Together with the Vietnam National Oil and Gas Group (PetroVietnam) and the Electricity of Vietnam Group (EVN), the State-owned Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) is determined to be a mainstay of national energy security. Therefore, Vinacomin has focused on reducing coal export, investing in new mines and supplying cheap coal for important users like power and fertiliser producers.
Coal export reduction
The Ministry of Finance decided to hike coal export tariffs to 20 percent from 15 percent in an attempt to ease possible coal shortage. According to the decision, export duty on coal was 20 percent from September 11. In addition to this, the Ministry of Finance also adjusts taxes on raw materials such as copper, aluminium and lead bars.
Due to coal export restriction policies in favour of energy security guarantee, coal companies reduce their export. Therefore, coal export volume in the first nine months of 2011 was down 13.7 percent year on year.
Investment for coal production
According to reports by the Ministry of Industry and Trade, the coal industry is trying to boost production and find new reserves to complete yearly targets.
In the first nine months in 2011, pure coal output reached 32.4 million tonnes, up 4.4 percent over the corresponding period of 2010. Coal consumption was 33.4 million tonnes, equal to 76 percent of the full-year plan and up 8 percent year on year. Of the sum, export was estimated at 12.5 million tonnes, or 76 percent of the yearly plan and 86.3 percent of last year’s corresponding period.
According to the Ministry of Industry and Trade, other mineral production is stable in the first nine months, with some seeing higher volumes. Particularly, copper sheet output expanded 86 percent to 612,000 tonnes; tin ingot production reached 718 tonnes, up 33 percent; gold production was estimated at 210 kilos, up 51 percent; and silver output was forecast at 143 kilos, up 2.5 times.
In addition, domestic coal consumption reached 20.9 million tonnes in the January - September period, fulfilling 76 percent of the yearly plan and representing a year on year increase of 21 percent. In detail, coal for electricity production rose 36 percent year on year, coal for fertiliser production augmented 72 percent, coal for paper production was up 64 percent, coal for cement production surged 20 percent, and coal for other users increased 6 percent.
Vinacomin expects to open new coalmines, including Khe Cham 2 - 4, Nui Beo and Mao Khe. The group will continue expanding output and will maintain current capacity. It will step up the modernisation of mining technologies with automated equipment and safety equipment.
Mining strengthening
Vinacomin has completed the construction and commissioning of Lam Dong bauxite and aluminium production complex in Lam Dong province, carried out Nhan Co alumina production factory project in Dak Nong province, and prepared for new projects like a hydrated alumina plant project in Lam Dong with an annual capacity from 300,000 to 600,000 tonnes and the route for bauxite transportation from Nhan Co project to the province of Binh Thuan.
The State-owned group has continued its investments for the Cao Bang steel and iron complex project in Cao Bang province, Dai Tu titanium powder production project, Dai Tu titanium ore preparation project, Na Rua mine project, a project upgrading Sinh Quyen bronze, a quality enhancement project for Thai Nguyen zinc electrolytic factory, an upgrading project for production expansion of Na Lung iron ore plant, Tinh Tuc tin open cast project, and the Minh Luong - Van Ban - Lao Cai coal mine project. Vinacomin also continues carrying out its projects in Laos and Cambodia.
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