To date, shareholders of TIC, which is involved in iron ore exploitation in central Ha Tinh Province, have been slow in fulfilling capital contribution commitments, causing serious project delays.
The PM also instructed the Viet Nam Post and Telecommunications Group (VNPT), the Song Da Corporation, the Bank for Investment and Development of Viet Nam (BIDV) and the Viet Nam Shipbuilding Industry Group (Vinashin) to withdraw capital from TIC in order to focus more on their own core businesses.
TIC restructuring will be considered following Government approval of two of its projects related to iron ore exploitation in Thach Khe mine and the construction of a 2-million-tonne steel ingot production mill, according to the PM.
TIC, with a charter capital of VND2.4 trillion (US$114.3 million), began operations in May 2007.
TIC General Director Ho Duc Binh confirmed that, by the end of last year, shareholders had managed to contribute only 50 per cent of TIC charter capital.
Binh said that shareholders had failed in contributing VND1.3 trillion ($61.9 million) worth of capital in 2010, only contributing VND221.5 billion ($10.54 million), the amount which they should have paid in 2009.
Shareholders in TIC include the Viet Nam Coal and Mineral Industries Group (Vinacomin), which holds 30 per cent of stakes; the Ha Tinh Mineral and Trade Corporation (24 per cent) and the Viet Nam Steel Corporation (20 per cent). Additional shareholders include the VNPT (4 per cent), the BIDV (5 per cent), the Song Da Corporation (5 per cent), Vinashin (5 per cent), the Binh Minh Import-Export Company (4 per cent) and the Thang Long Mineral and Metallurgy Company (3 per cent).
Thach Khe iron mine is the largest iron mine in Southeast Asia with a total production capacity of 370-400 million tonnes, according to the Ministry of Industry and Trade.
VNS