The Nui Phao complex — a tungsten mine and refinery — in northern Vietnam is owned by Masan High-Tech Materials, a subsidiary of the Masan conglomerate which has flagged its interest in selling the asset. Two companies have approached two foreign firms and asked them to act as their proxies in bidding for a stake in the tungsten mine and refinery. That would allow them to exert their influence without publicly declaring their interest.
Stake sales could meet resistance from Hanoi which has hampered Chinese involvement in sensitive sectors in the past. That said, Hanoi has allowed large-scale Chinese investment in Vietnam's manufacturing sector and the two neighbours have embarked on joint rail link projects that were once seen as dangerous from a defense perspective by many Vietnamese.
A US diplomat and other Western officials have in recent months visited the Nui Phao complex multiple times. The visits were meant to "show support”.
The Nui Phao mine is one of the largest outside China. It produces almost all the roughly 3,400 metric tons estimated to be extracted annually from Vietnam, which last year was the world's second-biggest producer after China.
The refinery attached to the mine is also one of the largest outside China, with a capacity of 6,500 tons a year, and produces many tungsten products facing Chinese restrictions, including oxides and ammonium paratungstate (APT).
“It would be a concern if such an important refining operation were to be sold to a party not sharing the interests of Western industries.”
Tungsten is an extremely hard metal often classified as critical for its applications in defense and electronics industries, including for ammunition and semiconductors.
China, which dominates production with 83% of global output in 2024, restricted exports in Feb, requiring companies to obtain licences before shipping.
Chinese exports of a range of tungsten products fell sharply in February and have only partially recovered since then. Exports were 17% lower in July versus January.
That has sent prices of APT, a raw material for many tungsten products, surging to record highs, up 71% in China and up 52% in Europe compared to the beginning of the year.
Tungsten from Vietnam accounted for 22% of US imports last year and 8% of Europe's imports.
Masan has struggled to make the complex profitable, and the business is not part of its core food-processing and retail operations. The company sold its tungsten subsidiary in Germany last year.
This month, US President Donald Trump imposed 20% tariffs on Vietnamese goods without a final agreement with Hanoi. He has also threatened more duties and has declined requests for a meeting with Vietnam's top leader, To Lam.
Complicating matters, the complex's permits are set to expire in the coming years. The mine's license is valid until early 2028.
Any delays in arranging the renewal of concessions could force the refinery to scale down operations even before existing concessions expire.
https://reuters.com/world/china/west-frets-over-chinas-interest-vietnam-tungsten-mine-sources-say-2025-08-27/…
The Nui Phao complex — a tungsten mine and refinery — in northern Vietnam is owned by Masan High-Tech Materials, a subsidiary of the Masan conglomerate which has flagged its interest in selling the asset. Two 
companies have approached two foreign firms and asked them to act as their proxies in bidding for a stake in the tungsten mine and refinery. That would allow them to exert their influence without publicly declaring their interest.
Stake sales could meet resistance from Hanoi which has hampered Chinese involvement in sensitive sectors in the past. That said, Hanoi has allowed large-scale Chinese investment in Vietnam's manufacturing sector and the two neighbours have embarked on joint rail link projects that were once seen as dangerous from a defense perspective by many Vietnamese.
A US diplomat and other Western officials have in recent months visited the Nui Phao complex multiple times. The visits were meant to "show support”.
The Nui Phao mine is one of the largest outside China. It produces almost all the roughly 3,400 metric tons estimated to be extracted annually from Vietnam, which last year was the world's second-biggest producer after China.
The refinery attached to the mine is also one of the largest outside China, with a capacity of 6,500 tons a year, and produces many tungsten products facing Chinese restrictions, including oxides and ammonium paratungstate (APT).
“It would be a concern if such an important refining operation were to be sold to a party not sharing the interests of Western industries.”
Tungsten is an extremely hard metal often classified as critical for its applications in defense and electronics industries, including for ammunition and semiconductors.
China, which dominates production with 83% of global output in 2024, restricted exports in Feb, requiring companies to obtain licences before shipping.
Chinese exports of a range of tungsten products fell sharply in February and have only partially recovered since then. Exports were 17% lower in July versus January.
That has sent prices of APT, a raw material for many tungsten products, surging to record highs, up 71% in China and up 52% in Europe compared to the beginning of the year.
Tungsten from Vietnam accounted for 22% of US imports last year and 8% of Europe's imports.
Masan has struggled to make the complex profitable, and the business is not part of its core food-processing and retail operations. The company sold its tungsten subsidiary in Germany last year.
This month, US President Donald Trump imposed 20% tariffs on Vietnamese goods without a final agreement with Hanoi. He has also threatened more duties and has declined requests for a meeting with Vietnam's top leader, To Lam.
Complicating matters, the complex's permits are set to expire in the coming years. The mine's license is valid until early 2028.
Any delays in arranging the renewal of concessions could force the refinery to scale down operations even before existing concessions expire.
reuters.com/world/china/we