Head of the Ministry of Industry and Trade’s Heavy Industry Department Nguyen Manh Quan has opposed the halt of two bauxite projects Nhan Co and Tan Rai in Central Highlands region, saying that they would bring great economic results.
A part of aluminum factory of Tan Rai project
Pham Quang Tu, an expert in assessing and consulting civil society said information about Tan Rai bauxite project arrived so this is a good time to assess the outcome of Nhan Co project.
Three alternatives were proposed, include continuing to build and operate Tan Rai and Nhan Co projects as planned, ending bauxite projects in the Central Highlands when it was proved ineffective, or temporarily stopping Nhan Co project while speeding up Tan Rai project.
Quan said the public expressed worry over the bauxite projects in the Central Highlands because the Vietnam National Coal and Mineral Industries Group (Vinacomin) announced many inconsistent information.
Initial assessment showed that those projects still have economic potential but they also pose serious risks.
According to the Vinacomin's reports about Tan Rai project, by the end of March, it needed 33.15% additional capital during the construction process for the aluminum factory is 2.5 years behind schedule. The capital for the aluminum factory for Nhan Co project also surged by 31%.
It would take 12 years for Tan Rai and 13 years for Nhan Co projects to recover their capitals with the current cost and prices.
"So these projects obviously still have economic potential and we should go on with them," Quan said.
He further said the two projects hold great meaning to the country's bauxite industry. "If we have good infrastructure and railroad in 2020, we should expand the bauxite projects to have capacity to produce two or three million tonnes per year." Quan said.
