Dec 21 （Reuters） - Dongyang Gangchul （001780.KS） will import 600,000 tonnes of alumina, or 25 percent of South Korea's annual use, from Vietnam as it plans to build a $350 million aluminium refinery, the Korean government said on Tuesday.
Dongyang Gangchul, South Korea's No.1 aluminium extruding firm with an annual production capacity of 54,000 tonnes, has agreed with Vietnam National Coal, Mineral Industries Holding Corp （VINACOMIN） to proceed with building the aluminium refinery in Vietnam, the world's No.4 bauxite producer.
"While South Korea sees its aluminium demand rising, all of the demand is met by imports," the ministry of knowledge economy said in a statement.
"If this （Dongyang Gangchul's refinery） project was successfully conducted, it would contribute to stabilising the metal supply."
VINACOMIN owns mines of bauxite, which is converted to aluminium via alumina, while it produces 1.3 million tonnes of alumina per year.
On top of the aluminium refinery project, state entities of the two countries have agreed to widen cooperation in developing energy and resources, such as oil, gas, coal and rare earth in Vietnam and other countries, the ministry added.
Shares of Dongyang Gangchul closed up 3.36 percent on Tuesday, outperforming a 0.83 percent gain in the wider market .KS11. （Reporting by Cho Mee-young; Editing by Jacqueline Wong）
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