Masan High-Tech Materials (MSR), a subsidiary of Masan Group (MSN), today announced its strategy to expand exploration and mining areas around the Nui Phao mine. This strategic move aims to secure long-term resources and capitalize on the growing global demand for tungsten.

The expansion includes two key areas: Nui Phao Expansion and Nui Chiem. Under Decision 866 on national mineral planning, the Nui Phao Expansion area is estimated to hold nearly 55,2 million tons of polymetallic tungsten ore. The Nui Chiem area is estimated to contain about 60 million tons, bringing the total potential to approximately 115 million tons.

With MSR's current mining capacity of about 3,5 million tons of ore annually, these potential resources could provide a foundation for an additional 20-30 years of mining and processing operations. MSR's leadership believes the Nui Phao complex can serve global customers for decades to come, leveraging its established infrastructure and operational expertise.

The Nui Phao Expansion area spans 42,9 hectares, directly adjacent to the existing Nui Phao mine. The mineral exploration project for this area is currently being evaluated by the Department of Geology and Minerals. An MSR representative highlighted the benefit of utilizing existing infrastructure, technology, and operational capabilities, which will reduce the need for new capital investment and shorten implementation time.

In a related development, on 10/6, the Ministry of Agriculture and Environment announced the selection of Nui Phao Mining and Processing Company, a wholly-owned MSR subsidiary, as the eligible entity to consider granting a mineral exploration license at Nui Chiem. This area, spanning about 1.000 hectares in Thai Nguyen province, had undergone previous exploration.

Alongside expanding its mining sources, MSR plans to increase tungsten oxide capacity to over 8.000 tons of WO₃, equivalent to its current APT (ammonium paratungstate, a chemical compound processed from tungsten for industrial applications) capacity. Tungsten oxide is a higher value-added product, which will enhance MSR's economic efficiency per unit of processed tungsten, broaden its product portfolio, and better meet increasing global market demands.

MSR anticipates that the expanded exploration, mining operations, and increased capacity will generate cash flow, strengthen its financial health, and reduce leverage in the coming years. Depending on market conditions and implementation progress, leadership estimates this plan will support the trajectory of bringing the net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio below one by year-end. As of late 2025, MSR's net debt was nearly 10.400 billion VND. The debt to EBITDA ratio was 4,8 times, an improvement from 6 times the previous year.

A view of the mining site at Nui Phao mine (Thai Nguyen). *Photo: MSR*

The strategic expansion aligns with the increasing importance of critical materials like tungsten. At the annual general meeting of shareholders in mid-April, Phan Chien Thang, Deputy General Director of MSR, suggested that following the wave of billionaires from artificial intelligence (AI), the next super-rich would be those holding essential materials for this industry. He emphasized tungsten's significant contribution to MSR's revenue.

Tungsten's unique properties, including heat resistance above 3.400 degrees Celsius, hardness nearly equal to diamond, and good electrical conductivity, make it indispensable. It is used in microcircuits, computing systems in the semiconductor industry, and ammunition production in the defense sector. With almost no perfect substitutes, tungsten's price has increased tenfold in the past year, experiencing the most significant fluctuations in over two decades.

Danny Le, Chairman of MSR's Board of Directors, underscored the material's financial impact, stating that for every USD 100 increase in APT price, MSR gains an additional USD 50 million in revenue and USD 10 million in after-tax profit. Consequently, MSR aims for this year's revenue to reach 20.300 billion VND, nearly a three-fold increase. After-tax profit is projected at about 1.700-2.500 billion VND, an increase of over 150-220 times compared to last year.

Tat Dat