On 19/9, the People's Committee of Ha Tinh province announced its decision to close the Thach Khe iron mineral mine. This decision aligns with the license issued on 24/2/2009 by the former Ministry of Natural Resources and Environment to Thach Khe Iron Joint Stock Company (TIC). The designated area spans 527 ha, with boundaries precisely defined by coordinate points using the VN-2000 system.

According to authorities, the primary purpose of closing the mine is to accurately confirm the reserves and volume of minerals extracted from the exploited sections. Concurrently, it ensures the protection and effective management of resources in areas where reserves have not yet been fully utilized.

A view of the Thach Khe iron mine project. Photo: Duc Hung

The entire 527 ha mine area will be handed over in its current state to the competent authority for management. This handover facilitates the implementation of a new project, in line with the policy of the Politburo and the Government. These directives, outlined in documents issued last August, emphasize "continuing to research and promote the value of Thach Khe iron mine in the new phase."

The Thach Khe iron mine, located across five coastal communes formerly part of Thach Ha district, was discovered in 1960. It possesses an estimated reserve of 544 million tons, making it the largest in Southeast Asia. The project was initially licensed to TIC in 2008, with an initial investment totaling nearly 14,500 billion dong. However, after a period of implementation, the project encountered significant difficulties related to capital mobilization, equity contribution, and site clearance. Consequently, in 11/2021, the Government halted the project to allow for a re-evaluation of its technical design and a restructuring of TIC's shareholders.

In early May, the Government issued a directive demanding a definitive resolution for the project this year. Following this, on 20/5, Hoa Phat Group announced its readiness to collaborate with the Ministry of Agriculture and Environment. This collaboration would involve hiring an independent consulting firm to monitor the process of researching the mine's exploitation. Should the project proceed, Hoa Phat intends to join other major enterprises, including Vingroup, Thaco, and TKV, in the restructuring and acquisition of TIC shares. Additionally, another enterprise has also submitted a proposal to participate in the project.

Prior to these developments, on 3/7, the Ha Tinh Department of Finance officially decided to terminate the operation of the Thach Khe iron ore mining and processing project. This decision was made due to the investor's prolonged delays, which spanned many years after the initial licensing.

Duc Hung