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06 OCTOBER 2023 AL CIRCLE

Lam Dong Aluminium Company: Risk of bauxite ore shortage arises from land clearance issues

EDITED BY : ISHITA GANGULY 2MINS READ

The Lam Dong Aluminium Company faces challenges in compensating and clearing sites, which could impact its future bauxite ore exploitation. 

bauxite ore

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The company's report reveals that, from 2020 to 2024, they planned to use 320.12 hectares of land, but only 248.8 hectares have been approved for land recovery. Out of this, 223.4 hectares are owned by individuals, and 25.4 hectares are forest land. Approximately 71 hectares, mainly forest land, remain uncompensated, managed by the Dam B'ri Protection Forest Management Board (13.4 hectares) and Vinh Tien Company and Vinh Loc Company (30.4 hectares).

Currently, 7 out of 21 households have yet to accept the compensation and site clearance support plan, even though it was approved by the Bao Lam District People's Committee. In the 30.4 hectares of land belonging to Vinh Tien and Vinh Loc Companies, 25 households are disputing ownership with the businesses, and the issue still needs to be solved.

Regarding the third phase of site clearance compensation over five years, the company has announced its land recovery policy and conducted an inventory of 20 hectares. They plan to have a minimum of 30 hectares available for alumina production and processing starting in November 2023, once phase 2's land is no longer available.

Global Aluminium Industry Key Trends to 2030

The potential shortage of land for bauxite ore exploitation could significantly impact the company's production and business activities without a prompt resolution. Despite local authorities' efforts, progress has been slow due to legal and administrative challenges. If no additional land is acquired by October 2023, there is a high risk of plant shutdown. 

To overcome these challenges and ensure their production and business activities, Lam Dong Aluminium Company suggests that the Lam Dong Provincial People's Committee guide relevant departments to support them in obtaining land for the third phase of site clearance compensation, following established regulations.


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EDITED BY : ISHITA GANGULY 2MINS READ

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