Masan High-Tech Materials Expands Tungsten Mining at Nui Phao, Extends Life 20-30 Years

Overview

Masan High-Tech Materials (MSR), a subsidiary of Masan Group (MSN), announced the expansion of tungsten mining zones around the Nui Phao mine in Thai Nguyen province. The company estimates 55.2 million tons of potential ore in the expanded area, which could extend operations by 20-30 years. MSR also plans to increase tungsten oxide capacity to over 8,000 tons, targeting higher-value products.

Key Facts

• MSR announced expansion of tungsten mining zones around Nui Phao, with an estimated 55.2 million tons of potential ore in the expanded area.
• The expanded zone covers 42.9 hectares adjacent to the existing Nui Phao mine.
• MSR plans to increase tungsten oxide (WO3) capacity to over 8,000 tons, up from current levels.
• The company also has exploration rights for the Nui Chiem area, approximately 1,000 hectares in Thai Nguyen, with an estimated 60 million tons of ore.
• Current mining capacity is about 3.5 million tons of ore per year, supporting a potential 20-30 year extension.
• MSR’s net debt stood at nearly VND 10,400 billion as of end-2025, with a net debt/EBITDA ratio of 4.8x, improving from 6x the prior year.
• The company targets reducing net debt/EBITDA to below 1x by end-2026, contingent on market conditions and project execution.

What Happened

Masan High-Tech Materials (MSR) announced a strategic expansion of its exploration and mining zones around the Nui Phao mine, following Decision 866 on national mineral planning. The expanded Nui Phao area is estimated to contain nearly 55.2 million tons of polymetallic tungsten ore. Additionally, the Nui Chiem area, where MSR’s subsidiary has been selected for an exploration license, holds an estimated 60 million tons.

MSR plans to increase its tungsten oxide (WO3) capacity to over 8,000 tons, a higher-value product compared to its current APT output. The company expects to leverage existing infrastructure to reduce new capital requirements and shorten implementation time. Management stated the expansion will generate cash flow, strengthen financial health, and support a deleveraging path to bring net debt/EBITDA below 1x by end-2026.

Market Context

MSR shares closed at VND 39,500 on June 21, 2026, down 3.42% on the day, while MSN shares closed at VND 72,000, down 0.14%. MSR trades on HOSE and has been under pressure due to high leverage and volatile tungsten prices. The expansion announcement comes amid a global surge in tungsten demand, driven by its use in semiconductors, defense, and AI-related technologies. Tungsten prices have increased tenfold over the past year, the most volatile in two decades.

Strategic Significance

The expansion positions MSR to capitalize on the structural demand for tungsten, a critical material with few substitutes. By extending mine life by 20-30 years and moving up the value chain to tungsten oxide, MSR can improve margins and reduce earnings volatility. The use of existing infrastructure lowers execution risk and capex requirements. The deleveraging target, if achieved, would significantly strengthen MSR’s balance sheet, making it more resilient to commodity cycles.

What to Watch

• Approval timeline for the exploration license at Nui Phao expanded zone and Nui Chiem area.
• Tungsten oxide capacity expansion progress and any associated capex guidance.
• Quarterly net debt/EBITDA updates to track deleveraging progress.
• Global tungsten price trends and demand from semiconductor and defense sectors.
• Any regulatory or environmental approvals required for the expanded mining zones.