Vietnam asks France's Pechiney to reconsider bauxite project
HANOI - State-owned Vietnam National Mineral Corp., or Vimico, has
asked France's Pechiney S.A. (PY) to reconsider participating in a $800 million
bauxite project in Tay Nguyen, or Central Highlands, an industry official said Thursday.
In 1998, Pechiney started conducting a pre-feasibility study on a bauxite project in Tan
Rai district, Lam Dong province, Nguyen Van Ban, director of the corporation's
Mineral Project department said.
"Because of Vimico's financial problems, we had to delay a plan to set up a joint
venture with Pechiney," Ban said.
Ban said Vimico has invited Pechiney to set up a joint venture to produce up to 2
million tons of bauxite a year, or 1 million tons of alumina a year for exports.
Bauxite is a mineral ore used to produce alumina, a raw material for aluminum
production.
"So far Pechiney officials have shown a very positive interest to our call and they will
soon issue a decision on this," Ban said.
Vietnam's Central Highlands has reserves of billions of tons of bauxite ore, Ban said. In
the Tan Rai area alone, a commercial reserve of 350 million tons has been confirmed,
he added.
According to a Ministry of Industry official, the Vietnamese government is determined
to develop the aluminum industry in Central Highlands in the next four years.
"We will build a $582 million aluminum project in Tan Rai area in 2003, with 30% of
the funds will come from domestic sources and 70% will be loans from foreign banks,"
the official said.
The Tan Rai project targets to produce 300,000 tons of alumina a year, of which
140,000 tons will be used to produce 72,600 tons of aluminum and 160,000 tons for
exports, he said.
Vietnam imports all its aluminum products, which total 80,000-90,000 tons every year,
and demand will grow at between 8% and 10% each year in the next few years, he
said.
By Nguyen Pham Muoi - Dow Jones Newswires - January 03, 2002.
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