re: Ann: Vietnam Bauxite Project - Atlantic S... I wonder how...

re: Ann: Vietnam Bauxite Project - Atlantic S... I wonder how our Bauxite Development Study is going.

BHP Billiton Likely to Invest US$1.6Bln in Bauxite Exploitation in Vietnam

link: http://vccinews.com/news_detail.asp?news_id=3938

17/1/2012

The Australian company, BHP Billiton, one of the world’s largest aluminum producing groups, may invest US$1.6 billion in a mining and refinery project in the central highlands province of Dak Nong if bauxite reserves are found commercially viable.

The firm was ready to inject US$40 million into the initial exploration phase, said a source from the Ministry of Industry (MoI).

“BHP’s intentions are viable but the firm is hitting difficulties in obtaining an exploration license from the Ministry of Environment and Natural Resources”, the source said.

The group’s chief representative in Hanoi was unavailable for comment.

In March 2004, BHP was licensed to co-ordinate with MoI to carry out explorations and pre-feasibility study of bauxite ore exploitation and alumina production for exports in the province.

Dak Nong is Vietnam’s largest bauxite ore region - comprising seven deposits, including 1-5, Quang Son, Gia Nghia. According to initial estimates, bauxite reserves in the region are at close to 2.7 billion tons, but none of them has been mined.

Vietnam wants to quickly establish bauxite mining and refinery projects in the Dak Nong region to produce alumina, the raw material used to produce aluminum ingots, of which Vietnam currently has to import 100,000 tons per year.

A Chinese-Vietnamese consortium comprising of China’s Non-ferous Company and the Vietnam Mineral Corporation has been eyeing the 1-5 and Quang Son deposits since 2001.

The MoI last year submitted to the government two options for the project, the first of which was to invest US$870 million to produce one million tins of alumina per year, and the second was to invest US$1.5 billion to produce two million tons.

The government has not yet offered any feedback on the fate of the project. However, it recently agreed to allow the Vietnam Coal Corporation (Vinacoal) to work on an exploration and mining project on the Gia Nghia deposit, estimated to have around 300 million tons.

Vinacoal’s project aims to explore bauxite and process the ore into alumina for export to the international market where demand is 13-14 million tons per year.

The Vietnam Chemical Corporation is also planning to build a VND400billion (US$25.6 million) factory in Dak Nong province to produce aluminum hydroxide. Construction is scheduled to start before the end of this year.