Thach Khe iron mine project must be scrapped: experts

The gigantic Thach Khe mining project in Ha Tinh should be abandoned as it would seriously damage the environment and impact local living conditions, a former top leader of the central province said.

Dang Duy Bau, former Party chief of Ha Tinh, spoke to The Investor as state-run mining group Vinacomin seeks government permission to resume the project after suspending it over the past decade.

Thach Khe is estimated by geologists to hold iron ore reserves of some 544 million tons, one of Southeast Asia’s largest sources. Exploitation of the iron mine was put on hold in 2011.

In its recent proposal sent to the government, Vinacomin said the money that the group and other investors spent on the project mounted to VND1,800 billion ($77.96 million), and it is now able to assure environmental protection and economic efficiency.

Bau argued that because Thach Khe is located on sandy land about 500 meters from the seashore, it poses serious environmental risks, to which there are no immediate solutions.

"The mine is close to the sea, with a depth of several hundred meters below the water surface. Mining will cause saltwater intrusion and water pollution."

Ha Tinh’s administration has repeatedly asked the government to halt the project to protect the environment and residents.

“In the soil layers from 15 meters or deeper, there are very strong underground water flows. Therefore, mining will also dry up an area with a radius of over 30 kilometers, and Ha Tinh town will also be hit," he added.

Bau noted that Thang Long Mining Company, one of the project investors, once met with him to persuade him that today’s new technologies could minimize environmental risks, but he rejected their overtures.

Prof. Nguyen Mai, Chairman of Vietnam's Association of Foreign Invested Enterprises (VAFIE), in 2020 said he had held the view that this project should be scrapped.

"30 years ago, when Vietnam was a very poor country, the government approved the project as it needed to have resources to develop the metallurgical industry, creation of jobs and budget revenue. But things have changed as Vietnam became a lower middle-income country and is moving toward a digital economy.

"Mining exploitation is a risky project in terms of technology, environment, and social security. I agree with Ha Tinh authorities that this project be abolished," he added.

From 2008 to 2011, workers dug 34 meters below sea level to exume about 3,000 tons of ore. However, the government put operations on hold to re-appraise technical issues and re-structure stakeholder investments.