Nui Phao Mining and GAET Form Strategic Blasting Partnership

N.P.M 08:08, 20/03/2024

The Defense Economic Technical Industry Corporation (GAET) has been chosen as the new supplier of blasting services to Nui Phao Mining as part of the recently signed five-year Strategic Partnership Agreement.

As the largest manufacturer of Tungsten products outside China, the company has two research and development centers in Germany and Vietnam and is currently operating the Nui Phao polymetallic mine along with a state-of-the-art Tungsten processing plant in Thai Nguyen province. 

The partnership between Nui Phao Mining and GAET, a military unit with a strong reputation and extensive experience in blasting services, will bring significant mutual benefits. Nui Phao Mining expects substantial blasting cost reduction over the next five years, thanks to GAET's committed outcomes at much more reasonable prices compared to the previous contractor. 

Blasting activities at the Nui Phao Mining have been halted since the second quarter of 2023. Consequently, there has been a significant decrease in the volume of raw ore mined, resulting in escalated operational costs and a pronounced decline in the company's profitability for 2023. The recommencement of blasting activities in March will enable Nui Phao Mining to continue extracting high-grade ore, feeding raw materials for the high-tech processing plant, thereby increasing productivity and optimizing production costs. Simultaneously, Nui Phao Mining maintains strict adherence to prevailing legal regulations in its blasting operations, prioritizing the safety of both workers and facilities.

In 2024, the company is applying for an expansion license to mine an additional 28 million tonnes of reserves at the mine. In the near future, ore mining and processing operations are poised to intensify, providing parent company Masan High-Tech Materials with a competitive edge in securing a consistent supply of critical and strategic advanced high-tech materials for clients worldwide. Nui Phao Mining will regain momentum and maintain its position as the leading Vietnamese flag company with major contributions to the Thai Nguyen province’s budget.

Blasting activities at the Nui Phao Mining.

"Optimizing operating costs of Masan High-Tech Materials’ subsidiaries is part of our "Fit for the Future" strategy in response to the challenging global economic situation. In Vietnam, we look forward to long-term collaboration with GAET to optimize blasting expenses, enhancing the financial performance of Nui Phao Mining.", stated Craig Bradshaw, CEO of Masan High-Tech Materials.

Over the past year, facing a difficult global and national economic context, Nui Phao Mining, together with Masan High-Tech Materials member companies worldwide, has implemented the "Fit for the Future" strategy: adapting, developing, and remaining relevant to respond to global market changes. The company focuses on innovation and sustainable practices to minimize environmental impact, while supporting the local community and ensuring long-term sustainable development.