KISC will be responsible for planning, studying, designing, supplying equipment, construction and installation as well as guaranteeing the operation of the Lao Cai Cast Iron and Steel Plant which will be located in the Tang Loong Industrial Complex in Bao Thang District.
The signing ceremony marks the start of the project which is expected to cost in excess of $337 million.
Construction will be divided into two phases.
The first will start this year and is due for completion at the end of 2012. During this phase, two factories with a capacity of producing of 500,000 tonnes of cast iron and 5 an equal amount of pig iron per year will be constructed.
The second phase will run from 2012 to 2015 in which time a production line will be completed capable of producing 500,000 tonnes of iron per year. This will be increased to 1 million tonnes in the future.
Quy Xa, the second largest iron mine in Viet Nam with reserves of 122 million tonnes, will supply the plant.
The plant is a joint venture between the Viet Nam Steel Corporation, the Lao Cai Mineral Company and KISC with respective investments of 45 per cent, 10 per cent and 45 per cent.
It will play an important role in the local economy and is expected to double local gross domestic production while creating 2,000 jobs.