Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that its subsidiary, Cavico Mining, currently listed on the Hochiminh Stock Exchange (HOSE: MCV) has signed a contract to excavate and remove dirt at Thach Khe Iron Ore Mine with Nui Beo Coal JSC.
Cavico Mining will excavate and remove approximately 600,000 cubic meters of dirt at Thach Khe Iron Ore Mine. The revenue for the contract is approximately $1 million and Cavico expects to fully complete the project in six months.
Thach Khe Iron Ore Mine is considered to be one of the most important national iron ore mine projects in Vietnam. The mine, which is owned by Thach Khe Iron Ore Joint Stock Company, has 544 million tons of iron ore reserves, or one half of the country’s total reserve. A capital investment of $580 million is required to exploit and extract the iron ore at the mine. Nui Beo JSC is a member of the Vietnam National Coal-Mineral Industries Group, also known as VINACOMIN. VINACOMIN is one of the largest shareholders of Thach Khe JSC.
Thach Khe Iron Ore Mine is located on a 3,900-hectare plot of land in Thach Ha village, in the Ha Tinh province in northern Vietnam, close to Hanoi. Based on the overall scheme and design of this project, there is a total of at least 700 million cubic meters of dirt and rocks to be removed in many phases. The mine has a life expectancy of 100 years. Thach Khe JSC expects to mine at least 530 hectares of land at 750 meters depth. At this initial phrase, a total of approximately 13 million cubic meters of surface dirt and rocks needed to be excavated and removed, with expected total expenses of $32 million.
“For 10 years, Cavico Mining has enjoyed a long-term and mutually beneficial relationship with VINACOMIN through its dirt and rock excavation and removal work at the Nui Beo Coal mine,” stated Mr. Hai Thanh Tran, vice president of Cavico Corp. “We are very pleased to continue our relationship with VINACOMIN and Nui Beo Coal JSC and sign this excavation and removal contract for the Thach Khe Iron Ore Mine. Cavico Mining is the leading mine contractor in Vietnam and owns a large fleet of heavy mine construction equipment. Cavico was the first company in Vietnam that pioneered and successfully applied Australia’s mining technologies to open-cut mining. We see this contract only as the first stepping stone. We believe that with our skilled labor force and modern equipment, we will successfully complete the task at hand quickly and efficiently and aim to secure additional larger contracts at this mine in the future.”