Australian Businesses Seek Collaboration with Vietnam on Rare Earth Resource Development

October 2024

Australian businesses are eager to assist their Vietnamese counterparts in the efficient exploitation, processing, and utilization of rare earth resources, according to the Australian Ambassador to Vietnam.

During a recent meeting with the Commission for the Management of State Capital at Enterprises (CMSC), the Australian representative stated that the CMSC could play a vital role in facilitating collaboration between companies from both countries, particularly in applying new technologies to leverage Vietnam’s substantial rare earth resources. He highlighted that Vietnam possesses the world’s second-largest reserves of these materials, which are essential for industries such as electronics, batteries, electric motors, and wind turbines.

He also noted that several Australian firms were already engaged in rare earth-related projects with major Vietnamese companies, including EVN, Petrovietnam, and Vinacomin, all of which operate under the CMSC.

The deputy head of the CMSC welcomed the ambassador’s initiative and urged the Australian government to support Vietnamese businesses in adopting modern, eco-friendly extraction and processing technologies, as well as sharing sustainable resource management practices.

Recognizing the significant environmental risks associated with rare earth exploitation and processing, CMSC mentioned that they are working on updating the legal framework to enhance the situation, which is pending government approval.

In related developments, Deputy Prime Minister Tran Hong Ha announced in June that Vietnam would refrain from exporting raw rare earth elements. In July 2023, Vietnam Rare Earth JSC (VTRE) entered into a memorandum of understanding (MoU) with two Australian companies, Australian Strategic Materials Ltd. (ASM) and Blackstone Minerals Ltd., regarding rare earth mining and production.

Furthermore, in October 2023, Blackstone Minerals confirmed its plans to continue preparing for a potential auction of concessions at the Dong Pao mine, which is Vietnam’s largest reserve of rare earth elements, despite the recent arrest of an executive from its Vietnamese partner.

(Source: The Investor)

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