Planning for exploration, mining, and processing of bauxite mineral resources in Vietnam

Planning for exploration, mining, and processing of bauxite mineral resources in Vietnam (Image from the internet)

The content is mentioned in Decision No. 866/QD-TTg of 2023 approving the Planning for exploration, mining, processing, and use of Minerals for the period 2021-2030, with a vision to 2050, issued by the Prime Minister of the Government of Vietnam.

Planning for exploration, mining, and processing of bauxite mineral resources in Vietnam

The exploration and mining of bauxite minerals, and the production of alumina and aluminum metal are to be integrated with the development of transportation infrastructure, sea ports, electricity, and water supply, ensuring environmental protection and biodiversity conservation suitable for each specific stage, ensuring security, defense, preserving national cultural identity, and protecting the ecology of the Central Highlands region of Vietnam.

(1) Exploration of Bauxite Minerals

- By 2030: 19 projects will be implemented in Lang Son (1), Dak Nong (7), Lam Dong (8); Binh Phuoc (2); Gia Lai (1) with the target to reach a reserve of approximately 1,709 million tons of raw ore.

- Period after 2031 - 2050: after geological assessments have been completed in promising areas approved for the 2021 - 2030 phase, the exploration of newly discovered mines will be considered.

Details of bauxite mineral exploration projects are in Appendix II.1 attached.

(2) Mining of Bauxite Minerals

- By 2030: Maintain the designed capacity of existing mines; expand the capacity of Tay Tan Rai mine and Nhan Co mine; invest in new mining projects in Dak Nong (4 - 5), Lam Dong (2 - 3), Binh Phuoc (1), Gia Lai (1). Total mining capacity by 2030: 68.150 - 112.200 million tons of raw ore/year.

Invest in 3 new bauxite ore mining and processing projects in Northern regions: Lang Son (1); Cao Bang (2) with a total capacity of 1,550,000 - 2,250,000 tons of raw ore/year.

For bauxite mines in the Central Highlands region (near densely populated areas), consider prompt exploration and licensing for early exploitation to maximize mineral resource recovery and be allowed to convert land use for economic and social development...

For lower-grade bauxite mines in the Northern region, maximize the recovery of mineral resources, improve soil quality for agriculture, meet domestic needs and export as permitted by competent authorities under legal regulations.

- After 2030: Maintain designed capacity for existing mines, invest in new mining projects in Dak Nong, Lam Dong, Binh Phuoc, Kon Tum, etc., to supply bauxite concentrate for alumina plant projects already invested and expansion projects when in demand. Projected total mining capacity by 2050: 72.3 - 118.0 million tons of raw ore/year. Also, licensing for exploration of newly evaluated areas from 2031 - 2050 will be considered, as proposed by investors.

Details of bauxite mineral mining projects are in Appendix III.1 attached.

(3) Processing of Bauxite Minerals

- By 2030:

(*) Alumina production: Invest to increase the capacity of the two alumina plants in Tan Rai - Lam Dong and Nhan Co - Dak Nong from 650,000 tons/year to approximately 2,000,000 tons/year (divided into 2 phases: phase 1 increasing to 800,000 tons of alumina/year; phase 2 expanding with a capacity of 1,200,000 tons of alumina/year).

Invest in new alumina production projects in Dak Nong (4), Lam Dong (2), Binh Phuoc (1), Gia Lai (1) with a minimum capacity of 1,000,000 tons of alumina/year per project. New alumina production projects must utilize advanced technology, where red mud treatment technology must use the dry disposal method, ensuring environmental protection and encouraging construction materials production projects from red mud. Locations to be selected by investors and localities suitable for red mud disposal, near processing mines.

Total capacity by 2030: 11,600 - 18,650 thousand tons of alumina/year.

(**) Aluminum metal production: Complete the pilot project for Dak Nong aluminum electrolysis plant with a capacity of 300,000 tons of aluminum ingot/year, expanding to 450,000 tons of aluminum ingot/year. Invest in new production projects of aluminum metal in Dak Nong, Lam Dong, Binh Phuoc, and provinces with sufficient suitable energy sources. Total capacity by 2030: 1,200,000 - 1,500,000 tons of aluminum ingot/year.

Factory locations can be in provinces with raw materials and energy sources. New aluminum electrolysis plants must operate under market mechanisms, encouraging investment in renewable energy projects to ensure part of the energy on bauxite mining areas already exploited and producing processed aluminum products, developing mechanical engineering and supporting industries in conformity with the content of Decision No. 09/QD-TTg dated February 11, 2023, of the Prime Minister of the Government of Vietnam on the issuance of the Action Plan implementing Conclusion No. 31-KL/TW dated March 7, 2022, of the Politburo on the direction for development of the bauxite - alumina - aluminum industry by 2030, with a vision to 2045.

- 2031 - 2050 phase:

(*) Alumina production: Maintain designed capacity and invest in expanding capacities of existing plants.

Projected total capacity: 12,000 - 19,200 thousand tons of alumina/year.

(**) Aluminum metal production: Maintain capacity of Dak Nong aluminum electrolysis plant; invest in new aluminum metal production projects with self-assured raw material resources, encouraging investment in renewable energy projects on mined bauxite areas. Specific location and projects to be decided by investors based on economic efficiency.

Projected total capacity: 2,250,000 ÷ 2,450,000 tons of aluminum ingot/year.

Details of bauxite mineral processing projects are in Appendix IV.1 attached.

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