Nhan Dan - Prime Minister Nguyen Tan Dung has rejected a project by the Posco Group from the Republic of Korea to build a steel mill in Dam Mon in Van Phong bay, Khanh Hoa province.

According to the Prime Minister, if being implemented, the steel mill invested by Posco in Van Phong Bay would clash with the planned development of Van Phong international container port which has already been approved.

In addition, the project has also failed to meet strict requirements for protection of the sea-ecological environment.

PM Dung asked leaders of Khanh Hoa province People's Committee to answer Posco and ask the group to find other possible sites for the project.

Earlier, in late July, during his working visit to Khanh Hoa, PM Dung stressed that priorities should be given to the Van Phong entrepot project and environmental protection as these were two important issues for ensuring sustainable development.

Posco steel mill project in Van Phong is designed to have a total capacity of 12 million tonnes of steel a year with total investment capital of nearly US$10 billion, covering over 900 hectares of land, overlapping a large area planned for the container port in Van Phong Economic Zone.

The project has not received agreement from experts, managers as well as local residents, saying it would damage the environment of this famous destination of tourist attraction.

Quang Hung