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

Project narrative

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 Record ID#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 Record 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. The Sin Quyen copper mine in Lao Cai Province, Vietnam, has caused significant environmental and social issues, including severe air pollution, dust, and odors that have disrupted local agriculture and forced repeated relocations of affected residents. Despite complaints and inspections confirming environmental damage, the mine's operators claim pollution levels are within acceptable limits. While mining remains a critical economic driver for the region, it continues to strain local livelihoods and provoke widespread dissatisfaction among the community. CNMIC was the contractor responsible for project implementation. The project commenced in April 2006 and was officially completed on August 25, 2008.