Sunday, 4 May 2008

Mining group gets go-ahead in foreign partnerships

Nhan Dan
May 3, 2008

The Prime Minister has allowed the Vietnam Coal and Mineral Industry Group (TKV) to set up joint stock companies with foreign partners for bauxite-aluminum projects.

Under the scheme, the TKV is allowed to set up a joint stock company with at most 40% of its stake sold to foreign partners and nine other% to the public. The group will keep 51% to hold the control right of a majority share holder.

The permission will enable the mining giant to invite the Alcoa group of the US to buy up to 40% of shares of the Nhan Co aluminum production project in the Central Highlands province of Dak Nong , with a capacity of 600,000 tonnes a year.

It will also be able to sell to the Yunnan Metallurgy Group of China at most 20% of the stock of a bauxite-aluminum project in Lam Dong province, also in the Central Highlands.

The Government also asked the TKV to submit detailed explanations for its joint-venture plan with the BHP group, under which the BHP will contribute 49% to a railway project leading from the Central Highlands to the southern central province of Binh Thuan and 10% to a bauxite mining and processing project in Cambodia.

The group will also take part in mining and processing bauxite in Cambodia , contributing 10% to the investment. (VNA)

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