Vietnam Seeks New Coal Sources

The coal basin with a vast reserve of 210 billion metric tons will be exploited to serve the increasing domestic demand. 

 

In order to realize the exploitation plan, the Vietnam Coal and Mineral Industries Group (Vinacomin) and the Vietnam National Oil and Gas Group (PVN) – two big energy giants – have recently signed a strategic cooperative deal, focusing on researches and preparations to exploit the basin.     

At first, the two sides will join hands in solving the geological information of coal seams, which have been discovered in the research and exploration process in the coal basin.   

The two corps has selected Thai Binh province to conduct pilot exploitation projects in the basin. The projects are expected to begin after 2010. 

 

The 3,500-square-kilometer coal basin is found to lie deeply from hundreds to thousands meters under the Red River delta, stretching throughout Hanoi-Hung Yen-Hai Duong-Thai Binh right to sea.   

It is estimated to own tens of coal seams with a total reserve of 210 billion metric tons, which is believed to be much bigger than coal mines in Vietnam’s northeastern region. 

 

In addition, in order to meet the coal demand of their thermo power plants, PVN and Vinacomin will also cooperate to buy coal or coal mines abroad to import exploited products back to Vietnam. 

They also agree to contribute capital to set up a coal transportation company in order to transport coal to Thai Binh and Vung Ang coal-fired power plants. The two giants will negotiate a deal to build Nitratamon production plant to produce explosives while boosting cooperation in other fields like real estate, infrastructure, finance, and securities.