Lam Dong bauxite: Unlocking ore supply to drive growth

Securing ore supply to sustain production

In bauxite mining, securing sufficient mining areas is crucial to maintaining raw material supplies across the production chain. Dak Nong Aluminum Company - TKV has therefore focused on expanding mining areas, improving production and strengthening coordination between its mines, the ore processing plant and Nhan Co Alumina Plant.

In the first half of 2026, the company conducted mining across 22 reserve blocks covering 32.68 hectares. In June alone, operations covered 12 blocks, producing 384,625 tonnes of raw ore to maintain supplies to the processing plant.

Despite periods of unfavourable weather, the company adjusted transport plans and deployed equipment and workers accordingly to minimise disruptions. Raw ore supply was also balanced with processing capacity and demand from Nhan Co Alumina Plant, helping keep the production chain running steadily. In June, 141,200 tonnes of processed ore were transported to the alumina plant, reaching 97.4% of the monthly target. Total processed ore output exceeded 878,000 tonnes in the first six months of the year.

According to Nguyen Van Phong, Director of Dak Nong Aluminum Company - TKV, ensuring a stable supply of raw materials for Nhan Co Alumina Plant requires flexible and coordinated operations across the entire process, from mine preparation and extraction to ore processing and concentrate supply.

“The company closely follows mine designs and updates mining plans based on actual geological conditions in each area. We also prepare for the rainy season to minimise disruptions, ensure safety and maintain production,” Phong said.

Clearing land to expand production

Alongside flexible mining operations, Dak Nong Aluminum Company - TKV is working with local authorities to accelerate compensation and site clearance, gradually securing more land for mining. This is key to maintaining ore supplies, stabilising production and creating conditions for long-term expansion.

Since the beginning of the year, compensation and site clearance have been completed for 88.9 of the planned 115.3 hectares, reaching 77.1% of the target. By June 30, cleared land available for mining had reached 11.5 hectares, or 165.2% of the level at the beginning of the year.

At mining sites, land surveying, inventory checks, land-origin verification and compensation, support and resettlement procedures are being carried out simultaneously. At the year 11–14 mining area (phase 1), surveys and inventories have been completed for 67 households covering 54 hectares, while the Kien Duc Commune People's Committee has approved three compensation plans covering 45.7 hectares.

Securing funding, working closely with local authorities and maintaining dialogue with affected residents have helped accelerate site clearance. Each new area handed over not only expands mining capacity but also allows the company to better deploy equipment, organise transport, plan extraction and build ore reserves.

“This is essential for the company to proactively plan mining operations and secure a stable, long-term raw material supply for Nhan Co Alumina Plant. Expanding mining areas also gives us greater flexibility in operations, improves the use of equipment and workforce, and helps optimise production costs,” Director Nguyen Van Phong said.

Creating room for growth

With more land becoming available, Dak Nong Aluminum Company - TKV is organising mining operations more efficiently, aligning extraction with processing capacity and the raw material needs of Nhan Co Alumina Plant.

The company is prioritising cleared mining areas while improving ore extraction, transport and stockpiling to maintain a continuous supply. It is also optimising ore processing and washing technologies to increase concentrate recovery, reduce resource losses and improve quality control.

These efforts are particularly important as the company plans to expand production capacity, including developing a second production line at Nhan Co Alumina Plant with an annual capacity of 1.2 million tonnes during the 2026 - 2030 period. A stable, long-term ore supply will be crucial to achieving this goal.

“As more land becomes available, we expect to establish continuous mining areas that can secure ore supplies for Nhan Co Alumina Plant while laying the foundation for production expansion and sustainable growth in the coming years,” Phong said.

Alongside expanding mining areas, the company is working to ensure environmental protection, land restoration and efficient land use. It is also promoting research and technological improvements in mining, ore processing and environmental treatment to support more efficient and sustainable bauxite-alumina production.

Van Tam