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Southeast Asia’s largest iron mine abandoned in central Vietnam

Southeast Asia’s largest iron mine abandoned in central Vietnam

Tuesday, November 07, 2017, 15:31 GMT+7

An iron mine in the north-central Vietnamese province of Ha Tinh, the largest of its kind in Southeast Asia, has been abandoned for years after an exploitation project was halted.

The Thach Khe mine houses about 50 percent of the iron ore deposits in Vietnam and is considered Southeast Asia’s biggest iron mine.

In September 2009, Thach Khe Iron JSC (TIC) initiated a project worth VND10 trillion (US$439.5 million) to exploit the natural resource.

The firm got as far as testing its technology and digging up the soil to a depth of 28 meters before ceasing operations.

Due to financial challenges and other shortcomings, the prime minister ordered the cessation of the project in late 2011 to re-evaluate the technical design and restructure the firm’s shareholders.

Following this, TIC intended to resume the operation of the project at the Thach Khe mine, but the proposal was not approved by authorities in Ha Tinh Province.

Deserted land inside the mine. Photo: Tuoi Tre
Deserted land at the mine. Photo: Tuoi Tre

According to Duong Tat Thang, vice-chairman of the provincial People’s Committee, the operation at the mine could have long-term effects on the local environment including pollution, desertification and loss of groundwater resources, among others.

Meanwhile, Vo Quang Toan, an official from TIC, said that the mining does not involve the use of any chemicals.

Suspending the project will impact its overall schedule as well as affect the province’s plan for social-economic development, Toan continued.

TIC has spent nearly VND2 trillion ($87.9 million) on the project so far, the representative stated, adding that ending the project would mean heavy financial losses.

Abandoned

According to the observation of Tuoi Tre (Youth) newspaper reporters in early November, the Thach Khe mine was already abandoned.

Only a few machines were spotted at the venue and no workers could be found.

Cattle are raised in the abandoned iron mine. Photo: Tuoi Tre
Cattle are raised in the abandoned iron mine. Photo: Tuoi Tre

After the project ceased, some residents had returned to their old homes to resume farming, including growing vegetables and raising poultry and cattle, said Pham Van Ngoc, secretary of the Thach Dinh Party Committee.

In order to execute the project, about 96 households in Thach Dinh Commune were relocated and 331 hectares of agricultural land was used to facilitate its implementation.

“Our lives at the mine over the past seven years have been quite tough. It is difficult to grow plants during the dry season, while the water reddens and is unable to be used when it rains,” said local resident, 56-year-old Nguyen Cong Tam.

During a meeting on November 3, Do Thang Hai, Deputy Minister of Industry and Trade, said that the central government has requested competent authorities give their opinion on the matter.

A final decision will then be made by the prime minister and the government, said Hai.

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