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[May 2006]
Alcoa World Alumina Signs MOU with Vinacomin for Bauxite, Alumina Refinery Joint Venture
Alcoa has announced that its Alcoa World Alumina & Chemicals affiliate has signed a Memorandum of Understanding with Vietnam National Coal-Minerals Industries Group (VINACOMIN) where the parties will explore the feasibility of creating a joint venture to develop a bauxite mine and alumina refinery in the Dak Nong Province of Vietnam.
The agreement calls for creation of a joint venture to explore the feasibility of construction and operation of an alumina refinery located in the Gia Nghia bauxite deposit area in Dak Nong Province, with first stage capacity
between 1 million and 1.5 million metric tons per year and expansion opportunities from there. Bauxite in the region is among the highest quality in the world, said Alcoa.The joint venture would be 51% held by Vinacomin and 49% held by Alcoa World Alumina & Chemicals. Alcoa will appoint the managing director of the facility who will operate it utilising the Alcoa Business System and in close connection with Alcoa's global refining system. Alcoa will be responsible for the marketing of alumina produced by the refinery.
As part of the agreement, transportation from the Dak Nong refinery to sea port will be carried by a railway to be implemented by other investors. The two parties will continue to work together to outline the next steps in
their cooperation.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 Corporation.
Alcoa World Alumina & Chemicals is a global alliance between Alcoa and Alumina Ltd, with Alcoa holding 60 percent.
www.alcoa.com
ENDS