Vietnam and China cooperate in steel plant construction

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.