The study focuses on assessing the effectiveness of bauxite mining and processing in the Central Highlands through the example of Tan Rai (Lam Dong) and Nhan Co (Dak Nong) bauxitealumina complexes by the method of extended cost benefit analysis. External costs have been localized to be taken into account, including opportunity costs, environmental costs, corporate social responsibility costs and contingency costs for environmental incidents. | VNU Journal of Science Earth and Environmental Sciences Vol. 36 No. 2 2020 58-67 Original Article Extend Cost Benefit Analysis of Bauxite Mining and Processing in the Central Highlands of Vietnam Trinh Phuong Ngoc1 Hoang Xuan Co2 1 Tan Trao University km6 Trung Mon Yen Son Tuyen Quang Viet Nam 2 VNU University of Science Vietnam National University Hanoi 334 Nguyen Trai Hanoi Vietnam Received 03 February 2020 Revised 12 April 2020 Accepted 15 April 2020 Abstract The study focuses on assessing the effectiveness of bauxite mining and processing in the Central Highlands through the example of Tan Rai Lam Dong and Nhan Co Dak Nong bauxite- alumina complexes by the method of extended cost benefit analysis. External costs have been localized to be taken into account including opportunity costs environmental costs corporate social responsibility costs and contingency costs for environmental incidents. The results showed that if calculating the environmental costs the Tan Rai complex does not bring effectiveness for society with a negative NPV value VND -5 167 422 million IRR is lower than the discount 10 Nhan Co complex is effective with positive NPV VND 145 862 million IRR is higher than the discount 10 but the operation of this complex is risky when analyzing the sensitivity of the indicators. A ton of alumina will require an average from VND to million of environmental costs. In a year two bauxite-alumina complexes in the Central Highlands create stable jobs for thousands of workers contributing from VND 1 200 to 1 400 billion of taxes and fees for the State equivalent to between VND and million per ton of alumina. From the lessons learned from Tan Rai and Nhan Co complexes the future bauxite mining and processing projects need to be implemented on schedule and operate at 100 of the designed capacity right from the first year to achieve optimal efficiency. In the future it is necessary to develop and evaluate the effectiveness of closed full
