23-10-2023 (HANOI) Despite the recent arrest of the chairman of its partner, Vietnam Rare Earth JSC (VTRE), Blackstone Minerals reaffirmed its dedication to preparing for an auction of rare earths concessions in Vietnam. Blackstone Minerals, in collaboration with Australian Strategic Materials (ASM), had inked a non-binding agreement with VTRE back in July. This agreement was aimed at securing opportunities in the realm of rare-earth elements in Vietnam, with potential co-investment and long-term supply arrangements on the horizon.
In response to recent events, Blackstone issued a statement, saying, “The company confirms that it remains committed and will continue to prepare for a potential auction of concessions in Dong Pao when the Vietnamese Government decides to proceed.”
Last Friday, Vietnamese authorities arrested six individuals on allegations of violating mining regulations. This group included VTRE’s chairman, Luu Anh Tuan, who was accused of forging value-added tax receipts in the trading of rare earths with the Thai Duong Group. Importantly, both Blackstone and ASM have asserted that they had no involvement in any investigation related to Mr. Tuan.
These arrests come at a pivotal moment when the Vietnamese government is gearing up to auction new mining concessions for rare earths later this year. The focus is on Dong Pao, the nation’s largest mine, with the intent of challenging China’s supremacy in the sector.
Scott Williamson, Managing Director of Blackstone, voiced the company’s dedication to Vietnam’s rare earth ambitions, stating, “Vietnam has the potential to be a significant contributor to the global rare earth supply chain, and Blackstone remains committed to helping Vietnam realize this ambition.”
In the wake of these developments, Blackstone Minerals’ shares witnessed a 4.6 percent increase, while ASM’s shares experienced a decline of up to 7.1 percent as of 0113 GMT.
