HANOI — Main Vietnamese steelmaker Hoa Phat Group has bought the complete curiosity in an Australian iron ore mine to safe a steady provide of uncooked supplies in a aggressive market.
The Roper Valley challenge, positioned within the Northern Territory, is Hoa Phat’s first main mining curiosity owned abroad. The steelmaker has not disclosed the worth of the deal.
The transfer comes as China, the world’s largest metal producer, ramps up manufacturing to fulfill the pandemic-recovery demand. Hoa Phat can also be exploring the acquisition of pursuits in Australian coking coal mines, one other important ingredient of steelmaking.
Hoa Phat procures 10 million tons of iron ore yearly as the corporate expands metal manufacturing. Roper Valley’s iron ore reserves are estimated at 320 million tons, in keeping with a information launch Monday, and the challenge has the capability to supply 4 million tons yearly.
Vietnam is the biggest producer and shopper of metal in Southeast Asia. Exports to neighboring nations are rising as effectively.
In 2019, Hoa Phat invested 52 trillion dong ($2.26 billion) to start out an built-in iron and metal manufacturing complicated in Vietnam’s central province of Quang Ngai.
The group’s crude metal manufacturing capability hovers round 8 million tons yearly. Final 12 months, Hoa Phat began transport scorching rolled metal for a variety of makes use of, resembling vehicles and residential home equipment.