Bauxite mines in Vietnam under scrutiny on environmental impact

Bloomberg reported that Mr Nguyen Tan Dung PM of Vietnam has asked the environment ministry to investigate the impact of 2 bauxite mines operated by Vietnam National Coal Mineral Industries Group in the Central Highlands. According to a statement on the government’s website, the state owned coal producer, known as Vinacomin, needs to speed up site clearance and resettlement of local people. Vinacomin is developing one mine at Nhan Co in Dak Nong Province with Aluminum Corporation of China Limited and another in Tan Rai in neighboring Lam Dong Province. The projects have come under criticism because of potential damage to the environment and use of Chinese unskilled laborers. According to statement, Nguyen Tan Dung asked Vinacomin to organize an auction for the bauxite screening plant, finish the licensing of the Tan Rai quarry and make sure contractors complete design contracts. Aluminum Corporation signed a USD 1.5 billion agreement with Vinacomin in November 2006. According to a statement from Alcoa, Alcoa Inc agreed in June 2008 to work with Vinacomin to develop the aluminum industry. Bauxite is used to make aluminum, the lightweight metal. (Sourced from Bloomberg)