The latest news indicates that the renowned Nui Phao Complex (NPC), a tungsten mine and refining plant in northern Vietnam, may change ownership, as two Chinese enterprises have sought to invest through proxy, prompting concerns from the United States and several Western countries.
The mine is owned by Masan High-Tech Materials (MSR), a Vietnamese company, and is one of the largest tungsten mines outside of China, providing crucial raw materials to European and American businesses.
According to Reuters, five sources have revealed that if the mine falls into Chinese hands, it will further solidify China’s monopoly in the global tungsten supply chain, posing a threat to the stable supply of defense and high-tech industries in Europe and America.
Sources indicate that two Chinese companies have sought stakeholding through foreign agents to avoid direct exposure, thereby maintaining their negotiating leverage.
While Vietnam has previously blocked Chinese investments in sensitive industries, it has also allowed substantial Chinese investments in manufacturing, even initiating a bilateral railway construction plan, demonstrating the Vietnamese government’s ongoing effort to balance economic interests and national security.
In recent months, U.S. diplomats and other Western diplomats have visited the mine several times to express their stance on “maintaining a non-Chinese-controlled supply chain.”
One official told Reuters, “The West hopes to ensure that the supply chain is not monopolized by China (the CCP).”
Andrew Goledzinowski, former Australian ambassador to Vietnam and current advisor to mining company EQ Resources (EQR), warned that “if such a crucial refining business is sold to a party that does not align with Western industrial interests, it will become a concern.” EQR has entrusted the entire production of its Australian tungsten mine to the refining plant operated by the Masan company.
The Nui Phao mine produces approximately 3,400 tons of tungsten ore annually, nearly covering Vietnam’s total output and propelling the country to become the world’s second-largest tungsten producer, second only to China.
The affiliated refining plant has an annual capacity of 6,500 tons, producing various tungsten products restricted for export by China, including tungsten oxide and ammonium paratungstate (APT), making the facility a strategic asset in the global supply chain.
According to data from the U.S. Geological Survey, China accounted for as much as 83% of global tungsten production in 2024, and implemented export controls in February this year, leading to soaring global prices, with the core tungsten product, APT, increasing by 71% in China and 52% in Europe.
Based on data from mining consultancy firm Project Blue, Vietnam, as the world’s second-largest tungsten producer, supplied 22% of the United States’ tungsten imports and 8% of Europe’s imports last year, showcasing its strategic position in the global supply chain.
However, the Masan group has been under financial pressure due to its tungsten mining and refining business not being within its core focus of food and retail. Last year, the group sold its tungsten subsidiary in Germany. Furthermore, the mining license for the mine is set to expire in early 2028, and if the renewal is delayed, the refining plant may be forced to reduce production capacity prematurely.
Moreover, geopolitical uncertainties have further complicated the situation. Last month, U.S. President Trump announced a 20% tariff on Vietnamese goods and a 40% tariff on goods transshipped through third countries, while also rejecting Vietnam’s request for a meeting with the General Secretary of the Communist Party of Vietnam, highlighting the tense atmosphere in U.S.-Vietnam trade negotiations.
(Adapted from Reuters)