Masan High-Tech Materials (MSR), a subsidiary of Masan Group (MSN), announced it signed a processing agreement with GB Innovation (GBI), a South Korean tungsten mining company. Under the agreement, MSR's tungsten processing and chemical plant will process tungsten concentrate from GBI into Ammonium Paratungstate (APT) and tungsten oxide products.

The processing fee is determined as a percentage of the APT price index published by Fastmarkets and is protected by a floor price mechanism. This helps limit the risk of declining profit margins, enhances business forecast accuracy, and optimizes the operational efficiency of MSR's existing processing platform.

Masan High-Tech Materials stated that while many countries possess tungsten mining resources, large-scale processing capacity outside China remains limited. South Korea has tungsten mining resources, with GBI targeting an annual run-of-mine (ROM) ore production of approximately 200,000 tons. However, it requires significant processing capacity to convert domestic concentrate into higher value-added tungsten products for industrial manufacturing.

Tungsten is an essential material for producing tungsten hexafluoride, a crucial precursor used to create tungsten films in advanced semiconductor devices, including next-generation logic chips, DRAM, and 3D NAND memory. Recent shortages of high-purity tungsten demonstrated that semiconductor and chip manufacturers are highly vulnerable to disruptions in upstream tungsten supply.

Masan High-Tech Materials' MTC high-tech processing plant. *Photo: MSR*

MSR stated that securing a stable supply of refined tungsten intermediate products through this partnership will help mitigate supply chain disruption risks for South Korea's semiconductor industry. As investment in AI infrastructure continues to drive demand for semiconductors and strategic materials, South Korea's challenge reflects a growing global need for large-scale tungsten processing capacity outside China.

For the Vietnamese company, this cooperation further strengthens its processing segment. The company holds reserves in the Nui Phao expansion area and Nui Chiem, with a potential of approximately 115 million tons of polymetallic tungsten. By combining ore from its existing mine with concentrate from over 20 supply and mining partners, MSR expects to enhance processing plant operational efficiency, improve cost competitiveness, and expand tungsten oxide processing capacity to over 8,000 tons per year.

At the annual general meeting in mid-4, the company's leadership commented that following the wave of billionaires from artificial intelligence (AI), the next super-rich will be those who control essential materials for this industry: tungsten.

Danny Le, Chairman of the Board of Directors, stated that for every 100 USD increase in APT prices, they would gain an additional 50 million USD in revenue and 10 million USD in profit after tax. Consequently, MSR aims for this year's revenue to reach 20,300 billion VND, nearly three times higher. Profit after tax is projected at around 1,700-2,500 billion VND, an increase of more than 150-220 times compared to last year.

T Dat