Australia: Vietnam's biggest steelmaker set to import iron ore from its new mine in the Northern Territory
More royalties for the WA government. And these royalties should resist fluctuations in the price of ore. Because the ore is going to a dedicated user, the price will not be subject to market prices
And many secure jobs for Australian workers will be created. Long live the Hoa Phat company!
Hoa Phat Group received approval from Australia's Foreign Investment Review Board (FIRB) to buy the Roper Valley iron ore project last year and has now started trucking ore more than 500 kilometres to the Darwin Port for export.
The Acting CEO of Darwin Port, Peter Dummett, said the company's first shipment was due out later this month.
"This mine was initially developed by Sherwin Iron and Hoa Phat have now purchased that mine, which included about 300,000 tonnes of ore already stockpiled there," he said.
"So we've got a number of trucks coming in each day with the product and it's good to see it coming in.
"Hoa Phat is the largest steel producer in Vietnam, so this product is going to its steel mills — it's not for on-selling."
Mr Dummett said the company was aiming to export the 300,000-tonne stockpile by the end of this year.
"Hoa Phat have their own vessels and will probably move this in five shipments," he said.
Mr Dummett said the ore was currently being transported entirely by road to the port, but the company's long-term plan was to use the rail line to Darwin.
The ABC understands the company is still working through the necessary approvals to restart mining.
The company said it was looking to buy more Australian mines to supply raw materials to its mills in Vietnam.
"Hoa Phat Group is continuing to research to invest in purchasing some other new iron mines in Australia to ensure a long-term supply of at least 50 per cent of its iron ore demand — equivalent to 10 million tonnes a year," it said.
"The group is also studying to buy some Australian coking coal mines in the future to gradually become self-sufficient in this important production material."
The company said it produced 780,000 tonnes of crude steel in May this year, which was up 16 per cent over the same period last year.