Vietnam National Coal and Mineral Industries Group (Vinacomin) has again proposed the Ministry of Finance cut the environmental protection fee on its bauxite projects by 90%.

Vinacomin made the proposal at a meeting held in Quang Ninh Province last week to discuss new regulations on the environmental protection fee for mining activities though the ministry turned down such a proposal for several times in the past.   

The current environmental protection fee on bauxite projects varies from VND30,000 to VND50,000 a ton at different localities but Vinacomin wants it to be cut to VND4,000 a ton. However, the ministry said the fee of VND4,000 per ton is equal to that for projects exploiting soil and sand for production of building materials.

Earlier, Vinacomin asked the ministry and the government of Lam Dong Province to reduce the environmental protection fee on Tan Rai alumina plant but its proposal was denied.

Vinacomin bemoaned the current environmental protection fee applicable to its projects is too high as bauxite mining leaves little negative impact on the environment. The corporation said red sludge is only discharged at the processing site and investors have spent big on a sludge treatment system.

Since Tan Rai and Nhan Co alumina plants were commissioned, Vinacomin has got a lot of incentives to reduce losses. These incentives are related to land rent, import tariff exemptions for equipment and devices for the two factories, and a tax break for alumina exports.

At the end of last year, Vinacomin petitioned relevant agencies to give it the highest incentives ever to Tran Hong Quan Co. Ltd., the investor of Dak Nong aluminum electrolysis plant in Dak Nong Province. The firm wanted a power price of just 5.3-5.4 U.S. cents per kWh instead of 6.5 U.S. cents but such proposed electricity tariff was not approved.

According to a report of the Ministry of Industry and Trade sent to the National Assembly Standing Committee in March, Tan Rai alumina plant is projected to rack up losses of VND252 billion this year and VND10 billion in 2016. Meanwhile, Nhan Co alumina factory is seen running at a loss which doubles that of Tan Rai plant in 2015-2020.
Source: vietnamnet.vn