Prized mine stakes are now up for grabs

>> PM cuts wings of mining investors

Prime Minister Nguyen Tan Dung last week ordered Vietnam Shipbuilding Industry Group, Song Da Holdings, Vietnam Posts and Telecommunications Group and Bank for Investment and Development of Vietnam to divest from Thach Khe Iron Joint Stock Company (TIC), investor of the Thach Khe iron ore mining project and a billet manufacturing company, according to a Government Office announcement.

Those groups, holding a 19 per cent stake in TIC, had to divest from the projects in Ha Tinh province “to focus on their core businesses”, said the announcement.

Thach Khe mine is said to be the largest in Southeast Asia with total reserves of around 544 million tonnes. In 2007, seven state-owned companies and two private ones established TIC to exploit iron ore at Thach Khe mine and build the manufacturing billet factory.

Apart from the four groups, Vietnam Steel Corporation has a 20 per cent stake, Vinacomin Group 30 per cent, Ha Tinh Minerals and Trading Corporation 24 per cent, Bitexco Group 4 per cent and Thang Long Minerals and Metallurgy Joint Stock Company with 3 per cent.

Phung Manh Dac, deputy general director of Vinacomin Group and chairman of TIC, told VIR that Vinacomin wanted to acquire investments of those four groups in a bid to raise its stakes at TIC up to 51 per cent. Meanwhile, a Vietnam Steel Corporation  representative revealed that this firm wanted to raise investment up to 30-35 per cent. Hoa Phat Group, a private company, also expressed interest in holding 51 per cent at TIC, said group general director Tran Tuan Duong.

A TIC source said Bank for Development and Investment of Vietnam had sold its entire stake to Hoa Phat Group.

In fact, the advantage would belong to stakeholders who contributed capital to TIC on time, a source at TIC said. Although TIC was established for four years, the preparation for mining and billet manufacturing projects are at slow pace.

In the announcement, Dung asked the main stakeholders including Vinacomin, Vietnam Steel Corporation and Ha Tinh Mineral and Trade Corporation to promptly make a mining and billet manufacturing factory investment plan.

Dac said the stakeholders would have to “gather and discuss about the acquisition of four groups’ stakes in upcoming time”. However, he declined to reveal exact time of the meeting.