Vinacomin, Vietnam’s top mining company, is focusing investment in bauxite and iron ores exploitation, and aluminum and steel production as part of its long-term development strategy, said Doan Van Kien, the group’s general director.
The government has recently assigned Vietnam Coal and Mineral Industries Group or Vinacomin, a key role in the country’s aluminum industry development plan.
Kien said Vietnam will need US$8-10 billion investment capital to develop its aluminum industry.
Currently, Vinacomin is carrying out two projects in the Central Highlands: the US$500 million aluminum bauxite project with an annual capacity of 600,000 tons of alumina in Lam Dong, and Nhan Co alumina project in Dak Nong. These projects are scheduled to be completed in 2009.
The group will invest in or make joint ventures with foreign partners to execute aluminum electrolysis projects including an aluminum electrolysis factory under the Lam Dong bauxite-aluminum complex, with initial capacity of 100,000 tons/year and cost of US$250-300 million, the US$750-900 million Binh Thuan aluminum electrolysis plant initially capable of producing 300,000 tons/year, and the Quang Ninh aluminum electrolysis factory with initial capacity of 300,000 tons/year and investment of US$750-900 million. These projects are set to be carried out after 2010.
The miner will also invest in transport and infrastructure systems in the Central Highlands and southern central regions to support mining and aluminum production projects.
In 2008-2015, the group will build a 1,435-mm dual rail route, with length of 260-280km, from Dak Nong to Lam Dong and Binh Thuan with total investment of US$1.2-1.3 billion.
“This rail route will be the key for the development of the aluminum industry,” Kien said, adding Vinacomin will issue corporate bonds in case no foreign investors get involved in.
It will also build the Hon Hong-Bac Binh-Binh Thuan port capable of handling 10 million tons/year by 2015 and 25 million tons by 2025. Investment for the first phase is estimated at US$190 million, and the second phase US$170 million.
The group will cooperate with the Transport Design Consultancy Corporation to construct the Dak Nong-Binh Thuan rail route.
Besides, Vinacomin will invest in iron ore mining and steelmaking. After inaugurating Thach Khe Steel Joint Venture Company in central Ha Tinh province, the group has started supportive works for Thach Khe iron ore mine project to be kicked off late this year. Shareholders of the company have approved the plan to build a steel ingot plant at total cost of US$600-700 million and capable of turning out two million tons. Materials for the plant will take from the Thach Khe mine. (VNA, Vietnam Panorama)
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