The Vietnamese government has annnounced that only steel projects that can ensure their iron ore supply or make high-grade steel will be considered for licensing. The announcement was made by the country's Deputy Prime Minister Hoang Trung Hai.
He ordered the Ministry of Natural Resources and Environment to verify if licensed steel plants have guaranteed supplies of ore before recommending action against those that do not, a statement posted on the government’s website on Friday said.
Provincial administrations are required to scrutinize ongoing steel projects.
Hai’s orders follow a Vietnam Steel Association recommendation last month that licenses should not be issued to projects that are not envisioned in a development strategy since supply is expected to be three times demand by 2020.
A development strategy drafted for the steel industry in 2007 projected demand to increase to 20 million tons a year by 2020 and capacity to 18 million tons.
But a recent study by the Ministry of Industry and Trade found capacity may skyrocket to 60 million tons.
Source: Thanh Nien Daily
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