According to the calculations by Vietnam Coal and Mineral Industries Group (Vinacomin), Vietnam will need to import coal to supply domestic power plants from 2013. From then, a real energy crisis may occur. And, Vinacomin is now preparing desperately for this likely crisis.
New goal
Vinacomin expects the country's coal demand to rise to 94 million tonnes by 2015, with 67 million tonnes to be consumed by power plants, and a production forecast of not more than 60 million tonnes. By 2025, demand is projected to increase to 308 million tons.
Projecting to 2025, coal demand will be 308 million tonnes. Power plants will consume 268 million tonnes and industries that use coal in production, e.g. steel, glass, cement, fertilizer and chemicals; domestic coal production will be 70 million tonnes.
In the face of the prospect that demand for coal will be very big, activities to push up coal exports continue. Vinacomin says that in the first seven months of 2009, the group’s member companies have exported 13.586 million tonnes of coal, a seven % increase over the same period of 2007.
Efforts to stop illegal coal exploitation
Coal trading between Vietnamese and Chinese companies resumed after the lifting of a May 2007 ban imposed because of heavy coal smuggling in the northeast province of Quang Ninh. In March, Vietnam's Minister of Industry and Trade authorized the export of 3 million tons of coal from Quang Ninh to the Chinese province of Quang Tay. A month before, the Finance Ministry agreed to a 10 % reduction in surcharges on coal exports to help boost the economy.
Vinacomin is expected to export 10.5 million tons of coal to China from the second half of this year and the first quarter of 2010. The sale of 2.5 million tons of fine anthracite coal to China, Vinacomin said, would go through the Van Gia transshipment area of Quang Ninh through direct contracts with Chinese companies in which coal could be exchanged for goods.
Yet illegal coal export in Vietnam is showing signs of getting out of control again in Quang Ninh. Quang Ninh politicians pointed the finger at Vinacomin as the main source of illegally exported coal. The Vinacomin companies reportedly covered the China shipments with falsified invoices indicating sales to Vietnamese domestic consumers. Vinacomin itself has had to discipline many dozens of cadre and staff, including some senior managers of component companies like Mao Khe Coal and Dong Vong Coal and in a TKV commercial investment and services enterprise.
Not simply to stop its illegal exploitation but also to ensure the nation’s energy self-sufficience in years ahead. It is clear that Vinacomin is still infatuated with the notion of coal exports. It notes that in a recent report, TKV said in 2010, it expects to produce 45 million tonnes of coal so, therefore, if the domestic coal demand is 25-26 million tonnes, Vinacomin will be able to export 20 million tonnes of coal in that year.
Khanh Van
Vietnamese
