Lucky’s US$160m Vietnam investment short on raw materials

Chen Liang-chuan, the founder of the Taiwan-based Lucky Cement Corp, may see his US$160m into He Duong Cement Co, Nin Binh, Vietnam in 2008 evaporate as the project has found itself suddenly without adequate raw material sources, according to Venews.

Chen Liang-chuan was awarded by the local government the right to mine a 72ha limestone field for 49 years. The project was approved by Nguyen and related ministries. However, just as the plant’s two new 4Mta production lines were about to start trial runs, the local Ninh Binh government rejected his request to begin exploited the field because it had designated the field part of the Trang An Scenic Landscape Complex before applying to UNESCO in September to have the area recognised as a world heritage site.

Sources at Lucky Cement said the Vietnamese authorities are trying to find another limestone mine to replace Duong’s original field but they are concerned about the new mine location leading to additional transportation costs.