UPDATE 1-Alcoa explores joint alumina venture with Vietnam http://today.reuters.com/business/newsArticle.aspx?type=naturalResources&storyID=nN24321178
Monday 24 April 2006, 3
(Updates with more details)
NEW YORK, April 24 (Reuters) - Aluminum producer Alcoa Inc. (AA.N: Quote, Profile, Research) said on Monday one of its affiliates is exploring a potential joint venture with the Vietnam National Coal-Minerals Industries Group for a bauxite mine and alumina refinery in the Southeast Asian country.
The venture would be 49 percent owned by Alcoa. Materials produced by the refinery would be taken to port by a rail line to be developed by other investors, Alcoa said.
The Pittsburgh-based company said its Alcoa World Alumina and Chemicals affiliate has signed a memorandum of understanding with Vietnam National Coal-Minerals Industries Group, known as Vinacomin, to explore the feasibility of developing the bauxite mine and alumina refinery in Vietnam's Dak Nong province.
The project would study the feasibility of constructing and operating the refinery in the Gia Nghia bauxite deposit, with first stage capacity between 1 million and 1.5 million metric tons per year. Alumina, which is smelted into aluminum, is found in bauxite ore.
Under the joint venture, Alcoa would be responsible for the marketing of alumina produced by the refinery. As part of the agreement, transportation from the Dak Nong refinery to port would be carried by a railway to be built by other investors.
Vinacomin is responsible for all bauxite development in Vietnam and was recently formed as a result of the merger of the Vietnam National Coal Group and the Vietnam National Minerals Corp.
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