MoIT proposes auction to exploit Quy Xa iron mine
MoIT proposes auction to exploit Quy Xa iron mine
The Ministry of Industry and Trade has sent a document to the Ministry of Natural Resources and Environment on the management and use of iron ore at Quy Xa iron mine in the northern mountainous province of Lao Cai.
This iron mine is being managed and exploited by Viet-Trung Mining And Metallurgy Co., Ltd (VTM).
The Ministry of Industry and Trade reports that the remaining reserves of Quy Xa iron mine are very large, about 100 million tonnes, therefore, the mobilisation of this iron mine's output is about 3-5 million tonnes per year by 2030, and about 5-7 million tonnes per year after 2030.
The planning for exploration, exploitation, processing and use of minerals has been currently completed for the 2021-2030 period, with a vision to 2050.
The Ministry of Industry and Trade said that it is submitting to the Prime Minister for appraisal and approval.
Along with that, the planning has been widely consulted by ministries and localities as well as related agencies.
It is expected to appraise and submit to the Prime Minister for approval in the fourth quarter this year.
The draft master plan clearly states that the Quy Xa iron mine has an output of 3-5 million tonnes per year in the 2021-2030 period, providing enough raw materials for the Lao Cai Iron and Steel Plant and other domestic iron and steel factories.
Regarding solutions for Quy Xa mine, the Ministry of Industry and Trade proposed VTM to accelerate the exploitation of 1 million tonnes of iron ore from Quy Xa mine this year according to Resolution No 164/NQ-CP dated December 29 last year of the Government to ensure raw materials for Lao Cai Iron and Steel Plant to maintain production while the new mining license has not been reissued.
VTM has exploited 444,000 tonnes of iron ore as of July 22 this year.
Although VTM is prioritised for licensing according to regulations, the Ministry of Industry and Trade believes that the reserve and capacity of Quy Xa mine are planned to be large (3-5 million tonnes per year), not only for the Lao Cai Iron and Steel Plant, whose demands about 1 million tonnes of ore per year, but also for other domestic iron and steel factories.
Therefore, in case there are other investors who want to participate in mining Quy Xa, it must be done in the form of an auction of mining rights to select investors.
