S Korea steel giant POSCO eyes rare earths exploitation, processing in Vietnam

POSCO Group, South Korea’s steelmaking and materials conglomerate, is keen to exploit and process rare earths in Vietnam, said chairman and CEO Chang In Hwa.

He expressed the group’s interest at a meeting in Seoul on Wednesday with Vietnamese Prime Minister Pham Minh Chinh, who was visiting South Korea.

The South Korean conglomerate is also interested in investing in clean energy and liquefied natural gas (LNG) in Vietnam, the executive said.

He also asked for Vietnam’s approval for upgrading its Posco port in the southern province of Ba Ria-Vung Tau into a commercial one.

PM Chinh said that Vietnam wants to strengthen international cooperation and attract investment in rare earths based on fair, transparent and open competition between foreign investors with a focus on sustainable exploitation using advanced technology and ensuring environmental protection.

Chinh suggested that POSCO participate in LNG projects in the central provinces of Thanh Hoa and Nghe An.

At the Vietnam-Korea business forum in Seoul on Monday, Lee Kye-in, chairman of Posco International, had noted that the company has joined the 1,080-MW Mong Duong 1 thermal power plant project in the northern province of Quang Ninh.

He said Posco International is seeking similar cooperation with the Quynh Lap LNG-to-power project in the central province of Nghe An.

POSCO currently has four steel factories in Vietnam with a total investment of $1.8 billion and a combined annual capacity of 1.8 million tons that employ over 2,100 people.

The Posco port, covering 15.7 hectares at the Phu My II industrial park in Ba Ria-Vung Tau, handles raw steel materials and finished steel products produced by the South Korean group. It has a capacity of 1.2 million tons per year.

Vietnam’s rare earth ores are estimated at 30 million tons, Minister of Natural Resources and Environment Dang Quoc Khanh said at a National Assembly session last month.

Despite such significant reserves, rare earth exploitation has been very limited to date. With its current technology, Vietnam can only export raw rare earths. It cannot separate their elements or refine them, according to the Ministry of Natural Resources and Environment.