US slashes estimates on Vietnam rare earths mining output (updated)

Blackstone Minerals

01/02/2024 04:45

(Adds earlier arrests of Vietnam executives in paragraph 2,
USGS no comment in paragraph 3, planned tenders and further
details from paragraph 6)
       HANOI, Feb 1 (Reuters) - The United States geological
agency has greatly revised down earlier estimates for Vietnam's
rare earths output in 2022 and expects a further drop in mining
production last year, according to its annual statistics
released at the end of January.
    The revision by the U.S. Geological Survey (USGS) came after
Vietnamese authorities arrested in October corporate executives
that were partnering with Western companies to develop rare
earths mining projects in Vietnam. There is no clear link
between the USGS revision and the arrests. 
    The USGS did not immediately reply to a request for comment
about its new estimates. 
    Despite having the world's second-largest deposits of rare
earths, estimated at around 22 million tons of rare earths oxide
(REO) equivalent, Vietnam extracted only 1,200 tons in 2022, the
statistics from the USGS show.
    The agency had earlier estimated that Vietnam mined 4,300
tons in 2022. In its new forecast, it estimates output fell to
just 600 tons of REO equivalent last year. 
    Rare earths are used in multiple industries, including
electric vehicles, auto batteries and renewables, and have
several applications in electronic and military products. 
    Before the arrests, Vietnam was planning new tenders for
mining concession at its largest rare earths mine, which is
still largely untapped, Reuters reported in September citing an
executive at Australia's mining company Blackstone Minerals Ltd
 BSX.AX . Blackstone was planning to bid together with one of
the two Vietnamese companies accused of illegally trading rare
earths and whose executives were later arrested. 
    Blackstone and Vietnam's environment ministry, which is in
charge of mining projects, did not immediately reply to requests
for comment about whether the tenders were still planned for
rare earths mines. 
    The United States has agreed to boost cooperation on rare
earths with Vietnam, whose large untapped resources are seen as
an alternative source of the minerals. China has the world's
largest deposits of rare earths and dominates the extraction and
processing of the critical minerals. 
    The U.S. embassy in Hanoi did not immediately respond to an
emailed request for comment. 

 (Reporting by Francesco Guarascio @fraguarascio; Additional
reporting by Khanh Vu; Editing by Martin Petty and Tom Hogue)
 ((Francesco.Guarascio@thomsonreuters.com;))