Great potential for developing the bauxite mining industry
Sharing with a reporter from the Industry and Trade Newspaper, Mr. Nguyen Hai Ha – Deputy Director of the National Research Institute of Mechanical Engineering – stated that according to research results from exploration reports of the Institute of Mining and Metallurgy Science and Technology, the raw ore reserves in the Central Highlands region are approximately 10 billion tons. With such reserves, the resources of this region are assessed by the world to be second only to Australia and Guinea, representing great potential for developing Vietnam's bauxite mining, alumina, and aluminum processing industry.
Panoramic view of Nhan Co Alumina Plant, Dak Nong Province
Furthermore, research shows that the bauxite ore from mines in the Central Highlands shares a common characteristic advantageous for low-cost alumina production: The mines have large reserves, are open-pit, and are easy to exploit at low cost; the silica content in raw ore is high, so before being used for alumina production, it must undergo washing and screening to remove silica and clay, thereby reducing alkali consumption costs in alumina production; the Al2O3 content after beneficiation is high (from 47-51%), resulting in high alumina production efficiency and lower red mud waste generation compared to other countries…
Based on the results of the two pilot projects, the Tan Rai and Nhan Co alumina plants of TKV, Mr. Nguyen Hai Ha reported that after being put into commercial operation, these two alumina plant projects were assessed by agencies and organizations as meeting the project requirements, with production and business activities yielding good socio-economic efficiency.
Notably, for the first time, Vietnam successfully implemented EPCM in the field of alumina production with a young workforce, while also attracting investors to initially establish the alumina and aluminum smelting industry in Vietnam. Additionally, the two bauxite mining and processing projects, Tan Rai and Nhan Co, have demonstrated that this is a correct policy of the Party and the State, bringing overall socio-economic benefits and ensuring national security and defense.
"In reality, the two pilot projects for bauxite mining and alumina processing, Tan Rai and Nhan Co, have made certain contributions to the national economy, attracted investors to the aluminum smelting field, thereby promoting the development of mechanical manufacturing, equipment, and auxiliary chemical industries" – Mr. Nguyen Hai Ha emphasized, while also informing that at the global alumina conference held in 2019 in Queensland (Australia), the production cost of alumina from these two projects was assessed as the lowest in the world.
Based on the results of the aforementioned two pilot projects, TKV has formulated a policy to invest in alumina production projects in the near future. Accordingly, from 2021-2025, the capacity of the existing Tan Rai and Nhan Co alumina plants will be increased to about 800,000 tons of alumina per year, and by 2030, it is expected to invest in two new alumina production lines with a capacity of 1,200,000 tons of alumina per year on the available land of the Tan Rai and Nhan Co alumina plants. From 2025-2035, it is planned to invest in a new alumina production line with a capacity of 2 million tons of alumina per year in the Quang Son mine area, Dak Nong.
Momentum to promote domestic manufacturing units
Affirming the great development potential of the bauxite processing industry, Mr. Phan Dang Phong – Director of the National Research Institute of Mechanical Engineering – believes that this is a driving force for domestic manufacturing enterprises to invest in renovating their equipment, technology, and management standards to meet international standards and satisfy the market demand for manufacturing equipment and spare parts for the alumina production industry.
The technology steam power plant of the Nhan Co Alumina Project
"The total volume handled domestically could reach up to 80% in terms of mass and 60% in terms of value for constructing an alumina plant if domestic manufacturing units invest sufficient resources to meet the technical requirements of the projects. This would significantly reduce the foreign currency spent on importing technological equipment and save investment costs for the investor due to lower domestic manufacturing costs; it would also promote the development of related industries such as steel production and the manufacturing of standard industrial spare parts and components." – Mr. Phan Dang Phong commented.
From the perspective of a research institute with many years of experience as the main consultant for the alumina production industry and having previously executed EPCM for the Tan Rai and Nhan Co bauxite projects, the representative of the National Research Institute of Mechanical Engineering believes that for Vietnam to master the technology, design, and construction of bauxite mining and processing projects, supportive policies and solutions from the Government are needed.
Specifically, the Government needs to issue a policy allowing the development of bauxite mining and processing projects based on the results of the two pilot projects, Lam Dong and Nhan Co, which have been put into commercial operation with good results. Additionally, state-owned enterprise investment projects must be required to select Vietnamese enterprises as the main contractors during the investment implementation phases. This should include regulations stipulating a localization rate for domestic execution of no less than 60% of the project's investment value.
Furthermore, support should be provided to domestic units in accessing and receiving technology transfer and design of specialized equipment from countries with source technology for investment projects in the bauxite mining and processing industry; science and technology projects and topics should be developed and approved to implement domestic work on the design and manufacture of specialized equipment for bauxite mining and processing; a list of items and equipment to be manufactured domestically should be developed and approved, discouraging imports for bauxite mining and processing projects.
| To serve the development of the bauxite processing industry, Vietnam's equipment manufacturing industry needs to build a development strategy to enhance its capacity in designing, manufacturing, supplying equipment, and providing technical services suitable for the technological characteristics and equipment of the bauxite processing industry. |
Source: Industry and Trade Newspaper
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