PHI Group, a US public company engaged in energy and natural resources, has signed an agreement to partner with HTMI Co Ltd, a Vietnamese company owning a titanium mine and operating a slag factory in Binh Thuan Province. The agreement is likely to result in an increase in annual production capacity to 150,000 tonnes and an upgrade of facilities to produce refined titanium products.
PHI will acquire 49% of ownership plus an additional 2% proxy voting right in HTMI and will be responsible for providing the required capital and technology to develop HTMI into a titanium refiner in Vietnam.
Home to more than 90% of total titanium reserves in Vietnam, equal to approximately 660 million tonnes, HTMI is well positioned to become a major refiner of titanium products, including pigments, sponges, ingots and alloys to serve the Vietnamese domestic and international markets.
HTMI is currently updating its historical financial records to comply with the US Generally Accepted Accounting Principles (GAAP) and completing an audit as required by the US Securities and Exchange Commission for closing of this transaction. HTMI and PHI are mutually satisfied with further due diligence results and economic feasibility of this program.
HTMI’s chairman Muon Phan said, “We are pleased to cooperate with PHI Group to reposition our company for further growth and expansion and are confident that by operating a refinery we will not only create substantial additional value for both companies but also spearhead the future development of the titanium industry in Vietnam.”
PHI Group’s chairman and CEO Henry Fahman said, “We highly value our partnership with HTMI and believe together we can move the titanium industry in Vietnam to the next level to bring about significant economic benefits for shareholders of both companies and contribute to the general welfare of all the constituents in this region.”
PHI Group adopts a double-tracked strategy to address the needs of both conventional energy and renewables, and also invests in minerals and other natural resources. Current activities include wood pellet projects in North America, reclamation sand for land extensions in Singapore, Brunei and other Asian countries, coal asset development in Indonesia, oleo-chemicals in Malaysia, an LPG terminal project and titanium business in Vietnam, and a nickel project in Laos.