Vietnam Vinacomin Likely to Raise Coal Prices Next Year
The state-owned Vietnam National Coal-Mineral Industries Group (Vinacomin) is preparing a plan to raise coal prices to major consumer groups early next year.
The group said coal prices to the cement, paper and fertilizer industries are 40% lower than the export prices so it will gradually narrow the gap.
Vinacomin plans to hike coal prices to the electricity industry in the fourth quarter of 2011 after applying price increase to other consumption groups.
Earlier on Mar. 1, Vinacomin raised prices of coal coded 4b for the power industry by 46.6% to VND648,000/ton, coal coded 5 by 28.23% to VND520,000/ton, coal coded 6a to VND450,000/ton and coded 6b to VND395,000/ton in line with the power price hike of 6.8%.
The group is estimated to earn over VND1 trillion ($51.28 million) more this year from the coal price hike but the figure is still modest compared to the additional revenues of VND5.8 trillion by the power industry from the latest power price rise.
Vinacomin is investing in five coal mines with a production output of between 1.5 million and 2 million tons and investment of between VND2 trillion and VND2.5 trillion each and it is estimated to need between VND10 trillion and VND15 trillion per year for its projects. (Investment)
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