Lam Dong bauxite - aluminium project and Nhan Co alumina project are two pilot projects to develop bauxite - alumina - aluminium industries in Vietnam. To date, the Lam Dong bauxite - aluminium project has been basically completed and expected to start operations in the third quarter of 2012 while Nhan Co alumina project has completed 35 percent of investment capital and expected to be completed and operated in late 2013.
However, both projects are behind schedule because these are first projects of their kind in Vietnam and investors lacked experience in preparation, management, implementation and other works. Besides, investors also confronted difficulties in land compensation, site clearance, construction, capital, etc. The belated progress caused investment costs to increase significantly from initial estimations.
In addition to investment capital increase, the following factors also resulted in lower project efficiency: High export tax (20 percent), high environmental charges (VND30,000 per tonne of ore) and high transportation costs from ore mines to ports (VND450,000 - 500,000 per tonne).
According to the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin), to pace up project progress and operate the two projects effectively, the State should reduce alumina export duty to 0 percent from the current 20 percent. If alumina prices increase in the future, we can revise up the tax.
Moreover, Vinacomin proposed environmental charge at VND30,000 per tonne of refined ore instead of raw ores. The problem is not only support the project activities effectively, which basically is to encourage mining projects up resources, including ore, as ore costs by environmental protection.
The capital investment which helps localities to build infrastructure, schools and other facilities needs to be considered an advance tax payment to the localities and the projects will be exempted from taxes when they start operations. Another option is the investment capital is entered as a cost of Vinacomin Group
The group also asked for support to build traffic routes for the projects, especially the roads from factories to Ke Ga Port, Binh Thuan province. When the railway linking to the Central Highlands is not built, the Central Highlands should maintain only two pilot projects with designed capacity.
Vinacomin also requested concerned localities to facilitate land compensation, site clearance, resettlement, and human resource training for the projects and protect and uphold local cultural identities. Besides, local authorities need keep close watch on environmental protection, rehabilitation and restoration in bauxite mining.
Huong Ly
Vietnamese
