Vietnam-China Mineral and Metallurgy (VTM) and Kunming Iron and Steel Group (KISC) have signed an engineering-procurement contract (EPC) worth $160M starting the Lao Cai integrated steel project.

In the first phase between 2010-2012, the $337M project will build a plant able to produce 500kt/y of iron.

During this period, a steelshop with a capacity of 500kt will also be built as part of the plant in Bao Thang district, the northern mountainous province of Lao Cai. In the second phase (2012-2015), a steel-rolling mill, with a capacity of 500kt/y of steel, will be installed. The capacity will be raised to 1Mt later.

The plant will use iron ore from the local Quy Xa mine, Vietnam’s second largest iron ore, which has reserves of 122Mt.

Once operational, the project is expected to double Lao Cai’s GDP and create jobs for 2000 local workers.

Source VietnamPlus, Hanoi