As of April 2024, the raw ore output at Nhan Co Alumina Plant (Dak Nong) has dropped significantly, being only 1/6 of the amount compared to the same period last year.
Dak Nong Aluminum Company Faces Challenges Due to Raw Material Shortages – Risk of Production Halt
On May 4, Nguyen Vu Hoang, Deputy Director of Dak Nong Aluminum Company, reported on the company’s ore mining performance since the beginning of 2024. So far, the company has mined 557,000 tons of ore, which is 13.2% of the annual plan. Refined ore production stands at 467,000 tons (28.3% of the plan), and converted alumina production is over 164,000 tons (25.3% of the plan).
Causes of Raw Material Shortage
The primary cause of the material shortage is difficulties in land compensation and site clearance, leading to insufficient mining area and raw material supply for the alumina plant. As of April 2024, the raw ore output at Nhan Co Alumina Plant has dropped significantly, to only 1/6 of the amount compared to the same period last year.
Risk of Production Halt
With the severe ore shortage, the company faces the risk of partially halting production at the plant. Currently, the stock of ore in the warehouse is down to just over 100,000 tons, a sharp decrease from the previous year. The company is working hard to maintain production by adjusting output and collaborating with local authorities to encourage land handovers.
Mitigation Measures and Requests
Dak Nong Aluminum Company has completed a plan to close part of the mine and is seeking support from local authorities in land compensation, site clearance, and resettlement. Nguyen Vu Hoang emphasized that if the raw material shortage cannot be resolved, there is a significant risk of a total production halt, which would be costly for the company.
To ensure stable production, the company requires active support from local government and relevant agencies to address land and material issues.
In summary, Dak Nong Aluminum Company is facing significant challenges due to raw material shortages, with a real risk of partial production halts. The company is working to address these issues and maintain stable production for sustainable future growth.
Source: congthuong.vn