Download Vietnam mining market briefing

Vietnam and Cambodia Mining
Market Briefing
Hoa Nguyen
Resources and Energy Team Leader
Senior Business Development Manager
Bill Howell BSc Geol (Hons), FAusIMM, FSEG
Triple Plate Junction
Sydney, 22 January 2015
Agenda
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Vietnam market overview
Bilateral Trade and Investment
Vietnam Mining Industry
Cambodia market overview
Working with Austrade
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Vietnam market overview
• Population:
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90 million – expected to reach 100 million by 2020
60% under 30 years old
32% in urban areas (40% by 2020)
Rising middle class (23.8% population)
• Economy:
– GDP 2014: 5.98% (est) higher than 2013 of 5.42% (forecast to
expand by 7-8% by 2020) (last qtr 6.96%)
– Export oriented: 70% of GDP
• Strategic geographic location (GMS, FTA, TPP, etc.)
• FDI 2014: US$20.23 billion
- Japan ($5.6b)
- Singapore ($4.2b)
- Korea ($4.1b)
• ODA: US$6.5 billion
• Challenges
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Bilateral Trade and Investment
• Trade:
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Two-way trade: $7.8 billion (2013)
16th merchandise trade partner, 19th Export market
20.2% y-o-y increase of 2-way goods trade
4.5% y-o-y increase of 2-way services trade
Top Exports: wheat, live cattle, education
• Investment:
– Australian FDI into Vietnam: USD1,437 million
– Vietnamese FDI into Australia: USD1 million
Source: DFAT, MPI
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Vietnam Mineral Resources
Vietnam has a wide variety of mineral deposits.
 Coal:
 Coal dominates mining activities
 around 200 coal mines with total reserves
of almost 8 billion tons
 net coal exporter to a net importer
 Bauxite:
 substantial bauxite deposit - approximately
5.5 billion tons
 bauxite utilisation in Tay Nguyen is a major
Government priority
 Other minerals:
 Titanium, iron ore, chromate, copper, plus
significant reserves of tin, tungsten, gold,
lead, zinc, uranium, antimony, rare earth,
gems, limestone, clay and other industrial
minerals and mineral sands
 Limited in depth exploration
 Vietnam could find more resources
Source from MONRE,Vietnam, 2013
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Mining Industry outlook
• New mining law effective 2012
• Uncertainty on regulations and
fees
• Technology and mineral
processing requirement
• Vinacomin’s role and SoE
restructuring process
(privatisation)
• Exploration activities and
government management
• Infrastructure and logistics
• Foreign Mining businesses and
Australian engagement
Tungsten Open pit in Thai Nguyen
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Copper
Coal
Iron
Bauxite
Titan
Vietnam’s Mineral Resources Map- Provided by Vinacomin
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Major mineral producers
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Major coal producers
Vinacomin – Sin Quyen Copper :
(copper, gold)
Masan Resources- Nui Phao mine:
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(Tungsten, Fluospar, Bismuth, Copper)
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Asian Mineral Resources- Ban Phuc
(Nickel, copper)
Besra- Quang Nam:
(gold)
Vinacomin Tan Rai Alumina- Highland
area:
Vietnam Coal and Minerals
Industrial Group (Vinacomin):
41 Million tons of anthracite coal in 2013
Vietmindo- Quang Ninh:
3 Million tons of coal in 2013
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Dong Bac Corporation - Quang Ninh:
3 Million tons of coal in 2013
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319 Corporation- Quang Ninh:
(Alumina)
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Sai Gon – Quy Nhon Minerals:
Nui Phao Tungsten mine
 (titan slag)
…
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Vietnam Coal and Minerals Industries
Group - Vinacomin
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Vietnam Coal and Minerals Industries
Group – Vinacomin
• Turnover (2013): USD4.85Bil
• Total Employees (2013): 138,000
• Coal Production (2013): 42 Mil tons
• Coal sales (2013): 39 Mil tons of
clean coal
+ Domestic Consumption: 7.5 Mil tons
+ Export:
11.5 Mil tons
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VINACOMIN’S ANTHRACITE COAL PRODUCTION
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Open cast mining
24 mines
Underground mining
30 mines
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Vietnam Coal and Minerals Industries
Group Vinacomin
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Other Projects under Development
■ Thach Khe Iron Ore (Vinacomin)
• Location: Ha Tinh province
• Planned Production capacity 4-5mil MT/Y
■ Co Dinh Chromate project (Vinacomin – AML)
■ Sinh Quyen Expansion project (2nd plant)
■ Ta Phoi Copper project (Vinacomin - major shareholder)
• Location: Lao Cai province
• Latest updates: Vinacomin is major shareholder, prepare construction
■ Cao Bang Manganese project (Danka Minerals)
• Location: Cao Bang province
• Underground mine
• Latest update: Looking for the Chemical Manganese Dioxide (CMD)
technology
■ Binh Phuoc Bauxite (An Vien group)
Cambodia Mining Industry outlook
• Rich in metallic mineral, gold, bauxite, titanium and copper.
• Resources industry is significantly underdeveloped and at
exploration stage
• In 2013, 17 out of 139 exploration projects showed positive.
• 13 of 91 companies – licensed to conduct 13 mining projects = gold
(4), iron (1) coal (1), limestone (5), and phosphate (1).
• Stable, democratic government
• 7% GDP growth for past 3 years
• Favorable mining policies
• Accessible & Mineable Topography
• CAMEC presenting Mining exploration interest
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Mineral Resource Map of Cambodia
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Key projects
• Angkor Gold and Mesco Gold Cambodia start
underground mine.
• Renaissance Minerals Ltd continues to explore
extensions to it's 1.2 million ounce Okvau gold project
whilst working on resource studies and pre feasibility
studies.
• Geopacific remains positive with an ongoing flow of
bonanza results which have been obtained for gold,
copper and silver at its Kou Sa Project.
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Working with Austrade
- Mining Trade Missions
>Mining Mission to Vietnam and Cambodia Mar 2015
- Technical Seminar and Roundtable to promote
Australian METS capability
- Tailor services: market research, partner searches, visit
program, meeting set up, provide referrals
- Identify market opportunities, provide market insights
and matching services
Questions?
Thank you!
Contact: Austrade Vietnam
Email: [email protected]
Tel: +84 4 3774 0300
Fax:+84 4 3831 7757
Australian Embassy, Hanoi
Address: 8 Dao Tan, Ba Dinh district, Hanoi, Vietnam
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