Alcoa Inc. sees Vietnam's bauxite reserves as among the world's greatest underdeveloped deposits, the Vietnam Investment Review reported, citing Lloyd Jones, president of the company's Asian-Pacific unit.

Alcoa has agreed in principle with Vietnam National Coal- Mineral Industries Group on a venture to mine and refine bauxite deposits in the country, Jones said, according to the newspaper.

The company is studying the Gia Nghia bauxite deposit in the Central Highlands province of Dak Nong.

Vietnamese bauxite ore in the Central Highlands is high- quality and of high purity, with the bauxite relatively close to the surface, Jones told the newspaper. The initial cost of the project may exceed $1-billion, the newspaper said, citing Jones.

New York-based Alcoa, the world's biggest aluminum maker, said in April it may develop the Gia Nghia deposit and build an alumina refinery under a joint-venture arrangement, under which Vietnam National Coal-Mineral would have a 51% stake.

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