China Eximbank provides RMB 336.15 million government concessional loan for Sin Quyen Copper Mine Construction Project (Linked to Project ID#64491)

In November 2001, the Chinese Government provided an RMB 30 million grant to the Government of Vietnam for the Sin Quyen Copper Mine Construction Project (as captured via Project #64491). Then, on March 19, 2003, China Eximbank and the Vietnam Ministry of Finance signed an RMB 336.15 million ($40.5 million) government concessional loan (GCL) agreement for the same project (as captured via Project ID#64488). The GCL carried the following borrowing terms: a 5-year grace period, a 15-year maturity, and a 3% interest rate. The proceeds of the loan were used to be used the borrower to finance a commercial contract with China Nonferrous Metal Industry Corporation (CNMIC), which was signed on September 19, 2002. The purpose of the $81.36 million project was to construct a Sin Quyen copper mine and processing complex in Lao Cai province. Upon completion, it was envisaged that the complex would be capable of producing 1.2 million tonnes of copper ore (to be smelted into 41,700 tonnes of pure copper), 113,000 tonnes of iron ore, 40,000 tonnes of sulphuric acid, 19,600 tonnes of pyritic ore, and 341 kg of gold each year. Sin Quyen copper mine is now owned by Vietnam National Coal and Mineral Industries Group (Vinacomin) — a Vietnamese state-owned enterprise — and it was designed as a complex combining mining, dressing, smelting, acid-making, metal products recovery such as copper, gold, iron, sulfur and silver. CNMIC was the contractor responsible for project implementation. The project commenced in April 2006 and was officially completed on August 25, 2008.

Additional details

1. This project is also known as the Sin Quyen Copper Mine and Processing Complex Project and the Dong Sin Quyen Complex Project. The Chinese project title is 生权铜矿项目. The Vietnamese project title is Mỏ Đồng Lào Cai. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. Vietnam’s Ministry of Finance may have on-lent the proceeds of the loan from China Eximbank to Vinacomin. However, this issues requires further investigation.

Number of official sources

10

Number of total sources

21