Allen & Overy is advising H.C. Starck, one of the largest companies in the global tungsten industry, on its joint venture (JV) with Nui Phao Mining Company (Nui Phao), a subsidiary of one of Vietnam’s largest private sector business groups, Masan Group Corporation (Masan Group), and developer of the largest known tungsten deposits outside of China.
Subject to regulatory approval, Nui Phao and H.C. Starck will own 51 percent and 49 percent respectively of the JV which will, through a newly constructed chemical plant in Thai Nguyen Province, Vietnam, process all of Nui Phao’s tungsten concentrate into higher value-added tungsten chemical products. The tungsten chemicals are used in a variety of applications requiring high strength including high speed cutting and drilling tools used in mining and mechanical engineering. The chemical plant will have an installed capacity of around 6,500 tons tungsten trioxide per annum.
Commenting on the deal, Allen & Overy partner Barry Irwin said: “This is a significant deal for our client as it will provide a very substantial and stable source of material for the JV company, and it will strengthen our client’s well-established leading position as a global tungsten chemicals producer. It is a deal that plays well to Allen & Overy’s strengths given the firm’s global footprint (at least seven different offices were involved), our very strong corporate and finance practices in Vietnam and Singapore, and our extensive experience in minerals processing and offtake and the mining sector in general.”
Dao Nguyen, managing partner for Vietnam, added: “The deal is also significant for Vietnam as the tungsten processing business is a niche and technologically-intensive industry. With H.C. Starck’s know-how and technology, this JV will see Vietnam shift further towards becoming a manufacturer of value-added products.”
The Allen & Overy team was led by partners Dao Nguyen (Ho Chi Minh City), Barry Irwin (Singapore) and Helge Schäfer (Hamburg). They were supported by senior associates Nick Marchica (Sydney), Matthew Williams as well as other lawyers in Singapore, Perth, Hamburg and London.
Other law firms on the deal include Milbank and YKVN acting for Masan/Nui Phao.
