Construction at the Nhan Co aluminum factory in Dak Nong Province.

Prime Minister Nguyen Tan Dung has ordered a comprehensive review of the planned bauxite mining and smelting projects in the Central Highlands to follow up the Politburo’s statement on the issue late last month.

The Ministry of Industry and Trade is required to review the projects, taking into account the influence of the global economic downturn, evaluate their likely environmental impact, and suggest possible modifications, PM Dung said in a statement posted Thursday on the government website.

The task for the Ministry of Natural Resources and Environment is to continue its research into the nation’s bauxite reserves and suggest control measures for bauxite mining.

The Vietnam Coal and Mineral Industry Group (Vinacomin), which PM Dung told to adhere strictly to the environmental protected regulations, must draw up detailed plans for land use, mining and post-mining environmental recovery to ensure minimum damage to farms and forests in the region.

These plans must be approved by the Ministry of Natural Resources and Environment before they are executed.

Vinaconmin can proceed with its mining and smelting plans for Tan Rai in Lam Dong Province but must evaluate the commercial viability and environmental impact before proceeding with the project at Nhan Co in Dak Nong Province.

The two provinces are responsible for liaising with government ministries and the miners to arrange compensation and resettlement for the people affected by the projects.

Resettlement must be handled in such a way as to improve the lives of relocated residents, and ensure that their traditions and cultures are preserved and supported.

The Ministry of Industry and Trade will deliver a progress report at the next session of the National Assembly, Vietnam’s parliament, in May.

In related news, Deputy Minister of Industry and Trade Le Duong Quang said modern technology will be used to dig up bauxite and extract alumina, and dismissed allegations that Chinese technology and Chinese workers will be employed.

“All the world’s major aluminum producers use the technology developed by Bayer, which has proven itself after nearly a century of use,” the government website quoted Quang as saying in an interview.

He said the technology will be used in the smelters at Nhan Co and Tan Rai to extract some 83.6 percent of the alumina from bauxite.

The EPC (engineering-procurement-construction) tenders for the projects have gone to the Chinese company Chalieco.

Quang confirmed that the projects are not joint ventures and belong solely to Vinacomin, which will employ local workers only.

The rumors that laborers from China will be brought in are ill-founded, he said.

Since the extraction process will consume a huge amount of electricity, several power stations will be built after 2010 for this purpose, he said.

At this stage, Vinacomin is preparing to build a hydroelectric dam and power station to be known as Dong Nai 5.

Source: Thanh Nien