Australia's Blackstone to pursue rare earth plan in Vietnam despite partner’s arrest: exec

Blackstone Minerals has confirmed that it will continue preparing for a potential auction of concessions at the Dong Pao mine, the largest rare earths reserve in Vietnam, despite the recent arrest of its Vietnamese partner.

“The company confirms that it remains committed and will continue to prepare for a potential auction of concessions at the Dong Pao mine when the Vietnamese government decides to proceed,” the firm announced Monday.

Blackstone and Australian Strategic Materials Ltd. (ASM) had in late July signed a memorandum of understanding with Vietnam Rare Earth JSC (VTRE) to cooperate in identifying, assessing and securing rare earth mining opportunities in Vietnam as feedstock for the Vietnamese firm’s refinery as also ensure long-term offtake of rare earth oxides.

VTRE's chairman Luu Anh Tuan was among six people arrested last Friday for alleged violations of mining and accounting regulations, causing serious consequences. The arrests were made under an investigation into violations in exploring and exploiting rare earths committed by the Thai Duong Group in the northern province of Yen Bai.

Preliminary investigations found out that the group, chaired by Doan Van Huan, illegally mined and traded 11,233 tons of rare earth worth VND440 billion ($18 million) and nearly 153,000 tons of ion ores worth VND192 billion ($7.8 million). They have been accused of illegally appropriating VND632 billion ($25.8 million).

VTRE violated accounting regulations in trading with the Thai Duong group, investigators found.

Blackstone said it has no involvement in any investigation relating to Tuan of VTRE.

“Vietnam has the potential to be a significant contributor to the global rare earth supply chain and Blackstone remains committed to helping Vietnam realize this ambition,” Blackstone managing director Scott Williamson said in a press release.

Vietnam is estimated to have 22 million tons of rare earth minerals, second only to China, according to the United States Geological Survey.

The country plans to exploit 2.02 million tons a year from 10 mines during the 2021-2030 period. The figure will go up to 2.11 million tons from 13 mines in 2031-2050.

The Vietnamese government is planning to auction new mining concessions at the Dong Pao mine later this year.