Vietnam will need US$8-10 billion investment capital to develop its aluminum industry, said Doan Van Kien, General Director of Vietnam Coal and Mineral Industries Group (Vinacomin), the country’s top miner.
The investment will be sought from domestic sources and joint ventures with foreign partners.
The government has assigned Vinacomin a key role in the aluminum industry development plan.
Under the plan, Vietnam will between now and 2010 pump money into seven bauxite ore exploiting projects, mainly in the two Central Highlands provinces of Dak Nong and Lam Dong, and build alumina production bases in the two provinces and central Binh Thuan province. These projects are estimated to cost up to $1 billion each.
In addition, Vinacomin will build an aluminum electrolysis factory under the Lam Dong bauxite-aluminum complex, with initial capacity of 100,000 tons/year and cost of $250-300 million, the $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 $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 $1.2-1.3 billion. 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 $190 million, and the second phase $170 million.
The group will cooperate with the Transport Design Consultancy Corporation to construct the Dak Nong-Binh Thuan rail route.
Vinacomin has reached agreement with Chalco, a leading Chinese mining firm, on tapping bauxite in Dak Nong province, producing alumina and aluminum electrolysis. As scheduled, the two companies will establish a mining joint venture, in which Vinacomin holds a majority 51 per cent stake and Chalco 49 per cent, and an alumina joint venture with 60 per cent Chalco stake and the rest under Vinacomin.
According to initial findings by the Ministry of Industry, Vietnam has reserves of more than eight billion tons of bauxite ore – the raw material used in alumina production, a white powder for producing aluminum - ranking fourth worldwide behind Australia, Guinea and Brazil. Of the total, the Central Highlands has an estimated 7.9 billion tons while the northern mountainous of Cao Bang and Lang Son count some 120 million tons. (VietNamNet, Vietnam Law)
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