The Ha Tinh Province Department of Finance has officially terminated the Thach Khe iron ore mining and processing project, which was developed by Thach Khe Iron Joint Stock Company (TIC).
The decision, signed on July 2 by Nguyen Duc Thang, deputy director of the department, ends a project that had remained dormant for many years.
An overview of the Thach Khe iron mine project (Photo: Van Nguyen).
According to the decision, the project was terminated because the investor failed to achieve its investment objectives more than 24 months after the deadline specified in its investment certificate and did not qualify for an extension under Vietnam's Investment Law.
The Department of Finance also revoked the project's investment certificate, which had been issued on December 24, 2008. TIC is required to complete procedures related to the disposal of invested capital and assets, project liquidation and all remaining obligations in accordance with the law.
Earlier, on May 7, Deputy Prime Minister Pham Gia Tuc chaired a meeting with representatives from Ha Tinh Province, relevant ministries and agencies, and the Vietnam National Coal and Mineral Industries Group (TKV) to address outstanding issues surrounding the project.
Located in the former Thach Ha District, the Thach Khe iron mine covers more than 4,821 hectares and is estimated to contain around 544 million tonnes of iron ore, making it the largest known iron ore deposit in Southeast Asia.
The site was busy in the early days of the project (Photo: Van Nguyen).
The project was launched in 2008 with total planned investment of VND 14.5 trillion (approximately USD 555 million) and an expected mining life of more than 50 years.
Construction began in September 2009 with the removal of overburden, but operations were suspended at the end of 2011 to review technical designs and restructure the shareholder base.
In late 2016, the Ha Tinh Province People's Committee recommended that the central government suspend the project, arguing that the proposed mining technology was unsuitable for local geological conditions and posed significant risks to the environment and nearby communities. The project has remained inactive ever since.