Jakarta –
Vietnam is ready to mine rare earths again next year. Quoted from Reuters, this is Vietnam’s plan to maximize the potential of this super rare treasure.
One way is by refining ore into metal which is used for magnets for electric vehicles, smartphones and wind turbines.
Executive at Blackstone Minerals Australia Tessa Kutscher said as a first step, the Vietnamese government wanted to launch tenders for several blocks of the Dong Pao mine before the end of the year.
Meanwhile, Chairman of Vietnam Rare Earth JSC (VTRE) Luu Anh Tuan said the auction time could still change, but the Vietnamese government plans to restart mining next year.
The decision was prompted by many countries’ concerns over the vulnerability of supply chains due to China’s control over strategic minerals and its dispute with the US. In addition, Beijing this year imposed export restrictions on trace metals used for semiconductor production.
According to the US Geological Survey, Vietnam has the second largest rare earth reserves in the world. However, most of this sector is still not well managed. This is because there are still obstacles to investment due to the low prices set by China.
However, US President Joe Biden signed an agreement during his visit to Hanoi to improve Vietnam’s ability to attract investors and obtain its rare mineral reserves.
In interviews with Reuters, 12 industry executives, investors, analysts and officials from various countries described plans for Vietnam. Starting from investments that they say are looking for alternative supply chains to reduce dependence on China.
Some acknowledge the difficulty in establishing a rare earths center. However, they said the move could make Vietnam an important player and ease international concerns, even if China remains dominant.
Kutscher said Blackstone’s investment in the project will be around US$100 million. He added that the company was talking to potential investors, including electric car makers VinFast and Rivian, to get contracts at prices that could protect suppliers from fluctuations and guarantee a secure supply chain for buyers.
The reactivation of Dong Pao has the potential to make Vietnam an important player in the rare earth metals industry. This rare soil in Dong Pao is relatively easy to access and contains many bastnaesite seeds. Bastnaesite seeds themselves contain elements rich in cerium and lanthanides.
VTRE aims to win a concession that will allow it to extract about 10,000 metric tons of rare earth oxides (REO) a year, or about a third of the mine’s estimated annual production. This would put Dong Pao production slightly below that of the Mountain Pass mine in California, one of the world’s largest mines, which produced 43,000 metric tons of REO equivalent in 2022.
Vietnam also plans to develop additional rare earth mines. In July, Hanoi set a target to produce up to 60,000 tons of REO equivalent per year by 2030. China set a domestic quota of 210,000 tons last year.
According to research analyst at consultancy Project Blue David Merriman estimates the goal will see Vietnam producing 5% to 15% of China’s projected output by the end of the decade.
(kilo/kilo)
2023-09-25 09:39:03
#Vietnam #Ready #Work #Rare #Earth #Metal #Treasures
