Masan High-Tech Materials seeks to expand tungsten mining scope around Nui Phao

Masan High-Tech Materials (UPCoM: MSR), the mining unit of Vietnamese conglomerate Masan Group (HoSE: MSN), plans to expand exploration and mining activities around its flagship Nui Phao tungsten complex, a move that could extend the life of one of the world’s largest tungsten mines outside China by up to three decades.

The company announced plans to develop additional mineral resources surrounding the existing Nui Phao mine in the northern province of Thai Nguyen, following the inclusion of the area in Vietnam’s national mineral development plan.

Under the prime ministerial Decision 866 on national mineral planning, the expanded Nui Phao area is estimated to contain nearly 55.2 million tons of polymetallic tungsten ore, while the nearby Nui Chiem area is believed to hold an additional 60 million tons of resources.

At the mine’s current exploitation capacity of about 3.5 million tons of ore annually, the newly identified resources could support an additional 20-30 years of mining and processing operations, MSR said.

Management said the expansion would strengthen Nui Phao’s role as a long-term supplier of tungsten products to global customers amid growing demand for critical minerals used in industrial manufacturing, electronics, and defense applications.

The expanded Nui Phao area covers 42.9 hectares adjacent to the existing mine. Exploration plans for the site are currently under review by the Department of Geology and Minerals of Vietnam.

MSR said the project could benefit from existing infrastructure, processing facilities, and operational expertise already developed at Nui Phao, reducing capital expenditure requirements and accelerating development timelines.

Earlier, the Ministry of Agriculture and Environment announced on June 10 that Nui Phao Mining Company Ltd, a wholly owned subsidiary of MSR, had been selected as the qualified entity for consideration of an exploration license at Nui Chiem. The 1,000-hectare site had been explored previously and is viewed as a potential source of additional long-term feedstock for the company’s processing operations.

Alongside expanding its resource base, MSR plans to increase annual tungsten oxide production capacity to more than 8,000 tons of WO₃, matching its current ammonium paratungstate (APT) processing capacity.

Tungsten oxide products generally command higher margins than raw concentrate and are used in a range of advanced industrial applications.

The company said the capacity expansion would increase value-added processing, broaden its product portfolio and position it to capture growing global demand for refined tungsten products. MSR expects the resource expansion and processing upgrades to strengthen cash flow generation and support a reduction in leverage over the coming years.

At its 2026 AGM held on April, MSR chairman Danny Le said that tungsten and related materials are becoming “indispensable” to global AI and semiconductor industries, particularly in applications like WF6 gas used in chip manufacturing.

The chairman described Nui Phao mine as a strategic asset in the emerging technology cycle. He stressed that Masan controls about 21% of the tungsten supply chain outside China.

Le said that if APT prices stabilize at around $1,000/mtu, the company could repay all debt by 2028. At $2,000/mtu, that timeline could accelerate to 2027, paving the way for sustained profitability and dividend payouts.

As of the end of 2025, MSR reported net debt of nearly VND10.4 trillion ($395.14 million). Its net debt-to-EBITDA ratio stood at 4.8 times, improving from 6 times a year earlier.