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• AUGUST 18-24, 2006 • VOL. 92, NO. 26 • SINCE 1915
Australia,
New Zealand
& Southeast Asia
Vietnam rising
MINERS FIND NEW STABILITY,
GROWTH IN COMMUNIST STATE
BY ANTHONY VACCARO could to get it started. But now it’s widely
It has been 20 years since Vietnam decided accepted as one of the favoured countries
to loosen its totalitarian grip on the econo- to do business in.”
my and open its arms to foreign invest- While the Bong Mieu project hosts three
ment. The policy change was dubbed “Doi deposits, the mill is currently drawing from
Moi,” or “Renovation” in 1986, and while the Bong Mieu Central open pit. The
many potential investors treaded cautious- deposit has proven and probable reserves
ly in those early years, blistering economic of 858,000 tonnes grading 2.42 grams gold
growth and an ever-growing confidence in for 66,550 oz. Its measured and indicated
government policy is claiming more believ- resource stands at 1.1 million tonnes grad-
ers all the time. ing 2.36 grams gold for roughly 84,000 oz.,
Toronto-based Olympus Pacific with another 96,000 tonnes of 2.17 grams
Minerals (oym-t, olymf-o) is playing a sig- gold inferred for 6,700 oz.
nificant role in building investor confi- Not exactly huge numbers, but just the
dence in the country. The pouring of its right size, Olympus says, to test the waters
first gold doré at its Bong Mieu project before it starts to mine its more robust
back in March was a watershed for Phuoc Son site.
Vietnam as it was the first gold production “Bong Mieu has been a learning experi-
the country had seen since the Second ence,” Seton says. “We wanted to iron out
World War. the wrinkles and it’s given us confidence
“It was extremely difficult early on,” going into Phuoc Son.”
Olympus chairman and chief executive Phuoc Son hosts a measured and indicat-
David Seton says of trying to convince ed resource of 466,000 tonnes grading 13.6
investors to put money into Vietnam. “It grams gold per tonne for just over 203,000
took a lot of private money, mainly from oz. and an inferred resource of 162,000
my family and friends; whatever you tonnes averaging 12.61 grams gold for
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roughly 65,000 oz.
The company says a feasibility study for
Phuoc Son should be completed in the
third or fourth quarter of this year and
mine commissioning is scheduled for the
first quarter of 2008.
Olympus was given its mining licence for
the project in January — which the compa-
ny says is further evidence of the good busi-
ness environment in the country. Olympus
was told that if it got Bong Mieu into pro-
duction then it would be given its licence
for Phuoc Son; the government was true to
its word.
Shares in Olympus have gained 31% over
the past 12 months, and were trading at 46¢
at presstime. The company has nearly 165
million shares outstanding.
But Olympus isn’t the only Canadian-
based company proving up Vietnam’s min-
ing potential. Both Toronto-based Tiberon
Minerals (tbr-t, tbmlf-o), and Vancouver-
based Asian Mineral Resources (asn-v)
are pushing hard to begin production in the
coming years.
While socialist and communist regimes
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• AUGUST 18-24, 2006 • VOL. 92, NO. 26 • SINCE 1915

TIBERON MINERALS

Left: A drill tests where Tiberon Minerals’ Nui Phao tungsten-fluorspar mine is being built. Right: Tiberon president Mario Caron (right, white
shirt) talks with analysts during a visit to Nui Phao.

