Australian METs (Mining Technology, Equipment and Services industry) companies are finding new opportunities as Vietnam grows its green ambitions.
Austrade led a delegation of 8 Australian companies to promote sustainable mining cooperation at the 2024 Mining Vietnam exhibition in May. Mining Vietnam is one of the key mining tradeshows in South East Asia.
To reduce impacts on the environment and secure a social license to operate, mining must look to new technologies, processes and business models in its pursuit of sustainability. In this pursuit, Australian METS companies are natural partners for the global mining industry, including Vietnam.
Austrade’s trade and investment advisors hosted a booth and provided in-market briefings, facilitated business matching and a networking event to help Australian and Vietnam companies build commercial relationships.
Senior Trade and Investment Commissioner to Vietnam, Rebecca Ball, says Australia can support Vietnam’s ambitions to develop more sustainable mining practices. This can be achieved by upskilling the labor force, implementing ESG practices and applying Australian METS solutions to reduce carbon emissions from mining operations, improve mine water management and investigate opportunities to take mine waste and turn it into valuable building materials.
Vietnam has vast deposits of minerals and primary energy resources in proven, underexplored or unexplored sites. Key minerals include anthracite coals, bauxite, iron ore, copper, nickel and mineral sands. Vietnam holds the world’s second-largest reserves of rare earth elements, critical for advanced technologies and facilitating the transition towards a greener economy. These rare earths are vital to the manufacturing of renewable energy technologies, electric vehicles, green construction materials, medical devices and space technologies.
Many of Vietnam’s mining activities are at an early stage of exploration. There is opportunity for Australian companies to provide mining efficiency and sustainability solutions, skills and training.
Technologies and solutions that reduce carbon emissions, improve mine water management, and repurpose mine waste into valuable materials, are in high demand.
Vietnam has foreign direct investment and trade relationships with countries including the US, China, India, Japan and Korea. This presents an important global value chain market in renewable energy, EV and manufacturing sectors. These sectors have strong demand for resources including critical minerals and base metals.
Australian business Blackstone Minerals, a delegate to Mining Vietnam 2024, is seizing this opportunity with projects like the Ta Khoa Nickel Project, which adheres to high environmental and social standards.
Another example of Australian METS engagement is at Masan High Tech Materials’ Nui Phao Tungsten mine operation. The Vietnamese mining company, managed by a team of Australian executives and technicians, has successfully grown from a mine operator into one of the largest integrated operations in tungsten. It utilises Australian expertise across the value chain. This has been critical to Masan High Tech Materials’ success in adopting world leading mining practices.
Australian businesses can assist Vietnam in developing this sector, providing technical expertise necessary to unlock these resources, diversify supply chains and ensure consistent supplies for manufacturing. Additionally, there are opportunities for Australian METS in underground coal mining solutions, mineral processing technologies, mining consultancy and engineering in smelter, refinery technologies, smart and mining efficiency software or solutions.
Vietnam has rich resources in both energy and mineral commodities, including hydrocarbons, base metals and critical minerals. Vietnam produced around 48.246 million tons of coal and 1.491 million tons of alumina.
Vietnam is also an importer of minerals, with import turnover of US$7.2 billion for coal and US$2.4 billion for iron ores and other minerals. In 2023, Australia exported to Vietnam A$4.43 billion of coal, A$1.21 billion of iron ore, A$372.5 million of unwrought aluminium, A$226.3 million of unwrought zinc, A$195.7 million of refined copper and copper alloys.
Vietnam has stepped up coal imports due to electricity shortages and industrial demand. In the first half of 2024, Vietnam imported 33.43 million tons of coal worth US$4.2 billion, an increase of 38.6% in terms of volume and 14.5% in terms of value. This ties into the depletion of domestic coal reserves, requiring deeper exploitation and resulting in higher costs.
Critical minerals are an area of mutual interest between Australia and Vietnam. Vietnam is estimated to have 22 million tons of rare earths reserves. Its largest, rare earth mine, Dong Pao mine (Lai Chau), is owned by a subsidiary of the state-owned company.
This presents a key opportunity for the country to build its independent supply chains. Australian METS companies are well-positioned to take advantage of a notable policy shift occurring in Vietnam, especially in the context of its rapidly evolving mining sector.
The Vietnamese Government has issued various master plans and strategies for the development of the resource and energy sectors. These include the National Power Development Master Plan VIII and the Master Plan of Exploration, Mining and processing of Minerals, among others outlined in this Coal Industry Development Strategy article. These strategies set out the government’s direction and priorities for industry development for both state-owned and private investors, particularly in downstream production. This approach ties into the development of Vietnam’s manufacturing capacity for export. They also tie into Vietnam’s ambitious sustainability goals, which aim to reduce the degradation of water and land resources.
Vietnam mineral exploration and investment activities remain limited due to regulation of the mining sector. To solve this, the Vietnamese government has been working on reforms with support and knowledge-sharing from the Australian government, particularly in sustainable mining practices and legislation.
With the Comprehensive Strategic Partnership between Australia and Vietnam elevating the bilateral relationship between our two countries, there is strong support for businesses to build partnerships, particularly in the resource and advanced industrial materials required for energy transition targets. This is also a key priority of the Australian Government’s Southeast Asia Economic Strategy to 2040 agenda.
Vietnam resources sector has been expanding in recent years with foreign companies building supply chain capacity in some critical minerals including rare earths and tungsten. Vietnam government policy in the minerals industry is to encourage the development of downstream processing over the export of concentrated or low processed products. Therefore, foreign investors and local businesses are seeking complementary supply chain partnerships. This presents opportunities for Australian miners as well as METS companies.
There is significant scope to apply technical expertise in resource projects across all stages of the development timeline. The focus in this sector has also increased the potential opportunities available to deepen the mining knowledge and technical skills of the local workforce.
While there are opportunities, the market competition is also strong. Businesses in countries with closer proximity to Vietnam offer competitive costings which dominate the conventional mining equipment sector. Australian companies have a better position in market with expertise in mineral processing technology, high-tech applications, advanced manufactured equipment and engineering services.
Local context understanding, engaging with customers with local language capacity is important to maintaining strong communication channels.
Austrade has a team of advisers in Vietnam who have strong networks on the ground with government, customers and stakeholders. For more information on METS opportunities in Vietnam, please contact:
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