Laos to gear up for aluminium smelting project with 1MT production capacity

The Sekong Province in Laos is to witness the development of a large-scale aluminium smelting project. The Ministry of Industry and Commerce has notified that once operational, expected in 2028, it is set to deliver up to 1 million tonnes of aluminium production on an annual basis. 

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The project is being led by the Vietnam-Phuong Group (VPG). Spanning about 9,000 hectares, the USD 1 billion Bauxite-Alumina Mining Industrial Complex is located in the Dak Cheung district.

Since the beginning of its construction in late 2022, it has been the largest mining investment made by Vietnam in Laos. The Lao government approved the project in September 2025, regarding it as a potential driver of energy supply, industrial expansion, and future export growth. 

Also read: Vietnam’s Lam Dong approves $2.3B for alumina plants’ expansion

During a site visit on 3 February, Minister Malaithong Kommasith threw light on the importance of responsible project management, meaningful community engagement and environmental safeguards. At the same time, he encouraged greater participation of local residents in supplying goods and services to support job creation.

The project advances while centring around the sensitive nature of bauxite mining in Laos, whereby it has had a history with the neighbouring Champasak Province concerning environmental safety.

Against this backdrop, authorities have advised on necessary environmental compliance, careful waste and water management, and transparent dialogue with local communities as the project progresses. 

Image source: https://www.alcirclebiz.com/

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