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[July 2008]
Alcoa Agreement with Vietnam on Development of Bauxite Mining and Alumina Refineries
Alcoa has signed a Cooperation Agreement with Vietnam’s premier minerals development company, Vietnam National Coal-Mineral Industries Group (Vinacomin), for cooperation in the development of the aluminium industry in Vietnam.
Under the agreement, Alcoa World Alumina and Chemicals (AWAC) – a global alliance between Alcoa and Alumina Ltd, with Alcoa holding 60% – will conduct due diligence on the acquisition of a 40% interest in the 600,000 metric tons per year Nhan Co alumina refinery that is to be constructed in Dak Nong Province in Vietnam’s Central Highlands, based on access to extensive reserves of high quality bauxite. If the transaction proceeds, the shareholding in the Joint Stock Company that owns the Nhan Co bauxite mine and alumina refinery will be Vinacomin 51%, AWAC 40% and other investors 9%.
In addition, the parties have agreed to conduct a joint feasibility study on the Gia Nghia bauxite mine and alumina refinery project, also located in Dak Nong province, with first stage capacity expected to be between 1.0 and 1.5 million metric tons of alumina per year.
The agreement follows the recent permission granted to Vinacomin by the Government of Vietnam to establish Joint Stock Companies with foreign partners holding a maximum of 40%. Vinacomin is a state-owned company with a leading role in the development of Vietnam’s mineral resources.
“Combining Vinacomin’s local knowledge and proven capacity for successful development of Vietnam’s mineral resources with Alcoa’s world-best alumina refining technology, operating practices, and sustainable development philosophy, and our firm commitment to education, training, and recruitment of local employees, creates an exceptionally strong partnership, capable of serving the interests of the Vietnamese people and those of Alcoa for generations to come,” said Bernt Reitan, President of Alcoa Global Primary Products.
AWAC and Vinacomin will now embark on detailed studies with a view to completing definitive costs and definitive investment agreements as quickly as possible.
www.alcoa.com
ENDS