The Japanese company’s purchase of nearly 110 million shares in a private placement will make it the second largest shareholder in Masan High-Tech Materials, a tungsten mining company.

The Vietnamese firm said in a statement that the deal is part of a strategic partnership between the two to supply tungsten products. They aim to strengthen sales in the Asia Pacific.

Tungsten is used to produce filaments in light bulbs and make steel alloys for cutting metal.

"Forging a strategic alliance with Mitsubishi Materials Corporation will certainly accelerate our vision to become an end-to-end global high-tech industrial materials platform," Craig Bradshaw, CEO of Masan High-Tech Materials, said.

Masan Horizon Group holds a 96 percent stake in Masan High-Tech Materials, formerly known as Masan Resources.

The mining firm posted a loss of VND393 billion ($16.9 million) in the first six months this year against a profit of VND1.5 billion in the same period last year due to dwindling tungsten demand because of the Covid-19 pandemic.

The management expects the recovery in the second half of the year to result in profits of VND200 billion for 2020.