Coal Industry: Moving forward with Development Strategy

 

Accordingly, the coal industry needs to find efficient and economical ways to explore and process coal. It needs to consider a reasonable import-export balance, gradually decreasing exports to reach the target of no longer exporting coal. The industry needs greater efforts to satisfy domestic demand and serve national socio-economic development. Vietnam plans to develop a stable and efficient coal industry balanced with other industries.

 

The coal industry is moving forward by applying modern science and technology in exploration, extraction, selection, processing and use of coal.

 

The industry needs active investment in foreign exploration to overcome the domestic shortage.

Vietnam is step by step building a competitive coal market, integrating with regional and international markets and diversifying investment and commercial models in the coal industry.

 

The industry’s development has to go along with ecosystem protection. It needs to join with socio-economic growth and tourism, and national security in coal exploitation zones, especially in Quang Ninh.

 

Vietnam is determined to produce 40 to 43 million tonnes of clean coal in 2010, 48 to 51 million tonnes in 2015, 55 to 58 tonnes million in 2020, 58 to 61 million tonnes in 2025 and 200 million tonnes in 2050.

Two main ways to extract coal in coal industry are surface mining and underground mining. Underground mining is very expensive. Although surface mining is less expensive, the area of open coal mines becomes smaller and smaller. Forecasts show that the percentage of surface mining will decrease from 26 percent in 2010, to 12.7 to 15.4 percent in 2015. As a result, underground mining is going to be essential.

 

The conditions of coal extraction in Vietnam are hard. With stocks estimated at more than 6 billion tonnes, only about 2.5 billion tonnes (of 3.8 billion tonnes of Quang Ninh mine) can be extracted. With growth of 12 per cent per year, that 2.5 billion tonnes will only last around 37 years. The goal is now to intensify exploration and searching, and to efficiently exploit the coal resource. But significant amounts of capital are needed for this.

 

Capital investment for the coal industry in 2007-2015 is calculated at VND 84 trillion, which seems too big for the coal industry’s ability. One of most effective ways to draw investment is through capitalization of coal enterprises, and public issue of shares. In the past few years, shares of coal industry companies have attracted domestic and foreign investors. At Than Nui Beo’s share issue, foreign investors bought all shares sold. Share issues of Than Coc Sau, Cao Son, Deo Nai and Ha Tu also had numerous investors.