In a dispatch sent to General Secretary, President To Lam and Prime Minister Le Minh Hung on 20/5, Hoa Phat group expressed readiness to collaborate with the Ministry of Agriculture and Environment to hire an independent consultant for the research and exploitation of the Thach Khe iron ore mine in Ha Tinh.
If the mine is approved for exploitation, billionaire Tran Dinh Long's company intends to partner with major corporations like Vingroup, Thaco, and TKV to restructure and acquire shares in Thach Khe Iron Joint Stock Company (TIC), the project's current investor.
Discovered in 1960, the Thach Khe mine holds an estimated 544 million tons of reserves, making it the largest iron ore mine in Southeast Asia. It is situated 8 km east of Ha Tinh city and 1,6 km from the East Sea, with a total project land area of 4.821 ha.
In 2008, TIC received the project license, with an initial investment of nearly 14,500 billion VND. From 2008 to 2011, workers excavated about 12,7 million m3 of overburden, reaching a depth of -34 m below sea level, and extracted 3.000 tons of ore.
The project later faced challenges in capital mobilization and contribution, causing delays in site clearance and insufficient funds for technical design consultants and resettlement area construction. In 11/2021, the government suspended the project to re-evaluate its technical design and restructure TIC's shareholders. Recently, the government mandated a definitive resolution for the project by 2026.
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The Thach Khe iron ore mine project site in Ha Tinh in early 2011. Photo: Duc Hung |
The Thach Khe iron ore mine project site in Ha Tinh in early 2011. Photo: Duc Hung
Hoa Phat group cited experts and scientists who assessed the Thach Khe mine's iron ore parameters as favorable. The ore is relatively clean, suitable for producing high-quality steel, including high-speed railway steel rails and other specialized steel products.
The group highlighted that the Thach Khe iron ore mine remains unexploited, failing to meet domestic demand. This results in wasted national resources and foreign currency outflow for imported iron ore.
The project presents considerable challenges, including pit slope instability, surface water loss, waste disposal pressures, environmental risks, and the technology required to process high zinc content in the ore. Hoa Phat believes that leading Vietnamese companies possess the financial capacity and experience to undertake this project. The group also stressed the mine's strategic location, arguing it "should not be entrusted to foreign investors to ensure national defense and security."
Hoa Phat is the largest steel producer in Southeast Asia and ranks among the top 30 largest steel enterprises worldwide. Billionaire Tran Dinh Long's company contributes approximately 20,000 billion VND to the state budget annually and employs 40,000 direct laborers. The group is also investing in high-speed railway steel rail production, with products anticipated from early 2027.
Phuong Dung
