An Illicit Rare Earth Mining Operation Uncovered in Vietnam: A Case Study
An investigation has revealed that Thai Duong Company, licensed by the Ministry of Natural Resources and Environment to mine rare earth minerals in Yen Phu commune, Van Yen district, Yen Bai province, Vietnam, has been operating outside the bounds of the law and its permitted scope.
From 2019 to 2023, Mr. Doan Van Huan, Chairman of Thai Duong Company’s Board of Directors, illegally mined rare earth and iron ore at the Yen Phu mine, with a total value of over VND 864 billion.
During this period, over 10 million kg of rare earth concentrate (with an 18-20% TREO content) and more than 280 million kg of iron ore concentrate (a byproduct of rare earth mining and processing) were sold illicitly, generating illegal profits exceeding VND 736 billion.
Machinery inside Thai Duong Company’s premises. Photo: Hai Phung |
One notable buyer of Mr. Huan’s rare earth ore was Liu Dehua, a Chinese national operating as a freelance businessman. Dehua rented land and set up a workshop in Hai Phong to process rare earth concentrate. From October to November 2021, he purchased over 2 million kg of rare earth ore with a concentration of 14-17% (unprocessed) from Huan.
Dehua then instructed Nguyen Thanh Doan, Deputy Director of Truong Son War Veteran Joint Stock Company, to sign a contract for the enrichment of rare earth concentrate with Huan. This served as a cover for transporting the ore from the Yen Phu mine to Dehua’s workshops, where Doan organized production with a team of Vietnamese and Chinese workers.
Dehua directed the enrichment process to increase the rare earth oxide content to 20-30% because the ore sourced from Huan was illegal and could not be sold in its unprocessed state.
Moreover, as the enriched ore still did not meet export standards, Dehua instructed his employees to mix it with chemicals and additives to create a whitish, opaque mixture. This concoction was then packaged in bags bearing the label “Bảo Khang Rice, Chuẩn cơm mẹ nấu, cơm dẻo mềm thơm đặc trưng. Net Weight: 50kg” to disguise the illegal rare earth ore.
According to the investigation, Dehua colluded with logistics companies to falsely declare customs and smuggle eight containers of rare earth ore, totaling over 200 tons and valued at more than USD 341,000 (equivalent to over VND 7 billion), into China in 2023.
Another Chinese national, Liu Wu, was also aware that the rare earth ore sourced from Huan was not permitted for sale under Vietnamese law. Nonetheless, he purchased over 1.9 million kg of rare earth ore worth more than VND 70 billion and handed it over to Guo Hai Ba, also a Chinese national, for transportation to China and sale to Wu’s clients.
The investigation concluded that there was sufficient evidence to charge Liu Dehua with smuggling. However, he had already left Vietnam for China on September 24, 2023, before the case was officially opened and suspects were indicted. The Ministry of Public Security has issued an international arrest warrant, but Dehua remains at large.
Consequently, the case against Liu Dehua has been separated, and the investigation into his activities has been temporarily suspended. It will resume once he is apprehended.
T.Nhung
– 19:35 04/02/2025
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