Steelmaker proposes restructuring, development of Thạch Khê iron mine

Steelmaker proposes restructuring, development of Thạch Khê iron mine

Hòa Phát Group said Việt Nam’s steel industry remains heavily dependent on imported raw materials, posing risks to supply chain stability.

An overview of Thạch Khê iron ore mine in the central province of Hà Tĩnh. — Photo courtesy of Hòa Phát

Steel giant Hòa Phát Group has proposed that the Government allow it to restructure and develop Thạch Khê iron ore mine, either independently or through a consortium with other major domestic corporations.

In a proposal submitted to the Government, Hòa Phát said the group currently consumed around 25 million tonnes of iron ore annually, with imports costing an estimated US$3 billion each year. Nearly all of its iron ore supply was imported due to limited domestic sources.

According to the company Việt Nam’s steel industry remains heavily dependent on imported raw materials, posing risks to supply chain stability. Meanwhile, the Thạch Khê mine in the central province of Hà Tĩnh holds reserves estimated at more than 500 million tonnes and has already been included in the national mining and processing master plan under Decision No 866/QĐ-TTg issued by the Prime Minister in 2023.

Studies by Vietnamese and international experts show that ore at Thạch Khê is of relatively high quality and suitable for producing premium steel products, including cold-rolled steel, steel cord for tyres, weather-resistant steel plates and steel for high-speed railway tracks.

Despite its large reserves, the mine has yet to be commercially exploited, leading to what the group described as a waste of national resources and continued reliance on costly imports.

Hòa Phát said the scale and technical complexity of the project would require financially strong and experienced Vietnamese enterprises. Given the mine’s strategic location, the group also suggested that the project should not involve foreign investors for national defence and security reasons.

The company expressed willingness to cooperate with major domestic corporations such as Vinacomin and THACO to study and implement the project.

As an initial step, Hòa Phát proposed that the Government invite leading global consultants and mining experts to assess mining technology, environmental impacts and operational safety at the site. The group also pledged to contribute funding and work with the Ministry of Agriculture and Environment to hire independent consultants for supervision and evaluation.

Hòa Phát is currently the largest steel producer in Southeast Asia and among the world’s top 30 steelmakers. The group expects its annual steel output to reach 18 million tonnes by 2027, helping position Việt Nam among the world’s top 10 crude steel-producing nations. 

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