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20/05/2024
Mining News

Vinacomin expands investment to boost Vietnam’s aluminium industry

Vinacomin has unveiled strategic investments aimed at bolstering Vietnam’s aluminium production capacity to meet burgeoning future demand.

Despite Vietnam’s status as a major bauxite producer on the global stage, the country has yet to fully tap into its extensive bauxite ore reserves to maximize its mining capacity potential. This limitation stems largely from the government’s contentious decision in 2009 to permit foreign investment in the bauxite mining sector, particularly from China.

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The announcement sparked significant public resistance against foreign investment, driven by concerns over social and environmental risks, as well as the potential loss of indigenous land rights. Consequently, investment momentum slowed. In recent years, however, the Vietnamese government has intensified efforts to bolster its domestic aluminium industry. In 2023, the government greenlit several bauxite projects while emphasizing environmental protection and sustainable development.

The latest investment initiative entails Vinacomin ramping up alumina production capacity at its Nhan Co Alumina Complex from 650,000 tonnes per year to 2 million tonnes per year. Additionally, its Dak Nong Complex will expand to produce 2 million tonnes of alumina annually and 0.5-1 million tonnes of aluminium. Furthermore, the government aims to commission up to eight new bauxite mines by 2030 to meet escalating global demand.

Continued global industrialization is expected to propel aluminium demand from 108 million tonnes in 2023 to over 130 million tonnes by 2034, reflecting a 27% growth over the next decade. With Vietnam boasting substantial bauxite ore reserves, government interventions and investments position the country to play a pivotal role in future aluminium supply.

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