Tungsten: Masan’s Nui Phao subsidiary eyes US$350M revenues in 2018

The chairman of Vietnam’s leading consumer goods group Masan Group Corp., Nguyen Dang Quang, has said its subsidiary Nui Phao Mining Company may earn VND 8,000Bn (US$350M) revenues in 2018.

Speaking at the Investment Promotion Conference in Thai Nguyen province in July, Nguyen Dang Quang noted the company had become one of the largest refined tungsten producers outside of China, since beginning commercial operations in 2014.

Roskill view: In its Q1 2018 financial results, Masan Resources reported revenues of VND 1,487Bn (US$64M), up more than 26% year-on-year (y-o-y) compared to Q1 2017. Income for the polymetallic commodity producer benefitted from a recovery in prices, particularly for tungsten and fluorspar. Prices for the key tungsten intermediate, ammonium paratungstate (APT), averaged US$319/mtu in Q1 2018, a 67% increase y-o-y.

Masan noted in its Q1 2018 results that it had purchased 300t of third-party tungsten concentrate during the quarter to process into higher-value tungsten chemicals, as it utilised greater capacity from its tungsten chemicals plant – which exceeds tungsten capacity at the Nui Phao mine. Masan said it aimed to procure more third-party concentrate to grow its tungsten chemicals market share.

Should those plans come to fruition the 2018 revenue target may well be achievable, however, it will be dependent on the company’s ability to purchase higher quantities of tungsten concentrate in a market that is already tightening.

Roskill’s Tungsten: Global Industry, Markets & Outlook quarterly update will be published for subscribers in end-July. To discuss the tungsten market with Roskill, contact Jessica Roberts: jessica@roskill.com

Roskill’s new Fluorspar: Global Industry, Markets & Outlook report will be published in October 2018. To discuss the fluorspar market with Roskill, contact Adam Coggins: adam@roskill.com