The Vietnam-China Minerals and Metallurgy Company has started building infrastructure for a mine in Lao Cai Province to exploit the second largest known reserves of iron ore in Viet Nam.
The Quy Sa mine is scheduled to operate in the first quarter of 2008 after the basic construction is finished and will initially produce around 1.5 million tons of ore annually.
With ore reserves of 120 million tons to dig up, the company predicts the mine will last between 40 and 50 years.
Besides the US$175-million mining project, the joint venture between the Viet Nam Steel Corporation and Kungang Steel and Iron Company of China’s Yunnan Province will build a steel mill in Tang Loong Industrial Zone in Lao Cai’s Bao Thang District.
The company's project is viewed as crucial for the development of Viet Nam's steel industry as well as the acceleration of industrial production and economic change in the northern mountainous province.
Viet Nam's largest iron ore deposit, with reserves of 550 million tons, is located in Thach Khe District in the central province of Nghe An.