Australia's Blackstone sticks to Vietnam rare earth bid plan despite partner's arrest (updated)

Australian Strategic Materials

23/10/2023 02:37

(Updates with detail on arrests, context on rare earth mine
auctions, share moves)
       Oct 23 (Reuters) - Blackstone Minerals  BSX.AX  on
Monday said it will continue to prepare for an auction of rare
earths concessions in Vietnam despite the arrest last week of
the chairman of its partner Vietnam Rare Earth JSC (VTRE).
    Blackstone Minerals, along with Australian Strategic
Materials (ASM)  ASM.AX , in July signed a non-binding agreement
with VTRE for securing rare-earth element opportunities in
Vietnam, potential co-investment, and long-term supply deals.
    "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,"
Blackstone said.
    Police in Vietnam on Friday arrested six people on
allegations of violating mining regulations, including VTRE's
chairman, Luu Anh Tuan, who was accused of forging value added
tax receipts in trading rare earths with Thai Duong Group.
    Both Blackstone and ASM said they had no involvement in any
investigation relating to Tuan.
    The arrests come at a time when Vietnam's government is
planning to auction new mining concessions for rare earths later
this year at its biggest mine - Dong Pao - with the aim of
challenging China's dominance in the sector.
    "Vietnam has the potential to be a significant contributor
to the global rare earth supply chain and Blackstone remains
committed to helping Vietnam realise this ambition," Blackstone
Managing Director Scott Williamson said.
    Shares of Blackstone were trading 4.6% higher, while ASM
shares declined as much as 7.1% as of 0113 GMT.

 (Reporting by Sameer Manekar in Bengaluru; Editing by Christian
Schmollinger and Sonali Paul)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))