Vietnam’s bauxite ambitions: Vinacomin proposes $208m Lam Dong mining project

Vietnam National Coal and Mineral Industries Group (Vinacomin) has proposed an integrated bauxite mining and processing project worth VND 5.2 trillion (USD 208 million) in Lam Dong province, Vietnam. Currently under appraisal by provincial authorities, it is designed to produce around 3 million tonnes of refined bauxite ore annually, reinforcing raw material requirements at the Nhan Co Aluminium Plant and the planned expansion of its alumina operations.

Located in the Nhan Co Cluster, the proposal spans over 6,666 hectares. Of this, approximately 5,269 hectares are earmarked for mining and around 50 hectares for the ore processing plant.

The project also includes five post-processing sludge reservoirs covering about 1,120 hectares, alongside the 318-hectare Dak Buk So 8 water reservoir. A conveyor belt system spanning approximately 21 hectares will transport refined ore to the Nhan Co Aluminium Plant. Another 527 hectares have been allocated for raw ore transportation, power lines and supporting infrastructure.

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Development timeline and expected economic benefits

The project is proposed to operate for 30 years from the date the investor receives land allocation, a land lease or approval to change the land-use purpose.

As per the submitted schedule, legal procedures, investment preparation and land clearance are expected to be carried out from the fourth quarter (Q4) of 2026 to Q4 2027. Construction is scheduled to begin in Q1 2028, with completion and commercial operations targeted for 2029.

Once operational, the project is likely to contribute approximately VND 500 billion (USD 20 million) annually to the state budget and generate employment for around 800 people across its construction and operating phases. It is also anticipated to boost raw material supplies for the expansion and capacity upgrade of the Nhan Co Alumina Plant, which has already received investment approval.

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Environmental and regulatory assessment remains central

At a meeting with Vinacomin on November 10, Nguyen Ba Ut, Vice Chairman of the Lam Dong People's Committee, sought local authorities to undertake a careful assessment of the proposal. The review is to consider potential implications for the environment, local ecosystems and social security, alongside the project's planning, scope, scale and legal basis, before recommendations are submitted to the competent authorities.

Existing regulations require bauxite exploration and mining to be connected with downstream processing, at least to the production of alumina. Hence, the investor is to demonstrate the financial and technical capacity to implement the project comprehensively, use advanced technologies and modern equipment, and meet applicable environmental protection requirements.

The proposed project could solidify Vietnam’s bauxite-to-alumina supply chain, with progress depending on regulatory clearance, environmental assessment and implementation.

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