HA NOI (Biz Hub) — Viet Nam Chemical Group (Vinachem) and Vietnam Lao Chemical and Rock Salt Limited Company (Vilachemsalt) yesterday in Ha Noi signed an engineering, procurement and construction (EPC) contract for the joint US$450 million Viet Nam–Laos project to process salt in Khammouan Province in Laos.

Nguyen Huy Cuong, general director of Vilachemsalt, said the Vinachem signed a 25-year concession agreement with Laos Government on February 9th 2012 to mine salt across an area of 1,000 hectares.

The Lao Government granted investment licence to the project in 2013.

Cuong said the Vilachemsalt, in co-operation with Vinachem, to organise a bidding package No 10 including the design, supply of materials and equipment, construction, training, technology transfer, commissioning, startup and commissioning, acceptance of mining plant and rock salt processing at Laos (EPC).

The bidding was open internationally and eight factories participated. Two of the factories were found eligible to submit the bidding application.

A joint venture of TTCL-K-ETEC CECO won the bidding with value of $334.2 million within 40 months.

The project aimed to process 320,000 tonnes of salt a year.

On completion, the project will be able to supply the Lao market, thus reducing salt imports and boosting economic development in Khammouan province.

According to the International Council on Mining and Metals (ICMM), mining industry represents 80 per cent of foreign direct investment in Laos, accounts for 45 per cent of its total exports and is responsible for 12 per cent of government revenues and 10 per cent of national income. — VNS