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A steel project in Ha Tinh,Vietnam was canceled

Vietnam Ha Tinh (VungAng) special economic zonecanceleda steel plant construction plans whose annual capacity is 500,000 tons, and withdrew iron ore mining permit.



HaTinhIron & Steel JSC originally planned to invest in the construction of a steel mill with annual capacity of 500,000 tons in the VungAng special economic zone. The steel plant would be constructed in two phases, and the annual capacity is 250,000 tons for one phase. However the project did not progress as planned, but the imported equipment has been idle which cost hundreds of billions Vietnamese dong. In view of this, in 2016 VungAng Special Economic Zone announced the abolition of the steel plant plan, on 7th August this year also announced the revocation of mining permits for 1 billion US dollars.



Thach Khe iron mine is known as the largest mine in Southeast Asia, but the $ 1 billion mining project is always in trouble and during the nine years of getting mining licenses, mining had never been organized and paid. Vinacomin. The largest mining group in Vietnam, proposed to restore the ThachKhe mining at the end of 2016, but was opposed by the Vietnamese Planning and Investment Ministry, which was mainly based on unpredictable damage to the environment. In addition, the iron ore sales was also a problem, Vietnam's largest steel joint venture Formosa Ha Tinh Steel Corporation did not intend to buy ThachKhe iron ore.



The Vietnamese government has yet to make a final decision on the project, but analysts believe that there is almost no possibility to recover the project.