Leaders from the Ministry of Commerce and Industry and 25 members under Vietnam's Titanium Association participated in this conference.
Vietnam’s Titanium Association ( VTA)
Presently, after 18 years of operation, Vietnam's Titanium Association has 25 members, whose companies have the capacity of processing 416 thousand tons per year. The total revenue of the association members iamounted to 2,086 billion dong during the 2007 and 2008 fiscal years. In addition, the companies have an export value of 93 million USD per year, contributing over 200 billion dong to the State budget per year. Furthermore, over 7 thousand workers after harvest time had a stable seasonal job.
VTA invests in innovative equipment and technologies for exploitation and processing. For example, some enterprises have been investing in downstream processing, production of goods at an international standard, such as Zircon flour, Dioxide Titanium, Ti slag, etc. VTA has been a key player in providing jobs, helping the local economy grow in productive ways. In addition, the Titanium enterprises have built a system of schools, transportation stations and infrastructure, constructing hundreds of kilometers for roads, electricity lines, etc. Without a doubt, VTA has been actively alleviating poverty in the remote regions within the mine area.
VTA’s Impact
The outstanding enterprises include Ha Tinh Mineral and Trading Corporation (known as Mitraco), a multi-branch enterprise with over 3,000 employees. From 2007-2008, its turnover was 682 billion dong per year. With a pre-tax benefit of 45 billion dong, the amount paid to the State totaled 32 billion dong. This enterprise has invested thousands of billion dong to execute 50 km of inter-communal road, 36 transformer stations, 50 kindergartens; and helped thousands of poor citizens within the area. Another company, Thua Thien Hue Mineral Company Ltd (Humexco), has 1,800 employees and an annual revenue of 246 billions dong. About 34 billions dong is paid to the State per year.
VTA’s Vision
In the near future, the Titanium enterprises will prioritize: planning project implementation; planning exploration; exploitation by gathering and extension of mine lifespan; continue to expand and improve the model connecting member units on science, production and consumption of goods; and invest in appropriate processing technology for the greatest return.
VTA’s Challenges
Recently, the Vietnam Geological and Mineral Department has discovered about 200 million tons of heavy minerals. This will be an advantage for Vietnam's Titanium Association to make progress in capital investment as well as technology of exploitation and processing, to increase the value of this discovery. However, a key challenge the VTA will face is the change of exploitation mineral exploitation and processing activities. In particular, the Government's policies to stop essential ore export. Another challenge is that the association's traditional customers have been seeking new supply markets outside Vietnam. The wait period for investing in the new project (Ti slag plant, TiO2 pigment plant) will negatively impact employment for a large number of workers for a wait of two to three years. Other related issues such as investment, technology, and skills training will continue to be project barriers.
VTA’s Solution
To address these issues of mining development, the Vietnam Titanium Association proposes that the Government of Vietnam: properly invests in mining exploitation; creates a Master Plan for exploitation and deep processing; provide human resources for mining exploitation; consolidate Titanium sources in the area planned for industrial parks, tourism areas, and area for infrastructure construction. The government bodiesissuing licenses for exploration, exploitation and downstream processing need to select the organizations and enterprises which have experience and resources (financing, technology, human capital). They must investin modern equipment for exploitation and processing to produce exports with international standards. The association's members should be given priority to explore and exploit new mines with industrial exploitation reserves to supply raw material source to the deep processing projects. Simultaneously, they must fully take advantage of the the equipment, technology, and human capital which have been invested in for the last few years. The members of Vietnam's Titanium Association have agreed to the Government's policy on downstream processing. However, the investment for downstream processing needs time. With the high inflation and the bank interest rate the VTA is turning to the Government for a solution. Therefore, the VTA kindly request the Government to permit the association's members to export a reasonable proportion of essential ores to the end of 2010. VTA intends to: conduct the enterprises' operations; provide jobs to workers while the deep processing projects are under investment and construction; simultaneously reduce export tax for Titanium and Zircon products, which have been through the deep processing. In order to create investment sources for the deep processing, the Government should permit development of downstream processing projects, such as Tio2 pigment andTi slag, to export Titanium.
At this conference, Vietnam's Titanium Association also proposed the Government not to permit the Provincial People's Committees to supply mines to small-scaled enterprises. These groups lack the capacity to exploit and process using industrial methods for Titanium exploitation and processing. This would create an unhealthy competition in production selling, environmental treatment, and the non-gathering all of mineral resources.