Last updated: Friday, October 31, 2014
Barite Mining Investment JSC: Effectively Exploiting Mineral ResourcesPosted: Thursday, November 24, 2011
Bac Kan province is rich in mineral resources in large reserves. In the past years, the mining industry is an economic engine of the provincial economy and it is thus given lots of investment incentives. In response to the province’s investment policy and orientation, Barite Mining Investment Joint Stock Company was founded from a cooperation agreement between Vietnam National Oil and Gas Group (PetroVietnam) and Bac Kan province.
After completing investment procedure, the company was awarded the barite ore in Phac Lam village, Lang Ngam commune, Ngan Son district, Bac Kan province in 2009 and started its commercial operations in 2010. Its main product is barite ores and the annual output can reach 50,000 tonnes. The product is supplied to Northern DMC Petrochemical Co. Ltd.
To be proactive in all mining operations, the company has invested in machinery and equipment, which include three excavators, four trucks and a sieve. Director Tran Dong Hai said, to carry out the project effectively, the company has specifically focused on human resource development. Therefore, the company has managed to choose appropriate personnel for its operations. The company and ore site managers are highly skilled, capable and experienced in the profession. Meanwhile, workers are well trained and skilful.
To cope with effects of input material market and competition from other producers, the company has constantly sought out ways to raise labour productivity and save costs. The company frequently received a lot of support from provincial authorities. In 2010, the company earned VND15 billion in revenues and VND2.1 billion in profit, and paid nearly VND3 billion to the State Budget. In the first nine months of 2011, the firm raked in VND21 billion of revenues and VND554 million of profit, and paid VND2.8 billion to the State Budget. Notably, it creates some 40 jobs for local people each year.
Currently, the ore reserve was estimated at 100,000 tonnes, enough for two years of operation. The company is planning to expand into other mining operations after it receives permits from the Government and Provincial People’s Committee. However, as the new Law on Minerals has just taken effect, instructive documents have not been sufficiently issued. Hence, mining companies are temporarily losing investment directions. So, the company hopes the Government and the Provincial People’s Committee will soon issue legal documents to help companies to shape their operations. The firm pledges long-term investment if it is granted licences to produce other minerals and awarded new ore mines. Besides, it hopes to have larger dumping sites because the current facility is not big enough.
With the care of local authorities and the constant effort of all staffs, Barite Mining Investment Joint Stock Company is promoting its operating efficiency and contributing more to the success of Bac Kan province in investment attraction.