Tuesday, May 06, 2008; Posted: 09:48 PM
"We'll be looking to meet with the government shortly to fully understand their intentions moving forward and lay out a plan for doing so," said spokesman Kevin Lowery in an e-mail.
"(We) continue our interest here knowing this area has great potential for the aluminum industry."
Vietnam's Prime Minister Nguyen Tan Dung on May 2 issued a directive allowing the country's largest mining firm Vietnam National Coal & Mineral Industries Group, or Vinacomin, to offer Alcoa a 40% stake in a joint venture.
The joint venture would produce 600,000 metric tons of alumina a year from the central region, the government said on its Web site.
Alumina is the raw material used to produce aluminum.
Alcoa's affiliate Alcoa World Alumina Chemicals signed a memorandum of understanding in 2006 with Vinacomin to look at developing a bauxite mine and alumina refinery in the province of Dak Nong. AWAC is a joint venture operated by Alcoa and Alumina Ltd. (AWC.AU), with 60% owned by Alcoa and 40% by Alumina.
Plans for the refinery, which was to have an initial output of 1 million to 1.5 million tons of alumina, haven't progressed beyond this point since then.
The MOU called for a 51% stake to be held by Vinacomin and 49% held by Alcoa.
A number of foreign miners have signed agreements and shown interest in developing bauxite and alumina projects in Vietnam, although they all similarly remain at initial stages.
Vietnam has an estimated 5.5 billion tons of bauxite ore, placing it among the top five countries in the world for bauxite reserves.
-By Matthew Walls; Dow Jones Newswires; 65-6415-4082; matthew.walls@dowjones.com
(END) Dow Jones Newswires
05-06-08 2148ET
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