LAOS – MoU for alumina offtake

by toiban009 on August 16, 2011

Sino Australian Resources Co (SARCO) and China Non-Ferrous Metal Industry’s Foreign Engineering & Construction Co (NFC) have entered into a second Memorandum of Understanding (MoU) for a 20-year alumina offtake agreement for sale of alumina from Laos.

SARCO is the operating company established by Australia’s Ord River Resources and NFC to develop the Bolaven Plateau Bauxite Project in Laos which includes an alumina refinery.

The MoU involves SARCO and NFC entering into a minimum 20-year offtake agreement for SARCO to sell alumina products from Laos to an NFC-led buyer group. The agreed annual sale quantity will be 600,000 tonnes.

The sale price will be based on internationally recognized market prices and prices will be adjusted periodically to reflect market prevailing prices.

SARCO and NFC will convert this MoU into a binding contract that is compliant with internationally recognised standards in the future prior to the construction of the planned alumina refinery in Laos.

The MoU completes the initial round of negotiations for the three most important building blocks for the planned construction of a 600,000 tonne alumina refinery in Laos. The others are China Minsheng Banking Corporation’s letter of proposal for 70% debt financing and the MoU for fixed price and fixed term EPC contract with NFC for US$600 million.

SARCO’s intrinsic value resides in the planned construction of the alumina refinery. Alumina price is projected to rise to reflect a fundamental upward shift in long term demand curve.

Experts are predicting an international indexed pricing mechanism for alumina in the foreseeable future. Fast growing nations including China demand alumina to supply their growing manufacturing base.

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On August 9, Lao Party General Secretary and State President Choummaly Sayasone visited the Ho Chi Minh National Academy of Politics and Public Administration (HCMA) as part of his official visit to Vietnam from August 8-10.

In his speech, Mr Sayasone praised Vietnam’s socio-economic achievements and its raised status in the international arena and in the region.

He said he believes that, under the clear-sighted leadership of newly elected leaders based on the 11th National Party Congress resolution, the Vietnamese people will gain still greater achievements in their process of renewal and fulfill the target of becoming a modern industrial nation by 2020.

The Lao State President also spoke highly of the academy’s constant development and its contributions to the nation and international missions. “The academy has helped train many Lao revolutionary cadres who are now working effectively or have become key Party and State leaders,” said Mr Sayasone.

He briefed the academy’s representatives on Laos’ significant recent achievements, which have contributed to maintaining political stability, speeding up economic growth and improving people’s living standards.

“We are making every effort to implement our 9th National Party Congress resolution and the socio-economic targets for 2011-2015 with a focus on developing human resources, administrative reform, poverty reduction and improving infrastructure to help the country shed its status as an under developed nation by 2020,” said Mr Sayasone.

Regarding future relations between the two countries, the Lao Party leader affirmed that, despite the rapidly changing world situation, the ties of friendship, solidarity and comprehensive cooperation between the two Parties, States and peoples will still be consolidated based on respect for independence, sovereignty, and mutual help and benefit.

Both countries will pay more attention to educating their younger generations about the special Vietnam-Laos special relationship, the foundation of which was laid by late President Ho Chi Minh and Lao Presidents Cayson Phomvihan and Suphanuvon. This relationship continues to be fostered by Lao and Vietnamese Party and State leaders with great contributions from both countries’ soldiers and people.

Earlier, in his welcoming speech, HCMA Director Ta Ngoc Tan reaffirmed that the Vietnam-Laos friendship, an invaluable asset for both countries, is developing constantly through more effective cooperation and mutual assistance between agencies, businesses and social organizations, thus contributing to each country’s national development.

In addition to training personnel, the academy is cooperating with Laos to conduct scientific studies on building the ruling parties in Vietnam and Laos, and translating the works of Marx, Lenin, Engels and Ho Chi Minh into Lao.

The Lao Party and State praised the academy’s contributions to strengthening the friendship between the two countries and awarded it the Lao Itsala Order, first class.

Source: VOV

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