It is forecast that Vietnam will have to reduce coal export this year and will start importing it from 2013.To ensure energy security, Prime Minister Nguyen Tan Dung has required the coal industry to only export types of coal that the domestic market doesn’t need. The Prime Minister also asked Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) to set up an annual plan for coal exploitation and import based on domestic demand.
Reducing coal exports
Mr Tran Xuan Hoa - Vinacomin President said: Vinacomin plans to reduce coal mining this year in order to maintain reserves for national energy security.
Vinacomin targeted to exploit 44 million tonnes of coal this year, 2.8 million tonnes lower than in 2010. This target would allow revenues from coal exports to still post a 10-percent increase this year due to higher prices, he added.
To further preserve reserves of dwindling domestic coal supplies, Vinacomin would also focus on mining high-quality, high-value coal for export, while importing lower-value coal for domestic electric, cement, fertiliser and paper production.
Vietnam’s coal industry is one of its most important industries. It fuels other industries like electricity, paper and cement. Along with economic growth, the need for coal is strongly increasing. When several coal-fired power plants in Ha Tinh, Nghi Son and the Mekong Delta are operational, demand for coal will jump. Recently, Vinacomin sought the Government's approval to increase coal prices for these four leading coal consumers to levels only 10 percent lower than export prices. The Prime Minister and the Ministry of Finance issued an instruction that prices of coal sold to these sectors should increase gradually until consistent with market prices.
Mr Hoa said he expected the State to soon undertake further measures for the domestic coal market that would allow all prices to be set by market forces. Meanwhile, a separate plan to increase coal prices for electricity producers would be carried out in two phases. In early 2011, prices would be set based on the 2010 production costs. Then, in the fourth quarter of this year, coal prices for power plants would be set at the same levels applied to other major consumers.
Vietnam to import coal from 2013
According to Reuters, Vietnam will become a coal importer in 2013 as a result of burgeoning industrial production and rising power demand. Vinacomin estimates that Vietnam will have to import between 3-5 million tonnes of coal per year in the short term, and 5 -7 million tonnes of coal per year later on from key coal suppliers such as Indonesia and Australia.
To ensure energy security, Prime Minister Nguyen Tan Dung has required the coal industry to only export types of coal that the domestic market doesn’t need. The Prime Minister also asked Vinacomin to set up an annual coal exploitation plan and import coal based on domestic demand.
The Prime Minister urged the industry to rapidly develop a competitive market, integrate further into regional and global markets, and to diversify investment and business methods. The industry should also intensify coal processing and diversify processed products.
Besides greater investment in labour safety, environmental protection and exploration and estimations of coal reserves to prepare fuel for long-term development, the industry should further invest in projects abroad.
Domestic coal consumption is expected to reach 382 million tonnes in 2025, including 337 million tonnes for electricity generation, according to the industry.
Huong Ly
Vietnamese
