for steel and increase exports.

A plan approved recently by the government estimated the country's annual output to increase to 9 million tons of ores in 2010, 14-15 million tons by 2015, and 15-16 million tons by 2020.

Vietnam would exploit 26 iron mines in the eight northern provinces of Lao Cai, Yen Bai, Ha Giang, Tuyen Quang, Cao Bang, Bac Can, Thai Nguyen, and Thanh Hoa, and the central province of Ha Tinh from now through 2020.

By 2010, annual output would rise to 3.5-4 million tons from the Quy Sa and some other mines in Lao Cai, and 5 million tons in the Thach Khe mine in Ha Tinh.

Iron ore mined in Lao Cai would feed cast iron manufacture in the province and Thai Nguyen, and be exported for coke and other raw materials, while iron ore from Ha Tinh would be supplied mainly to steel plants in the province.

Exploration of 14 mines in Cao Bang, Tuyen Quang and Ha Giang would be done by 2020.

The cost of survey and mining during the 15-year period was estimated at nearly VND7 trillion ($437.7 million).

Provinces with iron ore deposits such as Tuyen Quang, Yen Bai, Ha Giang and Thanh Hoa would be allowed to set up steel plants.

Vietnam's iron ore demand was estimated at 1.5 million tons in 2006, rising to 16 million tons in 2020.

Source: VnExpress – Compiled by Dong Ha