Bloomberg reported that Vietnam National Coal-Mineral Industries Group, the state owned mining company is in talks with partners Aluminum Corp of China Ltd and Marubeni Corp for sales from the country’s first alumina project.
Mr Nguyen Van Bien Deputy General Director said Vinacomin, as the company is known will begin production at its alumina plant in Tan Rai of Lam Dong province in the Central Highlands early in the second quarter. The Tan Rai bauxite mine is one of two the company is developing.
Vietnam is preparing to start production of alumina which can be smelted into aluminum for use in cars, packaging and houses, when global producers of the lightweight metal are idling capacity as energy costs soar and prices slump. The Hanoi-based company development of bauxite mines has been criticized by war hero Vo Nguyen Giap and activists who say that they pose environmental and national security risks.
Mr Bien said Marubeni helped Vinacomin arrange a USD 300 million syndicated loan from overseas banks and a lending agreement will be signed early this year. Aluminum Corp or Chalco was the engineering and construction contractor for the project.
He said that the two companies began talks with Vinacomin last year to buy alumina produced from the project, though a purchase agreement hasn’t been signed yet. An agreement would be linked to progress on building the plant.
While Vinacomin is counting on long term demand and may produce aluminum after 2015, Alcoa Inc Rio Tinto Group and their global rivals are cutting production of the metal after prices dropped last year, curbing profits. Alcoa, the largest US producer said China may use 70% of its capacity in 2012.
豫公网安备41010502003434号