25 FEBRUARY 2013Tuoitrenews.vn
Experts blast Tan Rai bauxite plant’s effectiveness
Edited by : AL CIRCLE
2 min read
Although Tan Rai, Vietnam’s first bauxite plant, has already become operational and had its very first batches of products, experts close to the matter say the plant will be facing a paradox in which more products mean more losses.
The US$460-million facility, based in the Central Highlands province of Lam Dong, and operated by state coal and mineral group Vinacomin, has sold its very first batches of alumina at $340 a ton, according to Nguyen Canh Nam, assistant of the Vinacomin’s board of members.
“But the products are only locally consumed as there have yet to be ports for exports,” he admitted.
Production price is estimated at some $295 a ton, which means the plant has made profit, he said.
However, he added that the production price is calculated on the condition that the plant operates at its full capacity of 650,000 tons a year, while the current capacity is “only a sixth of the full figure.”
Nam said it is inevitable that the plant incurs losses in its first years of operation.
“But it’s necessary that the plant remains operational as there will be huge demand for alumina in the future, and Vietnam has had to earmark huge money to import the mineral in previous years,” he added.
Production adds losses
Dr Nguyen Thanh Son, director of the management board of the coal projects in the Red Delta, a Vinacomin subsidiary, said the $340 a ton price will surely gain losses for Tan Rai plant, as real capacity is too low.
“The more production, the bigger losses,” he said, adding that when the plant could recoup investment remains to be seen.
Nguyen Van Ban, former head of the alumina department of Vinacomin, said the plant has already posed many issues during its initial operational state.
“The biggest issue is the problem of transporting the alumina,” he said.
The mineral is currently transported by road, which Ban said will result in little effectiveness for Vinacomin as the amount to be transported is as much as millions of tons a year.
“Moreover, in order for the plant to operate more efficiently, we should choose an adequate partner,” he said, referring to the Chinese company Vinacomin is partnering with.
“The Chinese partner has little experience about the ores in Vietnam, while their technology is not really good,” he added.
The US$460-million facility, based in the Central Highlands province of Lam Dong, and operated by state coal and mineral group Vinacomin, has sold its very first batches of alumina at $340 a ton, according to Nguyen Canh Nam, assistant of the Vinacomin’s board of members.
“But the products are only locally consumed as there have yet to be ports for exports,” he admitted.
Production price is estimated at some $295 a ton, which means the plant has made profit, he said.
However, he added that the production price is calculated on the condition that the plant operates at its full capacity of 650,000 tons a year, while the current capacity is “only a sixth of the full figure.”
Nam said it is inevitable that the plant incurs losses in its first years of operation.
“But it’s necessary that the plant remains operational as there will be huge demand for alumina in the future, and Vietnam has had to earmark huge money to import the mineral in previous years,” he added.
Production adds losses
Dr Nguyen Thanh Son, director of the management board of the coal projects in the Red Delta, a Vinacomin subsidiary, said the $340 a ton price will surely gain losses for Tan Rai plant, as real capacity is too low.
“The more production, the bigger losses,” he said, adding that when the plant could recoup investment remains to be seen.
Nguyen Van Ban, former head of the alumina department of Vinacomin, said the plant has already posed many issues during its initial operational state.
“The biggest issue is the problem of transporting the alumina,” he said.
The mineral is currently transported by road, which Ban said will result in little effectiveness for Vinacomin as the amount to be transported is as much as millions of tons a year.
“Moreover, in order for the plant to operate more efficiently, we should choose an adequate partner,” he said, referring to the Chinese company Vinacomin is partnering with.
“The Chinese partner has little experience about the ores in Vietnam, while their technology is not really good,” he added.
Previous article
China to revive bid for Cape York bauxite deposit
Next articleBauxite Resources Limited Drilling Commenced on New Bauxite Prospect
Grow with
AL Circle
