Vietnam and Cambodia Mining

Market Briefing Hoa Nguyen

Resources and Energy Team Leader

Senior Business Development Manager

Bill Howell BSc Geol (Hons), FAusIMM, FSEG

Triple Plate Junction

Sydney, 22 January 2015

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Agenda

• Vietnam market overview

• Bilateral Trade and Investment

• Vietnam Mining Industry

• Cambodia market overview

• Working with Austrade

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Vietnam market overview

• Population: – 90 million – expected to reach 100 million by 2020

– 60% under 30 years old

– 32% in urban areas (40% by 2020)

– Rising middle class (23.8% population)

• Economy: – GDP 2014: 5.98% (est) higher than 2013 of 5.42% (forecast to

expand by 7-8% by 2020) (last qtr 6.96%)

– Export oriented: 70% of GDP

• Strategic geographic location (GMS, FTA, TPP, etc.)

• FDI 2014: US$20.23 billion - Japan ($5.6b)

- Singapore ($4.2b)

- Korea ($4.1b)

• ODA: US$6.5 billion

• Challenges

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Bilateral Trade and Investment

• Trade:

– Two-way trade: $7.8 billion (2013)

– 16th merchandise trade partner, 19th Export market

– 20.2% y-o-y increase of 2-way goods trade

– 4.5% y-o-y increase of 2-way services trade

– Top Exports: wheat, live cattle, education

• Investment:

– Australian FDI into Vietnam: USD1,437 million

– Vietnamese FDI into Australia: USD1 million

Source: DFAT, MPI

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Vietnam Mineral Resources

Vietnam has a wide variety of mineral deposits.

Coal:

Coal dominates mining activities

around 200 coal mines with total reserves

of almost 8 billion tons

net coal exporter to a net importer

Bauxite:

substantial bauxite deposit - approximately

5.5 billion tons

bauxite utilisation in Tay Nguyen is a major

Government priority

Other minerals:

Titanium, iron ore, chromate, copper, plus

significant reserves of tin, tungsten, gold,

lead, zinc, uranium, antimony, rare earth,

gems, limestone, clay and other industrial

minerals and mineral sands

Limited in depth exploration

Vietnam could find more resources Source from MONRE,Vietnam, 2013

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Mining Industry outlook

• New mining law effective 2012

• Uncertainty on regulations and

fees

• Technology and mineral

processing requirement

• Vinacomin’s role and SoE

restructuring process

(privatisation)

• Exploration activities and

government management

• Infrastructure and logistics

• Foreign Mining businesses and

Australian engagement

Tungsten Open pit in Thai Nguyen

Copper Coal

Iron

Bauxite

7

Vietnam’s Mineral Resources Map- Provided by Vinacomin

Titan

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Major mineral producers

Vinacomin – Sin Quyen Copper :

(copper, gold)

Masan Resources- Nui Phao mine: (Tungsten, Fluospar, Bismuth, Copper)

Asian Mineral Resources- Ban Phuc

(Nickel, copper)

Besra- Quang Nam:

(gold)

Vinacomin Tan Rai Alumina- Highland

area:

(Alumina)

Sai Gon – Quy Nhon Minerals:

(titan slag)

…

Vietnam Coal and Minerals

Industrial Group (Vinacomin):

41 Million tons of anthracite coal in 2013

Vietmindo- Quang Ninh:

3 Million tons of coal in 2013

Dong Bac Corporation - Quang Ninh:

3 Million tons of coal in 2013

319 Corporation- Quang Ninh:

Major coal producers

Nui Phao Tungsten mine

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Vietnam Coal and Minerals Industries

Group - Vinacomin

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• Turnover (2013): USD4.85Bil

• Total Employees (2013): 138,000

• Coal Production (2013): 42 Mil tons

• Coal sales (2013): 39 Mil tons of

clean coal

+ Domestic Consumption: 7.5 Mil tons

+ Export: 11.5 Mil tons

Vietnam Coal and Minerals Industries

Group – Vinacomin

VINACOMIN’S ANTHRACITE COAL PRODUCTION

Open cast mining

24 mines

Underground mining

30 mines

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Vietnam Coal and Minerals Industries

Group Vinacomin

■ Thach Khe Iron Ore (Vinacomin)

• Location: Ha Tinh province

• Planned Production capacity 4-5mil MT/Y

■ Co Dinh Chromate project (Vinacomin – AML)

■ Sinh Quyen Expansion project (2nd plant)

■ Ta Phoi Copper project (Vinacomin - major shareholder)

• Location: Lao Cai province

• Latest updates: Vinacomin is major shareholder, prepare construction

■ Cao Bang Manganese project (Danka Minerals)

• Location: Cao Bang province

• Underground mine

• Latest update: Looking for the Chemical Manganese Dioxide (CMD)

technology

■ Binh Phuoc Bauxite (An Vien group)

Other Projects under Development

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Cambodia Mining Industry outlook

• Rich in metallic mineral, gold, bauxite, titanium and copper.

• Resources industry is significantly underdeveloped and at

exploration stage

• In 2013, 17 out of 139 exploration projects showed positive.

• 13 of 91 companies – licensed to conduct 13 mining projects = gold

(4), iron (1) coal (1), limestone (5), and phosphate (1).

• Stable, democratic government

• 7% GDP growth for past 3 years

• Favorable mining policies

• Accessible & Mineable Topography

• CAMEC presenting Mining exploration interest

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Mineral Resource Map of Cambodia

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Key projects

• Angkor Gold and Mesco Gold Cambodia start

underground mine.

• Renaissance Minerals Ltd continues to explore

extensions to it's 1.2 million ounce Okvau gold project

whilst working on resource studies and pre feasibility

studies.

• Geopacific remains positive with an ongoing flow of

bonanza results which have been obtained for gold,

copper and silver at its Kou Sa Project.

- Mining Trade Missions

>Mining Mission to Vietnam and Cambodia Mar 2015

- Technical Seminar and Roundtable to promote

Australian METS capability

- Tailor services: market research, partner searches, visit

program, meeting set up, provide referrals

- Identify market opportunities, provide market insights

and matching services

Working with Austrade

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Questions?

Thank you!

Contact: Austrade Vietnam

Email: vietnam@austrade.gov.au

Tel: +84 4 3774 0300

Fax:+84 4 3831 7757

Australian Embassy, Hanoi

Address: 8 Dao Tan, Ba Dinh district, Hanoi, Vietnam