Vietnam's first alumina refinery would start producing in November after several delays and sell an expected 50,000 tonnes this year directly to clients without any tenders.

Mr Le Minh Chuan CEO of Vietnam National Coal and Mineral Industries Group said that alumina output at the USD 460 million Tan Rai plant would rise to 350,000 tonnes next year around half its projected annual capacity. No tenders had been planned yet. Vinacomin will give priority to the clients who are committed to signing long term contracts to buy alumina.

In late August, a Vinacomin manager with direct knowledge of the tenders said that the firm had invited various companies to join bidding and would award the product to those who pay the best price. Vinacomin and China's Yunnan Metallurgical Group have 30 year agreement under which the Vietnamese firm would sell 600,000 tonne to 900,000 tonnes of alumina a year to Yunnan Metallurgical to feed its smelter Yunnan Aluminum Industry Company Limited.

Mr Chuan said that YMG or any other clients willing to buy alumina has to negotiate directly with the group. He did not name potential buyers or give any reason for a low output in 2012 as the refinery has an annual capacity of 600,000 tonnes of alumina a white powder made from bauxite ore and used for producing aluminum.

Vinacomin and the Vietnam News Agency have said that the refinery was initially slated to start production in February and export alumina in March but those plans had been delayed and it was due to turn out its first product on September 20th 2011.

The Tan Rai bauxite alumina complex is built in the central highland province of Lam Dong. Vinacomin which is also Vietnam's top coal producer has been developing Nhan Co alumina project in the neighboring province of Dak Nong with projected initial output of 600,000 tonnes. It has awarded the engineering, procurement and construction contracts for both the Tan Rai and Nhan Company complexes to China Aluminum International Engineering Company.