Authorities in Ha Tinh Province have just proposed to close the Thach Khe Iron Mine during a meeting with a multi-department team led by the Deputy Minister of Planning and Investment Nguyen Van Hieu on May 29.


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The delegation team includes representatives from the Ministry of Industry and Trade, the Ministry of Finance, Vietnam National Coal and Mineral Industrial Group (TKV) and many experts.

According to Hanoi authorities, thousands of local people in six coastal communes have experienced many difficulties in the past nine years. 

They can't easily repair their houses and slow ground clearance work means many haven't had their compensation or resettlement plan yet. 

On-going construction at the mines means there is a lack of clean water and their agricultural land has been cut.
 
Ha Tinh Chairman Duong Tat Thang agreed that after the iron mine began operation it would contribute to the local budget and provide jobs for local people. 

However, in the long run, they will face severe pollution problem, desertification, sandstorms and declining groundwater. The 550-metre-deep mining pit located near the coastal area will pose a huge problem.

Thang asked for more details about the contractors' financial capacity, technology, transportation methods and the outputs for the products. 

The investor, Thach Khe Iron JSC, still lacks the required finance a decade into the project. 

The other investor, TKV has to ask to cover the shortage of VND224bn (USD9.8m) out of the required VND2trn (USD88m) counterpart funding for Thach Khe Iron JSC.

He also expressed concerns about environmental issues like saltwater intrusion and wastewater treatment. 

The project is a major risk to the province’s coastal tourism and a long beach in Thach Ha District may be lost. Moreover, the daily lives of local residents will be affected.

The delegation agreed on the feasibility and technology of the project. Deputy Director of General Department of Environment Hoang Van Thuc said the environmental impact had been assessed.

Despite the assurance, Ha Tinh authorities proposed to halt the project until it meets the requirements.

Deputy Minister of Planning and Investment Nguyen Van Hieu said he would gather all opinions for a prime ministerial decision.

Dtinews