Vietnam Resources

Vietnam is endowed with significant deposits of a variety of bulk and niche minerals, including bauxite, rare earths, tungsten, titanium, phosphate, coal and iron-ore. However, with the exception of coal, the majority of current mining projects in the country are small in scope, representing an untapped opportunity for development on a larger scale. While Vietnam’s mining industry has been growing at a rapid pace (2000-09 CAGR of 14.1% for contribution of mining industry to real GDP of the country), the industry (excluding oil and gas) constitutes only about 2.2% of Vietnam’s GDP (2009 data), despite the contribution of the coal sector, suggesting significant potential for growth. Further, the ownership for metals and minerals, especially in the minor metals space, is highly fragmented. This creates an opportunity for us to consolidate the sector and de-risk the industry by deriving efficiencies through scale.