Despite pubic concerns, Tan Rai and Nhan Co. bauxite projects in the central highlands region are necessary for the development of Vietnam’s aluminium industry, one official said.
Minister of Industry and Trade Vu Huy Hoang
The projects had been carefully considered before assigning them to the state-owned company Vietnam National Coal and Mineral Industries Group (Vinashin), said Vu Huy Hoang, Minister of Industry and Trade.
According to Hoang, Vietnam is estimated to have bauxite reserves of between 10 and 11 billion tonnes, mainly located in the central highlands region. Annual demand for aluminium has increased considerably in recent years, and is expected to be 750,000 to one million tonnes by 2020 and between 1.6 and 2 million tonnes by 2030.
“Currently, Vietnam has to import all aluminium for local production, so these two bauxite projects are of great importance,” Hoang emphasised.
He attributed the stagnation of the mines to technological issues in building red mud dams, an area in which the expertise of the workforce in Vietnam lacks experience.
He added that it would take between 30 and 40 years to assess the economic benefits to the country, considering the drop in prices for aluminum on the world market, which are now at USD326.5 per tonne.
He said that the government has assigned the Ministry of Natural Resources and Environment to coordinate with the Ministry of Industry and Trade to carefully supervise the design of red mud dams and assess their possible environmental impacts.
The Vietnam Academy of Science and Technology is doing a pilot study on the processing of red mud for sponge iron production.
“With the help of several state agencies and scientists, we can feel safe about the environmental impacts of these projects," he said.
