Some experts urge Ha Tinh to facilitate Thach Khe iron mine project

Ho Sy Giao, PhD, from Vietnam Mining Science and Technology Association, said were it not for the financial issues caused by some of the project’s investors withdrawing or refusing to contribute their commited capital, the Thach Khe project would be going well now and there would be no discussion.

“Thach Khe mine should be operating right now. Vietnam should learn from the bauxite project in the Central Highland, where 64 scientists signed a petition to stop a project now very profitable. The global price of alumina is $320 per tonne, and the cost of production in Vietnam is $180,” he said.

Professor Katrin Bromme, who was part of the working group from German company CBM, which provided consultancy for Thach Khe Iron Ore JSC (TIC), the company established to carry out the project, said the feasibility is clear.

“I have been with the project since 2015. Many German companies wanted to join because of its feasibility. This project is difficult, no doubt, but it should beckon to simply be careful during implementation, instead of the full-on ban. The project is going to contribute to the development of the Ha Tinh-Nghe An region,” she said.

“I think when the project finishes all the preparatory stages, it should be started because the environmental impact report is going to become invalid after a while. It would be a waste to do it again,” she added.

Pham Le Hung, chairman of TIC, said the company is ready to start the project as soon as it receives a nod from the authorities.

According to Hung, thought the project was suspended in 2011, the company is still spending money on it, for resources usage fees and other fees. TIC is also growing trees and building waste storage according to regulations and carrying out regular investigation of the site.

Nguyen Quoc Hung, general director of TIC, said that it is understandable that Ha Tinh is worried after the Formosa scandal. “However, TIC has prepared all documents with the proper care and the project is proven to meet all government requirements in terms of technology, environment, and profitability,” he said.

The Thach Khe iron mine project received its investment certificate in 2008. In the same year, the feasibility and environmental impact reports were approved. In 2011, the project was suspended because the reports were no longer “appropriate to the actual situation.” It was subsequently adjusted. The new environmental impact report was approved in 2013. The adjusted scale and investment capital was approved in 2014. The technical design is still being evaluated by the Ministry of Industry and Trade (MoIT).

Earlier, in an October 2016 resolution, the prime minister asked the MoIT to complete all procedures so that the Thach Khe mine project can start in the first quarter of 2017.

In November, the Ha Tinh authorities requested that the government ask all the related agencies to research the project all over again in all aspects, including the capacity of investors, sources of funding, social and economic impact, technology, market, human resources, and environmental impact.

Kobe Steel from Japan expected to source its ore from the Thach Khe mine for steel production in its Nghe An plant. Because the mining project is in limbo, so is the plant.

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