Vietnam to stop titanium ore sales from 2009

Vietnam has added titanium ore to a list of raw materials it wants to retain for domestic production, a move that would particularly hit China which buys most of Vietnam`s titanium output.

In a statement issued at the weekend, Deputy Prime Minister Hoang Trung Hai asked the Industry and Trade Ministry to amend a circular so "titanium ore can be exported until the end of 2008, from 2009 the mined product will serve domestic production".

The Finance Ministry should work with the Resources and Environment Ministry to adjust taxes on natural resources and also impose new export duties on metals and coal in the first quarter of this year, the government statement said.

Vietnam, a key coal supplier to Japan and China, said last week it will slash coal exports this year by more than 32% to about 22Mt to save more for its power plants.

"It will have a big impact on the industry, since imported titanium ore counts for about one third of the consumption in China," a senior official at the Titanium Industry Council of China Nonferrous Metal Industry Association told Reuters.

The council official said 90% of titanium in China is used for pigment production, and 10% for titanium metal, used for high-strength, lightweight metal alloys.
Chinese factories would have to go to other countries such as Indonesia, Sri Lanka and Australia for their titanium ore supply.

Chinese metals firms are rushing to expand their titanium production capacity to meet rising demand from the aerospace industry. The metal is also used widely for products from tennis rackets to dental implants to missiles.

Vietnam`s reserves at about 34.5Mt of titanium ore, according to government figures, account for nearly 6%of the world`s total. Titanium sponge price has fallen to US$15/kg or half of the record of US$31.5 in April 2005, but it is still double the value of less than US$7/kg in 2004.

Vietnam would invest 2 trillion dong (US$124 million) until 2015 in exploration, tapping and building three mills for titanium sponge, purified ilmenite ore and white pigment, Prime Minister Nguyen Tan Dung said in the masterplan.

(Reuters, February 18)

VN does not have that much natural resources like we would think we are so we have to slow down the export of these ores. If China wants to import natural resources, my suggestion is to buy it from Australia; thave one of the world largest reserves in coal, bauxite, iron, titanium ores.

Hostile move? I think not, because Vietnam's developing quickly and need to use them for domestic industry.

So far, it's predicted Vietnam will cut export in coals, oil and even rice, and focus to export more valued goods.

Natural resources must not be exported in my opinion.

what will vietnam do with the titanium?

Are you undermining Vietnam?

No. I'm just saying going from major exporter to zero exports in a single year is a major policy change. There has to be some economic basis for it. What Vietnamese industry will be using the metal?

Maybe Vietnam will process titanium ore themselves?

There is nothing hostile about it even if Vietnam does not use it. Business is business. If it's a better investment to hold on to the titanium then there is no reason to sell.

Chill, chill, he's joking What will China do with 10 million women?

By the way, it is exceptionally hard to obtain a license to export raw material and Chinese have tried to get Vietnam's natural resources by any mean necessary. Ethics seem never to be an issue with China, money talks. They buys coal from gangs in Quang Ninh. VTV has made a serie about this gang, they are well armed and protected by some of the local police. It' called "than thổ phỉ" in Vietnam. Same with other raw materials, Chinese have no problem buying things that are smuggled, stolen.

^ okayyyy... but it's vietnamese who are plundering your own land and selling them? at least you can argue chinese may not know if something is stolen... but the vietnamese who sells it sure knows it's stolen.

Chinasoldier please stop the argument, if Vn does not wish to sell so BE IT, China can buy from someone else, no point for argument.

It's natural that as Vietnam's industry develops, Vietnam will start using its own ore for the industry.
So one should expect that Vietnam will not only stop exporting titanium but it will also stop exporting raw coals, oil, etc.

I can see that in the very near future.

cough, we make no difference between those local gangs and those Chinese business thugs . And do we need to tell further that when there is demand, there is supply? There are always people want to be there for personal gains wherever it is in Vietnam, China or elsewhere. But "Chinese government" gets honorable mention for leaving things in the crime scene.

VN needs to jack up the price!

Nah ... we keep price low to subsidize other industrial sectors. Vinacomin (Vietnam Coal & Mineral Corp.) has tried to raise the price but many cement, fertilizer producers oppose the plan (not counting the heavy-weighted EVN) so more likely the price will steadily rise to gradually improve our competitiveness. To be fair, Chinese pay higher price, although not up to international market price, but that is not the case. We gonna need all the raw materials for our development and we will soon have to import coal from Australia because at this rate, the capacity of coal mining won't match the need. While we don't make a fuss about Chinese state companies dealing with coal bandit criminals (than thổ phỉ) because we can handle the problem (somewhat like some pity poor Cambodians smuggling petrol along the border but they only sell our petrol along the road side with little plastic bottles filled with our petrol), I just find it weird to see some Chinese members play the moral & political card when Vietnam cut the quota for exporting raw materials.

it's just the topic itself is anti-china. why couldn't you just say "vietnam to stop titanium exports to favor domestic refining"? seem vietnam always finds its reason by being against china.

title's fine. you are just making it anti-china yourself.

I think in the near future, VN is not going to issue any joint-production of titanium with foreign companies either. We can look in the past 5 years and see this trend, companies from Australia, Japan, China, Russia, and U.S have expressed interest in the join production of the bauxite ores but in the end, no project has been materialized. Heck, VN even has more bauxite ores than titanium.

Isn't Northstar chinese?

Northstar and ChinaSoldier are one and the same Chinese trying to stir up trouble?

Either that or Northstar is the first anti-China Chinese I know

You're right.

The vast majority of titanium ore is used for pigment production - particularly in white paints - not only in Viet Nam but the rest of the world. This is probably the only industry where the non-metallurgical use(for pigments) far outweights the metallurgical use (titanium).

So as industry grows, particularly paints and car industry - companies who use alot of pigments - its makes business sense for Vietnam to keep hold of its cheaper stocks than to buy it in at higher prices.

It is a major move though