The bank will extend financing for the project to the tune of VND1.2 trillion (US$72 million) as part of an overall credit package for Vinacomin worth up to VND2 trillion ($120 million) for the group and its affiliates for major coal projects.

The 142ha Lam Dong bauxite-aluminium complex, worth VND7.79 trillion ($470 million), is expected to go into operation in 2010, with a projected capacity to exploit 4 million tonnes of bauxite and produce 600,000 tonnes of aluminium per year.

Vietcombank also agreed on October 10 to partially finance the Lam Dong bauxite project, bringing the combined financing package to a total of VND2.4 trillion ($144 million).

Vinacomin said the group needed an additional $2.5 billion in financing to develop its projects over the next 10 years.