Hydropower and Bauxite: Platform for Economic Development

Lam Dong has focused on attracting investment capital for many important bauxite and hydroelectric production projects. The province is stepping up its mining industry. Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) has invested US$687 million to build bauxite processing and alumina production factories with an annual output of 600,000 tonnes in Bao Lam. Southern Basic Chemical Company invested US$100 million to build aluminium hydroxide oxide production and processing factories with annual output of 100,000 tonnes in Bao Loc. A joint venture between the Vietnam Chemicals Corporation and Sojitz Corporation of Japan invested US$500 million in an aluminium hydroxide oxide production and processing project with a yearly capacity of 550,000 tonnes in Bao Lam. Vinacomin spent US$500 million on an aluminium hydrate plant with an annual output of 500.00 tonnes in Di Linh.

 

The alumina mining and processing project in Bao Lam has completed 90 per cent of items. The Tan Rai bauxite processing plant keeps up with the schedule and starts pilot-running. Contractors are completing the first and second sections, with the second being completed and rest-run.

In general, investment items have been basically completed and is ready for operation. Total capital disbursement value is estimated to reach VND10,838, or 97.55 per cent of total registered capital of VND11,100 billion. Particularly, investment items in the Lam Dong bauxite - aluminium complex accounts for VND10,776.65 billion, or 97 per cent of the total investment of the project, while the investment capital for resettlement and sedentary farming is VND61,256 billion, or 0.55 per cent of the total project investment. Other bauxite, aluminium hydroxide and aluminium oxide projects are in the design stage.

 

The province now has eight major hydropower projects with a combined installed capacity of 1,671 MW. Five projects with a total installed capacity of 1,280MW (Da Nhim, Dai Ninh, Ham Thuan and Dong Nai 3, Dong Nai 4) have been put into operation, one project with an installed capacity of 150 MW (Dong Nai 5) is under construction, and two projects with a total capacity of 241 MW are being designed (Dong Nai 6 and Dong Nai 6A). Besides, the province has 34 small and medium hydropower projects with a combined installed capacity of 467.8 MW. In general, underway and blue-print hydropower projects match the province’s development planning, cause modest impacts on the environment and society, have very high investment efficiency, have convenient traffic connections, and have easy connectivity with the regional power grid.

 

Mr Huynh Ngoc Canh, Director of the Department of Industry and Trade of Lam Dong province, said the province has achieved encouraging results in attracting investment capital for potential bauxite and hydropower sectors. Investment projects in these fields have increased commercial and industrial value and added more commodities for the market. The province expects to see 46 small and medium-sized hydropower projects with a total capacity of 496 MW be put into operation from 2011 to 2015, which will generate 1,920 million KWH annually and contribute to natural energy security. Hydropower development will be associated with the guarantee of ecological balance and harmonised benefits of all stakeholders, like agriculture, local livelihoods and ecological tourism.

 

Lam Dong province is also attracting investment capital for production and processing of aluminium hydroxide and aluminium oxide and construction of aluminium smelters in Bao Lam, Bao Loc and Di Linh. Mr Canh said, "Effective investment for hydroelectric development and bauxite production and processing in Lam Dong province plays an important role in the process of industrialisation and modernisation and promotes sustainable growth. Therefore, the continued investment in these fields becomes a strategic task and an important springboard for the strong growth of Lam Dong province in the following years."