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MoI digs in for BHP plan

VNECONOMY updated: 08/08/2005

Prime Minister Phan Van Khai last week assigned the Ministry of Industry to quickly facilitate the UK-Australian BHP Billiton mining group’s application for an exploration licence on bauxite ore in the country’s Central Highland province of Dak Nong.
With the prime ministerial direction, BHP Billiton’s application for the licence, which has reportedly hit a snag at relevant governmental agencies, will likely see a drastic cut in processing time.
In its plans, BHP Billiton is ready to invest $40mil in the initial exploration phase before launching a mammoth $1.6bil mining and refinery project with a planned capacity of 1.5mil tonnes of alumina per year if the bauxite reserves are found to be commercially viable.
BHP Billiton is one of the world’s four largest firms in bauxite mining and aluminium production.
It occupies industry leader or near-industry leader positions in major commodity businesses, including aluminium, energy coal and metallurgical coal, copper, ferro-alloys, iron ore and titanium minerals. It also has substantial interests in oil, gas, liquefied natural gas, nickel, diamonds and silver.
An official from the Ministry of Planning and Investment said that the delay was largely due to improper development planning of Vietnam’s bauxite reserves in general and of the Dak Nong region in particular, which made relevant agencies reluctant to grant any licences to explore the country’s treasure.
“What’s more, when foreign investors express interest in making steps in Vietnam’s immature bauxite mining and aluminium industry, the central government must be very cautious before any decisions are made to allow eligible foreign investors to invest in the sector,” the official said.
According to initial findings by the Ministry of Industry, Vietnam has more than 8mil tonnes of bauxite ore, of which 120mill tonnes can be found in the northern mountainous Cao Bang and Lang Son provinces. Another 7.9bil tonnes can be found mostly in the Central Highland provinces, as well as some southern provinces.
The findings show that Dak Nong is Vietnam’s richest bauxite ore region, comprising of five deposits in Quang Son, and two in Gia Nghia. Initial estimates put the bauxite reserves in the region at close to 2.7bil tonnes, but none of those reserves have been mined.
Vietnam wants to quickly establish bauxite mining and refinery projects in the Central Highland provinces, including Dak Nong and Lam Dong, to produce alumina, the raw material used to produce aluminium ingots. Vietnam currently has to import 100,000 tonnes of alumina per year.

Source: VIR