Accordingly, Lao Cai province will reclaim 4,603,611.0 m2 of land in Son Thuy commune, Van Ban district, which was leased to Viet - Trung Minerals and Metallurgy Company Limited in January 2022 for mineral exploitation and processing activities.
The reason for the revocation is explained that the above land area was assigned and leased by the province for a limited period, but the Vietnam - China Minerals and Metallurgy Company Limited did not extend the land use term.
Based on the decision of Lao Cai Provincial People's Committee, the Department of Natural Resources and Environment is responsible for handing over the recovered land area to Son Thuy commune and Van Ban district for management according to regulations.
The People's Committee of Van Ban district and Son Thuy commune will receive the land handover and put it into use according to the approved plan.
As for Viet-Trung Minerals and Metallurgy Company Limited, the unit will be responsible for handling assets attached to the land to return the site before December 29, 2024.
Since the end of 2017, through inspection of the Lao Cai Iron and Steel Plant project and the Quy Xa iron ore mining project, the Lao Cai Provincial Inspectorate said that the project had suffered consecutive losses for 2 years after being put into operation. Accordingly, as of December 31, 2016, the total accumulated loss was 1,188 billion VND.
In May 2022, the factory stopped production, causing many workers to lose their jobs and income. In addition to owing the State tax, this enterprise currently owes 1,262 workers a total of 135 billion VND in wages.
At the meeting with the People's Committee of Lao Cai province regarding the loss of Viet Trung Minerals and Metallurgy Company Limited on May 27, 2024, Mr. Nguyen Hoang Anh - Chairman of the Committee for State Capital Management at Enterprises expressed his views - resolutely handle loss-making and ineffective projects and enterprises according to market principles and mechanisms; respect the principles of autonomy and self-responsibility of enterprises; the State does not provide additional capital.
