Track Record

Since taking over Nui Phao, Masan Group has focused on critical areas for de-risking the project and aiding successful development. We have achieved several important milestones. In 2010, we were focused on the fundamental building blocks for realizing the project, namely, achieving regulatory requirements for the project, arranging financing to ensure project development, re-building the team and accelerating compensation and resettlement. In 2011, we have built on this success and have focused on accelerating project development.    

• Licenses and Approvals - Prior to closing of the transaction to purchase Nui Phao, we obtained a new Investment Certificate and Mining License for Nui Phao, immediately addressing key regulatory concerns.
• Management Team - Masan Group helped re-build the management team at Masan Resources by hiring Dominic Heaton, a mining industry veteran with over 20 years of experience developing and operating mining projects.
• Compensation and Resettlement - We worked with the provincial and local government authorities to accelerate the compensation and resettlement (C&R) process for the project. As of December 2011, approximately 95% of the land required for the project had been acquired, as opposed to about 2% upon acquisition of the project. Apart from making land available for construction, accelerating the C&R process also helped demonstrate visible progress and built confidence in the local community.

• Financing - Soon after acquiring the project, Masan Group forged ahead with financing discussions with potential partners. In December 2010, Masan Group agreed with Mount Kellett, a global private equity firm, for an equity investment of US$100 million into Masan Resources. In 2011, Masan Group signed loan agreements with Vietnam Development Bank and with a syndication of local banks for over US$200 million in additional financing.In March 2012, a US$80 million loan facility provided by Standard Chartered to Masan Resources validated the advancement of the Nui Phao project.
• Design and contruction - We signed an Engineering & Procurement Services Agreement (EPSA) in March 2011 with Jacobs Engineering Group, one of the world’s largest provider of technical, professional and construction services. Since then, we have made significant progress on both the design and the procurement of critical equipment for the project. Earthworks and concrete works contractors have been appointed. Earthworks, the first step towards construction, were started in July 2011, and concrete works commenced on schedule.
• Team - The team was fully built out during the year. As of December 31, 2011, Nui Phao had 277 permanent employees on its rolls, with over 1,500 people working together on site to complete the project.