The World’s Appetite for Critical Materials Grows: Opportunities for Masan Mineral

Masan High-Tech Materials (MSR), a leading industrial minerals producer in Vietnam, is well-positioned to ride the wave of change. With its strengths in tungsten production, a global strategic partner network, and a strong commitment to green manufacturing and sustainable development, MSR is ready to fill the gap left by the shift in the supply chain.

As the industry trends towards diversifying supply sources beyond China, MSR – the mining arm of the Masan Group – stands out with its robust production capabilities and dedication to sustainable mining and manufacturing practices, adhering to environmental, social, and governance (ESG) principles. Coupled with its green innovation and transformation initiatives, MSR is poised for success.

Business Growth in 2024 for Tungsten and Copper Production

In Q3 2024, MSR witnessed business growth, with a revenue increase of VND 74 billion compared to the previous quarter. This growth was driven by a steady rise in tungsten and copper sales, reflecting the increasing market demand for these critical minerals.

MSR’s commitment to sustainable practices and innovation

In the first nine months of 2024, tungsten revenue increased by 2%, attributable to higher selling prices in Q2 and Q3, indicating growing demand from third-party customers. Copper revenue for the same period reached VND 670 billion, mainly due to increased sales to domestic customers. As of September 30, the market value of MSR’s copper inventory stood at nearly USD 92 million, setting the stage for further growth in the final quarter of the fiscal year.

Strategic Partnerships for Stability and Growth

In May 2024, MSR finalized an agreement with Mitsubishi Materials, a Japanese conglomerate. As per the agreement, Mitsubishi Materials will acquire 100% of H.C. Starck for USD 134.5 million. This transaction, expected to close in Q4 2024, marks a significant milestone in MSR’s strategy to strengthen its mining capabilities and expand its global reach.

MSR’s strategic partnerships bolster its stability and growth prospects.

Additionally, in July 2024, MSR signed a Memorandum of Understanding (MoU) with Fluorine Korea and Traxys North America LLC to supply acid-grade fluorspar powder for Fluorine Korea’s AHF plant. This agreement secures a stable supply of up to 70,000 tons of acidspar annually for the AHF plant, slated to commence operations in 2026. Traxys North America LLC, as the exclusive distributor, will manage international distribution, supporting MSR’s commitment to providing a sustainable and reliable supply chain.

Enhancing Efficiency through the “Fit for Future” Program

Amid market fluctuations and economic challenges, MSR launched the “Fit for Future” program at the beginning of 2024 to optimize costs and enhance operational efficiency. As part of this initiative, MSR reviewed and contracted with new mining and drilling contractors, anticipating a 10% cost reduction compared to previous agreements. These new contractors commenced services in August 2024, and MSR expects a significant increase in production in Q4, meeting the surging demand for materials and solidifying its position in the global market for critical minerals.

MSR’s Fit for Future program aims to optimize costs and enhance efficiency.

Sustainable Solutions to Meet Market Demands

With the growing demand for materials in green industries worldwide and China’s tightening control over the export of critical minerals, along with the US’s recent tariff plans, the need for secure and sustainable sources of critical minerals is more pressing than ever. MSR, with its commitment to sustainability, is well-positioned to meet this demand.