Illustrative image (Source: VNA) Ha Tinh (VNA) - Around 7 trillion VND (311 million USD)has to be mobilised to restart work on the iron ore project in central Ha Tinhprovince, a Ministry of Industry and Trade official said.
The project to exploit the Thach Khe ore mine,which has the largest reserves in Southeast Asia, has been suspended since 2011because of capital shortage.
Truong Thanh Hoai, director of the ministry’sDepartment of Heavy Industry, was responding to the request by the Viet NamNational Coal-Mineral Industries Group (Vinacomin) for the capital to bemobilised from local steel consumers such as Hoa Phat and Hoa Sen, localnewspapers reported.
The total reserve of ore in the mine isestimated at 544 million tonnes and its value at 35 billion USD. The mine wouldbecome a sound supply source for the country in the next five years, producingan estimated 20 tonnes a year, according to the Vietnam Steel Association.
The project, which kicked off in 2009 and requireda total investment of 10 trillion VND (444 million USD), was managed by the ThachKhe Iron Joint Stock Company.
However, two years later, the project was stopped after 13 million cubic metresof top soil were excavated. The reason given was the use of outdatedtechnology.
The company was also short of capital at thetime as only its biggest shareholder, Vinacomin, had fulfilled its commitments.To date, site clearance and the relocation of 4,000 households whose land hasto be acquired, which will cost 3.5 trillion VND (157 million USD), has notbeen completed.
In its request, Vinacomin said it has proposedthe restructuring of shareholders in Thach Khe and the use of new technology toextract ore. It has also asked the Government to allow the payment of mineralexploitation tax to be delayed until 2019 so that the company has funds forsite clearance.
Officials said the ministry was consideringapproving Vinacomin’s request. Vinacomin expects the project to restart at theend of the year.-VNA
The project to exploit the Thach Khe ore mine,which has the largest reserves in Southeast Asia, has been suspended since 2011because of capital shortage.
Truong Thanh Hoai, director of the ministry’sDepartment of Heavy Industry, was responding to the request by the Viet NamNational Coal-Mineral Industries Group (Vinacomin) for the capital to bemobilised from local steel consumers such as Hoa Phat and Hoa Sen, localnewspapers reported.
The total reserve of ore in the mine isestimated at 544 million tonnes and its value at 35 billion USD. The mine wouldbecome a sound supply source for the country in the next five years, producingan estimated 20 tonnes a year, according to the Vietnam Steel Association.
The project, which kicked off in 2009 and requireda total investment of 10 trillion VND (444 million USD), was managed by the ThachKhe Iron Joint Stock Company.
However, two years later, the project was stopped after 13 million cubic metresof top soil were excavated. The reason given was the use of outdatedtechnology.
The company was also short of capital at thetime as only its biggest shareholder, Vinacomin, had fulfilled its commitments.To date, site clearance and the relocation of 4,000 households whose land hasto be acquired, which will cost 3.5 trillion VND (157 million USD), has notbeen completed.
In its request, Vinacomin said it has proposedthe restructuring of shareholders in Thach Khe and the use of new technology toextract ore. It has also asked the Government to allow the payment of mineralexploitation tax to be delayed until 2019 so that the company has funds forsite clearance.
Officials said the ministry was consideringapproving Vinacomin’s request. Vinacomin expects the project to restart at theend of the year.-VNA
VNA
