Masan, Germany’s H.C. Starck to form Vietnam tungsten chemical firm

Nui Phao and H.C. Starck will own 51 per cent and 49 per cent, respectively, of the joint venture, which will process all of Nui Phao’s tungsten concentrate into higher value-added deep processed tungsten chemicals.

The establishment of the new firm and closing of the agreements are subject to customary corporate and regulatory approvals.

The new company will be able to deep process up to 10,000 tonnes of tungsten concentrate per annum.

H.C. Starck will operate the venture and has committed to buy a large share of the production for its own internal use. The two sides did not disclose this portion.

H.C. Starck, one of the biggest companies in the global tungsten industry, will also support marketing of the remaining product through the joint venture.

As a market leader in technology metals, H.C. Starck is also a leader in tantalum products and has significant market shares, in the molybdenum, niobium, and rhenium markets, all metals that require advance technology and know-how to process.

Nui Phao, the tungsten concentrate supplier of the joint venture, has developed one of the largest known tungsten deposits outside China with an expected mine life of more than 15 years. The construction of the tungsten chemical plant that will be part of the joint venture is in progress. The first stage of the tungsten chemical plant will start production next month, with further stages expected to be completed in 2014.

“Masan has developed a world-class mining operation and the Nui Phao mine will be a stable source of material for the joint venture,” Andreas Meier, president and CEO of H.C. Starck said.

Headquartered in Germany, H.C. Starck has lots of experience in the tungsten processing business and will be responsible for the industrial management of the joint venture.

Dominic Heaton, CEO of Masan Resources, a subsidiary of Masan Group and the parent company of Nui Phao, said, “H.C Starck has world-class expertise in the processing of tungsten chemicals and oxides. With H.C. Starck’s specialised know-how and technology, Masan Group is able to contribute to Vietnam’s objective of becoming more of a manufacturer of value-added products.”

“H.C Starck is the technology leader in the production of several high-technology metals. The partnership with H.C. Starck, one of the world’s largest tungsten players, will help Masan capture more of the tungsten value chain and is a testament to the quality of Nui Phao’s tungsten deposit and processing plant,” Masan Group CEO Madhur Maini said.

Masan Group is one of Vietnam’s largest private sector business groups, focusing on consumption and resources sectors.