The Ministry of Industry and Trade has allowed Viet Phat Company in the northern province of Lao Cai to export 200,000 tonnes of limonite ore to ease the company’s financial burden.

The Ministry of Industry and Trade has allowed Viet Phat Company in the northern Lao Cai Province to export 200,000 tonnes of iron ore. — Photo baocongthuong.com.vn

Earlier, the company signed a contract with Viet Trung Mineral and Metallurgical Company Limited to buy 500,000 tonnes of limonite ore, a type of iron ore, from Quy Xa Mine. However, the Viet Phat Company sold 300,000 tonnes to Hoa Phat Steel Company in the 2017-18 period, creating a redundancy of 200,000 tonnes.

The Viet Phat Company asked the ministry to allow them to export the redundant ore to ensure the stability of their financial situation.

Limonite ore is one of the raw minerals the government prohibits and limits exports.

Lao Cai Province then sent a document to the ministry to consider the export.

The ministry required the company to give priority to selling the iron ore to local firms if, during the export process, domestic companies added to the demand.

It added that the decision was suitable to ease the challenges faced by iron ore exploitation and processing firms.

In September, the ministry also allowed the iron ore magnetite exports of another company in the province, totalling more than 11,000 tonnes. — VNS