Vinacomin Striving for Sustainable Development

Revenues for the group in the first six months of 2008 reached VND22 trillion, fulfilling 56 percent of the whole year’s target and an increase of 30 percent overall compared to the same period last year. Of the total revenues, revenues from coal consumption reached VND15.16 trillion, meeting 61 percent of the whole year target and increasing by 40 percent compared to the same period in 2007.

 

Regarding exports, the Vietnam National Coal and Mineral Industries Group said that in the first half of this year, total coal export volume hit 11.1 million tonnes. Revenues from coal exports reached more than VND9.2 billion; domestic coal business activities also hit VND5.9 billion, fulfilling 65.6 percent of the target and increasing by 59 percent compared to the same period last year.

According to the group, in order to boost domestic business activities, it has boosted production to ensure a consumption volume of 43 million tonnes in 2008. Priorities will be given to domestically coal-run industries such as electricity, fertiliser, paper and cement.

 

Coal exploitation, soil and coal consumption, mechanical production, industrial explosive business and production, electricity and minerals have also brought in big profits for the group. The group also plans to pour VND4 trillion into capital constructions to ensure implementation of its projects.

 

For investments, the group has injected more into purchasing technologies for exploitation projects in big open-cast mines such as Coc Sau, Cao Son, Nui Beo, Deo Nai, Ha Tu, Dong Bac, and Viet Bac.

 

Since June 1, the group has stopped small-volume coal exports via the Van Gia Border Gate in Northern Quang Ninh province to start large-volume exports; the group has also tightened control over local coal demands to prevent illegal coal consumption.

 

In the second half of 2008, the Vietnam National Coal and Mineral Industries Group will speed up exploitation projects and implementation of key projects to fulfill the set target. It is estimated that the group’s whole year revenues will reach between VND45 trillion and VND48 trillion, and its coal consumption will hit 43 million tonnes, satisfying the set target of profits and contributing to higher salary for labourers. Moreover, the group is injecting more investments into projects to ensure their implementation, protect the surrounding environment, ensure production safety and prepare for possible storms in the rainy season.

The Vietnam National Coal and Mineral Industries Group plays an important role in the country’s inflation fight. Thus, the group always makes careful considerations into price hikes unless it receives the official decision from the Government. In the third quarter of this year, the group will give priorities to anti-inflation tasks such as practicing thrift; controlling capital disbursement, cutting unnecessary investments of nearly VND1.3 trillion. In order to deal with fraud and speculation– one of main reasons for high inflation, the group will further tighten control over wholesale coal sales and retailed coal sales to prevent price difference. 

 

Coal plays a very important role in national energy security. Therefore, the group is seeking the government investment for coal exploitation in the Northeast and the Red River region as well as for research on coal exploitation projects in the Red River-Con Son region. By 2012, Vietnam will have to import coal. The volume of imported coal will be higher year by year and will reach 228 million tonnes by 2025 simply to meet local demands.