are infamous for thick layers of bureaucra-
cy impeding progress towards mine devel-
opment, Tiberon’s vice-president and CEO,
Walter Henry, says such notions are out of
proportion to the reality of the situation in
Vietnam.
“It’s been an excellent business environ-
ment,” Henry says, pointing to the fact that
it took the company only five and half years
to become fully permitted to operate a
mine. Henry says such a short amount of
time would be a testament to the strength
of mining policy in any jurisdiction in the
world.
With production slated to begin in 2008
at its 77.5%-owned Nui Phao mine, Tiberon
is set on becoming the world’s largest pri-
mary tungsten producer and a major pro-
ducer of fluorspar. Bismuth, copper and
gold will also be mined.
The mine is scheduled for startup in the
fourth quarter of 2007 and commercial pro-
duction is slated to begin in early in 2008.
Capital costs, including a contingency of
roughly US$24 million, should come in at
around US$229 million.
The open-pit mine will be taking ore
from a proven and probable reserve of 55.7
million tonnes grading 0.207% tungsten,
8.13% fluorspar, 0.093% bismuth, 0.185%
copper and 0.206 gram gold per tonne.
Annual concentrate production is pro-
jected to average 4,869 tonnes tungsten,
213,739 tonnes fluorspar, 5,537 tonnes cop-
per, 2,274 oz. gold and 1,991 tonnes bismuth.
Operating costs are estimated to come in
at the low end of the spectrum at US$2.59
per tonne of ore. For the two principal
products, tungsten and acid-grade fluor-
spar concentrates, average annual cash
costs should be US$7 per metric ton unit
(MTU) of tungsten and US$16 per tonne of
acid-grade fluorspar.
Tiberon shares have gained roughly
23% over the last 12 months and were
trading at $2.70 at presstime. The compa-
ny has roughly 75 million shares
outstanding.

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• AUGUST 18-24, 2006 • VOL. 92, NO. 26 • SINCE 1915
As for Asian Mineral Resources, the
company has the distinction of being one of
the first foreign companies to set up shop
in Vietnam.
In 1993, it was granted a foreign invest-
ment licence to explore and develop nickel
and copper deposits, opening the door to
the discovery of its Ban Phuc nickel project.
The company recently increased its stake
in Ban Phuc to 90%; the Vietnamese gov-
ernment holds the remaining 10%.
The project is 150 sq. km of prospective
ultramafic-hosted nickel occurrences and
hosts a measured and indicated resource of
1.2 million tonnes grading 2.7% nickel, 1.13%
copper, and 0.09% cobalt. Inferred
resources stand at 260,000 tonnes grading
2.43% nickel, 1.16% copper and 0.09% cobalt.
With the approval of its resource esti-
mate in mid-June, the company has com-
pleted two of the four required steps to
attain its mining licence, which it antici-
pates having by the end of the year.
Over the past year, Asian Mineral’s
shares have climbed 42% to 50¢. The
company has roughly 50 million shares
outstanding.
Going international
While Vietnam still has issues to iron out
— Transparency International gave it a
low 2.6 out of 10 rating on its 2005 global
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Perhaps the most significant indication of the
country’s commitment to creating a pro-business
environment — albeit while maintaining the formal
vestiges of a communist state — is its push for
membership in the World Trade Organization
(WTO).
corruption monitor, placing it alongside firmed by the time it hosts the Asia-
such countries as Nicaragua, Belarus and Pacific Economic Cooperation summit in
Zambia for the 107th spot out of 158 posi- November and with WTO member coun-
tions — it’s clear that its reputation for tries praising the numerous laws, rules
security and stability are growing. and regulations it has implemented to
Control Risk, a London-based inde- meet international standards, the pros-
pendent, specialist risk consultancy firm, pect of admission looks good.
gives Vietnam a low political and securi- Such positives are accentuated all the
ty risk rating — better than neighbours more when considering where the coun-
Thailand, Cambodia and the Philippines, try has come from and how quickly it has
all of whom scored a medium-to-high progressed.
risk ranking. “There was no colour there at all when
But perhaps the most significant indi- we first arrived. There weren’t even any
cation of the country’s commitment to street lights; everyone was dressed in
creating a pro-business environment — green fatigues,” says Seton of his first
albeit while maintaining the formal ves- impressions back in 1989. “But each time
tiges of a communist state — is its push I went back there were more street lights
for membership in the World Trade and people were wearing more colourful
Organization (WTO). clothing. Now it’s as bright and colourful
Vietnam wants its membership con- as any other Asian country.”
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• AUGUST 18-24, 2006 • VOL. 92, NO. 26 • SINCE 1915