Concerns Rise Over Potential Chinese Control of Vietnamese Tungsten Mine

American and Western officials are expressing concern that a Vietnamese tungsten mine and refinery might fall under Chinese control. This could limit access to a crucial mineral source outside of China.

The Nui Phao complex in northern Vietnam, owned by Masan High-Tech Materials, is a potential target. Masan has indicated interest in selling the asset. Sources indicate that two Chinese companies have approached foreign firms, seeking their assistance as proxies in bidding for a stake. This strategy would allow them to exert influence without publicly revealing their involvement.

Hanoi may resist Chinese involvement in sensitive sectors, but has allowed significant Chinese investment in its manufacturing sector. Additionally, the two countries are collaborating on joint rail projects.

The Nui Phao mine is a major tungsten producer outside of China, responsible for almost all of Vietnam's annual output. The attached refinery is also one of the largest outside China, producing various tungsten products.

Tungsten is a hard metal critical for defense and electronics, including ammunition and semiconductors. China dominates global production and has restricted exports, leading to price increases.

Tungsten from Vietnam is a significant portion of U.S. and European imports. Masan has faced profitability challenges with the complex and sold its tungsten subsidiary in Germany.

Adding to the complexity, relations between the U.S. and Vietnam have become strained. The complex's permits are also set to expire in the coming years, which could impact operations.