Vietnam and China cooperate in steel plant construction
Vietnam and
China are reportedly planning to carry out feasibility study on
iron ore mine in Vietnam's Lao Cai province and establish a steel plant in the province.
As previously reported by SteelOrbis in July, Vietnam Steel Corp (VSC) would carry out feasibility study in Quy Xa
iron ore mine in Lao Cai, Vietnam with the cooperation of northern Lao Cai province and
China's Yunnan province. The new deal between
China and Vietnam is an extension of project of VSC.
In line with the deal, Vietnam and
China will exploit 2.5-3 million tons of
iron ore annually for local sales and export to
China. Moreover, a steel plant is planned to be established in the province. In the first phase, the plant will produce 500'000 tons of cast iron, in the second phase 500'000 tons of billets and in the third phase 500'000 tons of
construction steel.
The partners in the project are VSC, Lao Cai Mineral Company and
China's Kunming Steel Group Co (KISCO).
The feasibility studies at Quy Xa are expected to cost $40-60 million and with the planned steel plant, the investment will reach $200 million.