Located in the North of Vietnam, Lao Cai has an abundance of natural resources including rare earth elements, apatite, copper, zinc, lead, iron, molipden, gold, serpentine, graphite, quartzite and vermiculite. In late July 2023, the Government approved a master plan to explore, exploitate and use natural resources during 2023 – 2030, with a vision to 2050. This Article discusses Vietnam's plan to develop the mining industry in Lao Cai Province.
Plan to explore. Lao Cai is ranked no. 1 in terms of several natural resource reserves [eg, apatite (126,000 tons); copper (367,000 tons); serpentine (16,000,000 tons); graphite (6,700,000 tons); gold (44,000 tons); molipden (7,000 tons)]; and Lao Cai is ranked no. 2 in terms of iron reserves and rare earth reserves.
Under Decision 8661, the Government plans to explore: (i) two mining areas (Rare earth); (ii) three mining areas (Zinc and lead); (iii) four mining areas (Iron); (iv) eight mining areas (Copper); (v) one mining area (Molipden); (vi) one mining area (Gold); (vii) nine mining areas (Apatite); (viii)
one mining area (Serpentine); and (ix) one mining area (Graphite) all in Lao Cai Province. Particular mining areas can be found in Table 1.
Plan to exploit. A large volume of apatite, copper and iron ores have been mined in Lao Cai. Under Decision 3162, Lao Cai will continue to focus on the exploitation of these natural resources (including rare earth elements). Serious investors have begun to explore these opportunities. It is estimated that a significant volume of natural resources will continue to be exploited in Lao Cai during the period 2021-2030. See also Table 2.
Auction to acquire a concession. Under the Law on Natural Resources, any concession to exploit natural resources is subject to public auction. Local authorities will issue a list of mining projects that are subject to public auction, over time they will augment the list. Lists can be found at the following address: https://taisancong.vn/niem-yet-gia-dau-gia-dau-thau/thong-tin-ban-dau-gia . For security and defense purposes, certain projects which are situated within boundary belts (Restricted Projects) are not subject to public auction. In this connection, the People's Committee of Lao Cai Province has issued a decision (Decision 20393). The "Restricted Projects" can be found in Decision 2039.
Plan to process natural resources. Mining companies must be capable to use advanced technology and modern equipment and their operations must protect the environment. Lao Cai has also a plan to develop four new industrial zones (namely Võ Lao, Bản Qua, Cam Cọn, and Cốc Mỳ-Trịnh Tường) in Bat Xat, Van Ban, and Bao Yen Districts where mining sites are located and mining companies will operate. Industrial zones which are well-equipped with environmentally safe treatment facilities and systems will be considered as a measure to mitigate negative environmental impact and risks that arise from mining.
Under Decision 866, Lao Cai has a plan to develop: (i) one copper manufacturing plant in Tằng Loỏng, Tằng Loỏng Town, Bảo Thắng District (with capacity of 10,000 tons per year); (ii) one copper manufacturing plant in Bản Qua, Bản Vược Ward, Bát Xát District (with capacity of 20,000 tons per year); (iii) one copper manufacturing plant in Tằng Loỏng Industrial Park, Bảo Thắng District (with capacity of 10,000 - 15,000 tons per year); (iv) one milipden processing plant (with capacity of 200 - 400 tons of metal per year); (v) two gold collection plants4 (with capacity of 1,350 - 1,800 kg per year): (vi) one serpentine processing plant in Thượng Hà, Thượng Hà Ward, Bảo Yên District (with capacity of 100 tons per year); (vii) Bao Ha 1 graphite manufacturing plant in Bảo Hà Ward, Bảo Yên District (with capacity of 10,000 tons per year); (viii) one graphite manufacturing plant in Nam Thi, Lao Cai Province (with capacity of 15,000 - 20,000 tons per year); (ix) Bao Ha 2 graphite manufacturing plant in Bảo Hà Ward, Bảo Yên District (with capacity of 20,000 - 30,000 tons per year); and (x) three quartzite processing plants (with capacity of 260 - 420 tons per year).
* * *
Lao Cai Province, which borders with China, was a remote area in the past. Thanks to the development of the tourism and hospitality industries, the province has rapidly developed. Last year, Lao Cai was ranked no 6 (among 63 provinces and cities) on the provincial competitiveness index (PCI). The Government has set a target for Lao Cai to reach a gross regional domestic product (GRDP) rate of 10% or more, 2021-2030. The development of the mining industry is expected to promote the province's economy in order to achieve this target.
To view the full article please click here.
Footnotes
1 Decision 866/2023/QD-TTg of the Prime Minister dated July 18, 2023 ("Decision 866")
2 Decision 316/QD-TTG of the Prime Minister dated March 29, 2023 ("Decision 316").
3 Decision 2039 of the People's Committee of Lao Cai Province dated August 18, 2023 ("Decision 2029").
4 Gold is collected from copper mining sites in Lao Cai.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.