Posted on 01 Jun 2021
Vietnam's leading steelmaker, Hoa Phat Group, has extended its steelmaking industry chain to raw materials through the acquisition of an Australian iron ore mine. This will help it achieve raw material supply security.
Hoa Phat has acquired 100% of the Roper Valley iron ore mine project in Australia. Australia's Foreign Investment Review Board (FIRB) has approved the deal, Kallanish notes.
Roper Valley was 100% owned by Northern Territory Iron Ore Pty Ltd (NTIO) before the deal. The project is estimated to have 488 million tonnes of 41.6% Fe iron reserves, with 56mt of 48.1% Fe indicated resources and 432mt of 40.9% inferred resources. The mining capacity is reported at 4m t/year.
Hoa Phat continues to study the purchase of other iron mines in Australia to ensure a long-term supply of at least 50% of its iron ore demand, equivalent to 10m t/y. It is also looking to invest into Australian coking coal mines because coking coal constitutes up to 30% of its steel pricing, Hoa Phat says.
Source:Kallanish
