Blackstone Minerals Partners with Vietnamese Conglomerate to Develop Ta Khoa Project

Blackstone Minerals (ASX: BSX) has secured a strategic agreement with industrial conglomerate Xuan Loc Tho to jointly develop the Ta Khoa integrated mine and refinery project in northern Vietnam.

Under the terms, Xuan Loc Tho will become a majority joint venture partner, contributing funding and local expertise to advance the upstream nickel mine and downstream refinery through permitting, construction and operations.

Blackstone expects the deal to significantly reduce its holding costs in Vietnam while allowing it to maintain a strategic position and potential upside leverage to the nickel and lithium-ion battery metals market.

Refinery Company

The partners will establish a new company to develop the Ta Khoa refinery, with Xuan Loc Tho funding all costs related to Vietnamese investment policy approvals and an investment registration certificate.

Both partners will fund ongoing development of the refinery, and Blackstone will have the option to contribute intellectual property as part of its equity commitment.

At the same time, Xuan Loc Tho will develop an industrial complex in the district of Bac Yen to house the refinery, securing tax benefits and streamlining the permitting and licencing processes.

The company has significant experience in developing and owning industrial parks and clusters throughout Vietnam.

Equity Terms

The strategic agreement will see Xuan Loc Tho free-carry Blackstone through to construction licence stage in exchange for a 55% interest in Ban Phuc Nickel Mines, which owns the Ta Khoa project.

Blackstone will transfer an additional 10% interest to Xuan Loc Tho at a later stage, taking the Vietnamese company’s total equity in Ban Phuc Nickel Mines to 65%, with Blackstone retaining 35%.

Xuan Loc Tho will have an option to increase its ownership by a further 15% by either committing to development of the nickel project with a minimum feed capacity of 1.5 million tonnes per annum or by paying US$10 million directly to Blackstone.

Nationally Significant Project

Blackstone managing director Scott Williamson said the strategic partnership aligned with Vietnam’s support for the Ta Khoa project as a nationally significant battery metals project.

“Our commitment to developing Ta Khoa has never wavered and we believe Vietnam remains one of the most exciting investment jurisdictions in Asia and that nickel will have its day again,” he said.

“We are confident that Xuan Loc Tho will bring significant value to this project through its financial capability and networks, its understanding of the local permitting and licencing landscape and its track record in developing successful businesses in Vietnam.”

Mr Williamson said the reduced holding costs and future capital commitments would allow Blackstone to allocate funds towards advancing the Mankayan copper-gold project in the Philippines.