Dak Nong Aluminum Company implemented 557,000 tons of ore quarrying output from early 2024 to present (reaching 13.2% of 2024 plan). Therefore, resulting in 467,000 tons of refined ore production output (achieving 28.3% of the annual plan); over 164,000 tons of converted Alumin output (reaching 25.3% of the annual plan).
Risk of having to partially cease production of the factory
The low ore quarrying output is mainly due to numerous difficulties in land leveling, insufficient area for exploitation, affecting input materials, and not meeting the supply for Alumin production.
Nhan Co Alumina Factory, Dak Nong Province. (Photo: CTV)
Nguyen Vu Hoang shared that since 2020, Dak Nong Aluminum Company – TKV has encountered challenges in the production process due to a shortage of input materials, although the company has reserved a portion of its raw materials in the warehouses every year. However, from early 2023 to Q3/2023, there were times when the ore quantity was only sufficient for one week of production.
Every month, when building the business plan, the company always has backup plans for the amount of materials in the warehouse and in the quarry. The lack of ore in production has become increasingly apparent; however, the company always strives to maintain stable production at the Alumin factory.
When it is lower than the reserve and in the quarry, it is considered an ore shortage in production, not ensuring the reserve principle; each time, the company has to coordinate with local authorities to persuade people to hand over the land for exploitation.
As of April 2024, the raw ore source in the quarry is very limited. In addition, the current reserve of raw ore in the warehouse is approximately more than 100,000 tons, only one-sixth compared to the same period in 2023.
Regarding revenue, it reached over 890 billion VND, achieving 26% of the annual plan; the profit reached 30 billion VND. The contribution to the state budget was approximately 65.3 billion VND (including value-added tax: 11,587 million VND; water and ore resources tax: 23,993 million VND; environmental fee: 28,317 million VND; other taxes: 1,412 million VND).
“Although the raw ore source from the beginning of 2024 to date is not as deficient as the same period last year, it is always difficult. According to the assessment, if people do not hand over land for the project and with the rainy season approaching, it will be a very difficult time, and we are at high risk of having to stop production. We will try not to let the whole factory stop production. At that time, we will have to adjust the output, adjust the plant’s load to reduce and extend production. In case the factory has to stop completely until it restarts, it will cost a lot of money,” – emphasized Mr. Nguyen Vu Hoang.
Many land areas have not been handed over to the project
In addition, Mr. Hoang further reported on the implementation of production and business plan targets from the beginning of the year to date, such as: Land recovery, compensation, and site clearance (for quarry years 7-8), Dak R’Lap District People’s Committee has approved 09 options/115 households/91.2 ha. Of these, the number of households that have not received money is 30/115, with an area of ​​29.84/91.2 ha; the number of households that have received money is 85/115, with an area of ​​61.39/91.23 ha; however, 17.94 ha has not yet been handed over in the field, and 44.60/91.23 ha has been handed over.
For the investment project in constructing Reservoir No. 3 of the Red Mud Lake to serve the production maintenance of the Nhan Co Alumina Factory, Dak R’Lap District People’s Committee has approved land prices, built plans, collected opinions, and organized dialogues with households and individuals about the compensation, support, and resettlement plans.
As for the investment project in constructing Dam of the Number 2 Post-washing Sludge Reservoir, only 52/64 households have received compensation and support payments, with an area of 51.80/65.11 ha (including 29 households that have handed over land with an area of 16.96 ha, 23 households with an area of 34.84 ha have not handed over land); the remaining 12 households with an area of 13.31 ha have not received compensation.
Besides, for quarries from year 9 to year 10, on March 5, Dak R’Lap District People’s Committee issued Plan No. 43/KH-UBND on land recovery, investigation, survey, measurement, and counting for the project implementation with a total estimated recovery area within the licensed boundary of about 124.4 ha, the affected area outside the planning area needs to be recovered of about 55.8 ha. Dak R’Lap District People’s Committee is directing relevant units to cooperate in completing the information collection process of households as a basis for issuing a Land Recovery Notice in May 2024.
Currently, the Vietnam National Coal – Mineral Industries Group, Dak Nong Aluminum Company – TKV has completed the proposal to close a part of the mineral exploitation area in Dak Wer and Nghia Thang communes, Nhan Co Bauxite mine, Dak Nong province, to return land to localities for socio-economic development with an area of ​​130 ha, according to the Appraisal Council’s opinion. In the coming time, the company will actively cooperate with relevant authorities, ministries, and sectors to promptly submit the proposal to the Ministry of Natural Resources and Environment for approval and the decision to close the mine.
From the above difficulties, Dak Nong Aluminum Company recommends that local authorities actively support the company in land compensation and site clearance, continue to promote propaganda, mobilize, and persuade people to hand over land following regulations. Actively implement resettlement support plans for people according to the proposed plans,…
