Infrastructure Construction - POSCO plans bigger steel mill

KHANH HOA - The Government approved in principle a plan by South Korean
group POSCO to build a US$11.5 billion steel plant with a local partner,
said Chairman of Khanh Hoa provincial People's Committee Vo Lam Phi on
Tuesday.

Phi said the committee had received a Government despatch saying that
the Government approved construction of the steel mill at the Van Phong
international container port. The mill will be in line with a detailed
plan approved by the Ministry of Transport.

POSCO's hot-roll steel mill, a joint venture with Viet Nam's top
shipbuilder Vinashin, is due to be completed by 2010. The project had
previously raised concerns in Khanh Hoa Province as it is set to be
built near Van Phong Bay, close to the resort city of Nha Trang.

In response to these concerns, the Government has stressed that the
project will have to apply technological measures to ensure high
environmental protection standards. Construction work will be divided
into two phases, with the first phase costing about $3.5 billion, and
the second phase $8 billion.

Phi said the Government also gave POSCO the go-ahead to build a
1,000-megawatt thermal power plant to feed the mill.

POSCO, the world's leading steel maker, had already started building a
$1.13 billion cold-roll steel plant in the southern coast province of Ba
Ria-Vung Tau, 100 km southeast of HCM City. The plant is scheduled to
begin production in 2009.

South Korea last year topped the list of foreign investors in Viet Nam,
with $4.4 billion. Viet Nam's total economy grew by nearly 8.5 per cent
last year, the fastest rate in over a decade. - VNS



	Infrastructure Construction - POSCO plans bigger steel mill

	KHANH HOA - The Government approved in principle a plan by South Korean group POSCO to build a US$11.5 billion steel plant with a local partner, said Chairman of Khanh Hoa provincial People's Committee Vo Lam Phi on Tuesday. Phi said the committee had received a Government despatch saying that the Government approved construction of the steel mill at the Van Phong international container port. The mill will be in line with a detailed plan approved by the Ministry of Transport. POSCO's hot-roll steel mill, a joint venture with Viet Nam's top shipbuilder Vinashin, is due to be completed by 2010. The project had previously raised concerns in Khanh Hoa Province as it is set to be built near Van Phong Bay, close to the resort city of Nha Trang. In response to these concerns, the Government has stressed that the project will have to apply technological measures to ensure high environmental protection standards. Construction work will be divided into two phases, with the first phase costing about $3.5 billion, and the second phase $8 billion. Phi said the Government also gave POSCO the go-ahead to build a 1,000-megawatt thermal power plant to feed the mill. POSCO, the world's leading steel maker, had already started building a $1.13 billion cold-roll steel plant in the southern coast province of Ba Ria-Vung Tau, 100 km southeast of HCM City. The plant is scheduled to begin production in 2009. South Korea last year topped the list of foreign investors in Viet Nam, with $4.4 billion. Viet Nam's total economy grew by nearly 8.5 per cent last year, the fastest rate in over a decade. - VNS

	Oliver Massmann International Attorney at Law

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