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Tân Rai bauxite project will deliver, says VINACOMIN Dy. Director Nguyen Van Biên
The Vietnam National Coal and Mineral Industry Group (VINACOMIN) operated Tân Rai bauxite mine has every quality that it takes a company to stage an emphatic comeback even after posting a mammoth loss, thinks VINACOMIN deputy director Nguyen Van Biên. While explaining the reason behind the widening loss from 2013 till 2016 Van Biên said it was estimated right at the beginning that the project would run at a loss for the initial four years; however, down three years of operation, the actual loss (cumulative) incurred got magnified to VNÐ 3,696 billion (US$162 million).
Nevertheless, the Tân Rai bauxite project has many pluses to its side. It is a big one; the technology adopted there is novel and difficult to copy, and hence, cost-intensive; over-three years of operation has endowed professionals here with an unmatched command on the technology; and the products have met international standards which guarantee a reasonably good demand in the offshore markets.
Moreover, due to constant efforts, the cost of alumina production per tonne at the Tân Rai bauxite complex was reduced from VNÐ5.1 million in 2014 to VNÐ 4.6 million per tonne in 2015. In 2016, CoP further dropped to VNÐ4.1 million per tonne.
Presently, export price of alumina in Vietnam is higher at about VNÐ8 million ($350) per tonne. Till late 2016, the project has achieved its planned objective of balancing its income with the expenditure. It is projected that in 2017, Tân Rai bauxite project will earn about VNÐ100 billion (US$4 million) profit.
Van Biên said he was confident that the profit from Tân Rai will keep increasing year on year and by 2023 – 2025, the project will break even.
Another bauxite mining project in Vietnam- the Nhân Co Bauxite mine is taking cue from the Tân Rai project and growing. The most up-to-date technology has been used in it; so the products have been highly rated for quality. Van Biên said he was hopeful about the project making it big in another few years. Both the bauxite projects are important for Vietnam's economy.Get fresh Aluminium data and insights
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