The Lam Dong bauxite-aluminum project incurred losses of nearly 3,700 billion VND.

Although currently operating at a planned loss, the actual capital deficit that Vinacomin's Lam Dong bauxite-aluminum complex is bearing is eight times greater than the initial estimate.

"Father Nguyen Dinh Thuc incites parishioners."

Inspection results at the Lam Dong bauxite-aluminum complex project, invested by the Vietnam Coal and Mineral Corporation (Vinacomin), reveal unfavorable figures after three years of operation.

With an initial projected investment of nearly 7,800 billion VND (approximately 493.5 million USD), after four revisions, the project's capital was doubled to over 15,400 billion VND (805 million USD). Not only was the capital increased, but the project's implementation time was also extended, falling behind schedule by four years.

Since September 2013, after many efforts, the Lam Dong bauxite-aluminum complex has been put into operation.The project has a capacity of 650,000 tons of alumina per year (an increase of 50,000 tons compared to the design). This project consists of three components: bauxite mining, a bauxite ore processing plant, and an alumina plant.

However, after 3 years of operation, the machine was still in operation.This project is currently incurring losses totaling 3,700 billion VND, of which nearly 70% (approximately 2,520 billion VND) is due to production and business operations; 1,176 billion VND is due to exchange rate differences; and the remainder (1,660 billion VND) is due to exceeding the planned cumulative losses.

The Lam Dong bauxite-aluminum complex project incurred a loss of 3,700 billion VND after 3 years of operation.

Although the losses of the Lam Dong bauxite-aluminum project were within the planned figures for a newly operational project, the actual losses were eight times higher than the projections given by the investor, Vinacomin. Vinacomin's calculations at the beginning of 2014 indicated that the Lam Dong bauxite-aluminum project could incur losses of 460 billion VND in the first three years and generate profits of approximately 870 billion VND in the following five years.At that time, Vinacomin's leaders were optimistic, considering a loss of several hundred billion dong compared to projected annual revenue of 4,000 billion dong as "not a cause for concern." They also believed the project could fully recoup its investment within 13 years.

According to the inspection report, the main reason for the Lam Dong bauxite complex's losses exceeding the planned target was the prolonged investment period, which resulted in increased costs. In addition, theThe timing of the project's commencement of production (in 2013) coincided with a sharp decline in world market prices for alumina and aluminum, coupled with increased resource taxes and environmental fees, which further exacerbated the factory's difficulties.

According to the inspection report, despite incurring significant losses, the Lam Dong bauxite-aluminum complex is expected to cut its losses by the end of this year, thanks to the recovery of alumina prices on the world market and reduced production costs after a period of stable machine operation.

Over the past three years of operation, the Lam Dong bauxite-aluminum complex hasSeveral incidents have occurred, affecting the environment, such asThe rupture of the pipeline carrying excess water from the red mud pond to the ore processing plant, or the chimney leak... have caused public concern.

At a meeting between project leaders and Deputy Prime Minister Trinh Dinh Dung in early January 2017, government leaders emphasized that the plant must not allow even the smallest environmental incident to occur. The Deputy Prime Minister instructed ministries, agencies, and localities not to ignore public feedback regarding environmental issues. Furthermore, sanctions would be imposed requiring Vinacomin and the Lam Dong Aluminum-Bauxite Complex project leaders to comply with environmental protection regulations as stipulated by law.

According to VNE