The CMSC delegation includes comrades: Nguyen Hoang Anh, Chairman of CMSC; Nguyen Canh Toan, Vice Chairman of CMSC; representatives of leaders of a number of relevant central ministries, departments and branches.
Working with the delegation were comrades: Trinh Xuan Truong, Chairman of the Provincial People's Committee; Hoang Quoc Khanh, Permanent Vice Chairman of the Provincial People's Committee; leaders of a number of provincial departments and branches; leaders of Bao Thang and Van Ban districts.
Viet Trung Minerals and Metallurgy Company Limited (VTM) was granted Mineral Operation License No. 1226/GP-BTNMT on August 16, 2007 by the Ministry of Natural Resources and Environment; exploitation period until December 31, 2020.
Resolution No. 164/NQ-CP dated December 29, 2021 of the Government allows Viet Trung Minerals and Metallurgy Company Limited to exploit 1 million tons of Quy Xa iron ore to provide raw materials for steel billet production of Lao Cai Iron and Steel Plant, valid until December 29, 2022. To date, the VTM Mineral Exploitation License has expired and is not eligible for re-issuance according to the provisions of Decree 158/2016/ND-CP dated November 29, 2016 of the Government detailing the implementation of a number of articles of the Law on Minerals. At the same time, the closure of VTM's mine has not been accepted and approved by the Ministry of Natural Resources and Environment, which may affect the progress of handling the VTM project plan according to the Government's direction.
As of April 30, 2024, VTM's total assets were VND 5,589 billion, of which short-term assets were VND 1,427 billion and long-term assets were VND 4,162 billion. VTM's total capital was VND 5,589 billion, of which liabilities were VND 6,108 billion and negative equity was VND 519 billion. As of May 17, 2024, VTM still owed more than VND 650 billion in taxes and fees.
Mr. Ngo Sy Hieu, Deputy General Director in charge of VTM, said: The factory repair work has been completed about 90% and will be completed in June 2024. The two main difficulties at present are the procedures for closing Quy Xa mine and ensuring raw materials for the factory to resume operations.
The Deputy General Director in charge of VTM requested competent authorities to consider supporting and allowing VTM to use the inventory of more than 194,000 tons of limonite ore that has been exploited at the Quy Xa iron mine. Allow the use and consumption of deluvi ore to have raw materials during the time of being granted a new mineral operation license and have financial resources to maintain production and business. Consider granting a new mineral operation license at the Quy Xa mine when VTM meets the conditions according to regulations...
Speaking at the meeting, Comrade Nguyen Hoang Anh, Chairman of CMSC, said: The State Capital Management Committee at Enterprises plans to report to the Politburo for approval in principle to assign the State Capital Investment Corporation (SCIC) and Vietnam Steel Corporation (VNS) to proactively and flexibly direct the capital representatives at the VTM project enterprise to exercise the rights of capital contributors at the enterprise in deciding on the direction for the enterprise in accordance with the provisions of law, joint venture contracts and the charter of VTM. The subsequent handling of VTM ensures minimizing damage to enterprises and closely follows the viewpoints and orientations of the Politburo, which are: Resolutely handling loss-making and ineffective projects and enterprises according to market principles and mechanisms; respecting the principles of autonomy and self-responsibility of enterprises; the State does not provide additional capital.
Comrade Nguyen Hoang Anh requested the Lao Cai Provincial People's Committee to coordinate with CMSC to urge central ministries and branches to remove difficulties for the VTM project; manage Quy Xa mine according to regulations; support VTM in implementing the project handling plan...
Comrade Nguyen Hoang Anh highly appreciated the province's support for the enterprise, and said that VTM has many favorable conditions, is located in a region rich in raw materials, and has maximum support from the locality, but it is very regrettable that it cannot be put back into operation.
Speaking at the meeting, Mr. Trinh Xuan Truong, Chairman of the Provincial People's Committee, said: Lao Cai always creates favorable conditions for businesses to operate. The province really hopes that Lao Cai Iron and Steel Factory will soon resume operations to contribute to the overall economic growth of the province, create jobs for workers, and effectively exploit and use mineral resources in the area.
The Chairman of the Provincial People's Committee requested the State Capital Management Committee at Enterprises and Lao Cai Province to unify viewpoints and policies on the plan to remove difficulties for VTM's project to propose to the Central Government. At the same time, he directed the Vietnam Steel Corporation to soon unify the joint venture parties to urgently complete the VTM restructuring project and production plan to serve as a basis for implementation.
We request CMSC to promptly give its opinion and request the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment to give their opinion on VTM's proposal to be allowed to use the exploited inventory of limonite ore according to Resolution No. 164/NQ-CP dated December 29, 2021 of the Government and the exploited raw deluvi ore.
Propose that the Ministry of Natural Resources and Environment soon approve the project to close the mineral mine, so that VTM can organize and implement the completion of the mine closure obligation, hand over the land to local management...
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