MOVEMENT OF VIETNAM MINERAL INDUSTRY 2020, DEVELOPMENT STRATEGY TO 2030

In 2020, Vietnam’s mining industry will have many changes due to the impact of the Covid-19 epidemic. While the domestic mining and consumption market of iron ore, bauxite, manganese, nonmetals, … is not only maintained. Stable but with strong growth, the import-export turnover of granite, pophia, basalt, sandstone (sandstone), construction stone decreased significantly due to the closure of Vietnam and other countries in the world. .

On December 22, 2011, the Prime Minister issued Decision No. 2427 / QD-TTg on “Approval of mineral strategy to 2020, vision to 2030” whether mining enterprises can take advantage of and improve. play in the remaining time.

Vietnam’s mining industry in 2020 declines significantly.

The industrial production index of the mining industry in 2020 decreases compared to 2019. This is the strongest decrease since 2019. The main trend in the future is to shift the industry to processing and manufacturing, gradually reduce the dependence on mining when Vietnamese minerals are exhausted.

Source: VIRAC, GSO

In the five mining industries, it was not out of the influence of the Covid-19 epidemic, especially in the first months of 2020, the Government implemented many policies on social gap; frozen businesses; gradually returned to positive in the second and third quarters.

Source: VIRAC

By the end of the first 9 months of 2020, the mining industry only contributes 4.54% of the country’s GDP, the lowest in the period 2015 – 2020.

Vietnam iron ore in demand situation is greater than supply.

According to data collected by VIRAC, it is estimated that in the first 11 months of 2020, iron ore production and consumption is estimated to increase by 10.4% and 10.89% over the same period in 2019.

Source: VIRAC, GSO

Due to the flourishing development of the steel industry, the demand for iron ore has increased dramatically recently. Since 2016, iron ore output skyrocketed compared to previous years. However, the current mining capacity is much lower than the approved design capacity. Mining and processing technology and equipment are medium, some mining equipment is old and outdated, so capacity is limited and it is not guaranteed to be exploited at full capacity according to approved projects. Most of the mining projects are on a small scale, with the high domestic ore cost. Currently iron ore accounts for about 30% of the BOF’s input cost.

Iron ore consumers are long steel producers with BOF furnaces. However, the number of enterprises producing with this technology is limited, mainly Hoa Phat Steel Company, Thai Nguyen Iron and Steel Company ….

Bauxite Vietnam has a strong growth in production and consumption.

Bauxite production in Vietnam has been growing rapidly in recent years. In the first 11 months of 2020, bauxite output will increase by more than 12% compared to 2019 to reach 4.57 million tons.

Source: VIRAC, GSO, USSG

The increase in bauxite ore prices in the last 2 years has boosted mining activities. After years of investing in building two key bauxite projects, Tan Rai and Nhan Co, the situation of bauxite mining in Vietnam is relatively feasible. The quality of ore from these two projects is relatively good, being preferred in the market, expanding export markets to China, Korea, Japan, Turkey, India, and Thailand.

However, when the exploitation process is accelerated, the environmental risks are increasing: the rupture of the red mud reservoir affects the ecosystem and the living environment of that area.

The output of manganese ore increases dramatically in 2020.

Manganese demand of the steelmaking industry accounts for 85-90% of the total Manganese demand, so the prospects of the Mangan mining industry depend heavily on the prospects of the steel industry. Vietnam is still in the construction and completion phase of the infrastructure, the demand for building materials will remain large and stable in the medium and long term, so the steel industry will have high prospects to help ensure a stable output market. for Manganese products. Manganese ore is the input to the Feromangan production plant and the electrolyte Manganese plant. Feromangan is one of the elements required to make steel (accounting for 10% of steel) and is in increasing demand in the market.

Source: VIRAC, Trademap

However, currently 10-20% of manganese ore is exploited for the domestic market and mainly for export purposes. In 2020, manganese ore output increases rapidly.

Production of non-metal mining and consumption maintained stable growth.

The quarrying depends on the consumption demand of the construction works during the year. Specific characteristics of the construction stone industry, stone exploited from the

The mines will be consumed in the neighboring provinces and limited long distance transportation due to high costs.

Quarrying 2020 will decrease by 1.5% compared to 2019, despite the impact of the Covid-19 epidemic, the operation of the economy is frozen due to social isolation measures. However, since the second quarter, the situation has improved when key transport infrastructure projects such as Long Thanh International Airport, Metro lines, Trung Luong – My Thuan Expressway, … are also being accelerated. deployment. The demand for construction stone is high, but there is a current situation that quarries are being exploited almost exhausted or almost expired, while the policy of the authorities restricts new permits. Many localities do not even allow increasing capacity to save this non-renewable natural resource.

Source: VIRAC, GSO

Accounted for the largest proportion in the consumption of rocks in Vietnam are granite, pophia, basalt, sandstone (sandstone) and other construction stones with 84% in 2020. Next is the group of limestone and other calcium-containing rocks and shale groups account for 8.2% and 7.6% respectively. The main reason is due to the high applicability of granite, which is often used to decorate kitchens, stairs, wall cladding, flooring … Besides, the reserve of this stone also accounts for a large proportion in reserves of various types of rock in Vietnam (about over 80%).

Source: VIRAC, GSO

Production of granite, pophia, basalt, sandstone (sandstone), other construction stone in Vietnam decreased slightly in 2020 and fluctuated slightly in the period 2015 – 2020e as the market is still affected by the In the previous period, economic growth slowed down, especially the real estate market.

Sales of granite, pophia, basalt, sandstone (sandstone), and other construction stones in Vietnam fluctuated in the period of 2018 – 2020, fluctuating from 12.4 to 14.6 trillion dong.

The import-export turnover of granite, sapphires, basalt, sandstone (sandstone), construction stone declined significantly.

Export and import turnover of granite, sapphires, basalt and other construction stones tends to decrease rapidly in 2019 when domestic supply and demand decline.

Source: VIRAC, GDVC

India and Norway are the two largest exporters of granite, pophia, basalt, sandstone (sandstone), and construction stone to Vietnam. India is famous for its black granite with strong, hard, glossy, high color consistency, so it is very popular in many projects such as: Facades, premises, stairs, floor, toilet …

Taiwan and China are two countries that import many of these stone groups from Vietnam. China is focusing on promoting public construction, which makes demand for building materials soar.

Vietnam Mineral Strategy to 2020, vision to 2030.

On December 22, 2011, the Prime Minister issued Decision No. 2427/ QD-TTg on “Approval of mineral strategy to 2020, vision to 2030” with the following development goals:

Firstly, to complete geological mapping and mineral investigation at the scale of 1/50,000 on the territory area; complete marine geological and mineral investigations at the scale of 1/500,000; evaluate and clarify the potential of mineral resources for exploitation and national reserve.

Second, exploration to meet the mining and processing needs by 2050 for minerals: Coal, uranium, titanium – zircon, rare earth, apatite, iron, lead – zinc, copper, tin, manganese, chromite, bauxite, glass sand and some other minerals.

Third, mineral exploitation must be associated with processing and creating products of high economic value; by 2020, to terminate the fragmented mineral processing establishments, with outdated technology, low economic efficiency and environmental pollution; to form concentrated mineral processing industrial parks with advanced technologies, with a scale commensurate with the potentials of each mineral.

Fourth, only export high-value processed products of large-scale minerals. The remaining minerals are exploited and processed according to domestic demand, increasing the national mineral reserve as a basis for sustainable socio-economic development.

Finally, to encourage cooperation in investigation, exploration, exploitation and processing of a number of minerals overseas, with priority given to minerals in Vietnam in need.

 


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