Blackstone Cuts Costs, Grants Xuan Loc Tho Majority Stake in Ta Khoa JV

Strategic Partnership Formation

Blackstone Minerals Limited has formalised a binding strategic agreement with Vietnamese industrial conglomerate Xuan Loc Tho Co. Ltd. (XLT) to jointly develop the Ta Khoa Nickel Project (TKN) and the associated Ta Khoa Refinery (TKR) in northern Vietnam. This partnership marks a pivotal step for Blackstone, enabling the company to reduce its holding costs and capital exposure in Vietnam while retaining strategic leverage over a key battery metals asset.

Four-Stage Transaction Structure

The agreement outlines a carefully staged process through which XLT will progressively earn a majority interest in the Ta Khoa Nickel Project. Initially, Blackstone will restructure ownership by converting existing loans into equity, increasing its stake in Ban Phuc Nickel Mines (BPNM) to nearly 100%. Subsequently, XLT will acquire a 55% interest and free carry Blackstone through to the granting of a critical construction license, a major permitting milestone.

Further stages involve XLT consolidating ownership by acquiring minority interests and receiving an additional 10% stake, culminating in approximately 65% ownership. Blackstone retains the option to transfer an additional 15% interest to XLT either through a development commitment or a direct payment of US$10 million. The company also holds a remaining 20% stake with flexible options to maintain equity or convert it into a royalty stream.

Refinery Joint Venture and Local Expertise

Alongside the mine, a new joint venture company will be established to develop the Ta Khoa Refinery, with XLT holding 65% and Blackstone 35%. XLT will fund all initial costs to secure Vietnamese government investment approvals and will develop an industrial cluster adjacent to the mine, providing tax benefits and streamlined permitting. The refinery will focus on producing nickel sulphate, nickel carbonate, and pCAM, with modular design allowing future expansion.

Blackstone may contribute intellectual property to the refinery’s development, enhancing its equity position. The JV will retain full control over product offtake, positioning it to attract international partners from key Asian markets.

Strategic Implications and Future Focus

Blackstone’s Managing Director Scott Williamson emphasised the company’s confidence in Vietnam as a strategic jurisdiction and the value of partnering with a strong local entity like XLT. This alliance not only reduces Blackstone’s capital burden but also leverages XLT’s extensive experience in navigating Vietnam’s regulatory landscape and industrial development.

Importantly, the partnership allows Blackstone to reallocate resources towards advancing its Mankayan Copper-Gold Project in the Philippines, a world-class asset acquired through a recent merger. This diversification underscores Blackstone’s broader strategy to build a district-scale portfolio of battery metals and copper-gold projects across Southeast Asia.