Thach Khe iron mine has special importance for the development strategy of the steel industry of in general and socio-economic development of Ha Tinh province in particular. The exploitation of Thach Khe iron ore and development of Ha Tinh Metallurgy Centre have been affirmed by the State through concrete action programmes and resolutions.
Since the Thach Khe iron mine was found in 1964, many domestic and foreign investors have come to survey and seek the investment opportunities. In 1976- 1985, specialists from the former
In the process of preparing the pre-feasibility study on mine exploitation, the Steel Corporation of has cooperated with the ARCELOR Consulting Firm (France) to set up the pre-feasibility study of Vung Ang Complex project.
The result of surveys, pre-feasibility and feasibility reports have provided the scientific bases of high reliability. Apart from domestic investors like the Vietnam Steel Corporation, Ha Tinh Natural Resources and Trade Corporation, the province has facilitated foreign investors wishing to take part in the project. The foreign investors including FOSCO (South Korean), NATACHAI (
Expectedly, from the end of June to the end of August of 2005, the Government will approve the pre-feasibility study. From 4th quarter of 2005 to the 2nd quarter of 2006, the feasibility study will be set up, assessed and approved under the management of the Ministry of Industry, provincial People’s Committee and relevant agencies. Vietnam Steel Corporation will cooperate with Ha Tinh Natural Resources and Trade Corporation to develop the investment mechanism and capital mobilisation, select business partners, contribute capital and seek consultants for setting up the feasibility study. From 4th quarter of 2006 to the end of 2nd quarter of 2007, the technical and construction designs, the total financial estimation will be set up and approved. Since August of 2007, the capital construction and mine exploitation will be executed.
Along with the investment in exploiting the Thach Khe iron mine, Ha Tinh province will carry out the construction of Vung Ang metallurgy complex. Implementing the direction of the Government (at the Notice No117/ TB-VPCP, dated 21st of June 2005), the project will be separated into two factories: ingot steel refining and steel rolling.
In parallel with setting up the feasibility study of mine exploitation, in the 3rd quarter of 2005, the pre-feasibility study of the metallurgy complex (capacity of 4.5 million tonnes) will be assessed and approved.
For the steel ingots production project of 2.5 million tonnes per year, from the 2nd quarter of 2005 to the end of the 2nd quarter of 2006: setting up, assessing and approving the feasibility study; from the 3rd quarter to the end of 2006: setting up, assessing and approving the design and total financial estimation; from the 1st quarter of 2007 to the 4th quarter of 2009: capital construction; the production will be started by the 1st quarter of 2010. The optimal solution is to encourage the SUNSTEEL group of Taiwan to remove the steel ingots production project of 2 million tonnes per year from Nhon Trach Industrial Park (Dong Nai province) to Vung Ang to link with the planned general complex (it will maintain independent economic operation). Ha Tinh province will have the supporting policies on land rent, compensation, site clearance and infrastructure development.
For the hot rolling steel ingots project of 2.5 million a year, from the 2nd quarter of 2005 to the end of the 2nd quarter of 2006: setting up and appraising the feasibility study; from III quarter to the end of 2006: setting up, appraising and approving the design and total financial estimation; from the 1st quarter of 2007 to the 2nd quarter of 2009: capital construction; by the 4th quarter of 2009, the factory will be put into production.
Formerly, Vietnam Steel Corporation already had the solution to remove the hot steel rolling project of 1.5 million tonnes a year from Phu My (Ba Ria - Vung Tau) to Vung Ang based on the planning of the complex’s site for joining to the last section (hot rolling) of the steel complex project. The feasibility study of this project was approved. Therefore, the best solution is to re-evaluate and update the economic and technical data of the project at the scale of 2.5 million tonnes a year for approving the adjusted and supplemented parts.