Vietnamese, Australian firms ink rare earth exploitation pact

Vietnam Rare Earth JSC (VTRE) and two Australian firms - Australian Strategic Materials Ltd. (ASM) and Blackstone Minerals Ltd. - have signed an MoU on rare earth mining and production.

In a Wednesday announcement, ASM said the agreement would facilitate cooperation in identifying, assessing and securing rare earth mining opportunities in Vietnam as feed stock for VTRE’s refinery as also ensure long-term offtake of rare earth oxides.

It would enable VTRE to explore opportunities to increase its rare earth oxide production by utilizing Blackstone’s plant at the Ban Phuc Nickel Mine in the northern mountainous province of Son La.

The MoU is an extension of the cooperation agreement signed by ASM and VTRE in April for the supply of rare earth oxides from Vietnam to ASM’s Korean metals plant.

Also Wednesday, Blackstone said that it would work with VTRE on obtaining mining licenses for the Dong Pao rare earth deposit in the northern province of Lai Chau. It said VTRE will access Blackstone’s facilities and technical assistance from ASM to conduct a pilot flotation program for the Dong Pao deposit.

Blackstone also said that some electric vehicle manufacturers have indicated their interest in securing rare earth for their supply chains.

Vietnam’s rare earth plan

Vietnam plans to exploit two million tons of rare earth annually under a decision (866/QD-TTg) signed by Deputy Prime Minister Tran Hong Ha on July 18.

Under the decision, the country aims to exploit 2.02 million tons a year from 10 mines during the 2021-2030 period. This will go up to 2.11 million tons from 13 mines in 2031-2050.

In order to secure mining licenses, firms must demonstrate their capacity to make final products with a 95% plus ratio of total rare earth oxide (TREO) using modern technologies and ensuring sustainable protection of the environment.

Vietnam will strive to complete the building of the Bac Nam Xe and Nam Nam Xe mines in the northern province of Lai Chau by 2030.

The plan estimates total TREO capacity of TREO at 20,000-60,000 tons a year and that of rare earth oxide (REO) at 20,000-60,000 tons a year by 2030. This will increase to 40,000-80,000 tons in 2031-2050.

The United States Geological Survey (USGS) estimates global reserves of rare earth at 130 million tons, with China accounting for 44 million tons, followed by Vietnam with 22 million tonnes, Brazil and Russia with 21 million tonnes each and India with 6.9 million tons.