The state-owned Vietnam National Coal Mineral Industries Group (Vinacomin) will check the design of red-mud disposal lakes in the Tan Rai alumina plant following the recent red mud spill in Hungary, Vinacomin deputy director Duong Van Hoa told Tien Phong newspaper.
In an interview with Tien Phong on Wednesday, Duong Van Hoa said the red mud incident in Hungary has attracted the attention of the Party and State leaders as well as relevant ministries and agencies, and Vinacomin also watched closely the red mud spill of the world's first aluminum production industry in the last 100 years.
How is the Tan Rai project progressing?
Work on the Tan Rai alumina plant is entering its final stage. It is expected that the project will finish later this year, and the first product will come out early next year.
The project is about three months behind schedule due to the rainy season and several problems when importing equipment. However, the delay is not too serious for such a VND12 trillion (US$615 million) project.
What are the warnings that the Hungarian red mud spill can give the Tan Rai project?
I think it gives a very serious warning that makes us reconsider the design of the red mud disposal lakes in the Tan Rai alumina plant.
The plant is using Bayer technology. The equipment is not totally made in China but also in the EU, Japan and some in Vietnam. The main contractor is China’s Chalieco.
The disposal lake is designed by Samy Consulting Institute in Shenyang, one of the leading design institutes in China's aluminum industry.
The construction of the red mud disposal lake in Tan Rai is completely different from the one in Hungary. The one in Hungary is built on the lowlands while the Tan Rai disposal lake is located below the valley, protected by surrounding hills.
But the area has been hit by flash floods?
To prevent flooding in case of heavy rains or flash floods, we have designed the drainage system around the disposal lake to ensure water does not spill over the lake. When flash floods occur, water can not overflow the lake as the amount of red mud is not higher than surrounding hills.
We also studied the plan for earthquake resistance. We will review all the deigns of the red mud disposal system.
Some have raised concerns over the quality of works overseen by Chinese contractors. What do you think?
I have not seen any problems in the building of this plant by far. I was questioned a lot about why did not import equipment from the EU, the US or Australia.
If anyone thinks that we imported Chinese equipment because they are cheap, it is just one reason. There is another reason, that is the regulations. When the project is out there for bidding, there are very clear criteria. If their equipment are cheap but still meet world standard, they will win the contract.
What about the project’s economic effectiveness?
Regarding to economic effectiveness, we have calculated full costs and market conditions of the project.
This project can give a boost to economic development in the Central Highlands. It provides jobs to 2,000 local workers, and will require more services such as transport, and repairing services.
What about the profit?
It is calculated that the project will gain the profit of 11 percent. It is not high, but we must pursuit economic and social targets of the government.
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