“TKV Seeks $9.5 Billion for Seven Integrated Bauxite, Alumina, and Aluminum Projects”

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The Vice Chairman of the State Capital Management Committee at enterprises Ho Sy Hung had a working session with the Vietnam National Coal-Mineral Industries Group (TKV) to report on the master plan for the development of the bauxite-aluminum-aluminum industry by 2030, with a vision towards 2045.

According to the report presented by TKV at the working session, following the directions of Prime Minister Pham Minh Chinh in Official Dispatch No. 245/TB-VPCP dated June 26, 2023, and the State Capital Management Committee in Official Dispatch No. 52/TB-UBQLV dated August 16, 2023, TKV has formulated the master plan for the comprehensive development of the bauxite-aluminum-aluminum industry by 2030, with a vision towards 2045 (the “Master Plan”).

As per the Master Plan, TKV aims to establish and develop the bauxite-aluminum-aluminum industry as a strategic area of focus for the Group, playing a leading role in Vietnam’s bauxite-aluminum-aluminum industry. By 2030, TKV intends to concentrate its investments on expanding the capacity of the Nhanh Co and Tan Rai alumin complexes to 2.0 million tons of alumin per year and investing in a new Dak Nong 2 bauxite-aluminum-aluminum complex.

To realize the Master Plan, TKV needs to conduct additional exploration and invest in seven integrated mining and processing projects, with a total investment of approximately VND 220,000 billion.

Moreover, TKV’s leadership also highlighted certain challenges and obstacles, requesting consideration for policy mechanisms based on practical experiences from previously implemented bauxite projects and international best practices. These include land use after mining, electricity supply mechanisms for aluminum smelter plants, capital sources, and transportation infrastructure, among others.

Vice Chairman of the State Capital Management Committee, Ho Sy Hung, works with TKV and related units on the master plan for the development of the bauxite-aluminum-aluminum industry. Photo: CMSC.

During the working session, delegates actively contributed their insights, providing further clarity on various aspects of the Master Plan. Mr. Ha Van Thang, Head of the Energy Department, offered additional analysis of TKV’s report and suggested that TKV conduct a feasibility study, reviewing their plans against production and business strategies, investment procedures, and relevant legal regulations.

Based on the inputs from the functional departments and TKV’s supplementary report and explanations at the meeting, Vice Chairman Ho Sy Hung requested TKV to define the objectives of the Master Plan clearly. He also emphasized the need to review the legal basis and implementation conditions, including crucial aspects such as policies, local government support, and coordinated investments in transportation infrastructure, power and water supply. These should be aligned with the region’s socio-economic development, while also ensuring national defense, security, preservation of ethnic cultural identities, and environmental protection. Balancing the interests of the state, local communities, citizens, and enterprises was highlighted as a key consideration.

TKV was further advised to scrutinize its development orientation and investment capacity in line with its Strategy towards 2030 and the orientation towards 2045. They were also instructed to refer to legal regulations on minerals, investments, land, environment, taxes, and fees to substantiate the rationale and practical needs of their policy recommendations to state agencies. This would serve as a foundation for enhancing the feasibility of the Master Plan.

Subsequently, TKV is expected to finalize and submit the plan to the Ministry of Industry and Trade for guidance and consideration, adhering to the directives of the Prime Minister as outlined in Official Dispatch No. 245/TB-VPCP dated June 26, 2023.

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