According to Cailian News Agency, two companies involved in bidding for related projects have revealed that Vietnam is planning to restart its largest rare earth mine next year. This move will mark a crucial step towards the goal of establishing a rare earth supply chain for this Southeast Asian country.
Tessa Kutscher, a senior executive at Australian mining company Blackstone, stated that as a first step, the Vietnamese government plans to tender multiple blocks of its Dong Pao mine before the end of the year, with Blackstone planning to bid for at least one concession.
He made the above arrangement based on information that has not yet been released by the Vietnamese Ministry of Natural Resources and Environment.
Liu Anh Tuan, Chairman of Vietnam Rare Earth Company (VTRE), pointed out that the auction timing may change, but the Vietnamese government plans to restart the mine next year.
VTRE is a major rare earth refinery in Vietnam and a partner of Blackstone Mining in this project.
According to statistics, Vietnam’s estimated reserves are 20 million tons, accounting for 18% of the world’s total rare earth reserves, but most of them have not yet been developed. Vietnam’s rare earth reserves are mainly distributed in the northwest region of the country, and as of now, Vietnam’s rare earth mining is mainly concentrated in the northwest and central plateau areas of the country.
Kutscher stated that if Blackstone Mining successfully wins the bid, its investment in the project will reach approximately $100 million.
She added that the company is discussing potential fixed price long-term contracts with potential customers, including electric vehicle manufacturers VinFast and Rivian. This can protect suppliers from price fluctuations and ensure that buyers have a safe supply chain.
What are the long-term implications of the development of the Dong Pao mine?
According to data, the Dong Pao mine located in Laizhou Province, Vietnam is the largest rare earth mine in Vietnam. Although the mine was licensed in 2014, it has yet to be mined. In recent years, Japanese investors Toyota Tsusho and Sojitz have finally abandoned the Dong Pao mining project due to the impact of the global decline in rare earth prices.
According to an official from Vietnam Coal and Mineral Industry Group (Vinacomin), which owns the mining rights of the Dong Pao mine, effective mining of the Dong Pao mine will promote Vietnam to become one of the world’s top rare earth producing countries.
Of course, the extraction process of rare earths is complex. Blackstone Mining Company stated that Dong Pao’s estimated mineral reserves also need to be reassessed using modern methods.
However, according to data from the Hanoi University of Mining and Geosciences in Vietnam, the rare earths in the Dong Pao mine are relatively easy to mine and are mainly concentrated in bastnaesite. Fluorocarbonite is a cerium fluoride carbonate mineral, often coexisting with some minerals containing rare earth elements. They are usually rich in cerium – which can be used for producing flat screen screens, as well as lanthanide elements such as praseodymium neodymium – which can be used for magnets.
Liu Yingjun stated that Vietnamese rare earth companies hope to win a concession that will enable them to mine approximately 10000 tons of rare earth oxide (REO) annually, approximately the expected annual output of the mine.
Post time: Oct-11-2023