It would be a surprise to many, but the fact remains that the people of Vietnam are quite passionate about gold. Vietnam is more obsessed than others on the Asian continent, ranking as the #9 top gold consuming country in the world. In fact, on a per-capita basis, the Vietnamese consume more gold than even China and India. Now, who would have thought it possible to outdo China and India in the quest for gold?
People’s love for gold is largely due to the financial and economic condition of Vietnam. The Vietnamese people consider investing in gold a safer proposition amid financial uncertainties, locally and internationally. The demand for gold from its people has prompted the Vietnam government to look for local sources of the yellow metal.
So the Vietnamese people clearly have an affinity for using gold, but how much does the country actually produce? We’re going to take a little deeper look at the growing mining industry in this small Asian country.
Vietnam Has a Robust Mining Industry
Gold mining hasn’t taken off in a big way in Vietnam yet. This has been the situation despite having a thriving and robust mining industry in the country. The production from the mining sector alone constitutes one-third of the country’s GDP.
Vietnam is blessed with a wide range of natural resources; billions of tons of metals and minerals. The country stands third in the list of the largest mineral producers in South East Asia. Substances such as coal, manganese, bauxite, nickel, and zinc are found in abundance in Vietnam.
Except for coal, all other minerals come from small and medium-sized mining operations.
Over the years, Vietnam’s attempts at producing enough gold to satisfy the demands of its people yielded mixed results. Administrative issues, tax evasion, government interference, and a long list of other problems plague the gold mining industry in Vietnam.
History of Gold Mining in Vietnam
It’s a well-documented fact that people of Asia valued gold for many thousands of years. Most of the extraction during that time was by panning alluvial deposits. So, written records of placers and rivers that yielded gold are rare.
In Vietnam, researchers believe they have found an ancient gold mining shaft at Kham Duc. The area is also linked to ancient sites of Go Mun and Go Ma Voi.
Here is a brief history of two prominent mines in Vietnam.
Bong Mieu Gold Mine
The yellow metal, enough to keep artisanal miners and gold prospectors interested and engaged, is still found in the Bong Mieu Gold Mine. The area is widely known to contain gold deposits. The gold mine, once operated by the Besra Gold Inc., is located in the Phu Ninh district. Before the mining company began its operations, the area with the Tam Lanh commune, was nothing more than a forest. The company uprooted the trees to make way for the mine.
The mining operations had to be abruptly shut down due to financial problems faced by the company. Abandoned by the company, the mine started attracting locals who wanted to try their luck. The local officials have been unable to keep off the local gold prospectors and those who arrive from other parts of the country.
Bong Mieu was an active mine when the company went out-of-business and the operations ceased. Hence, there is still gold in the area that’s attracting a huge number of artisanal miners. The officials could do nothing due to the sheer number of miners who congregate to extract gold.
Phuoc Son Gold Mine
This is another big gold mine that met with the same fate as that of the Bong Mieu Gold Mine. The Besra Gold Inc. that managed the Bong Mieu Gold Mine also operated the Phuoc Son Gold Mine. It was also the largest gold mine in Vietnam.
When the tax authorities closed the Besra Gold Inc., the Phuoc Son Gold Mine also went out of commission. For the locals, the opening of the mine in the area was a boon. The gold mine kick-started the local economy by employing the locals. At its peak, more than 1000 local people worked in the mine.
While it was operational, the Phuoc Son Gold Mine used the most modern technology and equipment to extract gold. Even though the mining operations began much later, the experts began the survey and exploration of the area as early as 1999.
In the year 2013, the Phuoc Son Gold Mine yielded around 60,000 ounces of gold. The company that owns the Phuoc Son Gold Mine is working to solve the issues that halted the operations. It’s believed that the mine might resume functioning soon.
Officially, both the Bong Mieu Gold Mine and Phuoc Son Gold Mine are off-limits to locals and gold prospectors. That said; those planning to mine the yellow metal can use these mines as starting points to find gold in the nearby areas.
Final Thoughts
There is enough evidence to show there is plenty of gold here. Across the South China Sea, there are exceptionally rich gold mines in the Philippines and Indonesia. The country of Vietnam certainly has its share as well.
While the country holds promise, it is unlikely that gold could overshadow the variety of other minerals that are already produced in the country. Perhaps more famous than all are the abundant gemstones that are hidden in the dense jungles. Some of the nicest rubies in the world come from mines in Vietnam.
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