Lâm Đồng province has officially leased over 1 million square meters of land to the Vietnam Coal and Mineral Industries Holdings Corporation (TKV) to develop the Lâm Đồng Bauxite-Aluminum Complex Project. This move promises significant potential for the local aluminum industry, while also presenting new challenges for sustainable management and development.
Lease Terms and Transaction Value
Lâm Đồng People’s Committee approved the land lease at a rate exceeding 562,000 VND per square meter for a 14-year period, ending on June 20, 2039. This substantial investment is expected to bring considerable economic benefits to the region.
TKV’s Responsibilities and Related Agencies
TKV is responsible for utilizing the land according to its intended purpose and regulations, safeguarding the environment, and preserving public infrastructure. The corporation must also comply with all relevant laws regarding unearthed objects, environmental protection, and avoiding harm to the rights of surrounding landowners. TKV is obligated to return the land to the state when reclaimed.
Local authorities are tasked with defining property boundaries, leasing the land to TKV, and monitoring compliance, thereby preventing any violations.
Impact on the Aluminum Industry
The Alumin factory, part of Lâm Đồng Aluminum Company (TKV), produced 710,000 tonnes of aluminum in 2024, generating revenue of 3.636 trillion VND. The expansion of this project through the land lease is anticipated to boost the development of the aluminum industry in Lâm Đồng, creating jobs and increasing local revenue.
Conclusion
The Lâm Đồng Bauxite-Aluminum Complex Project promises substantial economic benefits for Lâm Đồng province. However, the project’s implementation also presents challenges regarding management and environmental protection, demanding close collaboration among relevant agencies and responsible action from TKV. Project success depends on strict adherence to legal regulations and a commitment to environmental protection.
