Photo: Masan Resources
AGM votes for no dividends and agrees to 2017 business targets.
Masan Resources (MSR)’s annual general meeting (AGM) on April 17 approved a resolution to not pay dividends for 2016 and set a revenue target of a minimum of VND5.38 trillion ($236.7 million) and a maximum of VND5.6 trillion ($246.4 million) in 2017, up 33 and 38 per cent against 2016. The company also targets after-tax profit from VND150 billion ($6.6 million) to VND290 billion ($12.7 million).
In the long-term, MSR aims to become not only a leading mining company but also a leading company in the production of tungsten and other deep-processing products.
Revenue last year reached VND4 trillion ($176 million), up 52 per cent compared to 2015, with after-tax profit of VND1.15 trillion ($50.6 million), up 37 per cent.
Approximately half of MSR’s revenue comes from tungsten, according to the company. It will have a process to produce gold-based products this year.
In regard to the results of an inspection at the large Nui Phao mine conducted by the Ministry of Natural Resources and Environment (MoNRE) in July last year, a leader from MSR said that the company is still waiting for the final conclusion from the ministry.
Mr. Lai Hong Thanh, Deputy General Director of the Department of Geology and Minerals at MoNRE, meanwhile, confirmed with VET that the results of the inspection are still to be released. “It is expected that the results will be announced within the next few months,” he said.
At the AGM, MSR leaders reaffirmed that it complied with all regulations on environmental protection in construction, exploitation and operations at the project, and with Vietnamese regulations on environmental protection and the application of international standards.
The environmental pollution scandal at Nui Phao mine was made public last July. After receiving complaints from local people about the project’s environmental impact, MoNRE worked with the Thai Nguyen Provincial People’s Committee to prepare a comprehensive inspection plan that covers environmental protection and mineral, water and land resources.
The Nui Phao project was licensed in 2005 and has significant deposits of tungsten, fluorspar, bismuth and copper, making it the world’s largest tungsten mine outside of China. It covers an area of 9.21 sq km in Dai Tu district, Thai Nguyen province.
In 2010, Masan Resources acquired the project from Dragon Capital, a Vietnam-focused financial institution, and other stakeholders. The mine began commercial operations in the first quarter of 2014.
Prior to Dragon Capital, the project was owned by Canada’s Tiberon Minerals Ltd, with a 70 per cent holding. Due to the economic crisis at the time, Tiberon sold the project to Dragon Capital in 2007. Dragon also lacked the capital for the project and was forced to suspend it in 2008.
In July last year, Masan stepped in and invested $550 million in the project. The company planned revenue of $288 million this year, rising to $320 million next year. Masan Resources currently holds 63.4 per cent of the project’s charter capital.