Friday, 10/04/2009 19:17

Leaders debate sustainability vs. profitability in bauxite mining

Officials at a conference in Hanoi Thursday debated whether or not a major bauxite mining project in the Central Highlands could be both sustainable and profitable.

Bauxite mining is essential to the economic development of the Central Highlands and it can and will be carried out “sustainably,” said Deputy Prime Minister Hoang Trung Hai as he reaffirmed the government’s official position toward the practice.

Many experts at the conference said bauxite projects could destroy the environment and cultural heritage of the region.

But Hai said the country would not consider exploiting the mineral by “any means” and would readjust the projects in an effort to minimize the effect to the environment.

In November 2007, the government authorized the Vietnam Coal and Mineral Industry Group (Vinaconmin) to carry out a major bauxite project in Dak Nong and other Central Highlands provinces.

At the conference, many experts called for the project to be carried out only once comprehensive studies of its environmental impact were completed.

But others were also worried about profits.

Nguyen Van Ban, former head of the Vinaconmin’s Aluminum Committee, said the profits from the Tan Rai project in Lam Dong Province and the Nhan Co project in Dak Nong Province would likely be much lower than expected.

The export prices of aluminum were estimated at between US$310 and $362 per ton when the projects were initially planned. But those prices are between $130 and $210 higher than the current prices on the world market, said Ban.

Several experts said mining in the area must therefore be carried out on a trial basis first.

“Vinaconmin should research and modify the scale, location and environmental impacts of the projects based on sustainable development regulations issued by the government,” said Nguyen Dinh Hoe of the Vietnam Association for Conservation of Nature and Environment.

“The corporation should take a trial step at Tan Rai and Nhan Co before expanding the projects,” he said.

Vinaconmin has yet to evaluate the full environmental impacts of the project as stipulated in the Environment Law, said Hoe.

Le Van Cuong, former head of the Ministry of Public Security’s Institute for Strategy and Science, said the projects would not affect the security issue. However, he said the project planners had failed to clarify what was “sustainable” about the developments.

“I suggest carrying out the project at Tan Rai only,” he said. “Other projects would be developed based on the effectiveness of this one.”

Pham Bich San, deputy general secretary of Vietnam Union of Science and Technology Associations, also supported the idea of a trial step at Tan Rai.

The world aluminum market was unstable and the preparation of infrastructure and personnel had yet to be completed, he said.

However, Vinaconmin’s chairman Doan Van Kien said the project had already been evaluated by relevant authorities after some related disputes. He said the project had been prepared over 10 years ago.

“We concluded that the project would be profitable,” he said.

“After researching aluminum projects in Yunnan and Guangxi in China, we can say that we could make much higher profits [at the projects in the Central Highlands],” he said.

thanhnien, vietnamplus

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